Livengood Gold Project PFS: $1.93B Capex Over a 21-Year Mine Life
International Tower Hill Mines Ltd.'s Livengood Gold Project in United States, Alaska (near Fairbanks) has a Pre-Feasibility Study (PFS) outlining initial capital of $1.93B. The mine plan runs 21 years at about 316900 oz Au (LOM average) per year.
International Tower Hill Mines Ltd.'s Livengood Gold Project has reported Pre-Feasibility Study (PFS) results for the gold project in United States, Alaska (near Fairbanks). It reflects International Tower Hill Mines Ltd.'s (ITH.TO) latest disclosed economics for the asset.
Economics. Initial capital expenditure is estimated at $1.93B. All-in sustaining costs are pegged at 1171 USD/oz. Economics are based on Reserves calculated at $1,680/oz Au; resources at $1,650/oz Au (2023 PFS). Presentation notes current gold price materially higher..
Production and mine plan. The project envisions an open-pit operation. Life of mine is 21 years. Average annual production is approximately 316900 oz Au (LOM average). Average head grade is 0.65 g/t Au (P&P reserve grade). The open-pit strip ratio is 1.2:1.
Resources and ownership. The company holds a 100% interest in the project. Royalties and streams: 3% royalty (per reserve estimation notes).
These figures are extracted from International Tower Hill Mines Ltd.'s technical disclosures and reflect the most recent PFS on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Proven & Probable | 430 Mt | 0.65 g/t Au | 9.0 Moz Au |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured & Indicated | 705 Mt | 0.60 g/t Au | 13.6 Moz Au |
Our Analysis
- Initial capex
- $1.93B
costlier than 98% of 171 projects we track
- Mine life
- 21yrs
- Study price assumption
- Reserves calculated at $1,680/oz Au; resources at $1,650/oz Au (2023 PFS). Presentation notes current gold price materially higher.
- Spot gold today
- $4,173.30/oz
A US$1.93B build against a US$663M market cap is the whole story here. The company would have to raise roughly three times its entire equity value to put this Alaska gold project into production, and that is the fact that governs everything else. A small-cap cannot quietly fund a cheque that size: the realistic routes are a partner or acquirer carrying the bulk of the capital, a streaming or royalty package sold against future ounces, heavy debt, or equity issued at a deep discount. Each path transfers value away from existing holders, whether through dilution, offtake economics or a buyout struck from a position of need. The headline return is not the constraint; the funding structure is.
The economics themselves are built on reserves calculated at $1,680/oz and resources at $1,650/oz, both struck in the 2023 pre-feasibility study, with the presentation noting the current gold price is materially higher. Live spot at $4,173.30/oz sits far above those inputs, so the study's cash-flow picture is, if anything, understated on price. That gap is the genuine source of upside, and it is also why the market may be slow to credit it: a higher gold price does nothing to shrink a US$1.93B capital requirement.
Weigh the study stage honestly. This is a PFS, which narrows estimates to roughly a plus or minus 25% band, not a build decision, and the 21-year mine life is a planning assumption rather than a settled operating reality. Alaska is a familiar, permitting-heavy jurisdiction with a real development track record, which helps, but it does not solve the capital problem. The question that decides this project is simple: who writes the US$1.93B cheque, and on what terms for the people who already own the shares?
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.
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