Huge Livengood gold project could withstand much lower prices, company boss says
The chief executive of the mining company examining a huge gold prospect near Livengood says the project would work even if gold prices tumble from record levels of more than $1,600 now seen on the spot market.
James Komadina of International Tower Hill Mines tells the Reuters news service that he expects the company to apply for permits in the next 12 months to plan a mine that would handle nearly 2,000 ounces of gold per day.
He envisions a large-scale mill operation, not a heap leach project. It could produce 650,000 ounces a year. By comparison, the Fort Knox mine near Cleary Summit produces about 350,000 ounces a year.
Komadina told the news service that the company is moving toward a development phase and is not looking to sell to some other mining firm. Key studies on the potential cost and feasibility are due next month and by the end of this year, he said.
The company continues to do drilling work and other studies to pin down costs and the size of the resource base. A report in June said an updated economic assessment will be done on a projected gold price of $1,500, as compared to the $950 figure used last November.
"I didn't come in to sell this. I'm a producer and operator," he said. "It is my full intention to build a mine here."
"I've looked at it and I've convinced myself that a very large-scale mill is feasible," Komadina told Reuters.
"While most projects look good with gold at $1,600 an ounce, Komadina said that with cash costs expected to be about $535 an ounce and total costs of around $650 an ounce, Livengood would be able to withstand lower prices too," Reuters said.
"Alaska is a state that recognizes its mining and natural resource heritage, so it's a good place to work," said Komadina.
"If there was a place where people could accept and endorse building a mine, this is one of them."
Livengood is the company's main focus, the report from Toronto said.
"We've got a tiger by the tail, we need to remain focused on developing that tiger," he said.
International Tower Hill has nearly 56 square miles of land leased from the Alaska Mental Health Trust and various state mining claims. The latest estimates are that 13 million ounces of gold may be available, with 7.4 million ounces "measured," 3.2 million ounces "indicated" and 2.7 million ounces "inferred."
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July 26, 2011
I can hardly wait to help subsidize the electric bill for another mine. Will this new mine get a better price on electricity than Ft Knox does since it looks like they'll be producing more gold?
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