International Tower Hill Mines Ltd. ("ITH" or the "Company")
(TSX:ITH)(NYSE Amex:THM) FRANKFURT:IW9) is providing information
with respect to a historical resource estimate for the Company's
100% owned Placer claims near the Livengood Gold Project located
approximately 70 miles north of Fairbanks, Alaska.
Historical Resource Estimate
A historical resource estimate for the Company's Livengood
Placer claims (which were acquired by the Company in December 2011)
was completed by Alaska/Nevada Gold Mines Ltd. (ANGM), and a report
entitled "Livengood Bench Gold Mine, Placer Gold Property,
Livengood, Alaska, Summary Report - May 20, 2006" was prepared. The
report estimated a resource of approximately 5.2 million cubic
yards of gold-bearing gravel at an average grade of 1.0 g/t gold in
several defined areas within the Livengood Placer claims for a
total gold resource of approximately 230,000 ounces in the Measured
and Indicated resource categories. (Table 1).
Table 1. Placer Gold Resource - Livengood Valley 2006
----------------------------------------------------------------------------
In-Situ Gravel
Volume Grade
(Bank Cubic (Oz (Gold)/Bank Gold Grade
Yards) Ounces (Gold) Cubic Yard) (g/t)
----------------------------------------------------------------------------
Measured Resources 1,391,400 77,000 0.055 1.25
----------------------------------------------------------------------------
Indicated Resources 3,839,400 153,000 0.040 0.91
----------------------------------------------------------------------------
Total Resources 5,230,800 230,000 0.044 1.00
----------------------------------------------------------------------------
Note: Ounces per bank cubic yard (BCY) converted to g/tonne based on an
assumed 3,000 lbs/BCY. The above resource is effective as of the date of
calculation in 2006. After calculation of this resource and prior to
purchase of the placer property by the Company in 2011, mining operations
completed in 2010 result in reduction to Measured Resources of 7,100 ounces.
Placer gold was first discovered in the Livengood area in 1914
and led to a gold rush that recovered approximately 530,000 ounces
of placer gold from the district since that time. The historical
resource estimate in Table 1 is considered relevant to the Company
both to indicate that sufficient potential exists in the Livengood
Placer claims to justify incurring the expense to explore the
ground and also as a guide to the prioritization of potential
development efforts.
"The potential for significant alluvial gold to be found in the
Livengood Placer claims, as illustrated by the existence of the
historical resource estimate, represents a truly exciting
opportunity for International Tower Hill Mines to create
significant value for our shareholders in the near term," states
Jim Komadina, president and chief executive officer of ITH. "While
our main Livengood development team continues to focus solely on
advancing the large Livengood Gold Project towards permitting and
development into a large-scale gold mine in North America, we have
a highly experienced placer mining team assessing the potential of
the Livengood Placer property with a view to determining as soon as
possible if a resource sufficient to warrant future production may
be identified."
Records exist for 2,370 placer drill holes that have been
completed on the Livengood Placer claims since 1933. Of these, the
945 holes completed between 1933 and 1984 were primarily 6" churn
drill holes. The 1,425 drill holes completed between 1984 and 2000
were 8" reverse circulation rotary drill holes utilizing a center
return tri-cone bit.
The historical resource was calculated by the polygonal method
whereby the thickness and grade of the gravel at each drill hole
was determined and applied to the area of influence of that hole.
The thickness of the auriferous gravel at each hole was determined
from the drill and sample data, with an allowance of 2 feet of
bedrock immediately underlying the auriferous gravel included in
the applicable thickness. The grade of the auriferous section at
each hole was determined by obtaining the measured weight of free
gold recovered, adjusted to fine ounces based on a 910 fineness,
and dividing by the actual in-situ volume of the sample recovered,
or the theoretical volume of the drill bit diameter penetrating
through the thickness of the mining section, whichever was larger.
All values greater than 0.139 oz/BCY, based on a property wide
histogram at the 95th percentile, were cut to limit the influence
of high grade drill holes. With the thickness and grade of each
hole determined, the area of influence of the drill hole was
determined based on polygons drawn between the midpoints of line
segments to adjacent drill holes. The area of the resulting polygon
was multiplied by the mining section thickness and grade to assign
an overburden volume, mining section volume, and ounces to each
drill hole. An iterative process of applying geologic
interpretation, drill density, gravel thickness and continuity,
grade continuity, possible mining scenarios and marginal economics
resulted in grouping estimated ounces into measured and indicated
categories. An updated resource calculation based on the same data
would not change the total ounces, but might result in assignment
to different resource categories.
The Company cautions that both the 2006 report and the included
resource estimate were not prepared in compliance with NI 43-101,
and are therefore historical in nature and the Company is not
treating such resources as a current resource under NI 43-101.
Investors are further cautioned that a qualified person has not yet
completed sufficient work to be able to verify the historical
resources, and therefore they should not be relied upon.
Mr. Richard Hughes, P.E., H2T Mine Engineering Services, LLP, a
qualified person as defined under NI 43-101, has reviewed the
historical resource estimate on behalf of the Company. After his
review, Mr. Hughes concluded, "We concur with the methodology used
by ANGM and believe that its resource analysis is reasonable as
presented by category, subject to an uncertainty presented by a
2010 production shortfall. To develop a NI 43-101 compliant placer
resource," Mr. Hughes stated, "A more detailed analysis of the
resource category assignment should be conducted to include
complete detailed drill log take-off and spatial consideration for
category allocation. The effect of underground drift mining on the
resource calculations needs to be clearly understood. I strongly
recommend resource definition be improved by utilizing new drilling
methods in the measured and indicated areas."
The Company plans to conduct a confirmation drill program of
2,275 meters on the Livengood Placer claims beginning April 2012 to
assess whether the historical drilling data can be used in the
calculation of a current NI 43-101 resource for the placer
property.
Qualified Person
Mr. Richard Hughes, P.E., principal of H2T Mine Engineering
Services, LLP, has acted as the qualified person, as defined in NI
43-101, on behalf of the Company for the review of the 2006
historical resource estimate. He has over 50 years of experience in
mining engineering, including all stages of placer mineral
exploration, development, and production, including management
positions in both surface and underground placer operations in
Alaska. He has been a registered professional engineer in Alaska
since 1982. Both Mr. Hughes and H2T Mine Engineering Services, LLP
are independent of the Company under NI 43-101.
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. In 2012, ITH is focused on the
rapid advancement of the Livengood project into a compelling
potential development scenario 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 J. 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 and cost
of exploration programs, anticipated exploration program results,
the discovery and delineation of mineral
deposits/resources/reserves, the potential for any development of,
or production from, the Livengood Placer claims, the projected
dates for the commencement of feasibility study work and for the
completion of a pre-feasibility and feasibility study for the
Livengood Project, the potential for a production decision to be
made in respect of the Livengood Project, the potential for the
development and construction of a mine and any production at the
Livengood project, 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, 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 40F 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
current technical report filed with respect to the Company's
Livengood Project.
Caution Regarding Adjacent or Similar Mineral Properties
This news release contains information with respect to adjacent
or similar mineral properties (including references to placer gold
recovery in the district in which the Livengood Placer claims are
located) in respect of which the Company has no interest or rights
to explore or mine. The Company advises US investors that the
mining guidelines of the US Securities and Exchange Commission (the
"SEC") set forth in the SEC's Industry Guide 7 ("SEC Industry Guide
7") strictly prohibit information of this type in documents filed
with the SEC. Readers are cautioned that the Company has no
interest in or right to acquire any interest in any such
properties, and that mineral deposits on adjacent or similar
properties, or the fact that placer gold was recovered from other
properties in the Livengood district, are not indicative of mineral
deposits on the Company's properties or any possibility for the
recovery of placer gold from the Company's Livengood Placer
claims.
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.
NR12-06
Contacts: International Tower Hill Mines Ltd. Shirley Zhou
Vice-President - Corporate Communications Direct: 604-343-4799 or
Toll-Free: 1-855-208-4642 Ext. 13szhou@ithmines.com
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