International Tower Hill Mines (TSE:ITH) (NYSE:THM) is keeping a weather eye on the recent activity in the gold market, but the Canadian junior mining exploration company has no fear of the vagaries of the market costing it big.
The company said today the development of an alternate work program at its flagship Livengood gold project – termed by the company “North America’s greatest gold opportunity” -- came in preparation of the possibility of on-going lower gold prices.
Under the program, ITH will require nothing beyond the capital currently on hand to continue to fund corporate activities, compliance matters and essential environmental baseline activities to support the permitting process of the 125 kilometre square Alaskan property.
Accordingly, the company, which maintains a 100 per cent interest in the Livengood project, does not anticipate raising additional capital in the near term and will continue to seek strategic alliances to fund the future development of the project once the feasibility study currently underway is completed.
“We recognize that we are entrusted by our shareholders to protect the asset value of the Livengood Gold project and will continue the development process while limiting the expenditures,” ITH president and CEO, Don Ewigleben said in a company statement released today.
“ITH has structured its budget and corporate initiatives to bring the highest value to its shareholders and we believe it still remains an attractive long-term investment. The Livengood project hosts a very large gold resource in a favorable mining jurisdiction. Our current strategies remain the same with completing further development of the project while attracting a strategic alliance partner.
"Despite the recent drop in gold price, the value of the long life Livengood asset will be judged by factors in addition to today's gold price, including the existing infrastructure, favorable geo-political setting and highly qualified development team."
Indeed, the Livengood gold project, with a resource size of 16.5 million ounces in the measured and indicated categories and another 4.1 million ounces in the inferred category, ranks as among the largest gold deposits discovered globally in decades.
The project not only has the distinction of having large gold resources in a mining-friendly jurisdiction, it also has the advantage of being close to the city of Fairbanks, a mere 70 miles distant, and – crucially -- is accessible by paved highway. Other items of necessary infrastructure are available to the site in the shape of power, water, and a nearby highly skilled labour force in an area with a storied history of mining.
The project also benefits from ITH’s dedicated team of mining experts drawn from such luminaries as AngloGold Ashanti, Teck Resources (TSE:TCK.B) and Kinross (TSE:K) and boasting commensurate strong track records of development, permitting and operational success.
It is this combination of infrastructure, favorable jurisdiction and team that ITH are counting on to advance the project, regardless of temporary dips and troughs on the gold market rollercoaster.
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