International Tower Hill Mines to start two drill programs at Livengood deposit

International Tower Hill Mines (TSE:ITH) said it will begin district-wide exploration and condemnation drilling at its Livengood gold project, in Alaska.

The gold explorer, which will start the two drill programs on May 1, said that drill results are expected throughout the summer and fall of this year.

As part of its initial district-wide exploration program, International Tower will drill 3,000 metres in 10 core holes to find new discoveries on its 145 square kilometre land package. 

Prior drilling and surface sampling had spotted an area northeast of the Money Knob deposit where faults, dikes and anomalous gold indicated a potentially significant mineralization.

Three holes are planned to target the area to assess the extent of the mineralization. Based on results from these initial holes, the company plans to explore other drill sites.

Condemnation drilling, which will determine areas for infrastructure development, will consist of a 40-hole 6,000 metre program to sterilize and establish the presence of mineralization surrounding Money Knob and extend toward existing mineralized exploration drill holes. 

“With our Money Knob deposit sitting at over 16.5 million ounces in the measured and indicated, and 4.1 million ounces in the inferred resource categories, it is important for us to look in new areas of our land package to see if we can find additional gold deposits,” International Tower Hill chief executive Jim Komadina said. 

The CEO added that it is crucial to begin engineering data acquisition so that regulatory and community engagement can start.
The condemnation drill program is designed to allow Tower Hill Mines to be ready for these important discussions in first quarter of 2013.

The Livengood gold project is located about 115 kilometres northwest of Fairbanks, Alaska, within the Tintina gold belt.

The project is now in transition from an exploration project to undertaking a pre-feasibility study. Field investigations at Livengood are ongoing, with a total of nine drill rigs working at the site during summer 2011.

In 2012, International Tower Hill is focused on the rapid advancement of Livengood into a compelling potential development scenario while it continues to expand its current resource and explore its 145-square-kilomtre district for new deposits.

In separate news, the company also said that its audited financial statements for the year-ended December 31, 2011 contained an “emphasis of matter” paragraph in relation to a going concern explanatory note.

The note did not modify the report of the independent auditor, but instead draws attention to the company’s audited consolidated financial statements which describe certain material uncertainties related to the ability of the company to continue as a going concern.

Under rules of the NYSE Amex stock exchange the inclusion of such a paragraph is required to be announced.

The company said that its current working capital is considered sufficient to fund operations and exploration programs for the fiscal year.

International Tower Hill Mines has a majority stake in the Livengood property, accessible by paved highway 70 miles north of Fairbanks, Alaska.