Treasury Metals Inc TSX:TML announced drill results from its Goliath Gold Project in Ontario. Highlights include 4.78 g/t gold over 2 metres, 5.67 g/t over 2.5 metres, 1.51 g/t over 3 metres, 11.43 g/t over 6 metres, 9.85 g/t over 5 metres (including 10.31 g/t over 1 metre) and 7.65 g/t over 7 metres.
CEO Martin Walter tells ResourceClips.com, “The Goliath project is in the Dryden area—an area which is very close to the Trans-Canada highway, close to infrastructure, close to all those sorts of things that are needed to advance a project. Two years ago, perhaps three, Laramide Resources—which is a uranium company—decided that it would spin-off all its non-uranium core assets, and the Goliath project was one of those. It spun them off into Treasury Metals. Then Treasury proceeded to do a deal with Corona Gold and consolidated the whole property. The result of that was to have around 1.2 million ounces in the inferred category. Then we proceeded to put the drills back up because the project had sat there for a long time not being drilled. Once the consolidation happened that allowed for work to move forward.
“In 2010, we completed a preliminary economic assessment across the project. That was received positively and gave the company a lot of confidence in terms of moving forward. The scoping study was completed on inferred resources—if you want to move to feasibility or to move a project further towards a production decision, then the idea is you have to convert a lot of those inferred resources to the indicated and measured categories.
“The two interesting things about the results today,” continues Walter, “is, one, we are now starting to see the deposit get a little thicker. Typically it’s been a high-grade deposit, but we’ve seen those high-grade intersections only over a few metres. Now we’re starting to really understand where the deposit’s trending. We’re getting much thicker widths—five, six and seven metres—and very good grades. So that’s great. The second interesting thing is that there were six holes reported, and perhaps three or four of those holes are right down the eastern edge of the resource calculation. So when you look at the long section you can understand the way this thing is now trending and dipping and striking. We can see that we’ve got a lot of up-dip and a lot of area east of the deposit that’s clearly open. And that’s very encouraging.
“The plans for 2011 are to rapidly move the deposit along. Two focuses here: on exploration and on bringing the necessary components of feasibility along. What we’ve done is we’ve initiated a 20,000-metre drill program which we’re about a tenth of the way through. We have two drilling machines on the property. One machine is concentrating on a step-out program that, because of our better knowledge of the deposit, is going to be following up the holes that were reported today. The other machine is drilling into the centre part of the deposit, moving that confidence level up, moving the ounces we have from the inferred to the indicated categories. On top of that, we have a number of programs going to commence the baseline and environmental impact statements and that sort of thing. We commenced that work back in the middle of 2010. We’re pushing forward as we speak with metallurgical samples that we’ve gathered in certain parts of the deposit; they are on their way out to the labs in BC.
“We absolutely intend to take this to production,” Walter concludes. “We’re taking it step by step in a professional manner. We have to move in stages. Right now we’ve got positive economics backing the company. So we have to do the necessary things—advanced baseline studies, updated metallurgy, increasing the confidence in the resource, increasing the resource—and that will all go towards a feasibility study. As long as that feasibility study is positive—and we expect it will be, as we’ve had a positive economic study on the same resource shell—from there we move towards a production decision.”
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by Ted Niles