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Livengood Gold Prospect

Last Modified: 28th August 2012

Summary

The Livengood Project is located on a large gold resource located along the Trans Alaska Pipeline, about 70 miles north of Fairbanks. Talon Gold Alaska Inc. (a subsidiary of Canadian-based International Tower Hill Mines) is exploring the deposit, focusing on an outcropping called "Money Knob", estimated, as of August 2011, to contain up to 20.6 million ounces of gold.

Exploration and placer mining have taken place in this area since at the least the 1970's but the current deposit has only recently been examined in detail. Because the deposit is located on the road system and near the power grid, commencing production is expected to be much easier than at remote deposits, such as the Donlin Creek prospect. International Tower Hill had been contemplating both a traditional mill similar to the nearby Fort Knox gold mine, as well as a heap-leach only operation with lower capital costs. However as of late 2011 they were focusing only on the larger "mill only" option. This would require 70-80 MW of power. The company has not yet determined whether they would draw power from GVEA in Fairbanks or generate the power onsite. As of March 2012, discussions with GVEA were underway to run a 100 MW line from the existing grid.

The potential for acid mine drainage at this site has not been determined, but the mine would use cyanide for gold extraction.

Current Status

Exploration at the Livengood deposit is at an advanced stage, with a large drilling program having taken place during 2011. International Tower Hill is preparing a feasibility study, expected to be completed in 2013. and is currently conducting baseline environmental studies, in addition to ongoing geologic work.

Exploration:
2010	Very large and extensive drill program consisting of 210 holes. Ongoing baseline studies, water quality studies, etc.
2011	Extensive drill program of at least 92 holes focused on the primary deposits, as well as surveys and exploration of the rest of the property. In December 2011 the company purchased a large number of additional claims surrounding the property.
2012	199-hole drilling program consisting of 15,731 meters as well as ongoing work on a feasibility study.