International Tower Hill Mines Comments on Recent Gold Market Activity
April 24, 2013
Vancouver, B.C……..International Tower Hill Mines Ltd. (“ITH” or the “Company”) - (TSX: ITH, NYSE-MKT: THM, Frankfurt: IW9) wishes to comment on the recent activity in the gold market.
Despite the recent turmoil in the gold market, ITH will continue to strive to bring value to its shareholders by optimizing its world class Livengood Gold Project, which currently has estimated measured and indicated resources of 933 million tonnes at an average grade of 0.55 g/t gold (16.5 million contained ounces) at a 0.22 g/t gold cut-off (see NR11-13, August 23, 2011).
The Company completed drilling for condemnation, geo-hydrological and geotechnical support of the Feasibility Study (FS) for Livengood in 2012. The Company has prepared for the potential of a continuing lower gold price and has developed an alternate work program under which ITH will continue to fund its corporate activities, compliance matters and essential environmental baseline activities to support the permitting process with the capital currently on hand. Accordingly, the Company does not anticipate raising additional capital in the near term and will continue to seek strategic alliances to fund the future development of this project upon the completion of the FS currently underway.
Don Ewigleben, President and CEO, stated, “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 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.”
About International Tower Hill Mines Ltd.
International Tower Hill Mines Ltd. controls a 100% interest in the world-class Livengood Gold Project accessible by paved highway 70 miles northwest of Fairbanks, Alaska.
On behalf of
International Tower Hill Mines Ltd.
(signed) Donald C. Ewigleben
Donald C. Ewigleben
President & 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 statements with respect to the timing for the completion and anticipated release of a Feasibility Study and/or Optimization Study for Livengood, the potential development of the Livengood project; the ability of the Company to implement an alternative work program and to maintain certain business activities without having to raise additional capital in the near term, the sufficiency of the Company’s capital currently on hand, the potential for the Company to enter into arrangements with one or more strategic alliance partners and to thereby obtain further finding for the development of the Livengood project, business and financing plans, business trends and the attractiveness of the Company as a long-term investment are forward-looking statements. 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, proposed, planned, potential 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 enter into arrangements with strategic alliance partners to secure additional funding, or at all, the inability of the Company to obtain any necessary permits, consents or authorizations required for its activities, the inability of the Company to reduce its costs sufficiently while at the same time maintaining essential environmental baseline activities to support the permitting process, 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 (10-K) filed with certain securities commissions in Canada and the Company’s annual report on Form 10-K 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 Livengood property.
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.