Tower Hill publishes new PFS for Livengood mine
New mining plan would produce 6.4 million ounces of gold over 21 years north of 60th Mining News – November 5, 2021
According to an updated pre-feasibility study published by International Tower Hill Mines Ltd. November 4.
Located along a paved highway approximately 70 miles north of Fairbanks, the Money Knob deposit at Livengood harbors 704.5 million metric tonnes of measured and indicated resources averaging 0.4 grams per metric tonne (13 , 62 million ounces) of gold, according to a recalculation in August.
“International Tower Hill’s estimated 13.6 million ounces, along with our favorable jurisdiction and proximity to infrastructure, provide our investors with excellent leverage over the price of gold,” said Karl Hanneman, CEO of ‘International Tower Hill Mines.
The pre-feasibility study elevates 430.1 million metric tonnes of Livengood resources to an average of 0.65 g / t (9 million ounces) of gold in proven and probable reserves.
This new economic and technical study, which replaces a PFS completed in 2017, incorporates new interpretations based on an expanded geological database, improved geological modeling, a new resource estimation methodology, an optimized mine plan and metallurgical work. in-depth studies carried out over the past four years. .
Tower Hill says this work, along with new technical estimates and updated costs, significantly reduces the risk of the Livengood project.
“This study is the culmination of years of work and significantly improves our understanding of the deposit,” Hanneman said. “We have now assessed, optimized and reduced the risk of all major elements of the project and we have an excellent foundation on which to create shareholder value. “
At a benchmark gold price of US $ 1,680 per ounce, the mine detailed in the 2021 PFS generates an after-tax net present value (5% reduction) of US $ 45 million and an internal rate of return of 5.3%. In this scenario, the operation would pay off the US $ 1.93 billion in initial capital expenditures over 10.2 years.
At US $ 2,000 per ounce of gold, the NPV rises to $ 975 million, the IRR jumps to 11.2%, and the return on investment drops to 6.3 years. And at $ 2,500 per ounce of gold, the NPV is $ 2.35 billion, the IRR is 18.5%, and the ROI is only 3.9 years.
“This PFS confirms that the Livengood gold project is one of the largest leveraged gold projects in North America,” added the CEO of Tower Hill Mines.
International Tower Hill Mines is hosting a conference call and webcast at 8:00 a.m. Alaska time (12:00 p.m. Eastern Standard Time) to discuss the results of the 2021 pre-feasibility study.
The webcast is available at https://services.choruscall.com/links/thm211105.html.
North American callers can join the conference call at 1-877-270-2148; the number for international calls is 1-412-902-6510.