International Tower Hill Mines Ltd. · TSX:ITH
International Tower Hill Mines — Investor Presentation (November 2021)
27 slides from International Tower Hill Mines's investor presentation, November 2021
Slide 1: Pre-Feasibility Study Reaffirms Leading Leverage to Rising Gold Prices
Pre-Feasibility Study Reaffirms Leading Leverage to Rising Gold Prices Pre-Feasibility Presentation November 2021 Alaska Headquarters Tower Hill Mines, Inc. 506 Gaffney Road, Suite 200 Fairbanks, AK 99701 1-855-428-2825 TSX: ITH TSX: ITH| | NYSE NYSEAmerican: American:THM THM www.ithmines.com www.it
Slide 2: Forward-Looking & Cautionary Statements
Forward-Looking & Cautionary Statements Scientific or technical information contained herein is derived from the Company’s pre-feasibility study (the “PFS”) for its Livengood Gold Project (“Livengood” or the “Project”), which is summarized in more detail in the Company’s press release of November 4,
Slide 3: Largest Independent Gold-Only Resource in North America
Largest Independent Gold-Only Resource in North America 15 13.6 11.7 M&I Resources (m oz) 10 8.1 8.0 7.3 6.3 6.0 5 4.4 4.2 0 Livengood Blackwater Hardrock Courageous Cote Back River Stibnite Dublin Gulch Magino (ITH) (Artemis) (Equinox) Lake (Iamgold) (Sabina) (Perpetua) (Victoria) (Argonaut) (Seabr
Slide 4: Livengood Gold Resource and Reserve
Livengood Gold Resource and Reserve ▪ 13.6m Ounces Measured & Indicated Resources at $1,650/oz (705m Tonnes, Avg. Grade 0.60 g/t, variable cut-off grades) ▪ 9.0m Ounces Proven & Probable Reserves at $1,680/oz (430m Tonnes, Avg. Grade 0.65 g/t, variable cut-off grades) ▪ 776 Drill Holes Totaling 711,
Slide 5: 2021 Pre-Feasibility Study Key Livengood Metrics
2021 Pre-Feasibility Study Key Livengood Metrics KEY METRICS – 2021 PFS OPERATING Year 1-5 LOM Troy Average Annual Production 388,600 306,200 ounces Troy Gold Production - LOM 6,430,178 ounces FINANCIAL Year 1-5 LOM CAPEX – Initial 1.93 $Billion CAPEX - Sustaining 658 $Million OPEX – Operating Cost
Slide 6: 2021 Pre-Feasibility Study De-risking Livengood Gold Project
2021 Pre-Feasibility Study De-risking Livengood Gold Project Solid foundation for the future ▪ Whittle & BBA collaboration on project optimization ▪ Detailed geological model ▪ Conservative resource modelling ▪ Robust metallurgical test work ▪ First principles approach on engineering TSX: ITH | NYSE
Slide 7: Whittle and BBA Optimization
Whittle and BBA Optimization Integrated approach to review alternatives ▪ Tertiary crushing ▪ Heap leach ▪ Flowsheet ▪ Ramp up strategy and scale ▪ Tailings management Recommendation: Gravity/CIL plant at p80 250 micron with conventional tailings provided the highest NPV TSX: ITH | NYSE American: TH
Slide 8: 2021 Pre-Feasibility Study Detailed Geological Model
2021 Pre-Feasibility Study Detailed Geological Model ▪ +20,000 more multi-element assays ▪ Metallurgical domains identified ▪ Massive stibnite solids now modelled and constrained TSX: ITH | NYSE American: THM 8 www.ithmines.com
Slide 9: 2021 Pre-Feasibility Study Resource Model
2021 Pre-Feasibility Study Resource Model ▪ Proven conservative inverse distance interpolation method (ID3). ▪ 10 m x 10 m x 10 m blocks ▪ ID3 reduces risk of grade smearing ▪ ID3 reduces risk of poor reconciliation during production TSX: ITH | NYSE American: THM 9 www.ithmines.com
Slide 10: 2021 Pre-Feasibility Study Metallurgical Test Work
2021 Pre-Feasibility Study Metallurgical Test Work ▪ +100 kg composites, two domains, three grade ranges, all rock types ▪ Tested grind/recovery and grade/recovery ▪ Phase 9b, 11, 12, 13 studies at SGS Vancouver ▪ Recovery models integrated into block model to support robust production schedule opti
Slide 11: 2021 Pre-Feasibility Study Engineering & Qualified Persons
2021 Pre-Feasibility Study Engineering & Qualified Persons Qualified Person Company Scope of Responsibility Financial model, Process Plant and Infrastructure CAPEX, G&A Colin Hardie, P. Eng (Ontario BBA Inc. OPEX, Environmental Studies and APEO No. 90512500) Permitting, Overall NI 43-101 Integration
Slide 12: 2021 Pre-Feasibility Study Flowsheet
2021 Pre-Feasibility Study Flowsheet TSX: ITH | NYSE American: THM 12 www.ithmines.com
Slide 13: Significant Production Profile Supports Enviable Mine Life
Significant Production Profile Supports Enviable 21 Year Mine Life – 6.4M Oz 500,000 450,000 400,000 Year 1-5 Avg 388,600 oz/yr 350,000 LOM Avg Annual Gold Production (oz) 306,200 oz/yr 300,000 250,000 200,000 150,000 100,000 50,000 0 1 5 9 13 17 21 Year Source: ITH News Release - November 4, 2021 T
Slide 14: 2021 Pre-Feasibility Study Cash Flow Sensitivities
2021 Pre-Feasibility Study Cash Flow Sensitivities (US$M) FREE CASH FLOW EBIDTA Gold Average Average Average Average Price Annual Annual Annual Annual ($/Oz) (Year 1-5) (LOM) (Year 1-5) (LOM) $1,500 $159 $108 $229 $142 $1,680 $225 $154 $296 $197 $1,800 $269 $184 $342 $234 $2,000 $332 $232 $417 $295
Slide 15: Exceptional Value Upside with Higher Gold Prices
Exceptional Value Upside with Higher Gold Prices NPV(5%) Increases 6x with 0.4x Increase in Gold Price NPV at 0% ($M) NPV at 5% ($M) $5,102 $2,500 $2,351 Gold Price ($/oz) $2,729 $2,000 $975 $1,741 $1,800 $400 ITH Mkt Cap $151 ($M) Current Market Cap 15% of NPV (5%) at $2,000/oz Gold Price $(500) $5
Slide 16: Opportunity To Invest At Low Valuation
Opportunity To Invest At Low Valuation $150 $143 $132 $115 $117 Market Cap/Reserve Ounce $100 $81 $60 $50 $31 $16 $17 $11 $- Chesapeake Vista Gold ITH Seabridge Belo Sun Perpetua Sabina Gold Artemis Gran NovaGold Gold Gold Mining Resources Gold Colombia Gold Fully Diluted Shares, Market Price and Pr
Slide 17: Lowest Strip Ratio Amongst Independent Gold-Only Projects
Lowest Strip Ratio Amongst Independent Gold-Only Projects in North America 10.5 10 7.4 Life-of-Mine Strip Ratio 5 3.9 3.9 2.4 2.5 2.0 1.2 0 Livengood Blackwater Cote Stibnite Magino Hardrock Courageous Back River (ITH) (Artemis) (Iamgold) (Midas) (Argonaut) (Equinox) Lake (Sabina) (Seabridge) Source
Slide 18: Alaska: Safe and Rich Mining Jurisdiction
Alaska: Safe and Rich Mining Jurisdiction Numerous Mines in Operation • Red Dog (Teck/NANA), Fort Knox (Kinross), Pogo (Northern Star), Kensington (Coeur), Greens Creek (Hecla), Usibelli (UCM) Second Largest Gold Producing State in USA Livengood Mining District Active Since 1914 State has Designated
Slide 19: Low Strip Ratio & Gently Rolling Terrain Underpin Highly Favorable Mining Conditions
Low Strip Ratio & Gently Rolling Terrain Underpin Highly Favorable Mining Conditions TSX: ITH | NYSE American: THM 19 www.ithmines.com
Slide 20: Unparalleled Infrastructure Advantages
Unparalleled Infrastructure Advantages 70 Miles NW of Fairbanks • Accessible Year-Round via Paved Highway 50 Miles from Electric Grid Power • Easy Access To Grid Using Trans-Alaska Pipeline System, a Designated Utility Corridor That Is Already in Operation No Need for a Camp Access to Highly Skilled
Slide 21: Excellent Exploration Potential
Excellent Exploration Potential Defined Exploration Potential Exists at Depth and SW of Existing Resource Current Resource Covers 1 Square Mile of the Company’s Expansive 75 Square Mile Land Package TSX: ITH | NYSE American: THM 21 www.ithmines.com
Slide 22: ITH: Impressive Shareholder Support
ITH: Impressive Shareholder Support 14.3% Sprott 14.2% Electrum 6.1% Kopernik 33.6% Public Float TSX: ITH | NYSE American: THM 22 www.ithmines.com
Slide 23: ITH: A Premier American Gold Play
ITH: A Premier American Gold Play ▪ Largest Independent North American Gold-only Deposit ▪ Exceptional Value Upside with Higher Gold Prices ▪ Current Market Capitalization Only 15% of Project NPV(5%) at $2,000/oz Gold Price* ▪ Easy Access to Critical Infrastructure ▪ PFS completed, June 30 cash on h
Slide 24: Questions?
Questions? For More Information: Alaska Headquarters Investor Relations Tower Hill Mines, Inc. Richard Solie, Jr. 506 Gaffney Road, rsolie@ithmines.com Suite 200 1-855-428-2825 Fairbanks, AK 99701 www.ithmines.com TSX: ITH TSX: ITH| | NYSE NYSEAmerican: American:THM THM www.ithmines.com www.ithmines
Slide 25: Alaskan Management Team
Alaskan Management Team Track Record of Large Mine Development and Permitting Success Mr. Hanneman has over 40 years of Alaska-based mining industry experience and most recently was COO of ITH. Prior to joining the Company in 2010, he played a key role on the team that worked to Karl L. Hanneman res
Slide 26: Board of Directors
Board of Directors Partner at Paulson & Co. Inc. since 2011, where he oversees natural resource investments, specializing in gold, base metals, bulk commodities Marcelo Kim and oil & gas. Prior to that, commencing in 2009, he was a generalist analyst covering event arbitrage investment opportunities
Slide 27: Capital Structure & Treasury
Capital Structure & Treasury TSX: ITH - NYSE American: THM (As of June 30, 2021) Issued & Outstanding Shares 194,908,184 Shares Fully Diluted 200,006,509 Working Capital $10.2 Million Major Shareholders Shares Held % Paulson & Co. Inc. 61,930,724 31.8 Sprott Asset Management USA, Inc. 27,821,530 14.
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