International Tower Hill Mines (TSE:ITH)(AMEX:THM) unveiled Monday a historical resource estimate for its 100 percent-owned Placer claims near the Livengood gold project located around 70 miles north of Fairbanks, Alaska.
The company, which acquired the Placer claims in December, said a
report completed by Alaska/Nevada Gold Mines in 2006 estimated a
resource of roughly 5.2 million cubic yards of gold-bearing gravel at an
average grade of 1.0 gram per tonne (g/t) in several defined areas
within the Livengood Placer claims.
This amounts to a total gold resource of around 230,000 ounces in the
measured and indicated resource categories, International Tower Hill
The company noted, however, that after the calculation of this
resource, which is not NI 43-101 compliant, and prior to the purchase of
the Placer property by the company in 2011, mining operations completed
in 2010 resulted in a reduction to measured resources of 7,100 ounces.
Placer gold was first discovered in the Livengood area in 1914, and
led to a gold rush that recovered approximately 530,000 ounces of placer
gold from the district since that time.
The company said the historical resource estimate is relevant to
indicate that sufficient potential exists on the Livengood Placer claims
to justify exploration expenses, and also as a guide to the
prioritization of potential development efforts.
"The potential for significant alluvial gold to be found in the
Livengood Placer claims, as illustrated by the existence of the
historical resource estimate, represents a truly exciting opportunity
for International Tower Hill Mines to create significant value for our shareholders in the near term," said president and CEO, Jim Komadina.
"While our main Livengood development team continues to focus solely
on advancing the large Livengood Gold Project towards permitting and
development into a large-scale gold mine in North America, we have a
highly experienced placer mining team assessing the potential of the
Livengood Placer property with a view to determining as soon as possible
if a resource sufficient to warrant future production may be
Records exist for 2,370 placer drill holes that were completed on the Livengood Placer claims since 1933.
The company is planning a confirmation drill program of 2,275 metres
on the Livengood Placer claims beginning in April of this year, to
assess whether the historical drilling data can be used in the
calculation of a current NI 43-101 resource for the property.
Richard Hughes, P.E., of H2T Mine Engineering Services, a qualified
person as defined under NI 43-101 who reviewed the historical resource
estimate on behalf of the company, concluded: "We concur with the
methodology used by ANGM and believe that its resource analysis is
reasonable as presented by category, subject to an uncertainty presented
by a 2010 production shortfall. To develop a NI 43-101 compliant placer
"A more detailed analysis of the resource category assignment should
be conducted to include complete detailed drill log take-off and spatial
consideration for category allocation. The effect of underground drift
mining on the resource calculations needs to be clearly understood. I
strongly recommend resource definition be improved by utilizing new
drilling methods in the measured and indicated areas."
International Tower Hill Mines
controls a 100 percent interest in the Livengood project accessible by
paved highway 70 miles north of Fairbanks, Alaska. In 2012, the company
is focused on the rapid advancement of the property while it continues
to expand its current resource and explore its 145 square kilometre
district for new deposits.