Michael Gray, Genuity Capttal: ITH continues to expand Livengood gold deposit, Fairbanks region, Alaska
September 30, 2008
Michael Gray, MSc. (604) 694-6961
Colin Garner (604) 694-6961
ITH-V: $2.25 (all figures in C$, unless noted)
TARGET: $4.60
RECOMMENDATION: BUY
RISK RATING: Speculative
ITH continues to expand Livengood gold deposit, Fairbanks region, Alaska
Price (9/29/2008) $2.25
104.4%
Shares O/S (mm) 39.9
Shares F/D (mm) 57.6
Market cap F/D ($mm) $ 1 29.7
Market float quote value($mm) 60.2
10-day Ave Daily Vol (K) 29.0
Debt ($mm) $0.0
Cash ($mm) $12.0
Fully-diluted cash ($mm) $53.5
12-mo Burn-rate ($mm) $11.0
Shareholders 14.8% AngloGold
23.4% Institutions
President & CEO Jeff Pontius
VP Exploration Russell Myers
Chief Geologist Chris Puchner
7.7% Mgmt & Directors
Total return to target
News/Event
• This morning, ITH reported assay results from one core hole and19 reverse circulation (RC) drill holes from its 100%-owned
Livengood gold project, Fairbanks region, Alaska.
Highlights
• The high grade Livengood “Core Zone” continues to be expanded
southward and appears to be open to the south, east, and at
depth. To date, the 2008 drilling has documented a gold
mineralization Core Zone footprint of 1.5 kilometres long by 500-900m wide.
• Drill highlights from the Livengood Core Zone include:
• 25.91m @ 3.35 g/t Au (RC Hole 39)
• 143.26m @ 1.32 g/t Au (RC Hole 43)
• 123.45m @ 1.04 g/t Au (RC Hole 45)
• 79.25m @ 1.16 g/t Au (RC Hole 50)
• Length weighted average for the results from all 19 holes (with assays) was 0.74 g/t Au over 43.6m.
• Catalyst - An updated NI 43-101 resource is expected in early
November. We expect a significant increase in the size of the
resource, including the first indicated resources at Livengood.
Analysis/Conclusion
• The Livengood Core Zone appears to be open to the south,
however, the section with the release shows the overlying
Cambrian “hanging wall” section has minimal arsenic (a proxy for gold grade).
Therefore, we expect the strip ratio for this portion of the section to increase.
On the other hand, favourable stratigraphy may project to
surface on the south side of the hill.
• ITH’s Livengood gold project is one of the few +2mm oz gold
deposits in North America, 100% controlled by a Junior. We
recommend ITH-V as a BUY and maintain our $4.60 target
price based on its in situ gold resources and our geological
rationale for additional gold resource potential. |
