Location
The project area is located in the Goodpaster Mining District approximately 25 km north of Delta Junction, Alaska. The project accessed either by winter road or river boat providing for year round, non-helicopter support access. Several trails have been constructed for the various phases of drilling providing surface access across the property.

Ownership
The LMS project is covered by 92 State of Alaska mining claims (61 km²) with no underlying third party royalty. International Tower Hill Mines Inc, ("ITH") owns 100% of the Property.

Background
AngloGold Ashanti (USA) Exploration Inc. discovered the LMS project through regional stream silt and follow-up soil geochemistry in 2004. The target was drilled in 2005 and the discovery of both broad stockwork and narrower high-grade zones was made at an area called the Camp zone. The encouraging (shown in table 1 below) results from the 3200m drilling program in 2005 are being followed up in 2006.

Mineralization
The LMS project is located in the Yukon-Tanana Terrane, a large accretionary complex of igneous, and sedimentary rocks that have been metamorphosed to greenschist and amphibolite facies. The terrane is bounded on the north by the Tintina Fault system and on the south by the Denali Fault system. These major faults trend west-northwest in the area and subsequent movement led to the development of numerous subsidiary faults that trend NE, NNW, and EW that have been mineralized in the LMS deposit.

The gold mineralization commonly forms within strongly silicified and brecciated zones that are associated with low-angel shear zones within, and marginal to schist units. The rock contains abundant pyrite and minor galena, arsenopyrite, and graphite. These mineralized low-angle zones are cut by a series of later high-grade, possibly mesothermal veins emplaced along a general E-W trend of foot and hanging-wall stockworks.

The encouraging results from the initial discovery of the Camp Zone in 2005 are being followed up in 2006 with targeted drilling to expand the deposit and begin testing some of the eight other priority geochemical targets that exist on the property. A key goal of this work is to define the principal ore controls on the late high-grade veins.

Figure 1. Geochemistry and generalized geology of the LMS Project.

Figure 2. East-west cross section through the LMS mineralized zone (2005 drill results).

LMS 2005 Significant Drill Intercepts