International Tower Hill Mines Ltd. (TSX: ITH)(NYSE Amex:
THM)(FRANKFURT: IW9) ("ITH" or the "Company") announces an updated
global mineral resource estimate for the Money Knob deposit at its
100% controlled Livengood Gold Project near Fairbanks, Alaska. The
independently prepared estimate has upgraded over 50% of the gold
resource from the Company's previously reported June 2010 resource
model into the Measured category in all three principal gold
cut-off grade categories (0.3 g/t, 0.5 g/t and 0.7 g/t),
significantly improving the confidence level of the overall
deposit.
Updated Livengood Resource Estimate
Using a 0.5 g/t gold cut-off, the Money Knob deposit now
contains estimated Measured resources of 7.4 million ounces at an
average grade of 0.83 g/t gold, Indicated resources of 3.2 million
ounces at an average grade of 0.83 g/t gold and Inferred resources
of 2.7 million ounces at an average grade of 1.11 g/t gold (see
Table 1).
In addition, at a 0.7 g/t gold cut-off (which the Company
envisions as a possible milling cut-off grade), the project
contains Measured resources of 4.7 million ounces at an average
grade of 1.07 g/t gold, Indicated resources of 2.0 million ounces
at an average grade of 1.12 g/t gold and Inferred resources of 1.5
million ounces at an average grade of 1.11 g/t gold (Table 2). At a
0.3 g/t gold cut-off (which is approximately the average grade for
the heap leach described in the Company's November, 30, 2009 heap
leach PEA study), the project contains Measured and Indicated
resources of 15.3 million ounces at an average grade of 0.61 g/t
gold and Inferred resources of 4.9 million ounces at an average
grade of 0.54 g/t gold (Table 3).
While the latest resource estimate is comparable in size and
grade to the previous June 2010 resource model, the focus of the
2010 Summer/Fall drill program was to conduct significant infill
drilling to confirm the continuity and grade of the deposit. Given
that over 50% of the total resource has been converted to the
Measured category, the 2010 drill program was successful in adding
significant confidence to the resource size and overall project
development plan. The new data is also derived from a more rigorous
modeling effort which further constrained the estimate to add
confidence to higher grade areas of the deposit. This increased
confidence level is critical in forming the basis of the Company's
potential mining plans, including the design of starter pits and
the early mining phases of the project.
Additionally, drill results from late 2010 and early 2011 have
demonstrated one key area for potential future expansion of the
Money Knob Deposit: at depth. In late 2010, a limited number of
holes drilled beneath the existing deposit (at depths of 350 to 450
metres) intersected a higher grade zone of mineralization,
highlighted by hole MK-RC-0458 which intercepted 112.8 metres at
2.6 g/t gold and hole MK-RC-0470 which intercepted 13.7 metres of
5.45 g/t gold. The Company is currently testing this higher grade
gold zone with a series of deep core holes and results could have a
significant impact on overall deposit size and grade.
"The new resource estimate illustrates the excellent continuity
of mineralization and grade throughout this new, world-class gold
discovery and bodes well for further potential resource expansion,
particularly in the higher grade zone at depth," states Jeff
Pontius, Chief Executive Officer of ITH. "This update also confirms
our understanding of the higher grade areas of the deposit which
could form the 'starter pit' phase of our mining plan. In addition
to our ongoing aggressive exploration work, we are committed to
advancing the Livengood project through development to become North
America's next major gold mine."
Table 1: April 2011 Livengood Resources (at 0.5 g/t gold
cutoff)
---------------------------------------------------------------------------
Gold Million
Cutoff Tonnes Gold Ounces
Classification (g/t) (millions) (g/t) Gold
---------------------------------------------------------------------------
Measured 0.50 277 0.83 7.4
---------------------------------------------------------------------------
Indicated 0.50 120 0.83 3.2
---------------------------------------------------------------------------
Total M & I 0.50 397 0.83 10.6
---------------------------------------------------------------------------
Inferred 0.50 104 0.79 2.7
---------------------------------------------------------------------------
Table 2: April 2011 Livengood Resources (at 0.7 g/t gold
cutoff)
---------------------------------------------------------------------------
Gold Million
Cutoff Tonnes Gold Ounces
Classification (g/t) (millions) (g/t) Gold
---------------------------------------------------------------------------
Measured 0.70 138 1.07 4.7
---------------------------------------------------------------------------
Indicated 0.70 55 1.12 2.0
---------------------------------------------------------------------------
Total M & I 0.70 193 1.08 6.7
---------------------------------------------------------------------------
Inferred 0.70 41 1.11 1.5
---------------------------------------------------------------------------
Table3: April 2011 Livengood Resources (at 0.3 g/t gold
cutoff)
---------------------------------------------------------------------------
Gold Million
Cutoff Tonnes Gold Ounces
Classification (g/t) (millions) (g/t) Gold
---------------------------------------------------------------------------
Measured 0.30 519 0.62 10.4
---------------------------------------------------------------------------
Indicated 0.30 258 0.59 4.9
---------------------------------------------------------------------------
Total M & I 0.30 777 0.61 15.3
---------------------------------------------------------------------------
Inferred 0.30 282 0.54 4.9
---------------------------------------------------------------------------
Current 2011 Drilling Campaign
The Company is currently operating seven diamond and reverse
circulation (RC) drill rigs focused on step-out and infill drilling
of the deposit in the southwest area, particularly in the higher
grade discovery zone directly below the current deposit. Results
from this campaign, which ends in June, 2011, will be incorporated
into an updated resource report to be released in the fourth
quarter of 2011. This fourth quarter report will form the basis for
the Company's ongoing pre-feasibility study, which is scheduled to
be completed by the end of 2011.
An initial district-wide exploration program will also begin
shortly to explore outside the main resource area at Livengood and
target new deposits like Money Knob along a 10-kilometre-long
mineralized trend.
Resource Update Preparation
Reserva International, LLC., an independent contractor, prepared
the updated mineral resource estimate which incorporates a total of
529 RC and 103 diamond core holes totalling 177,196 metres and
having an average length of 280 metres, as well as 11 trenches with
an average length of 38 metres. The April 2011 measured, indicated
and inferred global mineral resource estimate for the Livengood
deposit covers an area of approximately 4 square kilometres. The
geology has been modeled to represent the volumes of the different
stratigraphic units on the property and these have been used to
constrain the resource model.
The resource model for the deposit was developed using Multiple
Indicator Kriging techniques. Indicator variogram modeling was done
on 10-metre composites. Statistical analysis indicated that
lithological controls on mineralization are significant and
consequently the resource model was heavily constrained by the
lithological model developed by the Company. Spatial statistics
indicate that the mineralization shows reasonable continuity within
the range of anticipated operational cut off grades. Bulk density
was estimated on the basis of individual density measurements made
on core samples and reverse circulation drill chips from each
stratigraphic unit. In total, 138 measurements were used. Block
density was assigned on the basis of the lithological model. The
resource model, with blocks measuring 15 x 15 by 10 metres, was
estimated using nine indicator thresholds. A change-of-support
correction was imposed on the model assuming 5- x 5- x 10-metre
selectable mining units. Classification was based on 3-pass
interpolation using a different search radii and minimum sample and
octant requirements established by an analysis of the variography.
Measured and indicated classes were defined by these search
criteria and the indicated-inferred boundary was defined using a
combination of search parameters and kriging variance.
The geology of the holes around the margins of the currently
drilled area indicates that the favourable host stratigraphy and
alteration remain open laterally and at depth, thus indicating that
the system could potentially be larger than the current
estimate.
Livengood Project Highlights
-- ITH controls 100% of its approximately 145 square kilometre Livengood
land package, which is made up of fee land leased from the Alaska Mental
Health Trust, a number of smaller private mineral leases and 115 Alaska
state mining claims.
-- The Livengood project has a very favourable logistical location, being
situated 110 road kilometres north of Fairbanks, Alaska, along the
paved, all-weather Elliott Highway, the Trans-Alaska Pipeline Corridor,
and the proposed Alaska natural gas pipeline route. The terminus of the
Alaska State power grid lies approximately 80 kilometres to the south.
-- Drilling at the project continues to expand the deposit, with the
current estimated resource only representing a snapshot in time. The
latest resource estimate (as at April 11, 2011) of 277 Mt at an average
grade of 0.83 g/t gold for 7.4 Moz gold in the Measured category, 120 Mt
at an average grade of 0.83 g/t gold for 3.2 Moz gold in the Indicated
category, and 104 Mt at an average grade of 0.79 g/t for 2.7 Moz in the
Inferred category, all at a 0.5 g/t gold cut off grade, makes it one of
the largest new gold discoveries in North America.
-- The Core and Sunshine zones together account for most of the higher
grade mineralization (Measured resources of 138 Mt at an average grade
of 1.07 g/t, Indicated resources of 55 Mt at an average grade of 1.12
g/t gold and Inferred resources of 41 Mt at an average grade of 1.11 g/t
gold, based on a cut-off grade of 0.7 g/t gold) and will form the basis
for starter pit design work.
-- Ongoing metallurgical studies are focused on the potential use of
conventional whole ore milling with a gravity-CIL system for oxide ore,
which produced initial recoveries of 89%, and milling with a flotation-
gravity circuit for the sulfide ore, which has returned initial
recoveries to a concentrate of 89%, offering significant potential for
operational and capital cost savings. Initial heap leach recoveries for
oxide material crushed to one-half inch averages approximately 70%.
Ongoing test work is focused on optimizing the oxide ore for both
milling and heap leaching as well as enhancing sulfide ore recoveries
with potential to make significant positive impacts on project
economics.
-- The geometry of the currently defined shallowly dipping, outcropping
deposit has a low strip ratio amenable to low cost open pit mining which
could support a high production rate and economies of scale.
-- No major permitting hurdles have been identified to date.
Geological Overview
The Livengood Deposit is hosted in a thrust-interleaved sequence
of Proterozoic to Palaeozoic sedimentary and volcanic rocks.
Mineralization is related to a 90 million year old (Fort Knox age)
dike swarm that cuts through the thrust stack. Primary ore controls
are a combination of favourable lithologies and crosscutting
structural zones. In areas distal to the main structural zones, the
selective development of disseminated mineralization in favourable
host rocks is the main ore control. Within the primary structural
corridors, all lithologies can be pervasively altered and
mineralized. Devonian volcanic rocks and Cretaceous dikes represent
the most favourable host lithologies and are pervasively altered
and mineralized throughout the deposit. Two dominant structural
controls are present: 1) the major shallow south-dipping faults
which host dikes and mineralization which are related to dilatant
movement on structures of the original fold-thrust architecture
during post-thrusting relaxation, and 2) steep NW trending linear
zones which focus the higher-grade mineralization which cuts across
all lithologic boundaries. The net result is broad flat-lying zones
of stratabound mineralization around more vertically continuous,
higher grade core zones with a resulting lower strip ratio for the
overall deposit and higher grade areas that could be amenable for
starter pit production.
The surface gold geochemical anomaly at Livengood covers an area
10 kilometres long by 2 kilometres wide, of which approximately one
quarter has been explored by drilling to date. Surface exploration
is ongoing as new targets are being developed to the east and west
of the known deposit.
Qualified Person and Quality Control/Quality Assurance
Tim Carew, P.Geo., of Reserva International, LLC., a mining
geo-scientist, is a Professional Geoscientist in the province of
British Columbia (No. 18453) and, as such, is acting as the
Qualified Person, as defined in NI 43-101, for the April 2011
resource modeling for the Livengood deposit. Mr. Carew has a B.Sc.
degree in Geology, an M.Sc in Mineral Production Management and
more than 34 years of relevant geological and mining engineering
experience in operating, corporate and consulting environments.
Both Mr. Carew and Reserva International, LLC. are independent of
the Company under NI 43-101.
Jeffrey A. Pontius (CPG 11044), a qualified person as defined by
National Instrument 43-101, has supervised the preparation of the
scientific and technical information that forms the basis for this
news release and has approved the disclosure herein. Mr. Pontius is
not independent of ITH, as he is the CEO and holds common shares
and incentive stock options.
Development work at the Livengood Project is directed by Carl E.
Brechtel (Colorado PE 23212, Nevada PE 8744), who is a qualified
person as defined by National Instrument 43-101. He is a member of
AusIMM and SAIMM. Mr. Brechtel is not independent of ITH, as he is
the President and COO and holds incentive stock options.
The work program at Livengood was designed and is supervised by
Chris Puchner, Chief Geologist (CPG 07048), of the Company, who is
responsible for all aspects of the work, including the quality
control/quality assurance program. On-site personnel at the project
photograph the core from each individual borehole prior to
preparing the split core. Duplicate reverse circulation drill
samples are collected with one split sent for analysis.
Representative chips are retained for geological logging. On-site
personnel at the project log and track all samples prior to sealing
and shipping. All sample shipments are sealed and shipped to ALS
Chemex in Fairbanks, Alaska for preparation and then on to ALS
Chemex in Reno, Nevada or Vancouver, B.C. for assay. ALS Chemex's
quality system complies with the requirements for the International
Standards ISO 9001:2000 and ISO 17025:1999. Analytical accuracy and
precision are monitored by the analysis of reagent blanks,
reference material and replicate samples. Quality control is
further assured by the use of international and in-house standards.
Finally, representative blind duplicate samples are forwarded to
ALS Chemex and an ISO compliant third party laboratory for
additional quality control.
About International Tower Hill Mines Ltd.
International Tower Hill Mines controls a 100% interest in the
world-class Livengood Gold Project accessible by paved highway 70
miles north of Fairbanks, Alaska. ITH is focused on the rapid
advancement of the project into a compelling potential development
project in 2011 while it continues to expand its current resource
and explore its 145 km(2) district for new deposits.
On behalf of International Tower Hill Mines Ltd.
Jeffrey A. Pontius, Chief Executive Officer
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements and
forward-looking information (collectively, "forward-looking
statements") within the meaning of applicable Canadian and US
securities legislation. All statements, other than statements of
historical fact, included herein including, without limitation,
statements regarding the anticipated content, commencement and cost
of exploration programs, anticipated exploration program results,
the discovery and delineation of mineral
deposits/resources/reserves, the potential for the expansion of the
estimated resources at Livengood, the potential for any production
at the Livengood project, the potential for higher grade
mineralization to form the basis for a starter pit component in any
production scenario, the potential low strip ratio of the Livengood
deposit being amenable for low cost open pit mining that could
support a high production rate and economies of scale, the
potential for cost savings due to the high gravity concentration
component of some of the Livengood mineralization, the completion
of a pre-feasibility study at Livengood, the potential for a
production decision to be made at Livengood, the potential
commencement of any development of a mine at Livengood following a
production decision, business and financing plans and business
trends, are forward-looking statements. Information concerning
mineral resource estimates and the preliminary economic analysis
thereof also may be deemed to be forward-looking statements in that
it reflects a prediction of the mineralization that would be
encountered, and the results of mining it, if a mineral deposit
were developed and mined.
Although the Company believes that such statements are
reasonable, it can give no assurance that such expectations will
prove to be correct. Forward-looking statements are typically
identified by words such as: believe, expect, anticipate, intend,
estimate, postulate and similar expressions, or are those, which,
by their nature, refer to future events. The Company cautions
investors that any forward-looking statements by the Company are
not guarantees of future results or performance, and that actual
results may differ materially from those in forward looking
statements as a result of various factors, including, but not
limited to, variations in the nature, quality and quantity of any
mineral deposits that may be located, variations in the market
price of any mineral products the Company may produce or plan to
produce, the inability of the Company to obtain any necessary
permits, consents or authorizations required for its activities,
the inability of the Company to produce minerals from its
properties successfully or profitably, to continue its projected
growth, to raise the necessary capital or to be fully able to
implement its business strategies, and other risks and
uncertainties disclosed in the Company's Annual Information Form
filed with certain securities commissions in Canada and the
Company's annual report on Form 40-F filed with the United States
Securities and Exchange Commission (the "SEC"), and other
information released by the Company and filed with the appropriate
regulatory agencies. All of the Company's Canadian public
disclosure filings may be accessed via www.sedar.com and its United
States public disclosure filings may be accessed via www.sec.gov,
and readers are urged to review these materials, including the
technical reports filed with respect to the Company's mineral
properties.
Cautionary Note Regarding References to Resources and
Reserves
National Instrument 43-101 - Standards of Disclosure for Mineral
Projects ("NI 43-101") is a rule developed by the Canadian
Securities Administrators which establishes standards for all
public disclosure an issuer makes of scientific and technical
information concerning mineral projects. Unless otherwise
indicated, all resource estimates contained in or incorporated by
reference in this press release have been prepared in accordance
with NI 43-101 and the guidelines set out in the Canadian Institute
of Mining, Metallurgy and Petroleum (the "CIM") Standards on
Mineral Resource and Mineral Reserves, adopted by the CIM Council
on November 14, 2004 (the "CIM Standards") as they may be amended
from time to time by the CIM.
United States shareholders are cautioned that the requirements
and terminology of NI 43-101 and the CIM Standards differ
significantly from the requirements and terminology of the SEC set
forth in the SEC's Industry Guide 7 ("SEC Industry Guide 7").
Accordingly, the Company's disclosures regarding mineralization may
not be comparable to similar information disclosed by companies
subject to SEC Industry Guide 7. Without limiting the foregoing,
while the terms "mineral resources", "inferred mineral resources",
"indicated mineral resources" and "measured mineral resources" are
recognized and required by NI 43-101 and the CIM Standards, they
are not recognized by the SEC and are not permitted to be used in
documents filed with the SEC by companies subject to SEC Industry
Guide 7. Mineral resources which are not mineral reserves do not
have demonstrated economic viability, and US investors are
cautioned not to assume that all or any part of a mineral resource
will ever be converted into reserves. Further, inferred resources
have a great amount of uncertainty as to their existence and as to
whether they can be mined legally or economically. It cannot be
assumed that all or any part of the inferred resources will ever be
upgraded to a higher resource category. Under Canadian rules,
estimates of inferred mineral resources may not form the basis of a
feasibility study or prefeasibility study, except in rare cases.
The SEC normally only permits issuers to report mineralization that
does not constitute SEC Industry Guide 7 compliant "reserves" as
in-place tonnage and grade without reference to unit amounts. The
term "contained ounces" is not permitted under the rules of SEC
Industry Guide 7. In addition, the NI 43-101 and CIM Standards
definition of a "reserve" differs from the definition in SEC
Industry Guide 7. In SEC Industry Guide 7, a mineral reserve is
defined as a part of a mineral deposit which could be economically
and legally extracted or produced at the time the mineral reserve
determination is made, and a "final" or "bankable" feasibility
study is required to report reserves, the three-year historical
price is used in any reserve or cash flow analysis of designated
reserves and the primary environmental analysis or report must be
filed with the appropriate governmental authority.
This press release is not, and is not to be construed in any way
as, an offer to buy or sell securities in the United States.
NR11-06
Contacts: International Tower Hill Mines Ltd. Shirley Zhou
Vice-President - Corporate Communications 1-888-770-7488 (toll
free) or (604) 638-3247 (604) 408-7499 (FAX) szhou@ithmines.com
www.ithmines.com
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