(Reuters) - Shares of Canadian gold miner International Tower Hill Mines Ltd ITH.TO plunged 59 percent after the company said a feasibility study found that its only project in Alaska would not be viable at current spot gold prices.
“Using the trailing three-year gold price of $1,500 per ounce, the project generates a minimal positive return,” the company said in a statement on Tuesday.
The company has a 100 percent working interest in the Livengood Gold mine, located near Fairbanks, Alaska. The mine has a capacity to produce 8 million ounces of gold over a period of 14 years.
Spot gold prices have fallen 20 percent this year to close at $1347.49 per ounce on Tuesday.
The company, which had about $19.9 million in cash as of June 30, said on Tuesday it was in talks with several partners to develop the mine.
Shares of the company closed down 53 percent at 42.5 Canadian cents on the Toronto Stock Exchange on Wednesday. They fell to a more than six-year low earlier in the day.
Reporting by Krithika Krishnamurthy in Bangalore; Editing by Sriraj Kalluvila