Definitions

Assay

A procedure to determine and measure the amount of a substance within an ore sample.




Ball mill

A type of Ore grinding device consisting of a rotating cylinder filled with steel balls in order to crush ore into an extremely fine powder.




Capital Expenditures (CAPEX)

Money spent to acquire or upgrade tangible and intangible assets in order to create future benefits.




Carbon-in-leach (CIL)

A process of recovering gold by the leaching and absorbing of gold onto carbon taking place in the same tank.




Cash Cost

Includes production costs, royalties, marketing and refining charges, together with all administration expenses.




Concentrate

Material that has been stripped of commercially worthless minerals, leaving a denser, purer, concentrated form of the valuable metal.




Core

A cylindrical piece of rock, 5-10 centimeters in diameter and up to several meters in length, taken as a sample of a subsurface geologic interval and brought to surface by drilling.




Environmental impact study (EIS)

A written report, compiled prior to a production decision that examines the effects proposed mining activities will have on the natural surroundings.




Feasibility Study: (“Bankable Feasibility Study”)

According to NI 43-101, a feasibility study is a comprehensive study of a mineral deposit in which all geological, engineering, legal, operating, economic, social, environmental and other relevant factors are considered in sufficient detail that it could reasonably serve as the basis for a company to develop the deposit into a producing mine.




Grab sample

Grab samples are typically done on surface and mapped and are not intended to be representative of the deposit but as evidence of mineralization. The samples are then assayed to begin forming a map of where further investigation may be warranted.




Heap leaching

A process whereby valuable metals are leached from a pad of crushed ore by spraying leach solution to dissolve the metals into an impermeable liner below the pad.




Indicated Resources

Mineral occurrences that have been sampled to a point where an estimate has been made with a moderate level of confidence of their contained metal, grade, tonnage and density. These results may be used for the application of technical and economic parameters to support a mine plan and the evaluation of the economic viability of the deposit.




Inferred Resources

Mineral occurrences that are based on assumed continuity but have geological evidence calculated with a low confidence level on their contained metal, grade, tonnage and density. Inferred resources do not have any economic considerations applied.




Measured Resources

Mineral occurrences that are calculated based on sample analysis and measurements from closely spaced geologically well-known sample sites to a high level of confidence of their contained metal, grade, tonnage and density. Measured resources may also make up portions or all of mineral reserves.




Metallurgy

The study of extracting metals from their ores.




Mill

A plant in which ore is treated and metals are recovered or prepared for smelting by upgrading the mineral content into a concentrate.




Net smelter return (NSR)

An interest in a mining property held by a 3rd party on the net revenue generated from the sale of metal produced by the mine




National Instrument (NI - 43 - 101)

Is a standard of disclosure for mineral projects applying to all oral statements and written disclosure pertaining to scientific or technical information of a project typically in regards to mineral resources and reserves.




Open pit

A mine that is entirely on surface.




Operating cost

Cash cost plus depreciation and amortization




Ounces

Troy ounces of a fineness of 999.9 parts per 1,000 parts, equal to 31.1034 grams




Placer

A deposit of sand and gravel containing valuable metals such as gold.




Preliminary Assessment: (“Scoping Study”), (PEA)

According to NI 43-101, a preliminary assessment is “a study that includes an economic analysis of the potential viability of mineral resources taken at an early stage of the project prior to the completion of a preliminary feasibility study.” A “preliminary assessment may be based on measured, indicated, or inferred mineral resources, or a combination of any of these. PEA’s may include disclosure of forecast mine production rates that may contain capital costs to develop and sustain the mining operation, operating costs, and projected cash flows. A preliminary assessment must be either in the form of a technical report or be supported by a technical report. “




Preliminary Feasibility Study (“pre-feasibility study”)

According to NI 43-101, a preliminary feasibility study is a “comprehensive study of the viability of a mineral project that has advanced to a stage where the mining method, in the case of underground mining, or the pit configuration, in the case of an open pit, has been established and an effective method of mineral processing has been determined, and includes a financial analysis based on reasonable assumptions of technical, engineering, legal, operating, economic, social, and environmental factors and the evaluation of other relevant factors which are sufficient for a qualified person, acting reasonably, to determine if all or part of the mineral resource may be classified as a mineral reserve”




Probable Reserves

The economically mineable part of an Indicated, and in some circumstances a Measured Mineral Resource demonstrated by a preliminary feasibility study.  This study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified.




Proven Reserves

The economically mineable part of a Measured Mineral Resource demonstrated by a preliminary feasibility study.  This study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting, that economic extraction is justified.




Reclamation

The process by which lands disturbed as a result of mining activity are reclaimed back to a beneficial land use. Reclamation activity may include the removal of buildings, equipment, machinery, closure of tailings ponds, leach pads and other mine features, and contouring, covering and re-vegetation of waste rock piles and other disturbed areas.




Recovery

The percentage of valuable metal in the ore that is recovered during metallurgical treatment.




Reserves

That part of a mineral deposit which could be economically and legally extracted or produced at the time of the reserve determination.




Resource

The calculated amount of material in a mineral deposit, based on drill information.




Royalty

An amount of money paid at regular intervals by the lessee or operator of an exploration or mining property to the owner of the ground. The fee is generally based on a certain amount per tonne or a percentage of the total production or profits.




Specific gravity

The weight of a substance compared with the weight of an equal volume of pure water at 4 degrees Celsius.




Strip ratio

The stripping ratio refers to the amount of waste rock that must be removed in order to expose the ore body. A 2:1 stripping ratio means that, over the lifetime of a mine, the company will have to move 2 tons of waste to extract 1 ton of ore. The lower the stripping ratio, the more accessible the ore body is and the more likely the mine is profitable.




Tonne

Means a metric tonne (2204.6 pounds)

 

 

©2011 International Tower Hill Mines Ltd. Gold Mining Exploration Company.
All Rights Reserved