Treasury Metals has released initial results from a 15,000-metre drill program it began in December at its flagship Goliath gold project in northwestern Ontario, including 7 metres of 14.8 g/t gold in the Eastern C Zone.
Highlights from the Main zone at the project include:
6.3 metres of 7.4 g/t gold, including 4 metres of 10.13 g/t gold from 214.7 metres depth in hole 505;7 metres of 5.2 g/t gold from 189 metres depth in hole 502; and4 metres of 6.2 g/t gold from 270 metres depth in hole 507.
Highlights from the Eastern C Zone target, where infill and expansion drilling are being conducted, include:
7 metres of 14.8 g/t gold (including 1 metre of 101 g/t gold) from 449 metres depth in hole 503;and in hole 506, 1 metre of 14.6 g/t gold (from 400 metres), 1 metre of 11.8 g/t gold (from 339 metres) and 1 metre of 8.13 g/t gold (from 422 metres) . This hole intersected a newly discovered lens of high-grade mineralization east of existing resources.
Results from the Eastern C Zone show consistent zones of strong alteration and a mineralized envelope with high-grade lenses within it. Treasury reports that some holes designed to test the Eastern C Zone target unexpectedly intersected Main zone mineralization.
Infill drilling will continue at the C Zone and at the eastern area of the Main zone before new downhole targets are tested. The drill campaign includes 5,000 metres aimed at upgrading inferred resources at the C Zone East area; 5,000 metres to test recent targets identified through a downhole IP survey; and 5,000 metres for exploration drilling on strike extensions across the Goliath property.
According to a PEA released in 2017, the initial capex for an open pit and underground mine at Goliath would be C$133 million with an after-tax net present value of C$306 million
The project, 20 km east of Dryden, contains measured and indicated resources of 15.3 million tonnes grading 2.26 g/t gold and 8.2 g/t silver for 1 million contained ounces of gold and 4.3 million oz. silver. Inferred resources add 2 million tonnes grading 3.43 g/t gold and 8.8 g/t silver.
According to a preliminary economic assessment released in 2017, the initial capex for an open pit and underground mine at Goliath would be C$133 million with an after-tax net present value of C$306 million and an internal rate of return of 25%.
Treasury Metals received federal approval environmental assessment approval last August and can now apply for final permits needed to start construction.
(This article first appeared in the Canadian Mining Journal)