International Tower Hill Mines' (TSE:ITH)(NYSE MKT:THM) new CEO updated shareholders Wednesday on its Livengood project in Alaska, assuring investors that the asset has "tremendous potential" to generate shareholder value.
"The exceptionally large and strategically located Livengood gold deposit has a spectrum of development opportunities and ITH is focused on optimizing those opportunities to meet the challenges of today's market," said president and CEO, Donald C. Ewigleben after his initial two months on the job.
"Livengood is truly a world class gold opportunity that we believe will be developed and ITH owns 100% of this quality asset.
"The development path for this deposit will be clearly defined by the ongoing metallurgical testwork and project optimization process, the results of which will be incorporated into the Feasibility Study (FS) scheduled for completion by mid-2013."
Next year, International Tower Hill will focus on determining the most cost effective and feasible development path for the project, which has 933 million tonnes of measured and indicated resources at an average grade of 0.55 grams per tonne (g/t) gold, for 16.5 million contained ounces, at a 0.22 g/t gold cut off.
The company will also look to outline a staged funding strategy for the asset's development, and will implement an "aggressive" permitting path for the plan.
The statement released Wednesday went on to outline the company's experienced Alaskan development team, which has a "proven track record of success". Ewigleben served as the chairman of the board since November 2011 and was involved during the early stages of Livengood’s exploration and development in the 1990s.
"The company continues to broaden its scope of stakeholder engagement and enjoys a supportive and constructive relationship with surrounding communities and regulatory agencies which will be expanded during the permitting process," it said.
Key milestones for Livengood that have been outlined for a target of mid next year include finalization of a full spectrum of metallurgical studies, and major site engineering and environmental work, which is already largely complete.
A large portion of the metallurgical testwork has also been completed, with final results expected in the fourth quarter, ITH said, adding that the work will define the anticipated process flowsheet and recovery rates to be incorporated in the definitive feasibility study.
The company has also made key land acquisitions as well as infrastructure and logistical assessments for integration into different development scenarios, and has made initial contacts for potential project financing.
International Tower Hill noted that it not only offers "unprecedented leverage to gold", currently trading at around $13 per contained measured and indicated ounce, but the project is also located in one of the most stable mining regions in the world.
"Its access to a well-developed infrastructure network, experienced development team and strong local support truly makes the project unique among the near-term, undeveloped, mega gold deposits still controlled 100% by a junior," it said in the statement.
Ewigleben said the company believes this will attract a strategic partner to help build the resource into a "world class mine".
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