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International Tower Hill Mines Announces Livengood Gold Project Feasibility Study Results

International Tower Hill Mines Announces Livengood Gold Project Feasibility Study Results

Vancouver, British Columbia, July 23, 2013 – International Tower Hill Mines Ltd. (“ITH” or the “Company”) - (TSX: ITH) (NYSE-MKT: THM) today announced the results of a Feasibility Study (the “FS”) for its Livengood Gold Project (the “Project”) located near Fairbanks, Alaska. The FS evaluated a 100,000 ton per day project that would produce 8 million ounces of gold over 14 years. Using the trailing three year gold price of $1,500 per ounce, the project generates a minimal positive return. The Company continues to pursue opportunities as identified in the FS for potential cost reductions as well as scenarios which would require less initial capital expenditure. All dollar figures in this news release are stated in US Dollars.

A conference call to discuss the results of the FS will be held tomorrow morning at 8:30am ET, Wednesday, July 24, 2013. Call-in details are located at the end of this release.

“The results of the Feasibility Study confirm that the Livengood project is a large, well proven resource that can significantly benefit from economies of scale to generate good economic returns,” said Don Ewigleben, CEO of International Tower Hill Mines. “While the large project FS results are not economically robust in today’s gold market, the Livengood project remains a very significant gold deposit in one of the most favorable jurisdictions in the world. The Company is highly focused on advancing lower cost opportunities identified in the FS.  The Company has also implemented numerous cost savings initiatives that will allow it to continue with the opportunities review and maintain the project well into 2015. We will also be maintaining the necessary environmental baseline activities to move the permitting process forward and maintain the integrity and usability of five years of data already compiled for any of the various production alternatives.”

FS Overview
The Company controls 100% of the Project with a mineral resource of 731 million Measured tonnes at an average grade of 0.61 g/tonne (14.4 million ounces at 0.3 g/tonne cut-off), 71 million Indicated tonnes at an average grade of 0.56 g/tonne (1.3 million ounces at 0.3 g/tonne cut-off) and 266 million Inferred tonnes at an average grade of 0.52 g/tonne (4.4 million ounces at 0.3 g/tonne cut-off).

The FS has converted a portion of these mineral resources into proven reserves of 434 million tonnes at an average grade of 0.69 g/tonne (9.6 million ounces) and probable reserves of 20 million tonnes at an average grade of 0.70 g/tonne (454,000 ounces). The mine plan provides sufficient ore to support an annual production rate of approximately 577,600 ounces over an estimated 14 year mine life.

Project Opportunities
The Company plans to continue to advance the Project within the limitations of its working capital on hand while safeguarding the asset for development in the future. As of June 30, 2013, the Company has approximately $19.9 million in cash. Discussions continue with several potential strategic partners with longer term development horizons for advancement of the Project.

Project Location
The Livengood Gold Project is connected by an existing paved highway 70 miles northwest of the town of Fairbanks in Central Alaska. The Project is located in an active mining district that has been mined for gold since 1914. The State of Alaska land use plan designates mining as the primary surface use for the Livengood area.

Project Summary
The Project design is a conventional, owner-operated surface mine that will utilize large-scale mining equipment in a blast/load/haul operation.  Ore is planned to be processed in a 100,000 ton per day comminution circuit consisting of a primary gyratory crusher, wet grinding in a single semi-autogenous (SAG) mill and two ball mills, followed by a gravity gold circuit and a conventional carbon in leach (CIL) circuit.

Infrastructure
The Project would include a lined tailings management facility, two water reservoirs, an administration office/shop/warehouse complex and a 440 person camp. The Project would also include construction of a 50 mile transmission line to the site from the existing grid power near Fairbanks, Alaska.

Environmental and Community Relations
Five continuous years of baseline environmental work continues to show that all aspects of the Project can be successfully and safely managed. The design of the tailings facility incorporates best practices including a lined rock fill structure with a lined tailings basin. The development team has had considerable experience working with Alaska’s large mine permitting process and has a proven and respected track record of developing projects safely and in an environmentally sound manner. The Project has already and will continue to provide local economic opportunities with local access to a highly skilled and available work force. The Company is also working with the town of Fairbanks and the nearby community of Minto to seek early input on the Project and to explore ways to maximize economic benefits to the local communities.

Results of the 100,000 Ton Per Day, Large Mine Feasibility Study (click on the link below to view details):
http://ithmines.com/_resources/news/nr_2013_07_23.pdf

Next Steps and Opportunities
The Company believes that mill throughput and production schedule optimization studies may provide opportunities to reduce project capital costs. A lower mill throughput may offer an opportunity to enhance mill head grades in early years by a more aggressive stockpile management strategy than is assumed in the FS.

The Company will also continue to advance environmental baseline work in support of future permitting in order to better position the Project for a construction decision when warranted by market conditions.

There is also opportunity to expand the mineable resource by increasing the in-pit resource, as additional drilling may improve the classification of the material contained within the pit. Additional drilling may expand the resource at depth and to the southwest, incorporating mineralized material below the current grade model. Multiple exploration targets have been identified and may increase the resource with additional exploration.

The Company has also identified several opportunities to improve the performance of the Project that warrant further study including verification of preliminary indications of a higher head grade, verify modeling to improve recovery through intensive cyanide leach of gravity concentrates, reducing reagent consumption and energy costs.

Detailed Report
A NI 43-101 Technical Report that summarizes the results of the FS will be filed on SEDAR at www.sedar.com within 45 days of this press release and will be available on the Company's website www.ithmines.com at that time.

Conference Call Details
The Company will host a conference call at 8:30 am ET Wednesday, July 24, 2013 to discuss the FS.  Mr. Don Ewigleben, President and CEO of International Tower Hill Mines, will chair the call. All interested parties can join the conference call by dialing 1-888-231-8191 or 647-427-7450. Please dial in 15 minutes prior to the call to secure a line. The conference call will be archived for replay until July 31, 2013 at midnight. To access the archived conference call, please dial 1-855-859-2056 or 416-849-0833 and enter the reservation code 17471473. This call will also be web-cast and can be accessed on the company’s events webpage.

 

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