VANCOUVER, March 8, 2017 /CNW/ - International Tower Hill Mines Ltd. ("ITH" or the "Company") (TSX: ITH; NYSE-MKT: THM) today announced that it has corrected previously reported all- in sustaining costs (AISC) downward to conform with World Gold Council guidance. The effect of the error was to overstate AISC at $1,263. As a result of the restatement, the AISC for the Livengood Gold Project (the "Project") located near Fairbanks, Alaska, is projected to be $976/oz.
The results of the Pre-Feasibility Study (the "PFS") set forth in a news release on September 8, 2016 and as filed with the NI 43-101 report on October 24, 2016 had included, contrary to World Gold Council guidance, both initial capital costs and mining and income taxes in the $1,263 previously reported as all-in sustaining costs. All dollar figures in this news release are stated in US Dollars.
The table below identifies the correct costs over the life of the Project based on the PFS:
Costs of Production
| $/Ounce As previously reported |
$/Ounce As corrected |
LOM ($Million) As previously reported |
LOM ($Million) As corrected |
|
| Operating Costs | $ 877 | $ 877 | $ 5,934 | $ 5,934 |
| Capital Expenditures (1) | 370(2) | 99(3) | 2,501(2) | 665(3) |
| All-In Sustaining Costs | $ 1,247 | $ 976 | $ 8,435 | $ 6,599 |
| Capital Expenditures (1) | - | 271(4) | - | 1,836(4) |
| Mining and Income Taxes | 16 | - | 104 | - |
| All-In Costs | $ 1,263 | $ 1,247 | $ 8,539 | $ 8,435 |
Rounding of some figures may lead to minor discrepancies in totals.
(1) Excludes $18M upfront funding included in operating costs above and $37M of recoverable initial stores inventory.
(2) Includes initial and sustaining capital expenditures
(3) Includes sustaining capital expenditures only
(4) Includes initial capital expenditures only
Qualified Persons
Colin Hardie, P. Eng. (Ontario APEO No. 90512500), a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the technical information contained in this news release and has approved the disclosure herein. Mr. Hardie is independent of ITH as independence is described in Section 1.5 of NI 43-101.
