International Tower Hill Mines says Livengood pre-feasibility due in 2012

International Tower Hill Mines (ITH)(TSE:ITH)(AMEX:THM) Tuesday said the prefeasibility study (PFS) for its flagship Livengood gold project near Fairbanks, Alaska will now be published in the first half of 2012.
While the bulk of engineering studies have been completed, a detailed metallurgical review of the preliminary economic assessment flow sheet has indicated further optimization is possible, ITH said.
ITH chief executive, James Komadina, commented: "We remain confident of the Livengood Project viability given its significant gold resource, exceptional infrastructure access and location in one of the best mining jurisdictions in the world.
"The publication date of the Livengood Prefeasibility study is being extended to allow for the completion of additional laboratory testing and optimization work suggested by myself as well as ITH and third party metallurgists, that will enable us to move the project forward as rapidly and cost efficiently as possible to create wealth for our shareholders and jobs for a generation of Alaskans."
ITH said the PFS will incorporate the mineral resource estimate of 933 million tonnes at an average grade of 0.55 grams per tonne (g/t) gold (at a cutoff grade of 0.22 g/t gold) for 16.5 million ounces of contained gold in the measured and indicated categories, as well as the results of geotechnical studies, metallurgical testing, updated capital and operating cost estimates and other relevant studies.
BMO Capital Markets mining analyst John Hayes said the news was "potentially positive".
In a research note, Hayes said that delays were not unexpected in engineering studies of projects of this scale.
"Opportunities to optimize the project should be fully explored, especially given the cost inflation that the industry has experienced over the course of 2011 and which we expect could continue into 2012," Hayes noted.
Large low-grade deposits have a high sensitivity to operating parameters, the analyst added, including process recovery, so the delay is a "good use of time".
BMO has a "market perform" rating on ITH. As at 11.56 am EDT, ITH was up 1.88 percent at $4.88.