International Tower Hill Mines Intersects 33.5 Metres of 8.07 g/t Gold in Shallow Drilling at the Livengood Project, Alaska
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 05/03/11 -- International Tower Hill Mines Ltd. ('ITH' or the 'Company') (TSX: ITH)(NYSE Amex: THM)(FRANKFURT: IW9) is pleased to announce the results from a further 29 holes drilled during the Company's 2011 Winter Drill Program at the Livengood Gold Project near Fairbanks, Alaska. The winter drill program, which began in February, is focused on confirming the continuity and grade of the mineralization in the Southwest (SW), South Core and Sunshine zones of the Money Knob deposit, as well as follow-up exploration of a new, deeper, higher grade zone with a series of 500-metre core holes.
Highlights from Drilling:
-- Hole MK-RC-0504: 33.5 m @ 8.07 g/t gold from 80.8-114.3 m depth (infill,
Core Zone)
-- Hole MK-RC-0485: 93.0 m @ 1.24 g/t gold from 178.3-271.3 m depth
(infill, Core Zone)
-- Hole MK-RC-0488: 88.4 m @ 0.94 g/t gold from 185.9-274.3 m depth
(infill, Core Zone)
-- Hole MK-11-103: 28.6 m @ 1.83 g/t gold from 156.4-185.0 m depth (infill,
Core Zone)
As a continuation of the program's initial results announced in news on March 29, 2011, these intersections are part a series of shallow infill and step out holes completed prior to deeper core drilling designed to test the deposit's new high-grade zone at depth. Results from this series of deeper core holes are expected by the end of May.
Southern Core Zone
Eleven of the 29 holes were drilled as infill holes in the southern Core zone. Two holes (holes MK-RC-0504 and MK-RC-0485) intersected higher grade mineralization related to quartz veining, extending a zone of high-grade mineralization further to the west (see Figure 1 below). The remaining holes are similar in grade and thickness to the surrounding holes and continue to add continuity to the deposit. Assay data for four core holes testing the deep mineralization in the southern Core Zone are pending and expected to become available by the end of May.
Southwest Zone
Current drill results on the western edge of the SW zone appear to be defining a limit to the shallow oxide zone in the area; however, strong near-surface gold-in-soil anomalies located 300 to 500 metres to the west have yet to be tested. The SW zone also remains open at depth with six holes mineralized to the lower limit of drilling, potentially part of the same deep high-grade mineralized zone being explored in the south Core zone. This deeper mineralization will be targeted in follow-up drilling programs.
Jeff Pontius, Chief Executive Officer of ITH, states: 'These results continue to confirm and expand our understanding of the higher grade areas of the Money Knob deposit which could form the 'starter pit' phase of our mining plan. We look forward to bringing more exciting drill results over the next few weeks and months, particularly from our deeper core drilling.'
To view Figure 1, please click on the following link: http://media3.marketwire.com/docs/ith52.pdf
Table 1: Significant new intercepts(i)
(i) Intercepts are calculated using a 0.25g/t gold cutoff and a maximum of
3 metres of internal waste.
From Length Area and
Drill Hole (metres) To (metres) (metres) Gold (g/t) Comments
------------------------------------------------------------------------
------------------------------------------------------------------------
MK-RC-0485 178.3 271.3 93.0 1.24 Core Zone
infill
includes 179.8 195.1 15.2 3.00
includes 201.2 211.8 10.7 2.05
272.8 283.5 10.7 0.47
347.5 394.7 47.3 0.87
includes 361.2 368.8 7.6 2.72
MK-RC-0487 237.7 245.4 7.6 0.33 SW Zone
MK-RC-0488 51.8 57.9 6.1 0.82 Core Zone
infill
153.9 181.4 27.4 0.56
185.9 274.3 88.4 0.94
includes 239.3 256.0 16.8 1.75
278.9 320.0 41.2 0.72
includes 278.9 283.5 4.6 3.02
324.6 349.0 24.4 1.80
353.6 362.7 9.1 0.71
365.8 413.0 47.2 0.65
includes 391.7 402.3 10.7 1.09
MK-RC-0491 152.4 161.5 9.1 0.44 SW Zone
MK-RC-0492 117.4 126.5 9.1 1.01 Sunshine
infill
134.1 147.8 13.7 1.51
includes 134.1 138.7 4.6 2.92
153.9 166.1 12.2 0.70
195.1 225.6 30.5 0.71
MK-RC-0493 70.1 79.3 9.2 0.50 Core Zone
infill
105.2 109.7 4.6 0.58 lost,
redrilled as
498
112.8 120.4 7.6 0.51
125.0 134.1 9.1 0.61
MK-RC-0494 94.5 99.1 4.6 4.03 SW Zone
189.0 214.9 25.9 0.46
MK-RC-0495 30.5 71.6 41.2 0.64 Sunshine
infill
76.2 86.9 10.7 0.56
93.0 150.9 57.9 0.76
155.5 166.1 10.7 0.71
201.2 257.6 56.4 0.41
MK-RC-0496 108.2 125.0 16.8 1.61 Sunshine
infill
includes 108.2 111.3 3.1 6.79
138.7 157.0 18.3 0.59
164.6 199.6 35.1 0.53
205.7 263.7 57.9 0.59
MK-RC-0497 179.8 195.1 15.2 0.68 SW Zone
278.9 291.1 12.2 0.49
300.2 318.5 18.3 0.34
332.2 341.4 9.2 0.84
MK-RC-0497 342.9 352.0 9.1 0.74
(cont) 356.6 381.0 24.4 0.85
385.6 419.1 33.5 0.98
MK-RC-0498 97.5 105.2 7.6 1.12 Core Zone
infill
140.2 150.9 10.7 0.45 lost hole
MK-RC-499 112.8 131.1 18.3 0.87 SW Zone
172.2 184.4 12.2 0.80
195.1 213.4 18.3 0.67
243.8 285.0 41.2 0.51
307.9 327.7 19.8 0.66
MK-RC-500 143.3 150.9 7.6 1.33 Core Zone
pre-collar,
core tail
pending
MK-RC-501 109.7 114.3 4.6 3.06 SW Zone
234.7 275.8 41.1 0.69
includes 249.9 254.5 4.6 2.35
312.4 326.1 13.7 0.61
MK-RC-502 213.4 224.0 10.7 0.55 SW Zone
225.6 239.3 13.7 0.62
246.9 260.6 13.7 0.42
MK-RC-503 27.4 38.1 10.7 0.68 Sunshine
infill
56.4 70.1 13.7 1.36
77.7 85.3 7.6 1.23
96.0 102.1 6.1 0.99
121.9 144.8 22.9 0.71
146.3 198.1 51.8 0.82
236.2 243.8 7.6 0.76
includes 161.5 167.6 6.1 1.82
MK-RC-504 80.8 114.3 33.5 8.07 Core Zone
infill
includes 80.8 96.0 15.2 14.59
includes 99.1 111.3 12.2 3.73
155.5 164.6 9.1 0.50
169.2 178.3 9.2 0.55
189.0 211.8 22.9 0.47
277.4 315.5 38.1 0.56
339.9 356.6 16.8 0.86
MK-RC-505 45.7 76.2 30.5 0.74 Sunshine
infill
93.0 135.6 42.7 0.94
includes 96.0 99.1 3.1 6.47
MK-RC-506 291.1 300.2 9.2 1.18 SW Zone
303.3 324.6 21.3 1.25
includes 318.5 324.6 6.1 1.88
MK-RC-507 30.5 33.5 3.1 2.13 Core Zone
infill, lost
hole
121.9 150.9 29.0 0.65 re-drilled as
512
175.3 192.0 16.8 0.44
196.6 234.7 38.1 1.14
includes 205.7 211.8 6.1 3.91
MK-RC-508 86.9 93.0 6.1 0.95 SW Zone
292.6 312.4 19.8 0.52
326.1 342.9 16.8 0.43
MK-RC-509 111.3 121.9 10.7 0.78 Sunshine
infill
167.6 251.5 83.8 0.84
includes 219.5 233.2 13.7 1.07
265.2 285.0 19.8 0.65
MK-RC-510 41.2 45.7 4.6 0.91 SW Zone
53.3 57.9 4.6 1.41
MK-RC-511 7.6 13.7 6.1 1.55 Sunshine
infill
51.8 64.0 12.2 0.49
192.0 236.2 44.2 0.80
includes 205.7 214.9 9.1 1.37
245.4 256.0 10.7 0.51
260.6 272.8 12.2 1.46
includes 262.1 269.8 7.6 1.91
MK-RC-512 29.0 33.5 4.6 1.06 Core Zone
infill
146.3 182.9 36.6 0.44
184.4 201.2 16.8 0.50
204.2 242.3 38.1 0.43
265.2 286.5 21.3 1.14
includes 278.9 281.9 3.1 3.35
289.6 315.5 25.9 0.55
MK-RC-513 97.5 108.2 10.7 1.45 SW Zone
208.8 231.7 22.9 0.86
240.8 243.8 3.1 3.54
260.6 291.1 30.5 0.46
298.7 320.0 21.3 0.49
350.5 378.0 27.4 0.48
MK-11-103 156.4 185.0 28.6 1.83 Core Zone
infill, lost
hole
187.2 194.6 7.4 0.63
MK-11-104 no significant intercepts Core Zone,
lost, re-
drill
as 11-108
(assays
pending)
MK-11-105 94.3 102.6 8.3 0.74 Core Zone
infill, lost
hole
107.9 117.6 9.7 0.89
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 Livengood project has a very 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 12, 2011) of 397 Mt at an average
grade of 0.83 g/t gold (10.6MozMeasured and Indicated) and 104 Mt at an
average grade of 0.79 g/t gold (2.7Moz Inferred), both at a 0.5 g/t gold
cut-off grade, makes it one of the largest new gold discoveries in North
America.
-- The Core and Sunshine zones together account for most of the higher
grade mineralization (Measured and Indicated Resources of 193 Mt at an
average grade of 1.08 g/t gold and Inferred Resources of 41 Mt at an
average grade of 1.11g/t gold, based on a cut-off grade of 0.70 g/t
gold) and will form the basis for starter pit design work.
-- Ongoing metallurgical studies are focused on the potential use of
milling with a flotation-gravity circuit, which has returned initial
recoveries to a concentrate of 89%, offering significant potential for
operational and capital cost savings. Test data for conventional whole
ore milling with a gravity-CIL system produced initial recoveries of 76%
(See NR10-19). Optimization work is ongoing for these processing
alternatives, as they have the potential to make significant positive
impacts on project economics.
-- The geometry of the currently defined shallowly dipping, outcropping
deposit has a low strip ratio amenable to low cost open pit mining which
could support a high production rate and economies of scale.
-- No major permitting hurdles have been identified to date.
Geological Overview
The Livengood Deposit is hosted in a thrust-interleaved sequence of Proterozoic to Palaeozoic 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.
The surface gold geochemical anomaly at Livengood covers an area 6 kilometres long by 2 kilometres wide, of which approximately half has been explored by drilling to date. Surface exploration is ongoing as new targets are being developed to the northeast 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 that forms the basis for this news release and has approved the disclosure herein. Mr. Pontius is not independent of ITH, as he is the CEO 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 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 km(2)district for new deposits.
On behalf of International Tower Hill Mines Ltd.
Jeffrey A. Pontius, 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 the expansion of the estimated resources at Livengood, the potential for any production at the Livengood project, the completion of a preliminary economic analysis of the Livengood project incorporating a milling scenario, the potential for higher grade mineralization to form the basis for a starter pit component in any production scenario, the potential low strip ratio of the Livengood deposit being amenable for low cost open pit mining that could support a high production rate and economies of scale, the potential for cost savings due to the high gravity concentration component of some of the Livengood mineralization, the completion of a pre-feasibility study at 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 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.comand 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.
NR11-07
Contacts:
International Tower Hill Mines Ltd.
Shirley Zhou
Vice President - Corporate Communications
1-888-770-7488 (toll free) (604) 638-3247
(604) 408-7499 (FAX)
szhou@ithmines.com
www.ithmines.com