INTERNATIONAL TOWER HILL MINNES LIMITED (eth-TSX, then(NYSE) announced the appointment of a feasibility study team for its Livengood gold project north of Fairbanks, Alaska.
The company also said that core drilling (3,000 metres) to support the feasibility study has begun at Livengood. It said the contractor mobilized two rigs and began drilling initial large-diameter PQ core holes within the measured and indicated resource of 13.6 million ounces, which includes 9.0 million ounces of proven and probable gold reserves. The drilling program is designed to provide representative samples of fresh ore for advanced mineralogical testing and process improvement work.
The Company’s focus on performing metallurgical testing on this new core will be on evaluating opportunities to enhance gold recoveries and overall project economics in the context of a gold price significantly higher than the US$1,680 per ounce assumption used in the Company’s previous study.
On Wednesday, shares of International Tower Hill fell 1.8%, or $0.07, to $3.38. Shares are trading in a 52-week range of $4.94 and 91 cents.
International Tower Hill controls 100% of the Livengood Gold Project. The company said it ranks as the largest gold depository in North America alone and is not wholly owned by the producer. The project hosts a measured and indicated resource of 704.5 million tonnes of gold grading 0.60 g/t or 13.6 million contained ounces. Furthermore, there is an inferred resource of 16 million tonnes of gold grading 0.40 g/t or 207,000 ounces.
A portion of these mineral resources have been converted into proven reserves of 430.1 million tons grading 0.65 g/t or just over 9.0 million ounces.
Livengood is a large but low-quality deposit, and to be viable, it requires recovering gold at a low unit cost per ton. The company said the highway close to the project is a major positive factor that will reduce initial development costs and project timing. The project has been the site of almost continuous alluvial mining for the past 90 years. Livengood is envisioned as a large-scale mining operation similar to the Fort Knox mine, located 75 kilometers to the southeast.
The operation is expected to generate approximately 1,000 direct jobs during the construction phase and more than 350 direct operational jobs throughout the life of the mine, which is currently assumed to last approximately 23 years.
Based on the pre-feasibility study dated April 2017, the project broke even at a gold price of US$1,231 per ounce.
Earlier this year, International Tower Hill announced that Paulson & Co. Inc. has agreed to purchase $40 million worth of common stock in a private placement. Paulson currently owns a 39.9% stake in the company, according to Tower Hill’s most recent presentation.
