International Tower Hill Mines Ltd. (TSX:ITH)(NYSE Amex:THM)(NYSE
MKT:THM)(FRANKFURT:IW9) ("ITH" or the "Company") announces an
update regarding the optimization review of its Livengood project,
which was announced on May 15, 2012. The Company has determined
that the most efficient and cost-effective path to permitting is to
incorporate results from current engineering and metallurgical test
work directly into a definitive feasibility study, which ITH
expects to complete in the first half of 2013. The Company has also
implemented a cost reduction program and is evaluating financial
de-risking options for the development of the Livengood project.
Additionally, the Board of Directors is reviewing a list of
qualified candidates for the position of the Company's Chief
Executive Officer.
Project Review - Fast Track to Feasibility
Over the past nine months, the Company's management team has
been examining all potential options for the Livengood gold deposit
to address key process and development opportunities. This work has
focused in large part on metallurgical testing aimed at defining
the recovery process. To date, the test work has produced
encouraging results and suggests the potential for a more efficient
gold recovery system than the one proposed in the August 2011
Preliminary Economic Assessment (PEA). The advanced level of this
work is expected to enable the Company to bypass the preparation of
a prefeasibility study and move directly to completion of a
feasibility study, with a view to more cost-effectively advancing
the project.
Key elements of this plan for completion of a feasibility study
are described below:
-- Since the August 2011 PEA, the development team has made significant
advancements on project design which are being driven by an extensive
metallurgical test program. Determining the most cost-effective
extraction method is critical to the Livengood gold project's success,
given its significant resource size but lower gold grade.
-- In February 2012, 10,800 kg from approximately 3,000 samples selected
from throughout the Livengood deposit were sent to SGS Canada Inc. for
the final stage of optimization testing and analysis. To date, SGS has
completed gravity test work and results are pending.
-- Remaining engineering work is focused on determining the secondary
system that will be used to complete the gold recovery process. This has
been narrowed down to either whole-ore Cyanide in Leach (CIL) or
flotation-CIL (the proposed system in the August 2011 PEA). The whole-
ore CIL process is being evaluated as it would offer operational
simplification opportunities.
-- Grinding studies have begun and may have significant impacts on
equipment selection, power demands and resulting operating costs.
Initial results from testing on a more extensive sample base indicate
that mineralization at the Livengood project could have better grinding
characteristics than those published in the August 2011 PEA. This could
have a potentially positive impact on the project.
-- A number of other trade-off studies and project design alternatives have
been evaluated over the last six months, including various grinding
circuits, heap leaching and various reagent additions. At present, the
large mill concept has generated superior results to all alternatives.
-- New mine design work is ongoing to re-examine cut-off grades and the
optimum grade to the mill, which will produce the most economically
robust project. In addition, geotechnical work for surface facility
sites has significantly progressed with a key focus being potential
tailing and overburden locations.
This test work program and the ongoing engineering studies have
significantly advanced the Livengood project and are expected to
produce the optimum project from an economic and permitting
perspective. Once all work has been completed, the Company plans to
begin permitting discussions with various agencies and look at
project financing work necessary to advance the project towards
production.
Rationalization of Costs
A comprehensive cost and organizational review is being
undertaken by the Board of Directors to establish the most
cost-effective structure. As a result, the Company has decided to
postpone much of its district-wide exploration drilling program and
reduce a portion of its condemnation drill program. The Company
will focus on completing all the necessary field work and drilling
to support the completion of a feasibility study and the
environmental work needed to keep its permitting schedule on track.
The Company believes that is has sufficient funds to complete the
revised 2012 work program.
In addition, the Board of Directors is reviewing all options
that could de-risk the project financially, including possible
discussions with third parties on joint venture opportunities.
Qualified Person
Allen Thabit (SME # 4101531RM), a qualified person as defined by
National Instrument 43-101, has supervised the preparation of the
scientific and technical information that forms the basis of this
news release, and has approved the disclosure herein. Mr. Thabit is
not independent of ITH.
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.
On behalf of International Tower Hill Mines Ltd.
Donald C. Ewigleben, Chairman of the Board
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 U.S.
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 size and
characteristics of, or the discovery and delineation of, mineral
deposits, resources or reserves, the potential for the expansion of
the estimated resources at the Livengood property, the preparation
or completion of a feasibility study, the optimization of mine or
gold recovery plans, the permitting of a mine at the Livengood
project, the potential for a production decision to be made, the
potential commencement of any development of a mine at Livengood
following a production decision, the Company's business strategy
and the potential for a joint venture in respect of the Livengood
project, and the Company's other 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 at the
Livengood property, 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 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.
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.
NR12-15
Contacts: International Tower Hill Mines Ltd. Shirley Zhou
Vice-President - Corporate Communications 604-343-4799 or
Toll-Free: 1-855-208-4642 Ext. 213szhou@ithmines.com
www.ithmines.com
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