International Tower Hill Mines (ITH) (TSE:ITH) says that as the feasibility study on its Livengood gold project in Alaska nears completion, it will consider potential strategic alliances to help with permitting and development costs. 

The update came as the company released its first quarter financial results, which saw substantially narrowed net losses of $4.06 million, or 4 cents per share, as operating expenses declined. Total cash and equivalents at the end of the period stood at $24.68 million, with total assets of $80.78 million. 

The feasibility study for the Livengood project, which has been underway since early last year, is being led by Samuel Engineering and AMEC, with "signficant progress" made on the report in the latest period, the company said. 

So far, it has finished metallurgical test programs, geotechnical work, and large diameter well drill programs, among other activities. It has also advanced engineering and environmental studies, and says it is now focused on the review of capital, sustaining capital and operating costs to be included in the report. 

During the quarter, several alternatives to the large mill concept were developed, it said Thursday, and are being analyzed to determine if they can improve the economics of the project compared to the high tonnage base case. 

"These alternatives include varying mill feed rates, stand-alone heap leach, and mill and heap leach combinations. Optimized mine plans were developed to utilize stockpile management strategies in order to maintain higher grade feed to the process plant," ITH said in its management discussion and analysis that accompanied the release of its financial statements. 

The company has said that it has also developed an alternate work program at its flagship Livengood gold project – termed by the company “North America’s greatest gold opportunity” -- in preparation of the possibility of on-going lower gold prices.

Indeed, the gold development company revised its 2013 program to limit spending to the engineering and analysis required to support the completion of the base case feasibility study and the environmental baseline work needed to continue to advance the project toward the permitting stage. 

It expects a review of its budgetary and financing options will include the consideration of a future strategic alliance. 

The Livengood gold project, with a resource size of 16.5 million ounces in the measured and indicated categories and another 4.1 million ounces in the inferred category, ranks as among the largest gold deposits discovered globally in decades. 

The project not only has the distinction of having large gold resources in a mining-friendly jurisdiction, it also has the advantage of being close to the city of Fairbanks, a mere 70 miles distant, and – crucially -- is accessible by paved highway. Other items of necessary infrastructure are available to the site in the shape of power, water, and a nearby highly skilled labour force in an area with a storied history of mining.

International Tower Hill Mines (TSE:ITH) (NYSE:THM) is keeping a weather eye on the recent activity in the gold market, but the Canadian junior mining exploration company has no fear of the vagaries of the market costing it big.

The company said today the development of an alternate work program at its flagship Livengood gold project – termed by the company “North America’s greatest gold opportunity” -- came in preparation of the possibility of on-going lower gold prices.

Under the program, ITH will require nothing beyond the capital currently on hand to continue to fund corporate activities, compliance matters and essential environmental baseline activities to support the permitting process of the 125 kilometre square Alaskan property.

Accordingly, the company, which maintains a 100 per cent interest in the Livengood project, does not anticipate raising additional capital in the near term and will continue to seek strategic alliances to fund the future development of the project once the feasibility study currently underway is completed.

“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 president and CEO, Don Ewigleben said in a company statement released today.

“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."

Indeed, the Livengood gold project, with a resource size of 16.5 million ounces in the measured and indicated categories and another 4.1 million ounces in the inferred category, ranks as among the largest gold deposits discovered globally in decades. 

The project not only has the distinction of having large gold resources in a mining-friendly jurisdiction, it also has the advantage of being close to the city of Fairbanks, a mere 70 miles distant, and – crucially -- is accessible by paved highway. Other items of necessary infrastructure are available to the site in the shape of power, water, and a nearby highly skilled labour force in an area with a storied history of mining.

The project also benefits from ITH’s dedicated team of mining experts drawn from such luminaries as AngloGold Ashanti, Teck Resources (TSE:TCK.B) and Kinross (TSE:K) and boasting commensurate strong track records of development, permitting and operational success.

It is this combination of infrastructure, favorable jurisdiction and team that ITH are counting on to advance the project, regardless of temporary dips and troughs on the gold market rollercoaster.

International Tower Hill Mines (TSE:ITH)(NYSE MKT:THM) says that the feasibility study for its Livengood project in Alaska is on schedule and within budget, as the company also revealed its 2012 results. 

The gold exploration and development company, which generates no revenue from its project as of yet, ended the year with a working capital position of $27.7 million. 

The Canadian company said it is focused on finishing all the engineering and analysis to support the completion of its feasibility study, and the environmental work needed to maintain its current schedule. 

"This world class gold project continues to show significant potential for becoming one of the largest new gold mines in the world," said president and CEO, Don Ewigleben, in a statement late Wednesday. 

"The project is a very large gold resource in a favorable mining jurisdiction; the existing infrastructure and a high quality development team will continue to make ITH an attractive long-term investment."

So far, it has completed metallurgical tests to optimize recovery, as well as mine design and production alternatives, including equipment specification and bids. 

It has also wrapped up the milling process design circuit, with throughput optimization now being tested. The process used will be similar to the one at the Fort Knox mine, the company said, which sits 45 air miles to the southeast. 

Equipment bids have been received and are being reviewed, it added. 

Meanwhile, the collection of data for environmental baseline data has now streched into its fifth year, which the company says has established "critical benchmarks" for mine permitting needs. 

International Tower Hill Mines (TSE:ITH) (NYSE MKT:THM) Tuesday announced “positive results” from the metallurgical test work on its Livengood project in Alaska, yielding gold recoveries as high as 88 per cent. 

The company said metallurgical studies have shown that gold recovery for the four main rock types that make up the majority of the Livengood gold resource, using gravity/whole ore Carbon-in-Leach (CIL) recovery, will range between 77 and 88 per cent.  

Notably, ITH said a “substantial portion” of the early production at Livengood is expected from the four rock types - Cambrian,  Upper Seds Sunshine, Upper Seds Core Zone, Volcanics and Core Zone. 

These rock types comprised about 70 per cent of the mineable resource described in the August 2011 preliminary economic assessment (PEA), it added.  

“I am very pleased with the results of these extensive metallurgical tests completed over the last eight months which have validated and defined the overall gold recoveries on this exceptional gold deposit,” said CEO Donald C. Ewigleben.

“This work has defined the milling flow sheet for the project as the company continues to focus on other overall project optimization aspects that could further enhance its development.”

ITH’s metallurgical study program included tests to first determine the gravity recoverable gold, and then the evaluation of two alternative mill flow sheets for the processing of the gravity tailing.  

Based on the recent test program and related engineering tradeoff studies, the company said it has determined that a gravity circuit followed by a whole ore CIL circuit will be the mill flow sheet developed in its feasibility study, which is on schedule for release in the first half of 2013.

Test work was carried out on a large number of representative samples contained in 10,800 kilograms of mineralized rock, ITH noted, adding that metallurgical test work is ongoing to confirm recovery on the Lower Seds and Core Zone rock types. 

The Lower Seds and Core Zone rock types will be encountered and processed later in the mine's life.  

International Tower Hill Mines is focused on the rapid exploration and development of its Livengood gold project.  

At the end of last month, the company updated shareholders on its progress at Livengood, noting that next year, it will focus on determining the most cost effective and feasible development path for the project, which has 933 million tonnes of measured and indicated resources at an average grade of 0.55 grams per tonne (g/t) gold, for 16.5 million contained ounces, at a 0.22 g/t gold cut off. 

The company will also look to outline a staged funding strategy for the asset's development, and will implement an "aggressive" permitting path for the plan. 

Key milestones for Livengood that have been outlined for a target of mid next year include finalization of a full spectrum of metallurgical studies, and major site engineering and environmental work, which is already largely complete. 

The company has also made key land acquisitions as well as infrastructure and logistical assessments for integration into different development scenarios, and has made initial contacts for potential project financing.

International Tower Hill Mines' (TSE:ITH)(NYSE MKT:THM) new CEO updated shareholders Wednesday on its Livengood project in Alaska, assuring investors that the asset has "tremendous potential" to generate shareholder value. 

"The exceptionally large and strategically located Livengood gold deposit has a spectrum of development opportunities and ITH is focused on optimizing those opportunities to meet the challenges of today's market," said president and CEO, Donald C. Ewigleben after his initial two months on the job.

"Livengood is truly a world class gold opportunity that we believe will be developed and ITH owns 100% of this quality asset. 

"The development path for this deposit will be clearly defined by the ongoing metallurgical testwork and project optimization process, the results of which will be incorporated into the Feasibility Study (FS) scheduled for completion by mid-2013."

Next year, International Tower Hill will focus on determining the most cost effective and feasible development path for the project, which has 933 million tonnes of measured and indicated resources at an average grade of 0.55 grams per tonne (g/t) gold, for 16.5 million contained ounces, at a 0.22 g/t gold cut off. 

The company will also look to outline a staged funding strategy for the asset's development, and will implement an "aggressive" permitting path for the plan. 

The statement released Wednesday went on to outline the company's experienced Alaskan development team, which has a "proven track record of success". Ewigleben served as the chairman of the board since November 2011 and was involved during the early stages of Livengood’s exploration and development in the 1990s.  

"The company continues to broaden its scope of stakeholder engagement and enjoys a supportive and constructive relationship with surrounding communities and regulatory agencies which will be expanded during the permitting process," it said. 

Key milestones for Livengood that have been outlined for a target of mid next year include finalization of a full spectrum of metallurgical studies, and major site engineering and environmental work, which is already largely complete. 

A large portion of the metallurgical testwork has also been completed, with final results expected in the fourth quarter, ITH said, adding that the work will define the anticipated process flowsheet and recovery rates to be incorporated in the definitive feasibility study.

The company has also made key land acquisitions as well as infrastructure and logistical assessments for integration into different development scenarios, and has made initial contacts for potential project financing. 

International Tower Hill noted that it not only offers "unprecedented leverage to gold", currently trading at around $13 per contained measured and indicated ounce, but the project is also located in one of the most stable mining regions in the world. 

"Its access to a well-developed infrastructure network, experienced development team and strong local support truly makes the project unique among the near-term, undeveloped, mega gold deposits still controlled 100% by a junior," it said in the statement. 

Ewigleben said the company believes this will attract a strategic partner to help build the resource into a "world class mine". 

International Tower Hill Mines (TSE:ITH)(NYSE MKT:THM)(AMEX:THM) says it has closed the second tranche of its C$29.6 million non-brokered private placement financing. 

The second tranche of the offering consisted of roughly 1.93 million common shares at a price of C$2.59 each, representing a 10 per cent discount from the five-day volume weighted average price of the shares as at September 10. 

This part of the placement raised gross proceeds of C$5 million. 

The company plans to use the new funds to complete its bankable feasibility study at its Livengood gold project in Alaska and for general working capital purposes.

Last month, International Tower Hill said it received assay results for 45 drill holes at its Livengood gold project, with four holes returning multi-gram gold intersections “well outboard” of the main deposit.

The company said that the results indicated that the Livengood district scale gold system, located 70 kilometres from Fairbanks, Alaska, has “significant exploration potential”. 

Highlights from the most recent results included hole MK-12-281, which intersected 2.76 metres at 2.75 grams per tonne (g/t) gold, including 1.53 metres at 4.09 g/t gold; hole MK-12-285, which intersected 2.01 metres at 3.47 g/t gold, including 6.61 metres at 0.64 g/t gold; and hole MK-12-288, which returned 3.05 metres at 2.48 g/t gold.              

“These most recent drill results from a non-exploration directed drill program continue to show the robust nature of the Livengood gold system and potential for both new bulk tonnage and high-grade discoveries, said International Tower Hill's interim CEO Jeff Pontius, at the time. 

International Tower Hill Mines is focused on the rapid exploration and development of its Livengood gold project.  

At a resource size of 16.5 million ounces in the measured and indicated categories, plus 4.1 million ounces in the inferred category, the Livengood project ranks as one of the largest gold deposits discovered globally in 20 years.

In June, the company decided that the "most efficient and cost-effective" path to permitting the project is to incorporate results from current engineering and metallurgical test work directly into a definitive feasibility study - which the company expects to complete in the first half of next year.

The gold miner also implemented a cost reduction program, which assessed "financial de-risking options", it said, including possible joint venture opportunities, for the development of the Livengood property. 

International Tower Hill Mines (ITH) (TSE:ITH) said Tuesday it has received assay results for 45 drill holes at its Livengood gold project, with four holes returning multi-gram gold intersections “well outboard” of the main deposit.

The company said that the results indicate that the Livengood district scale gold system, located 70 kilometres from Fairbanks, Alaska, has “significant exploration potential”. 

Highlights from the most recent results include hole MK-12-281, which intersected 2.76 metres at 2.75 grams per tonne (g/t) gold, including 1.53 metres at 4.09 g/t gold; hole MK-12-285, which intersected 2.01 metres at 3.47 g/t gold, including 6.61 metres at 0.64 g/t gold; and hole MK-12-288, which intersected 3.05 metres at 2.48 g/t gold.

Additionally, hole MK-12-288 intersected 3.81 metres at 6.91 g/t gold.

“These most recent drill results from a non-exploration directed drill program continue to show the robust nature of the Livengood gold system and potential for both new bulk tonnage and high-grade discoveries, said International Tower Hill's interim CEO Jeff Pontius.

“It is clear that the Livengood gold system is a district-scale gold discovery with significant future potential.”

ITH noted that the locations of these new gold intercepts do not impact the current conceptual plan for the locations of mining-related infrastructure contemplated in the ongoing feasibility work, but do highlight the potential for new discoveries on the company's 170 kilometre-squared land package.

International Tower Hill Mines is focused on the rapid exploration and development of its wholly-owned Livengood Gold project.  At a resource size of 16.5 million ounces in the measured and indicated categories, plus 4.1 million ounces in the inferred category, the Livengood project ranks as one of the largest gold deposits discovered globally in 20 years.

Last week, ITH announced the promotions of Thomas E. Irwin and Karl Hanneman to the roles of VP, Alaska, and Alaska GM, respectively.

Under Irwin's tenure, he will be responsible for managing all Alaska activities of the U.S. operating subsidiary Tower Hill Mines, for the Livengood gold project.

Meanwhile, Hanneman was promoted to the role of Alaska GM. He started working for the company in May 2010, when he served as project manager.

Earlier this month, ITH closed the first tranche of its previously-announced, up to C$29.6 million, non-brokered private placement financing. The company plans on using the new funds to complete its bankable feasibility study at the Livengood project, as well as for general working capital purposes. 

In June, the company decided that the "most efficient and cost-effective" path to permitting the project is to incorporate results from current engineering and metallurgical test work directly into a definitive feasibility study - which the company expects to complete in the first half of next year.

The gold miner also implemented a cost reduction program, which assessed "financial de-risking options", it said, including possible joint venture opportunities, for the development of the Livengood property. 

As a result, the company decided to postpone much of its district-wide exploration drilling program started in May, and cut a portion of its condemnation drill program.

ITH said it will focus on completing all the necessary field work and drilling to support the feasibility study as well as the environmental work needed to keep the permitting schedule on track.

Under Irwin's tenure, he will be responsible for managing all Alaska activities of the US operating subsidiary Tower Hill Mines, for the Livengood gold project.

He brings over 35 years worth of background experience in the natural resource sector, which includes constructing, operating and permitting major mining projects with companies like Amax Gold Inc., and Kinross Gold Corp. (TSE:K).

Irwin, who most recently was the Alaska general manager for Livengood, also previously served for six years as commissioner of the Alaska Department of Natural Resources.

Meanwhile, Hanneman was promoted to the role of Alaska general manager. He started working for the company in May 2010, when he served as project manager.

Hanneman holds 30 years of Alaska-based mining industry experience and played a key role to resolve permit issues at the Red Dog Mine.

"The board is extremely pleased to have Tom Irwin take this leadership role within the company to advance the Livengood Gold project," board chairman, Don Ewigleben, said in a statement.

"Tom, Karl, and the Alaska based team have an unparalleled track record of success in permitting and development of mines in Alaska. This exceptional Alaskan team continues to rapidly advance our exciting world class Livengood Gold project toward production."

The Livengood property is only 115 kilometres northwest of Fairbanks, Alaska, in the Tolovana mining district within the Tintina gold belt.

International Hill controls 100 per cent of its 125 sq km land package, which is comprised of 115 state mining claims.

It has a resource size of 16.5 million ounces in the measured and indicated categories plus 4.1 million ounces in the inferred category.

Shares, in Thursday afternoon trade, rose 4.03 per cent to $2.84 apiece on the Toronto Stock Exchange.

In June, the company provided an update regarding the optimization review of its Livengood project announced a month earlier.

The company said it decided that the "most efficient and cost-effective" path to permitting the project is to incorporate results from current engineering and metallurgical test work directly into a definitive feasibility study - which the company expects to complete in the first half of next year.

The gold miner also implemented a cost reduction program, which assessed "financial de-risking options", it said, including possible joint venture opportunities, for the development of the Livengood property. As a result, the company decided to postpone much of its district-wide exploration drilling program started in May, and cut a portion of its condemnation drill program.

The mineral explorer will focus on completing all the necessary field work and drilling to support the feasibility study as well as the environmental work needed to keep the permitting schedule on track.

The company said a number of "highly qualified" candidates have been shortlisted, and anticipates the appointment of a new CEO within the next couple of months, after the resignation of president and chief executive James Komadina in May.

Pontius is currently a director of the mining company, and was the founder and former CEO of International Tower Hill Mines from August 2006 to May 2011.

As interim CEO, Pontius will direct the company through the final stages of optimization at the Livengood project, and will oversee corporate development activities.

International Tower Hill Mines controls a 100 per cent interest in the Livengood gold project located north of Fairbanks, Alaska, that has a resource size of 16.5 million ounces in the measured and indicated categories plus 4.1 million ounces in the inferred category.

Earlier this month, the company provided an update regarding the optimization review of its Livengood project announced in May.

The company said it decided that the "most efficient and cost-effective" path to permitting the project is to incorporate results from current engineering and metallurgical test work directly into a definitive feasibility study - which the company expects to complete in the first half of next year.

The gold miner also implemented a cost reduction program, and is assessing "financial de-risking options", it said, including possible joint venture opportunities, for the development of the Livengood property. As a result, the company decided to postpone much of its district-wide exploration drilling program started in May, and cut a portion of its condemnation drill program.

The mineral explorer said it will focus on completing all the necessary field work and drilling to support the feasibility study as well as the environmental work needed to keep the permitting schedule on track. It also said it believes it has enough funds to complete the revised 2012 work program.

Last week, International Tower Hill said it identified five key target areas at Livengood as part of the project review. It said a geologic review of exploration results from 2009 to 2011 in the Livengood district was undertaken to identify the area's potential for mineral resource expansion of the existing deposit, as well as for new discoveries.

The company highlighted the areas with the most potential to provide “substantial resource growth” over time, which would be the focus of future drill programs.

Shares increased 8.42 per cent to $2.96 Friday morning.

International Tower Hill Mines (TSE:ITH) (NYSE:THM) Thursday provided an update on the exploration potential at its Livengood gold project in Alaska, identifying five key target areas.

As part of a project review announced last month, the company said a geologic review of exploration results from 2009 to 2011 in the Livengood district was undertaken to identify the area's potential for mineral resource expansion of the existing deposit, as well as for new discoveries.

Through the evaluation, International Tower Hill Mines (ITH) highlighted the areas with the most potential to provide “substantial resource growth” over time, which would be the focus of future drill programs.

"While exploration programs have been deferred this year so we can focus on the more important goal of completing a feasibility study that would greatly de-risk the Livengood project technically, there still exists tremendous exploration potential in the Livengood district," said ITH chairman Don Ewigleben.

"The results of our exploration efforts to date strongly support future drill programs to potentially expand the mineral resource within our Money Knob Deposit and make potential new discoveries in the Livengood district. As such, we look forward to being in a position to re-start our exploration programs in the near future to realize this potential."

At the Scraper Ridge target, ITH said that mineralization has been confirmed in scout hole MK-10-97 that intersected 1.52 metres of 4.82 grams per tonne (g/t) gold in the volcanic host rocks – considered to be the most favourable.

Geologic projection indicates the thickness of the favorable volcanic rocks should increase to the west toward the main deposit, where the section averages nearly 30 metres, said the company.

The company also said that similar high concentrations of mineralized dikes in favourable host rocks are associated with higher grade and more extensive mineralization in ITH’s Money Knob deposit.

At the company’s Money Knob deposit, holes were terminated at 200 to 300 metres below surface due to limitations of the drilling technology used.

But ITH said that to date, virtually all of the drill holes in the Money Knob deposit have bottomed in gold mineralization and six deep holes extending below the proposed pit bottom - at 300 metres depth - penetrated intervals with similar gold grades to the company’s main deposit.

Additional mineral resources may be defined below the current pit design by sequential drilling conducted as part of an ongoing mining operation.

Meanwhile, the company said that drill holes to the west and southwest of the proposed Money Knob pit intersected gold mineralization in an area now identified as the SW Zone.

Previously identified mineralized intercepts in the northern portion of the SW Zone included 15.24 metres at 3.69 g/t gold in hole MK-RC-0279 and 22.86 metres grading 0.86 g/t in hole MK-RC-0281.

The company said that the intercepts indicate an opportunity for the delineation of resources that might extend early mining in the proposed pit toward the west.

ITH also noted that deep, well-mineralized intersections in the southern part of the SW zone offer the possibility of extending the current mineral resource to the southwest later in the life of the proposed project.

At the Gertrude Basin target, ITH said that geotechnical drilling has intersected dike-related mineralization in some of the preferred Money Knob deposit host rocks within a large gold in soil anomaly.

Intersections of gold mineralization discovered to date include 1.68 metres grading 5.72 g/t gold in hole MK-11-119, 9.77 metres at 0.83 g/t gold in hole MK-11-123 and 9.85 metres assaying 0.65 g/t in hole MK-11-160.

Finally, prior drilling, mapping and surface geochemical sampling identified an area five kilometres northeast of the Money Knob deposit in the Moose Gulch/Lucky Creek area.

ITH said exploration and geotechnical drilling in the area to date has encountered gold mineralization, including 3.56 metres at 2.0 g/t gold in hole MK-11-170 and 6.07 metres grading 0.67 g/t in hole MK-10-73A.

A potential new discovery in this largely unexplored area of the district would have strong synergies with the proposed operation to the west, the company added.

While ITH has recently postponed its district-wide exploration drilling program, a total of 18 condemnation/exploration holes and additional geotechnical holes are still being completed in the Gertrude Basin target area.

The company said that although the primary purpose of the condemnation program is to define site facility locations, it also has the potential to outline additional resources immediately east of the currently proposed mining operation.

Results from the program are expected in the coming months.

Earlier this week, ITH decided that the "most efficient and cost-effective" path to permitting the Livengood project is to incorporate results from current engineering and metallurgical test work directly into a definitive feasibility study - which the company expects to complete in the first half of next year.

The gold miner also implemented a cost reduction program, and is assessing "financial de-risking options", it said, including possible joint venture opportunities, for the development of the Livengood property.

The mineral explorer said it will focus on completing all the necessary field work and drilling to support the feasibility study as well as the environmental work needed to keep the permitting schedule on track. It also said it believes it has enough funds to complete its revised 2012 work program.

Meanwhile, the company's board is reviewing a list of candidates for the position of CEO, after president and chief executive James Komadina resigned in the middle of May.

ITH controls a 100 per cent interest in the Livengood gold project, located 70 miles north of Fairbanks, Alaska.

The company said it has decided that the "most efficient and cost-effective" path to permitting the project is to incorporate results from current engineering and metallurgical test work directly into a definitive feasibility study - which the company expects to complete in the first half of next year.

The gold miner has also implemented a cost reduction program, and is assessing "financial de-risking options", it said, including possible joint venture opportunities, for the development of the Livengood property. As a result, the company has decided to postpone much of its district-wide exploration drilling program started in May, and cut a portion of its condemnation drill program.

The mineral explorer said it will focus on completing all the necessary field work and drilling to support the feasibility study as well as the environmental work needed to keep the permitting schedule on track. It also said it believes it has enough funds to complete the revised 2012 work program.

Meanwhile, the company's board is reviewing a list of candidates for the position of CEO, after president and chief executive James Komadina resigned in the middle of May.

Over the past nine months, the company's management has been looking at all potential options for process and development of Livengood, with work focused on metallurgical testing aimed at defining the recovery process.

So far, International Tower Hill said the work has yielded "encouraging" results, and suggests the potential for a more efficient gold recovery system than the one proposed in the preliminary economic assessment (PEA) from last August.

As such, the company expects that the high level of this metallurgical work will allow it to bypass the preparation of a pre-feasibility study and move directly to the completion of a feasibility study in an effort to cut costs.

The miner said that "determining the most cost-effective extraction method is critical to the Livengood gold project's success, given its significant resource size but lower gold grade."

In February, 10,800 kilograms from roughly 3,000 samples selected from throughout the Livengood deposit were sent for the final stage of optimization testing, with results pending.

Remaining engineering work is focused on determining the secondary system that will be used to complete the gold recovery process.

The company said this has been narrowed down to either whole-ore cyanide-in-leach (CIL) or flotation-CIL, the proposed system in the August 2011 PEA. The whole-ore CIL process is being considered as it would be simpler in terms of operation.

Grinding studies have also begun, and may impact equipment selection, power demands and resulting operating costs, with initial work from testing a more extensive sample base showing potentially better grinding characteristics than those in the PEA last year, the company said.

A number of other trade-off studies and project design alternatives have been looked at over the last six months, including various grinding circuits, and heap leaching, among others.

The company said that the large mill concept has so far generated "superior" results to all alternatives.
New mine design work to re-assess cut-off grades and the grade to the mill, as well geotechnical work for surface facility sites is ongoing.

Once all work is finished, the company plans to start permitting discussions with various agencies and look at project financing work required to advance the project toward production.

International Tower Hill controls a 100 per cent interest in the Livengood gold project, 70 miles north of Fairbanks, Alaska.

The PEA last August yielded a base case net present value (NPV) of a whopping $1.2 billion, alongside a significantly expanded surface mine resource.

At a processing rate of 91,000 tonnes per day, the mine was estimated to have average annual production of 664,000 ounces of gold over the first five years, and 562,000 ounces over the 23-year life of the operation, making it potentially one of the largest single gold mines in North America.

Cash flows from the updated mine model, on a pre-tax basis, were calculated at $3.1 billion, lending to a net present value of $1.2 billion, at a 5% discount rate, and a 14.1% internal rate of return, with a payback period of 4.9 years.

The base case scenario, which also yielded a life-of-mine cash cost of $703 per ounce of gold, assumed a gold price of $1,100 per ounce.

In addition to advancing its pre-feasibility study towards expected completion in the third quarter, the company is carrying out around 12,000 metres of drilling in support of permitting activities, engineering design, condemnation of proposed infrastructure sites and district-wide exploration.

The company also said it will postpone all further studies for placer gold extraction on its recently-acquired placer claims, including a resource report and preliminary economic assessment, to focus on advancing the Livengood gold deposit towards development.

"Investigating the possibility of placer gold production from our recent placer claims acquisition was a key part of our mandate to explore all opportunities to create value for shareholders in the short-term," said president and CEO, James Komadina.

"However, the results of our investigations indicate that the greatest benefits will be to optimize site facility locations for the Livengood Project."

"In the past three months, our Manager of Mining and Livengood placer team worked diligently to look at ways of getting into short-term production as quickly as possible," continued Komadina.

"And while we would have relished the opportunity to produce gold as early as 2013, our highest priority remains our 16.5 million-ounce Livengood gold deposit."

The pre-feasibility study now underway at Livengood will include the current mineral resource estimate of 933 million tonnes at an average grade of 0.55 grams per tonne (g/t) of gold, at a cutoff grade of 0.22 g/t gold, for 16.5 million ounces of gold contained in the measured and indicated categories. The report will also incorporate results from geotechnical studies, metallurgical testing, updated capital and operating cost estimates and other relevant studies, the company said.

While the bulk of engineering studies for the PFS were completed in November, the company is currently carrying out detailed metallurgical testing, after a review of the preliminary economic assessment flow sheet indicated that further optimization is possible.

Due to the this additional testing, the study is now expeced in the third quarter of this year.

With regards to its 2012 drilling program, which started in February, the aim is to target potential new gold discoveries along the mineralized trend of the existing Livengood deposit, with results expected throughout the summer and fall of this year.

The campaign consists of three parts: a $2.1 million, 6,000 metre condemnation drill program, a $5.2 million, 3,000 metre geotechnical drilling program, and a $1.1 million, 3,000 metre district-wide exploration program.

Earlier this month, the company's board approved a C$68.3 million budget in support of the programs.

International Tower Hill Mines controls a 100 percent interest in the Livengood property, accessible by paved highway 70 miles north of Fairbanks, Alaska.

In 2012, the company is focused on the rapid advancement of the project while it continues to expand its current resource and explore its 145 square kilometre district for new deposits.

In Toronto, ITH shares slipped 1.96 percent to $4.51, as of 10:22 am EDT.

The company, which acquired the Placer claims in December, said a report completed by Alaska/Nevada Gold Mines in 2006 estimated a resource of roughly 5.2 million cubic yards of gold-bearing gravel at an average grade of 1.0 gram per tonne (g/t) in several defined areas within the Livengood Placer claims.

This amounts to a total gold resource of around 230,000 ounces in the measured and indicated resource categories, International Tower Hill said.

The company noted, however, that after the calculation of this resource, which is not NI 43-101 compliant, and prior to the purchase of the Placer property by the company in 2011, mining operations completed in 2010 resulted in a reduction to measured resources of 7,100 ounces.

Placer gold was first discovered in the Livengood area in 1914, and led to a gold rush that recovered approximately 530,000 ounces of placer gold from the district since that time.

The company said the historical resource estimate is relevant to indicate that sufficient potential exists on the Livengood Placer claims to justify exploration expenses, and also as a guide to the prioritization of potential development efforts.

"The potential for significant alluvial gold to be found in the Livengood Placer claims, as illustrated by the existence of the historical resource estimate, represents a truly exciting opportunity for International Tower Hill Mines to create significant value for our shareholders in the near term," said president and CEO, Jim Komadina.

"While our main Livengood development team continues to focus solely on advancing the large Livengood Gold Project towards permitting and development into a large-scale gold mine in North America, we have a highly experienced placer mining team assessing the potential of the Livengood Placer property with a view to determining as soon as possible if a resource sufficient to warrant future production may be identified."

Records exist for 2,370 placer drill holes that were completed on the Livengood Placer claims since 1933.

The company is planning a confirmation drill program of 2,275 metres on the Livengood Placer claims beginning in April of this year, to assess whether the historical drilling data can be used in the calculation of a current NI 43-101 resource for the property.

Richard Hughes, P.E., of H2T Mine Engineering Services, a qualified person as defined under NI 43-101 who reviewed the historical resource estimate on behalf of the company, concluded: "We concur with the methodology used by ANGM and believe that its resource analysis is reasonable as presented by category, subject to an uncertainty presented by a 2010 production shortfall. To develop a NI 43-101 compliant placer resource.

"A more detailed analysis of the resource category assignment should be conducted to include complete detailed drill log take-off and spatial consideration for category allocation. The effect of underground drift mining on the resource calculations needs to be clearly understood. I strongly recommend resource definition be improved by utilizing new drilling methods in the measured and indicated areas."

International Tower Hill Mines controls a 100 percent interest in the Livengood project accessible by paved highway 70 miles north of Fairbanks, Alaska. In 2012, the company is focused on the rapid advancement of the property while it continues to expand its current resource and explore its 145 square kilometre district for new deposits.

Samuel Engineering of Colorado will provide process engineering services for the study, while AMEC Environment & Infrastructure will provide geotechnical infrastructure engineering services.

Work will begin on the study in the upcoming month, the company said, with the release of the pre-feasibility study on track for the summer of this year.

Work by Samuel Engineering will include identifying potential improvements to the prefeasibility design, participating in the metallurgical optimization program, devloping feasibility-level design documents such as process flow sheets and completing the design of the concentrator, primary crusher and ancillary facilities such as site-wide power distribution for the feasibility report.

Meanwhile, AMEC will focus on hydrogeological investigations, feasibility-level design of the tailing management facility and other facilities, identifying borrowed sources for construction, the design of the main access road, and development of a site-wide water balance.

The company said it expects the feasibility study to be completed by the first half of 2013, and if successful, will be followed by a detailed design effort.

"The selection of both Samuel Engineering and AMEC to perform the feasibility study is an important step forward in the advancement of our development plan for the Livengood project” said president and CEO, Jim Komadina.

"The results of the feasibility study should provide us with the necessary information to make additional project development decisions.  We are confident that the study results will support the compelling data we have collected to date.”

International Tower Hill has also completed the build out of its management team to advance the development of Livengood, with recent appointments including Tom Irwin as Alaska general manager. Irwin will oversee the management and technical direction of permitting and development activities at Livengood.

Mining manager Harold Galbraith will be responsible for the development of the Livengood life-of-mine plan, including all aspects of ore production and scheduling, mine capital programs and mine infrastructure engineering.

"International Tower Hill Mines now boasts an incredibly skilled and experienced team of individuals with proven track records in permitting, financing, constructing and operating large mines in North America,” continued Komadina.

"The fact we have attracted such high caliber talent is testament to the exceptional potential for the Livengood Gold project to become a major new gold mine in Alaska."

International Tower Hill Mines controls a 100 percent interest in the Livengood project, accessible by paved highway 70 miles north of Fairbanks, Alaska.

In 2012, the company is focused on the rapid advancement of the project while it continues to expand its current resource and explore its 145 square kilometre district for new deposits.

Berg, who becomes the ninth member of the board, has over 36 years of experience in finance and investments. 
He currently is a member of the board of directors, chairman of the compensation committee and a member of the audit committee for Scorpio Mining Corp. (TSE:SPM).

Berg has a bachelors of science degree from the University of California at Berkeley and an MBA from the Wharton School of Finance at the University of Pennsylvania.

From 2005 to 2010, Berg held the position of vice president of finance at PeriCor Therapeutics, Inc., where was in charge of a number of medical support and business activities.

In addition, he was chief information officer and founder of registered investment adviser Berg Capital Corp. located in New York, where he acted as a consultant on finance and corporate structure and assisted in the financing of early-stage companies in the fields of energy, technology, health care and consumer electronics.

Prior to Berg Capital, he held positions as vice president and portfolio manager with Oppenheimer Capital Corp. and Standard & Poor’s InterCapital.

International Tower Hill’s chief executive, James Komadina, said: “His extensive experience in finance and corporate structure will be an asset to the board as we advance the Livengood project through permitting and development into a major new gold mine in North America.”

International Tower Hill holds a 100 percent stake in the Livengood gold project, which can be reached by highway about 70 miles north of Fairbanks, Alaska.

The company is focused on rapid development of the Livengood project as it continues to bolster its current resource and explore its 145 kilometre district for new deposits.