Business Context and Reporting Period
Company: International Tower Hill Mines Ltd.
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Date: February 21, 2005
Subject: Submission of a Technical Report dated November 29, 2004, regarding the Siwash Creek Property in British Columbia, Canada.
The filing discloses a technical assessment of the Siwash Creek Property, a 100% owned mineral asset comprising 102 claims (219 units). The property is located in the Similkameen Mining Division and has been explored for nearly 100 years for precious and base metals. The report was prepared by APEX Geoscience Ltd. to comply with National Instrument 43-101 standards.
Key Financial Metrics and Exploration Data
Note: This filing is a technical disclosure and does not contain consolidated financial statements (revenue, profit, cash flow, or debt) for the registrant.
- 2004 Exploration Expenditure: $103,024.56 CAD (specifically for the 2004 drilling program, including drilling and assay costs).
- 2004 Drilling Activity: 5 holes totaling 1,013 metres.
- Historical Drilling: 87 total holes (39 percussion, 48 core) with a combined meterage of 8,679 metres since 1979.
- Historical Sampling: Over 5,500 samples collected on 6 separate grids.
- Recommended Future Capital: $530,000 CAD estimated for Phase 1 and Phase 2 exploration (airborne geophysics, soil sampling, ground geophysics, and mapping).
Material Changes and Exploration Results
2004 Program Results: The 2004 drilling program successfully extended the known area of alteration and mineralization approximately 150 metres to the east. The drilling intersected metavolcanics, Pennask granodiorite, and quartz-eye porphyry. Results indicated low-grade to anomalous concentrations of gold, silver, copper, lead, and zinc associated with brecciated and altered rock. No quartz veins greater than 10 centimetres were encountered.
Property Expansion: In 2004, 17 new mineral claims (99 units) were added to the eastern portion of the property, extending it approximately 8 kilometers. No exploration was conducted on these new claims during 2004.
Geological Context: The property shares geological similarities with the adjacent Elk Property (Almaden Minerals Ltd.) and the Brenda Copper-Molybdenum deposit. Mineralization is identified in two primary styles: polymetallic quartz veins (gold-silver-lead-copper-zinc) and potential low-grade, high-tonnage porphyry-style mineralization.
Outlook, Risks, and Recommendations
Management Commentary & Recommendations: The technical report recommends a multi-phased exploration program to define the property's potential:
- Phase 1: Helicopter-borne magnetic and electromagnetic survey ($87,500) plus data interpretation ($20,000).
- Phase 2: Property-wide soil sampling (5,000 samples), ground geophysics, and geological mapping ($307,500 + $100,000 + $9,000).
- Phase 3: Contingent on Phases 1 and 2; would involve infill sampling, ground geophysics, or diamond drilling.
Risks and Contingencies:
- Data Quality: The report notes that no quality control/quality assurance (QC/QA) program was implemented for historical data or the 2004 site visit. Future work requires a regimented QC/QA program.
- Historical Data Limitations: No production figures are available for historic underground workings (1917–1952), and workings are no longer accessible.
- Geological Uncertainty: While the property has potential for economic polymetallic veins or porphyry mineralization, the report explicitly states that mineralization on adjacent properties (Elk, Brenda) is not indicative of similar deposits on Siwash Creek.
- Metallurgy: No metallurgical testing has been performed on material from the Siwash Creek Property.
Investor Verification Checklist
- Verify the company's current cash position and ability to fund the recommended $530,000 CAD exploration program.
- Confirm the status of the 17 new claims added in 2004 and any work requirements to maintain them.
- Review the specific assay results in Table 5 of the technical report to understand the grade and width of the "anomalous" intersections.
- Assess the risk associated with the lack of historical QC/QA data and the reliance on pre-43-101 sampling methods.
- Monitor for any updates on the Phase 3 drilling program, as costs and targets are currently undefined.