International Tower Hill Mines Ltd. ("ITH" or the "Company") -
(TSX: ITH)(NYSE Amex: THM)(FRANKFURT: IW9) announces the results of
an updated preliminary economic assessment (PEA) demonstrating
robust project economics for the Company's 100% owned Livengood
Gold Project located near Fairbanks, Alaska. The PEA results (all
USD) demonstrate project financial highlights of $3.1 billion
pre-tax cash flows and a $1.2 billion Net Present Value (NPV) at a
5% discount rate at a Base Case gold price of $1,100/oz. In
addition, an updated resource estimate has significantly expanded
the surface mine mineralization to 16.5 million ounces gold
contained in the Measured & Indicated categories and 4.1
million ounces gold contained in the Inferred resource category.
Highlights of the Updated Resource Estimate & PEA
-- Processing rate of 91,000 tonnes per day with average annual production
over the first five years of 664,000 ounces of gold and 562,000 ounces
gold over a Life of Mine of 23 years, making it potentially one of the
largest single gold mines in North America.
-- Cumulative pre-tax cash flows of $3.1 billion, NPV of $1.2 billion (at a
5% discount rate), Internal Rate of Return of 14.1% and a payback period
of 4.9 years using a Base Case gold price of $1,100 per ounce.
-- An estimated initial capital cost of $1.61 billion, including $323
million in contingency and owner's costs. Average cash cost of $557 per
ounce over the first five years of production and an average Life-of-
Mine cash cost of $703 per ounce.
-- The current surface mine resource is largely constrained by existing
drilling (un-estimated blocks due to lack of data) indicating longer
term expansion potential as continuing exploration expands the drill
grid.
James Komadina, Chief Executive Officer of ITH, stated: "The
release of these positive PEA numbers confirms our long-standing
belief that Livengood is truly a world-class deposit representing
one of the largest new gold discoveries made in recent times. With
sound project economics and tremendous leverage to current
commodity prices, the timely development of the Livengood deposit
will create significant value for our shareholders and provide
well-paying jobs for generations of Alaskans."
The updated NI 43-101-compliant PEA was prepared by ITH staff
and independent third party consultants and provides new
information on the project scope, resource model and operating cost
estimates as compared with the original PEA announced in news on
August 3, 2010. The final version of the NI 43-101 technical report
containing the PEA will be filed on SEDAR on August 29, 2011 and
investors are urged to review the Report in its entirety.
The Company cautions that this PEA is preliminary in nature, and
is based on technical and economic assumptions which will be
evaluated in the Pre-feasibility Study. The PEA is based on the
Livengood in-situ resource model (effective as at May 31, 2011)
which consists of material in both the measured/indicated and
inferred classifications. Inferred mineral resources are considered
too speculative geologically to have technical and economic
considerations applied to them. The current basis of project
information is not sufficient to convert the in-situ mineral
resources to mineral reserves, and mineral resources that are not
mineral reserves do not have demonstrated economic viability.
Accordingly, there can be no certainty that the results estimated
in this PEA will be realized.
Livengood Surface Mine Mineral Resource
The Company has defined its Mineral Resources using economic
parameters envisioned for a future, large surface mining operation
using a Gravity/Flotation/CIL processing method and a long-term
gold price of $1,400 per ounce, considering the current, strong
gold price environment. The Mineral Resource, listed in Table 1, is
based on an updated estimate of the global mineral resources
(Tables 3-6), which included drill results from its winter drilling
program through May 31, 2011. These results will provide the basis
for mining plans and studies being conducted as part of the
Company's current Pre-feasibility Study. The Company believes the
PFS can result in conversion of a substantial portion of the
Measured and Indicated Resources to Proven and Probable Reserve
categories. Optimization parameters are tabulated in Table 2
below.
Table 1: Livengood Surface Mine Mineral Resource
(effective date - May 31, 2011)
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Tonnes Million Ounces
Classification Au Cutoff (g/t) (millions) Au (g/t) Au
----------------------------------------------------------------------------
Measured 0.22(i) 676 0.56 12.2
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Indicated 0.22(i) 257 0.52 4.3
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M&I 0.22(i) 933 0.55 16.5
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Inferred 0.22(i) 257 0.50 4.1
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(i) Cutoff grade is average for variable processing costs and recoveries
with average recovery of 79%. Classification of the resources was based on
the geostatistical analysis of gold grades and the drill hole spacing in the
deposit.
Table 2: Optimization Parameters Assumed for Definition of the Surface Mine
Mineral Resource
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Gravity/Flotation/CIL
Parameters 91 Ktpd Circuit
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Long-Term Gold Price US$/oz 1,400
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Mining Cost US$/tonne 1.80
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Processing Cost US$/tonne Variable: 6.31 - 7.23
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G&A Cost US$/tonne 0.81
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Recovery % Variable: 58.4 - 94.0
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Royalty % 2.5% of Gold Price
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Transport/Refining US$/oz 4.75
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Mine Slope Angle Degrees 45
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Note: Processing cost and recovery vary by rock type.
Resource Tables
An independently prepared updated global resource estimate has
upgraded additional gold resources from the Indicated to the
Measured category from the Company's previously reported April 2011
global resource model in all principal gold cut-off grade
categories (0.2 g/t, 0.3 g/t, 0.5 g/t and 0.7 g/t), further
improving the confidence level of the deposit. The latest global
resource estimates appear in Tables 3 - 6:
Table 3: August 2011 Livengood Global Mineral Resources at 0.2 g/t gold
cutoff
----------------------------------------------------------------------------
Gold Cutoff Tonnes Million Ounces
Classification (g/t) (millions) Gold (g/t) Gold
----------------------------------------------------------------------------
Measured 0.20 742 0.54 12.8
----------------------------------------------------------------------------
Indicated 0.20 322 0.47 4.8
----------------------------------------------------------------------------
Total M & I 0.20 1,064 0.51 17.6
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Inferred 0.20 447 0.42 6.1
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Table 4: August 2011 Livengood Global Mineral Resources at 0.3 g/t gold
cutoff
----------------------------------------------------------------------------
Gold Cutoff Tonnes Million Ounces
Classification (g/t) (millions) Gold (g/t) Gold
----------------------------------------------------------------------------
Measured 0.30 562 0.63 11.4
----------------------------------------------------------------------------
Indicated 0.30 216 0.58 4.0
----------------------------------------------------------------------------
Total M & I 0.30 778 0.62 15.4
----------------------------------------------------------------------------
Inferred 0.30 279 0.53 4.8
----------------------------------------------------------------------------
Table 5: August 2011 Livengood Global Mineral Resources at 0.5 g/t gold
cutoff
----------------------------------------------------------------------------
Gold Cutoff Tonnes Million Ounces
Classification (g/t) (millions) Gold (g/t) Gold
----------------------------------------------------------------------------
Measured 0.50 298 0.84 8.0
----------------------------------------------------------------------------
Indicated 0.50 96 0.81 2.5
----------------------------------------------------------------------------
Total M & I 0.50 394 0.83 10.5
----------------------------------------------------------------------------
Inferred 0.50 102 0.79 2.6
----------------------------------------------------------------------------
Table 6: August 2011 Livengood Global Mineral Resources at 0.7 g/t gold
cutoff
----------------------------------------------------------------------------
Gold Cutoff Tonnes Million Ounces
Classification (g/t) (millions) Gold (g/t) Gold
----------------------------------------------------------------------------
Measured 0.70 149 1.09 5.2
----------------------------------------------------------------------------
Indicated 0.70 42 1.10 1.5
----------------------------------------------------------------------------
Total M & I 0.70 191 1.09 6.7
----------------------------------------------------------------------------
Inferred 0.70 39 1.10 1.4
----------------------------------------------------------------------------
Note: Rounding errors may occur
The latest global resource estimate is comparable in size and
grade to the previous April 2011 resource model as the focus of the
2010 summer and 2011 winter programs was to conduct significant
infill drilling to continue confirming the continuity and grade of
the deposit. The new data is also derived from a rigorous modeling
effort which constrained the estimate to add confidence to higher
grade areas of the deposit.
Mining Plan
A standard surface mine scenario of drill, blast, load and haul
was used for the study, assuming 43 degrees - 51 degrees overall
mine slope. Preliminary mine designs have been developed and
include roads and ramps for all stages of the surface mine
schedule. The assumed nominal mining rate was 70 million tonnes per
year with 365 operating days per year.
Processing envisions a 91,000 tonne per day plant using
conventional SAG and ball milling followed by gravity and flotation
circuits for concentration and CIL recovery of gold (Table 7).
Table 7: Production Profile Assumptions
----------------------------------------------------------------------------
Production Profile
----------------------------------------------------------------------------
Surface Mine Gold Production(i) 15.8 M contained ounces
----------------------------------------------------------------------------
Average Annual Gold Recovery 81.6%
----------------------------------------------------------------------------
Total Recovered Gold 12.9 M ounces
----------------------------------------------------------------------------
Annual Gold Production 562,000 oz
----------------------------------------------------------------------------
Life of Mine 23 years
----------------------------------------------------------------------------
LOM Mining Rate 192,000 tonnes per day
----------------------------------------------------------------------------
Overall Strip Ratio 1.19:1 (overburden to ore)
----------------------------------------------------------------------------
(i) The surface mine gold production is classified as 59.7% Measured, 24.6%
Indicated and 15.6% Inferred resource estimate categories.
Capital Costs and Financial Valuation
Preliminary capital and operating costs were prepared using
information from an independent mining and development cost
research report commissioned by the Company, all available project
technical data and metallurgical/process-related test work (Tables
8 and 9). Preliminary site infrastructure alternatives (overburden
storage sites, tailing storage facilities and mill) have been
evaluated by independent study and an arrangement assumed as the
basis of capital cost estimates. Capital costs were estimated from
a review of recent representative gold projects. Capital costs were
developed based on a nominal mining rate of 91,000 tonnes of ore
per day and total processing of 750Mt (includes sustaining capital
and all facilities and equipment needed for all phases of the
project over its projected 23-year life). All costs are in constant
US dollars from August 2011. No escalation was applied in the
financial model.
Financing options for Livengood have not been examined and all
analyses have been conducted on a 100% equity basis.
Table 8: Expected Capital Costs
----------------------------------------------------------------------------
Items Capital Costs (millions)
----------------------------------------------------------------------------
Mining $271.4
----------------------------------------------------------------------------
Processing Plant $499.8
----------------------------------------------------------------------------
Infrastructure and Tailing Management $203.9
----------------------------------------------------------------------------
Other (Owners' cost, EPCM, Indirect
costs etc.) $315.9
----------------------------------------------------------------------------
Contingency $323.0
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total $1,613.8
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Table 9: Life-of-Mine Operating Costs Per Process Tonne
----------------------------------------------------------------------------
Items Cost per process tonne
----------------------------------------------------------------------------
Mining Cost $3.87
----------------------------------------------------------------------------
Mill Processing Cost $6.81
----------------------------------------------------------------------------
G&A Cost (transport included) $0.81
----------------------------------------------------------------------------
Reclamation $0.08
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Gold Refining $0.08
----------------------------------------------------------------------------
Royalty $0.47
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total $12.12
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Note: PEA assumes an exchange rate of $1 (Canadian) to $1 (US)
Sensitivity Analysis
A Base-Case economic evaluation was undertaken incorporating
historical three-year trailing averages for the gold price as of
June 30, 2011 (Table 10). This approach is consistent with the
guidance of the United States Securities and Exchange Commission,
is accepted by the Ontario Securities Commission and is industry
standard. A Conservative Case was also constructed using historic
metal prices along with a Case using a long-term projected gold
price of $1,400/oz. Finally, a case was prepared using recent spot
metal prices.Taxes were excluded from this preliminary analysis of
the project. Net smelter return royalty rates vary from 0-5% across
the project and average approximately 2.5%, assuming exercise by
the Company of all available royalty buy-out rights.
Revenue was determined in the base case financial model assuming
a constant, long term gold price of $1,100 per ounce. All
sensitivities to gold price assumptions were assessed using a
constant price.
Table 10: Base Case Gold Price Sensitivity Analysis
----------------------------------------------------------------------------
Conservative Recent Spot
Gold Price Base Case Case Long-Term Case Price
----------------------------------------------------------------------------
Gold Price $1,100/oz Au $900/oz Au $1,400/oz Au $1,700/oz Au
----------------------------------------------------------------------------
Net Cash Flow $3.11 Billion $0.60 Billion $6.87 Billion $10.64 Billion
----------------------------------------------------------------------------
NPV (5%) $1.18 Billion ($0.13 Billion) $3.14 Billion $5.10 Billion
----------------------------------------------------------------------------
NPV (7.5%) $0.68 Billion ($0.33 Billion) $2.16 Billion $3.65 Billion
----------------------------------------------------------------------------
Payback Period
(years) 4.9 13.9 3.2 2.3
----------------------------------------------------------------------------
Operating Costs
per ounce of
gold $703 $698 $712 $721
----------------------------------------------------------------------------
Total costs per
ounce of gold $875 $869 $884 $893
----------------------------------------------------------------------------
Metallurgy and Processing
Process recoveries were estimated for each of 21 different
mineralization types (7 rock types, 3 oxidation states) in the
deposit based on metallurgical test results published in the August
2011 update of the Livengood technical data. The proportion of
minor mineralization types are projected into the in-situ resource
block model using a 3D geological model of the deposit and a
process recovery factor is calculated for each block. The
calculated process recovery factor is used to determine produced
gold ounces for each SMU of mine recoverable material above a
cut-off grade which varies between 0.25 and 0.36 g/t based upon
forecasted processing costs.
Ongoing metallurgical studies will be focused on optimizing the
various unit operations utilized in the flow sheet, reagent suites,
grind size and leach residence time requirements. Improvements in
each of these individual variables have the potential to make
significant positive impacts on project economics.
Environment and Permitting
ITH has been carrying out environmental baseline studies since
2008 focused on identifying the pre-development environmental
conditions in the area. Key aspects of the studies are fisheries
and aquatic life, air quality monitoring, wildlife studies,
terrestrial habitat quantification, and water quality and quantity
studies. The Company is also advancing the selection of tailing
management options and the assessment of local land and resource
use patterns. All these studies are part of the comprehensive
environmental review that all major resource development projects
must complete as part of the regulatory approval process.
Prefeasibility Study
The Company cautions that this PEA is still preliminary in
nature, and is based on technical and economic assumptions which
will be evaluated further in the Pre-Feasibility Study (PFS) and
are subject to revision. The Company expects to complete a PFS of
the Livengood project by mid-November 2011.
Current Drilling Campaigns
In the current 2012 Fiscal Year, which began June 1, 2011, the
Company is carrying out a 28,000-metre resource growth program
focused on infill and step-out drilling of the Livengood deposit to
test expansion potential both laterally and at depth.
A 10,800-metre geotechnical drill program is also underway to
determine suitable locations for site facilities. Results from the
geotechnical drill program will not only establish the best
locations for site infrastructure, but also aid in district-wide
exploration activities, which are being carried out by the company
in a 6,200-metre drill program on less explored regions of the
Company's 145 km2 Livengood land package. A major target generation
geophysical program has been completed with results being
analyzed.
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.
Ongoing metallurgical studies are focused on the optimization of
the milling and flotation unit operations contemplated in the
PEA.
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.
Geological Overview
The Livengood Deposit is hosted in a thrust-interleaved sequence
of Proterozoic to Paleozoic 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.
Global Resource Update Preparation
Reserva International, LLC., an independent contractor, prepared
the updated mineral resource estimate which incorporates a total of
558 reverse circulation and 107 diamond core holes totalling
197,660 metres and having an average length of 297 metres, as well
as 11 trenches with an average length of 38 metres. 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 effective date of the resource
estimate is May 31, 2011.
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 x 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 in 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.
Qualified Persons 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 May 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 experience in
operating, corporate and consulting environments. Both Mr. Carew
and Reserva International, LLC. are independent of the Company
under NI 43-101.
Mr. William J. Pennstrom, Jr., of Pennstrom Consulting Inc., a
consulting metallurgical engineer, is acting as the Qualified
Person, as defined in NI 43-101, for the metallurgy and mineral
processing programs for the Livengood deposit, and development of
the PEA project financial analysis. Mr. Pennstrom has a BS degree
in Metallurgical Engineering and a Masters degree in Management. He
has more than 26 years of relevant experience as a metallurgist,
having functioned as an operator, engineer, and process consultant
over this time frame. Mr. Pennstrom is also a Qualified
Professional (QP) member of the Mining and Metallurgical Society of
America and is a Registered Member of the Society of Mining,
Metallurgy and Exploration. Both Mr. Pennstrom and Pennstrom
Consulting Inc. are independent of the Company under NI 43-101.
Mr. Scott Wilson, President of Scott E. Wilson Consulting Inc.,
is a consulting geologist specializing in surface mine design,
optimization and analysis, production scheduling, due diligence
evaluations and Mineral Resource and Reserve reporting. He is
acting as Qualified Person, as defined in NI 43-101, for the open
pit optimization and scheduling work for the Livengood Deposit. Mr.
Wilson has over 22 years experience in surface mining and is a
Registered Member of Society of Mining, Metallurgy and Exploration.
Mr. Wilson and Scott E. Wilson Consulting Inc. are independent of
the Company under NI 43-101.
Carl E. Brechtel, 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. Brechtel is not
independent of ITH, as he is the COO 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 Registered
Member (RM353000) of the Society for Mining, Metallurgy and
Exploration. 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.
Dr. Russell Myers CPG 11433, is a certified professional
geologist of the Association of Professional Geologists. He is
responsible for analysis of QA and QC data developed for drilling
activities at Livengood, and is a qualified person as defined by
National Instrument 43-101. He holds a Ph.D. degree from the
University of the Witwatersrand and has 25 years experience
managing surface exploration and drilling programs in North
America, South America, Africa and Australia. Dr. Myers is not
independent of ITH as he holds common shares and incentive stock
options.
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
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,
completion and cost of exploration programs, anticipated
exploration program results and the timing thereof, 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 initial surface mining phases in any extraction scenario,
the potential low strip ratio of the Livengood deposit being
amenable for low cost surface mining techniques that could support
a high production rate and economies of scale, the potential to
optimize currently anticipated Livengood mineralization treatment
options, the timing of the completion of the pre-feasibility study
for Livengood, the potential for a production decision to be made,
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,
proposed, planned, potential 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 Livengood
property.
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.
NR11-13
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
International Tower Hill... (TSX:ITH)
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International Tower Hill... (TSX:ITH)
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