International Tower Hill Mines Intersects 92.9 Metres of 1.62 g/t Gold at the Livengood Project, Alaska
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/09/11 -- International Tower Hill Mines Ltd. ('ITH' or the 'Company') (TSX: ITH)(NYSE Amex: THM)(FRANKFURT: IW9) is pleased to announce results for the final 21 drill holes from its recently completed 2011 Winter Drill Program at the Livengood Gold Project near Fairbanks, Alaska. Results continue to expand high-grade zones within the deposit, with multiple thick zones of higher grade mineralization encountered in shallow drilling, including 92.9 metres of 1.62 g/t gold (hole MK-11-116) while deeper core drilling has revealed two major structurally controlled higher grade feeder zones.
Highlights from drilling:
-- Hole MK-RC-480CT: 92.3 m @ 1.57 g/t gold from 219.5 m depth (core tail;
southern Core Zone)
-- Hole MK-RC-500CT: 49.9m @ 1.35 g/t gold from 188.7 m depth (core tail;
southern Core Zone)
-- Hole MK-11-108: 29.3 m @ 1.64 g/t from 151.5 m depth (southern Core
Zone)
-- Hole MK-11-116: 92.9 m at 1.62 g/t gold from 163.47 m depth (southern
Core Zone)
-- Hole MK-11-116 (continued): 65.4 m at 1.02 g/t gold from 317.3 m depth
(southern Core Zone)
-- Hole MK-RC-0518: 39.6 m at 1.68 g/t gold from 137.2 m depth (Core Zone)
-- Hole MK-RC-0518 (continued): 76.2 m at 1.35 g/t gold from 198.1 m depth
(Core Zone)
The 2011 Winter drill program consisted of a series of shallow infill and step out holes designed to confirm the continuity and grade of mineralization at the Money Knob deposit. These results continue to outline and expand the high-grade zones within the deposit, which could form initial surface mining phases in a potential extraction scenario. The Company will incorporate all results from the 2011 Winter drill program into an updated Resource Estimate planned to be released in the fourth quarter of 2011.
High Grade Zones at Depth
The drill program also included deeper core drilling designed to test the deposit at depth, and the results have now revealed at least two major structurally controlled higher grade feeder zones in the broader Core Zone which average 1.0 g/t to 2.0 g/t gold with intervals of 3.0 g/t to 5.0 g/t gold (Table 1). One of these structural zones occurs over a strike length of at least 325 metres with a dip length of greater than 160 metres (Fig. 1). The second structure occurs over a strike length of at least 275 metres with a vertical extent of more than 200 metres. Both structures are near vertical in orientation and open at depth, but appear to be capped updip. Continued exploration drilling will focus on expanding these currently defined zones as well as explore for additional zones within the deposit.
'The continuity of these higher grade results is extremely encouraging and potentially outlines a substantial zone of greater than 1.0 g/t gold,' stated James Komadina, Chief Executive Officer of ITH. 'The fact we have now linked near-surface mineralization with these deeper higher grade zones could make a positive impact on our overall plan, particularly in the proposed initial mining efforts. We will continue to explore these high-grade zones both at depth and along strike and incorporate these results into our ongoing prefeasibility study which will be completed in the fourth quarter of this year. With recent gold prices above $1,500 per ounce, we have one of the most exciting pre-development gold projects in our space today and ITH is committed to advancing the Livengood Project towards development as efficiently as possible.'
A new 10,000-metre district-wide exploration program has also commenced which is targeting new discoveries along the Livengood trend both to the east-northeast and to the west of the existing Money Knob deposit. The first phase of this program includes 3,750 metres of exploration diamond drilling and 130 line kilometres of 3D IP ground geophysics. Drilling of the first target and a major geophysical survey have begun, with results expected over the summer and fall of 2011.
To view accompanying Figure 1, visit the following link: http://media3.marketwire.com/docs/PlanMapITH609.pdf
Table 1: Significant new intercepts(i)
(i) Intercepts are calculated using a 0.25 g/t gold cutoff and a maximum of
3 metres of internal waste.
From To Length Gold
Hole ID (metres) (metres) (metres) (g/t) Area and Comments
---------------------------------------------------------------------------
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MK-RC-0480CT 91.44 112.78 21.34 1.08 Southern Core Zone infill
137.16 178.31 41.15 0.90
includes 146.30 152.4 6.10 1.22
includes 164.59 169.16 4.57 1.85
includes 173.74 176.78 3.04 2.67
181.36 214.88 33.52 0.54
219.46 311.81 92.35 1.57 new core data from 265.18m
314.86 333.15 18.29 0.64
334.67 340.62 5.95 2.18
MK-RC-0496 108.20 124.97 16.77 1.61 Sunshine Zone infill
includes 108.20 111.25 3.05 6.79
138.68 156.97 18.29 0.59
includes 143.26 146.3 3.04 1.70
164.59 199.64 35.05 0.53
205.74 263.65 57.91 0.59
MK-RC-0500CT 143.26 150.88 7.62 1.33 Southern Core Zone infill
188.74 238.66 49.92 1.35 new core data from 150.88m
includes 201.78 205.63 3.85 2.68
244.75 270.66 25.91 1.01
includes 246.28 253.9 7.62 2.08
306.72 310.89 4.17 1.42
382.00 392.1 10.10 0.71
415.42 423.81 8.39 0.69
MK-RC-0514 64.01 73.15 9.14 0.64 Sunshine Zone infill
135.64 146.3 10.66 0.53
173.74 182.88 9.14 0.88
includes 178.31 181.36 3.05 1.74
254.51 268.22 13.71 0.96
includes 260.60 266.7 6.10 1.80
MK-RC-0515 4.57 15.24 10.67 0.77 Core Zone infill
35.05 53.34 18.29 0.48
70.10 83.82 13.72 0.60
120.40 129.54 9.14 0.62
134.11 192.02 57.91 0.85
includes 158.50 161.54 3.04 4.61
196.60 207.26 10.66 0.50
211.84 230.12 18.28 0.56
259.08 288.04 28.96 0.56
MK-RC-0516 129.54 140.21 10.67 1.61 Southern Core Zone infill
includes 134.11 137.16 3.05 4.05
169.16 195.07 25.91 0.75
includes 175.26 179.83 4.57 1.43
219.46 240.79 21.33 1.07
includes 219.46 225.55 6.09 2.65
288.04 310.9 22.86 0.41
313.94 349 35.06 0.70
385.57 409.96 24.39 0.67
includes 400.81 403.86 3.05 1.93
414.53 426.72 12.19 0.57
MK-RC-0517 42.67 65.53 22.86 1.34 Sunshine Zone infill
includes 47.24 51.82 4.58 3.62
includes 56.39 62.48 6.09 1.44
73.15 85.34 12.19 0.81
includes 79.25 82.3 3.05 1.89
97.54 114.3 16.76 0.39
120.40 128.02 7.62 2.24
includes 120.40 124.97 4.57 3.56
257.56 353.57 96.01 0.88
includes 281.94 286.51 4.57 1.79
includes 313.94 335.28 21.34 1.51
358.14 374.9 16.76 1.03
includes 358.14 361.19 3.05 1.91
MK-RC-0518 36.58 41.15 4.57 1.19 Core Zone infill
67.06 74.68 7.62 0.70
115.82 129.54 13.72 0.55
137.16 176.78 39.62 1.68
includes 147.83 175.26 27.43 2.24
198.12 274.32 76.20 1.35
includes 202.69 216.41 13.72 3.56
includes 222.50 230.12 7.62 1.55
includes 237.74 240.79 3.05 1.93
includes 257.56 263.65 6.09 1.31
MK-RC-0519 25.91 33.53 7.62 2.33 Core Zone infill
includes 25.91 32 6.09 2.84
50.29 99.06 48.77 0.68
includes 73.15 79.25 6.10 1.15
includes 86.87 91.44 4.57 1.38
106.68 109.73 3.05 8.10
MK-RC-0520 36.58 60.96 24.38 0.84 Sunshine Zone infill
includes 53.34 56.39 3.05 3.59
77.72 94.49 16.77 0.53
103.63 114.3 10.67 0.70
129.54 147.83 18.29 0.41
224.03 237.74 13.71 0.74
256.03 266.7 10.67 0.58
280.42 292.61 12.19 0.81
includes 284.99 289.56 4.57 1.60
MK-RC-0521 67.06 79.25 12.19 1.11 Money Knob infill
MK-11-108 125.58 128.6 3.02 2.59 Southern Core Zone infill
139.29 144.17 4.88 1.88
151.49 180.76 29.27 1.64
includes 160.16 165.2 5.04 1.96
181.24 212.57 31.33 0.53
221.10 228.23 7.13 1.14
247.50 256.64 9.14 1.03
285.90 315.78 29.88 0.54
317.46 333.41 15.95 0.46
359.00 366.08 7.08 2.52
includes 361.27 364.48 3.21 5.12
454.46 456.6 2.14 3.88
MK-11-110 29.87 31.39 1.52 3.27 Core Zone infill
63.84 69.49 5.65 1.32
110.98 130.45 19.47 0.73
131.97 154.39 22.42 0.78
includes 144.17 149.5 5.33 1.13
180.59 210.26 29.67 0.40
MK-11-116 72.74 80.00 7.26 0.76 Southern Core Zone infill
163.47 256.34 92.87 1.62
includes 165.72 182.12 16.40 4.76
270.01 280.11 10.10 1.05
284.68 299.42 14.74 0.57
317.30 382.71 65.41 1.02
includes 334.21 339.44 5.23 5.29
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 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 11, 2011) of 277 Mt at an average
grade of 0.83 g/t gold for 7.4 Moz gold in the Measured category, 120 Mt
at an average grade of 0.83 g/t gold for 3.2 Moz gold in the Indicated
category, and 104 Mt at an average grade of 0.79 g/t for 2.7 Moz in the
Inferred category, all 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 resources of 138 Mt at an average grade
of 1.07 g/t, Indicated resources of 55 Mt at an average grade of 1.12
g/t gold and Inferred resources of 41 Mt at an average grade of 1.11 g/t
gold, based on a cut-off grade of 0.7 g/t gold) and will form the basis
for initial mine design work.
-- Ongoing metallurgical studies are focused on the potential use of
conventional whole ore milling with a grinding-gravity flotation circuit
for the Livengood mineralization which has returned preliminary gold
recoveries to a concentrate of 78 to 89%. Heap leach test work for oxide
material crushed to one-half inch averages approximately 70%. Ongoing
test work is focused on optimizing both treatment options in the context
of prefeasibility study completion this year.
-- The geometry of the currently defined shallowly dipping, outcropping
deposit has a low strip ratio amenable to low cost surface mining
techniques 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 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.
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 a Director 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 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 potential for the linking of near-surface and deeper high-grade mineralization to have a positive impact on the Company's overall plan, particularly in any initial mining efforts, the potential to outline a substantial zone of greater than 1.0 g/t gold at Livengood, 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, 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 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 Industry Guide 7. Accordingly, the Company's disclosures regarding mineralization may not be comparable to similar information disclosed by companies subject to the SEC's Industry Guide 7. Without limiting the foregoing, while the terms 'mineral resources', 'inferred mineral resources' and 'indicated 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 Industry Guide 7. Mineral resources which are not mineral reserves do not have demonstrated economic viability, and United States shareholders 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. In addition, the NI 43-101 and CIM Standards definition of a 'reserve' differs from the definition adopted by the SEC in Industry Guide 7. In the United States, 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.
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.
NR11-09
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