International Tower Hill Mines Ltd. ("ITH" or the "Company") -
(TSX: ITH)(NYSE Amex: THM)(FRANKFURT: IW9) is pleased to provide an
update of its activities at the Livengood Project near Fairbanks,
Alaska. In addition to advancing its Pre-Feasibility Study towards
expected completion in the fourth quarter of calendar year 2011,
the Company has commenced work on an updated Preliminary Economic
Assessment as well as a district-wide exploration program. To
support the completion of these work programs, the ITH Board of
Directors approved, on June 20, 2011, a budget of CAD 67 million
for its 2011 fiscal year ending May 30, 2012. The Company also
continues to augment its Fairbanks development team with the
addition of Mr. Rick Solie as Community and Government Relations
Manager.
Prefeasibility Study Progress
Since December 2010, when major contracts were awarded to carry
out its Pre-Feasibility Study, the Company has made significant
technical progress and expects the study to be published in the
fourth quarter of 2011. Key work programs completed or underway to
date include:
-- Completion of a preliminary surface mine slope geotechnical evaluation
by SRK Consulting;
-- Completion of grinding/comminution test work by FLSmidth Consulting;
-- Continuation of baseline environmental studies by third party
contractors and in-house personnel;
-- Near-completion of metallurgical work programs - including column
leaching, gravity concentration and flotation-CIL testing - by FLSmidth,
McClelland Labs, RDi, Knelson and Falcon;
-- Commencement of Process Design and Trade-Off Studies by FLSmidth;
-- Commencement of Plant Design and Engineering by FLSmidth; and
-- Commencement of infrastructure and site facility engineering by Knight
Piesold, including field work currently underway to determine potential
locations for processing plants, electrical lines and substations,
roads, pipelines, workshops and tailing storage sites.
Updated 2011 Preliminary Economic Assessment
The Company has begun preparing the updated NI 43-101 technical
report required in connection with the filing of its 2011 Annual
Information Form in August, 2011. The technical report will contain
an updated Preliminary Economic Assessment ("PEA") that will
incorporate the latest project information in the new gold price
environment of approximately USD 1,500/oz. The Company completed
its initial PEA in November 2010 outlining various conceptual
development options for the project at a base gold price of USD
950/oz. This updated PEA will focus on development options to
maximize project value based on an updated economic review and a
higher gold price.
New Fiscal Year 2011 Budget
Following a review of 2011/2012 objectives for the updated PEA
work, prefeasibility studies, exploration and permitting support
activities, on June 20, 2011 the Company's Board of Directors
approved a new budget for the fiscal year 2011 (June 1, 2011 to May
30, 2012) totalling CAD 67 million.
District-wide Exploration Program
A district-wide exploration program commenced at the beginning
of June, 2011 targeting potential new gold discoveries along the
Livengood mineralized trend both to the east-northeast and to the
west of the existing Livengood gold deposit. Results from the
drilling program and the geophysical survey are expected throughout
the summer and fall of 2011.
Appointment of Community and Government Relations Manager
The Company is also pleased to announce the addition of Mr. Rick
Solie to the ITH Fairbanks team as the Community and Government
Relations Manager. Mr. Solie has over 20 years of government and
public affairs experience as an executive for various Alaska based
corporations. Prior to joining ITH, Mr. Solie was the Director of
Alaska Government and Community Affairs for Denali - The Alaska Gas
Pipeline LLC. He joined Denali from ConocoPhillips where he managed
the Fairbanks regional office as Director of Government and
Community Relations. Before joining ConocoPhillips, he was the
Director, Marketing & Planning for the Fairbanks Memorial
Hospital. Mr. Solie has a Bachelor of Arts in Economics from the
University of Alaska.
Karl Hanneman, Livengood Project General Manager, stated: "We
are very pleased to have Rick join us. His deep Alaska roots will
help us develop the open communication with our State and local
government and regional communities that will be critical to our
mutual success."
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 project has a
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 Livengood one of the largest new
gold discoveries in North America.
Ongoing metallurgical studies are focused on the potential use
of conventional whole ore milling with a grinding-gravity-flotation
circuit for the Livengood mineralization which has returned
preliminary gold recoveries to a concentrate of 78 to 89%. Heap
leach test work for oxide material crushed to one-half inch
averages approximately 70% gold recovery. Ongoing test work is
focused on optimizing both treatment options in the context of the
Pre-Feasibility Study set for completion in the fourth quarter of
2011.
The geometry of the currently defined shallowly dipping,
outcropping deposit enables development of a large scale, low
stripping ratio surface mine capable of generating significant
production economies of scale. 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
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 included in this news release
and has approved the technical disclosure herein. Mr. Pontius is
not independent of ITH, as he is a director 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 Ltd. 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 km2 district for new deposits.
On behalf of International Tower Hill Mines Ltd.
James Komadina, Chief Executive Officer
NR11-10
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 timing for the completion and release
of the Pre-Feasibility Study on Livengood, the potential for a
revised Preliminary Economic Analysis, the potential for a revised
Preliminary Economic Analysis to incorporate a scenario utilizing
an approximate USD 1500 gold price, the anticipated budget for
fiscal 2011/12 of CAD 67 million, the potential to optimize both
potential Livengood ore treatment options in the context of the
Pre-Feasibility Study, business and financing plans and business
trends, are forward-looking statements.
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, increases in the prices of services and materials which
could result in the Company having to spend more than the approved
2011/12 budget to complete its planned activities or to cut back on
the planned activities to maintain the budgeted amounts, the
Company's inability to obtain any necessary permits, consents or
authorizations required for its activities, the Company's inability
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.
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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