VANCOUVER, March 8, 2017 /CNW/ - International Tower
Hill Mines Ltd. ("ITH" or the "Company") (TSX: ITH; NYSE-MKT: THM)
today announced that it has corrected previously reported all- in
sustaining costs (AISC) downward to conform with World Gold Council
guidance. The effect of the error was to overstate AISC at
$1,263. As a result of the
restatement, the AISC for the Livengood Gold Project (the
"Project") located near Fairbanks,
Alaska, is projected to be $976/oz.
The results of the Pre-Feasibility Study (the "PFS") set forth
in a news release on September 8,
2016 and as filed with the NI 43-101 report on October 24, 2016 had included, contrary to World
Gold Council guidance, both initial capital costs and mining and
income taxes in the $1,263 previously
reported as all-in sustaining costs. All dollar figures in
this news release are stated in US Dollars.
The table below identifies the correct costs over the life of
the Project based on the PFS:
Costs of Production
|
$/Ounce
As previously
reported
|
$/Ounce
As corrected
|
LOM
($Million)
As previously
reported
|
LOM
($Million)
As corrected
|
Operating
Costs
|
$
877
|
$
877
|
$
5,934
|
$
5,934
|
Capital Expenditures
(1)
|
370(2)
|
99(3)
|
2,501(2)
|
665(3)
|
All-In Sustaining
Costs
|
$
1,247
|
$
976
|
$
8,435
|
$
6,599
|
Capital Expenditures
(1)
|
-
|
271(4)
|
-
|
1,836(4)
|
Mining and Income
Taxes
|
16
|
-
|
104
|
-
|
All-In
Costs
|
$
1,263
|
$
1,247
|
$
8,539
|
$
8,435
|
Rounding of some figures may lead to minor discrepancies in
totals.
(1) Excludes $18M
upfront funding included in operating costs above and
$37M of recoverable initial stores
inventory.
(2) Includes initial and sustaining capital
expenditures
(3) Includes sustaining capital expenditures
only
(4) Includes initial capital expenditures
only
Qualified Persons
Colin Hardie, P. Eng. (Ontario
APEO No. 90512500), a Qualified Person as defined by National
Instrument 43-101, has reviewed and approved the technical
information contained in this news release and has approved the
disclosure herein. Mr. Hardie is independent of ITH as
independence is described in Section 1.5 of NI 43-101.
On behalf of
International Tower Hill Mines Ltd.
(signed) Karl
Hanneman
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 statements with
respect to the mine plan, economic analysis (including CAPEX and
OPEX) and production and design details described in the
Pre-Feasibility Study; the potential to convert mineral resources
to mineral reserves; additional optimization and exploration
efforts and the results thereof; the ability of the Company to
satisfy the derivative liability and the consequences of any
failure to do so; the ability of the Company to potentially include
refined and updated results in a subsequent full feasibility study;
the ability of the Company to advance environmental baseline work
in support of future permitting; the ability of the Company to
advance the Livengood Project either as projected or at all; the
potential for the Company to make a construction decision, whether
when warranted by market conditions or at all; the potential for
market conditions to be such that they warrant the making of a
production decision; the potential development of any mine at the
Livengood Project; business and financing plans and business trends
are forward-looking statements. Information concerning
mineral reserve/resource estimates and the economic analysis
thereof contained in the Pre-Feasibility Study 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 (including, as required, to
satisfy the derivative liability) 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
10-K 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 latest technical report 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 and reserve estimates contained in or
incorporated by reference in this news 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 May 10, 2014 (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 investors are cautioned not to
assume that all or any part of a mineral resource will ever be
converted into reserves. The preliminary assessments on the
Livengood Project are preliminary in nature and include "inferred
mineral resources" that have a great amount of uncertainty as to
their existence, and are considered too speculative geologically to
have economic considerations applied to them that would enable them
to be categorized as mineral reserves. There is no certainty
that such inferred mineral resources at the Livengood Project will
ever be realized. Further, 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. Investors are cautioned
not to assume that all or any part of an inferred mineral resource
exists or is economically or legally mineable.
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 news release is not, and is not to be construed in any
way as, an offer to buy or sell securities in the United States.
SOURCE International Tower Hill Mines Ltd.