TSX: ITH $0.92 -0.01
NYSE American: THM $0.69 0.02
6.1 metres of 18.2 g/t gold & 10.7 metres @ 1.4 g/t gold in top 30 metres
Other Highlights
MK-RC-0391: 45.7 m @ 1.1 g/t gold in the new Olive Zone
MK-RC-0396: 13.7 m @ 2.1 g/t gold in the new Olive Zone
MK-RC-0402: 9.2 m @ 2.5 g/t gold in top 50 metres -- Sunshine Zone
MK-RC-0399: 128 m @ 1.03 g/t gold & 16.8 m @ 1.3 g/t gold -- Sunshine Zone
MK-10-53: 103 m @ 1.53 g/t gold -- Core Zone
Vancouver, B.C........International Tower Hill Mines Ltd. ("ITH" or the "Company") - (TSX: ITH, NYSE-A: THM, Frankfurt: IW9) is pleased to announce the results from the latest 17 drill holes completed in its 50,000-metre Summer 2010 Livengood Exploration Program (Table 2). Highlighted in these latest holes is not only the continued confirmation and expansion of the deposit but the expansion of a shallow, high-grade, northwest trending zone within the Core Zone (MK-RC-405: 6.1m @ 18.2 g/t gold). This consistent trend of +6 g/t mineralization, which extends for nearly a half a kilometre within the large lower grade deposit, is emerging as one of the key early mining targets for the deposit. In addition the newly discovered Olive Zone continues to expand to the north (MK-RC-391: 45.7m @ 1.1 g/t gold) and south (MK-RC 396: 13.7m @ 2.1 g/t gold).
Emerging Core Zone High-grade Trend
The high grade intersection in MK-RC-0405 represents the 4th intersection of shallow (less than 50 metres vertically) high grade mineralization along a prominent, half kilometre long, well mineralized, NW trend structural zone (Table 1). This mineralized trend corresponds to a broad area of late quartz veining which is now emerging as a defined and traceable zone. While high grade mineralization has been encountered throughout this very large gold deposit, the new infill drilling is beginning to outline a consistent shape to the zone, suggesting that this and other high grade zones may form continuous bodies within the larger lower grade deposit that could be the focus of early mine production and significantly raise the average production grade. Additional work is planned to investigate the continuity of these and other high grade structures within the deposit and the potential for production selectivity.
Table 1: High grade near surface intersections from NW-trend in the Core
Zone at Money Knob.
Holes are ordered from NW to SE along the trend
Drill Hole # From (m) To (m) Length (m) Gold (g/t)
---------------------------------------------------------------------------
MK-10-47 55.78 60.35 4.57 7.13
MK-RC-0405 21.34 27.43 6.09 18.19
MK-RC-0062 56.39 57.91 1.52 17.95
MK-RC-0186 38.10 59.44 21.34 6.28
New Olive Zone
Four new holes were returned from the emerging Olive Zone expansion area. These and previous results highlight a north trending core of high-grade mineralization surrounded by a broad area of low grade. Mineralization is hosted within the same favourable units as the main deposit to the north. However, what is encouraging is that the Olive area has no gold in soil anomaly over it and this opens up a large area for exploration to the south of the deposit. This new resource expansion area remains open and will be the focus of followed up drilling to take place in Fall 2010.
District Exploration
The project has now added a 6th drill to focus on the initial testing of prioritized district scale targets. This program is on its second hole in the initial target area, with the first hole being lost at 60 metres in strong alteration well above the target horizon. In addition to the ongoing new discovery drilling, the project is beginning its initial condemnation drilling program and has initiated a year-round work plan to rapidly advance the project.
Infill Drilling Program
The 2010 infill drilling program is a key component in the Livengood pre-feasibility study, and has three main goals: (1) to convert the bulk of the current estimated resource in the mine plan from the indicated and inferred categories to the measured and indicated categories, respectively, (2) to better define the higher grade areas of the deposit, and (3) to extend the deposit at depth, because many of the existing drill holes have ended in mineralization. To date, the overall comparison of the infill drilling (5 spot pattern) results to the originally modeled 75 metre grid pattern continues to be favourable, with many areas open at depth. To date, about 50% of the Core and Sunshine Zones have been infill drilled and the Company continues to operate 4 drill rigs on this part of the project (2 RC and 2 core) with a 5th drill dedicated to step out drilling in the main deposit area. The Company anticipates adding a 7th drill rig (core) to the program shortly.
Table 2: Significant Drill Intercepts, Money Knob Deposit(i)
((i)Intercepts are calculated using a 0.25g/t gold cutoff and a maximum of 3
metres of internal waste)
From To Length Gold
Drill Hole # (metres) (metres) (metres) (g/t) Zone
============================================================================
MK-RC-0391 109.73 117.35 7.62 1.97 Olive
includes 109.73 112.78 3.05 4.05
124.97 170.69 45.72 1.09
includes 131.06 134.11 3.05 1.67
includes 137.16 140.21 3.05 4.19
includes 147.83 150.88 3.05 5.09
173.74 190.50 16.76 0.70
includes 176.78 179.83 3.05 2.53
220.98 236.22 15.24 0.58
242.32 274.32 32.00 0.60
309.37 323.09 13.72 0.75
MK-RC-0392 150.88 156.97 6.09 0.45 Lillian (lost hole)
MK-RC-0393 204.22 219.46 15.24 0.85 Sunshine (infill)
272.80 298.70 25.90 0.79
includes 291.08 295.66 4.58 2.24
MK-RC-0394 33.53 57.91 24.38 0.44 Core (infill)
65.53 74.68 9.15 0.73
79.25 99.06 19.81 0.71
includes 79.25 82.30 3.05 2.21
126.49 187.45 60.96 0.69
237.74 245.36 7.62 1.01
MK-RC-0395 96.01 109.73 13.72 0.69 Sunshine (infill)
117.35 124.97 7.62 0.77
129.54 140.21 10.67 0.88
163.07 178.31 15.24 0.84
205.74 256.03 50.29 0.79
includes 222.50 225.55 3.05 2.64
320.04 358.14 38.10 0.57
MK-RC-0396 266.70 280.42 13.72 2.06 Olive
includes 277.37 280.42 3.05 7.35
303.28 313.94 10.66 0.42
MK-RC-0397 28.96 62.48 33.52 0.52 Sunshine (infill)
74.68 89.92 15.24 0.59
91.44 120.40 28.96 0.56
includes 94.49 99.06 4.57 1.81
126.49 185.93 59.44 0.46
242.32 254.51 12.19 0.51
269.75 297.18 27.43 0.43
307.85 315.47 7.62 1.02
MK-RC-0398 1.52 28.96 27.44 0.58 Core (infill)
48.77 115.82 67.05 0.83
includes 60.96 65.53 4.57 1.93
includes 74.68 77.72 3.04 2.32
includes 85.34 89.92 4.58 1.83
126.49 172.21 45.72 0.80
includes 126.49 129.54 3.05 1.81
178.31 216.41 38.10 0.84
includes 184.40 188.98 4.58 2.39
220.98 239.27 18.29 1.92
includes 220.98 224.03 3.05 4.30
includes 228.60 234.70 6.10 2.28
MK-RC-0399 0.00 128.02 128.02 1.03 Sunshine (infill)
includes 7.62 12.19 4.57 1.97
includes 21.34 24.38 3.04 2.27
includes 33.53 39.62 6.09 2.37
includes 42.67 50.29 7.62 1.63
includes 94.49 97.54 3.05 3.16
138.68 144.78 6.10 0.91
161.54 173.74 12.20 0.53
188.98 205.74 16.76 1.31
includes 188.98 192.02 3.04 3.98
252.98 259.08 6.10 0.87
MK-RC-0400 4.57 16.76 12.19 1.06 Core (infill)
21.34 42.67 21.33 0.57
67.06 74.68 7.62 0.86
114.30 141.73 27.43 0.50
147.83 166.12 18.29 0.68
170.69 188.98 18.29 0.42
190.50 198.12 7.62 0.75
MK-RC-0400 207.26 219.46 12.20 0.76 Core (infill)
248.41 254.51 6.10 1.03
MK-RC-0401 301.75 307.85 6.10 0.97 Olive
MK-RC-0402 65.53 74.68 9.15 2.54 Sunshine (infill)
85.34 108.20 22.86 0.75
includes 67.06 73.15 6.09 3.59
includes 86.87 89.92 3.05 2.27
112.78 126.49 13.71 0.85
140.21 150.88 10.67 0.58
198.12 211.84 13.72 0.52
219.46 233.17 13.71 0.77
240.79 251.46 10.67 1.21
includes 245.36 248.41 3.05 3.05
278.89 329.18 50.29 0.64
includes 306.32 316.99 10.67 1.09
333.76 352.04 18.28 0.67
MK-RC-0403 no significant intercepts Lillian
MK-RC-0405 1.52 12.19 10.67 1.41 Core (infill)
21.34 27.43 6.09 18.19
79.25 86.87 7.62 1.69
106.68 121.92 15.24 0.74
128.02 150.88 22.86 1.29
includes 144.78 149.35 4.57 3.24
155.45 185.93 30.48 0.82
includes 166.12 170.69 4.57 1.31
204.22 213.36 9.14 0.64
219.46 252.98 33.52 0.54
259.08 274.32 15.24 0.49
280.42 291.08 10.66 0.47
295.66 332.23 36.57 0.46
MK-RC-0406 106.68 111.25 4.57 4.58 Sunshine (infill)
135.64 146.30 10.66 0.90
MK-RC-0406 158.50 170.69 12.19 0.68 Sunshine (infill)
includes 158.50 161.54 3.04 1.76
178.31 193.55 15.24 0.87
includes 204.22 211.84 7.62 1.63
199.64 217.93 18.29 0.97
227.08 269.75 42.67 0.89
includes 242.32 249.94 7.62 1.24
includes 265.18 268.22 3.04 1.97
MK-RC-0407 24.38 41.15 16.77 0.42 Sunshine (infill)
50.29 57.91 7.62 0.69
82.30 115.82 33.52 0.98
includes 99.06 106.68 7.62 2.99
118.87 135.64 16.77 0.66
140.21 152.40 12.19 0.60
161.54 169.16 7.62 1.99
includes 163.07 167.64 4.57 3.09
202.69 220.98 18.29 0.77
includes 205.74 211.84 6.10 1.09
295.66 309.37 13.71 0.48
313.94 335.28 21.34 0.39
338.33 367.28 28.95 0.60
376.43 426.72 50.29 0.61
MK-RC-0408 227.08 236.22 9.14 1.17 Olive
includes 228.60 231.65 3.05 2.45
242.32 260.60 18.28 0.50
326.14 344.42 18.28 0.29
MK-10-56 63.70 67.31 3.61 3.56 Sunshine (infill)
151.43 159.31 7.88 0.58
211.05 218.54 7.49 1.23
MK-10-58 31.69 40.14 8.45 1.24 Core (infill)
60.05 66.14 6.09 1.21
70.11 173.31 103.20 0.91
includes 109.19 116.50 7.31 1.75
includes 154.84 157.89 3.05 1.84
Livengood Project Highlights
Geological Overview
The Livengood Deposit is hosted in a thrust-interleaved sequence of Proterozoic to Palaeozoic sedimentary and volcanic rocks. Mineralization is related to a 90 million year old (Fort Knox age) dike swarm that cuts through the thrust stack. Primary ore controls are a combination of favourable lithologies and crosscutting structural zones. In areas distal to the main structural zones, the selective development of disseminated mineralization in favourable host rocks is the main ore control. Within the primary structural corridors, all lithologies can be pervasively altered and mineralized. Devonian volcanic rocks and Cretaceous dikes represent the most favourable host lithologies and are pervasively altered and mineralized throughout the deposit. Two dominant structural controls are present: 1) the major shallow south-dipping faults which host dikes and mineralization which are related to dilatant movement on structures of the original fold-thrust architecture during post-thrusting relaxation, and 2) steep NW trending linear zones which focus the higher-grade mineralization which cuts across all lithologic boundaries. The net result is broad flat-lying zones of stratabound mineralization around more vertically continuous, higher grade core zones with a resulting lower strip ratio for the overall deposit and higher grade areas that could be amenable for starter pit production.
The surface gold geochemical anomaly at Livengood covers an area 6 kilometres long by 2 kilometres wide, of which approximately half has been explored by drilling to date. Surface exploration is ongoing as new targets are being developed to the northeast and west of the known deposit.
Return of Capital - International Tower Hill Mines Ltd.
For the information of shareholders of the Company, the Company advises that, on August 26, 2010, the capital of ITH was reduced pursuant to the Plan of Arrangement dated July 8, 2010 by the distribution of common shares in the capital of Corvus Gold Inc.("Corvus"). In accordance with section 74 of the Business Corporations Act (B.C.), the board of directors of ITH has determined that the amount by which ITH's capital was reduced, being the fair market value of the common shares of Corvus as of the time of the distribution, was CAD 0.75 per common share of Corvus, which is the five day volume weighted average price of the Corvus common shares on the TSX for the period ending on September 3, 2010.
Qualified Person and Quality Control/Quality Assurance
Jeffrey A. Pontius (CPG 11044), a qualified person as defined by National Instrument 43-101, has supervised the preparation of the scientific and technical information that forms the basis for this news release and has approved the disclosure herein. Mr. Pontius is not independent of ITH, as he is the President and CEO and holds common shares and incentive stock options.
Development work at the Livengood Project is directed by Carl E. Brechtel (Colorado PE 23212, Nevada PE 8744), who is a qualified person as defined by National Instrument 43-101. He is a member of SME, AusIMM and SAIMM. Mr. Brechtel is not independent of ITH, as he is the COO and holds incentive stock options.
The work program at Livengood was designed and is supervised by Chris Puchner, Chief Geologist (CPG 07048) of the Company, who is responsible for all aspects of the work, including the quality control/quality assurance program. On-site personnel at the project photograph the core from each individual borehole prior to preparing the split core. Duplicate reverse circulation drill samples are collected with one split sent for analysis. Representative chips are retained for geological logging. On-site personnel at the project log and track all samples prior to sealing and shipping. All sample shipments are sealed and shipped to ALS Chemex in Fairbanks, Alaska, for preparation and then on to ALS Chemex in Reno, Nevada, or Vancouver, B.C., for assay. ALS Chemex's quality system complies with the requirements for the International Standards ISO 9001:2000 and ISO 17025:1999. Analytical accuracy and precision are monitored by the analysis of reagent blanks, reference material and replicate samples. Quality control is further assured by the use of international and in-house standards. Finally, representative blind duplicate samples are forwarded to ALS Chemex and an ISO compliant third party laboratory for additional quality control.
About International Tower Hill Mines Ltd.
International Tower Hill Mines Ltd. is a resource exploration company focused on the ongoing development of the advanced, multimillion-ounce gold discovery at Livengood in Alaska. ITH is committed to the aggressive development of the Livengood Project, thereby giving its shareholders the maximum value for their investment.
On behalf of International Tower Hill Mines Ltd.
Jeffrey A. Pontius, President and Chief Executive Officer
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and US securities legislation. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding the anticipated content, commencement and cost of exploration programs, anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, the potential for the expansion of the estimated resources at Livengood, the potential for higher grade mineralization to form the basis for a starter pit component in any production scenario, the potential low strip ratio of the Livengood deposit being amenable for low cost open pit mining that could support a high production rate and economies of scale, the potential for cost savings due to the high gravity concentration component of some of the Livengood mineralization, the completion of a pre-feasibility study at Livengood, the potential for a production decision to be made regarding Livengood, the potential commencement of any development of a mine at Livengood following a production decision, business and financing plans and business trends, are forward-looking statements. Information concerning mineral resource estimates and the preliminary economic analysis thereof also may be deemed to be forward-looking statements in that it reflects a prediction of the mineralization that would be encountered, and the results of mining it, if a mineral deposit were developed and mined. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct.
Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, variations in the market price of any mineral products the Company may produce or plan to produce, the inability of the Company to obtain any necessary permits, consents or authorizations required for its activities, the inability of the Company to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies, and other risks and uncertainties disclosed in the Company's Annual Information Form filed with certain securities commissions in Canada and the Company's annual report on Form 40-F filed with the United States Securities and Exchange Commission (the "SEC"), and other information released by the Company and filed with the appropriate regulatory agencies. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and its United States public disclosure filings may be accessed via www.sec.gov, and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties.
Cautionary Note Regarding References to Resources and Reserves
National Instrument 43 101 - Standards of Disclosure for Mineral Projects ("NI 43-101") is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Unless otherwise indicated, all resource estimates contained in or incorporated by reference in this press release have been prepared in accordance with NI 43-101 and the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resource and Mineral Reserves, adopted by the CIM Council on November 14, 2004 (the "CIM Standards") as they may be amended from time to time by the CIM.
United States shareholders are cautioned that the requirements and terminology of NI 43-101 and the CIM Standards differ significantly from the requirements and terminology of the SEC set forth in the SEC's Industry Guide 7 ("SEC Industry Guide 7"). Accordingly, the Company's disclosures regarding mineralization may not be comparable to similar information disclosed by companies subject to SEC Industry Guide 7. Without limiting the foregoing, while the terms "mineral resources", "inferred mineral resources", "indicated mineral resources" and "measured mineral resources" are recognized and required by NI 43-101 and the CIM Standards, they are not recognized by the SEC and are not permitted to be used in documents filed with the SEC by companies subject to SEC Industry Guide 7. Mineral resources which are not mineral reserves do not have demonstrated economic viability, and US investors are cautioned not to assume that all or any part of a mineral resource will ever be converted into reserves. Further, inferred resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of the inferred resources will ever be upgraded to a higher resource category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of a feasibility study or prefeasibility study, except in rare cases. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant "reserves" as in-place tonnage and grade without reference to unit amounts. The term "contained ounces" is not permitted under the rules of SEC Industry Guide 7. In addition, the NI 43-101 and CIM Standards definition of a "reserve" differs from the definition in SEC Industry Guide 7. In SEC Industry Guide 7, a mineral reserve is defined as a part of a mineral deposit which could be economically and legally extracted or produced at the time the mineral reserve determination is made, and a "final" or "bankable" feasibility study is required to report reserves, the three-year historical price is used in any reserve or cash flow analysis of designated reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority.
This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.
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International Tower Hill Mines Ltd.
506 Gaffney Road, Suite 200
Fairbanks, Alaska USA 99701
[email protected]