Saturday 26th September 2020

Resource Clips

Goliath looms large

Treasury Metals maintains high grades at its Ontario gold project

by Greg Klein

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The principle is simple enough—high gold grades make good business sense. But actually finding those grades isn’t so simple. Nevertheless infill drilling brings reassurance to Treasury Metals’ TSX:TML Goliath project in the Kenora-Dryden region of northwestern Ontario. Assays released March 18 came from within the proposed open pit for the Main zone and its C zone counterpart, around 30 to 50 metres away.

Treasury Metals maintains high grades at its Ontario gold project

Infill drilling, environmental permitting and a feasibility study
are among Treasury Metals’ 2013 plans.

C zone results show:

  • 3.13 grams per tonne gold over 13 metres
  • 0.78 g/t over 16 metres
  • 1.58 g/t over 7.5 metres.

Main zone results show:

  • 14.6 g/t over 1 metre
  • 1.13 g/t over 16.4 metres
  • 430 g/t over 1 metre.

True widths weren’t provided. The top-most intercept started at a down-hole depth of 16.7 metres in the Main zone, while the deepest ended at 207.6 metres down hole in the C zone.

A topcut will be applied to the results later, president/CEO Martin Walter tells ResourceClips. The interval of 430 g/t over 1 metre “demonstrates there is a nugget effect to the deposit,” he says. “We think the nugget effect is going to go with us at the end of the day. The good thing is those nuggets are in the pit, in the top part. But I wouldn’t read too much into it. The same thing could be five grams.”

Treasury is now performing “a gap analysis of the infill drilling to see if we’ve missed areas. Then we’d go back and re-drill them,” Walter explains. After infill drilling’s complete “there’ll be a new resource update that’ll lead to the feasibility. At the same time we have the EIS [federal environmental impact statement] moving forward.”

Walter expects to see the EIS and feasibility study “coming together at the same time late Q3 or early Q4.”

But while he hopes to go straight to full feasibility, he doesn’t rule out a pre-feas first. “I don’t think it would slow us down,” Walter adds. “We fully expect to get positive results from that feasibility or pre-feasibility because we’re maintaining grade.”

He emphasizes, “There are a lot of projects in Canada and around the world that are considered massive low-grade deposits, under one gram. We have a different model. We want to keep the grade from two and a half grams to three grams, in that range. It just makes good business sense. When it comes to processing, you still have to pay for the same amount of tonnage. It’s the same cost to process a 0.6-gram or a five-gram.”

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