TSX:TML
TORONTO, Aug. 28, 2015 /CNW/ - Treasury Metals Inc.
("Treasury" or the "Company") (TSX:TML) is pleased to provide an
updated National Instrument 43-101 Mineral Resource Estimate (the
"2015 Resource Estimate") on its 100% owned Goliath Gold Project
located 20 kilometres east of Dryden,
Ontario. The Resource Estimate was completed by independent
consultant, P&E Mining Consultants Inc. ("P&E").
The "2015 Resource Estimate" is an update to the NI 43-101
Resource Estimate previously released on November 9, 2011 (the "2011 Resource Estimate")
and includes results from a database representing an additional 173
diamond drill holes and 29 old re-entered drill holes totaling
50,048 m that were completed between 2012 and 2015.
Highlights include:
- Open Pit and Underground 2015 Resource Estimate:
- Measured:
90,300 ounces AuEq (1.12 Mt at
2.51g/tonne AuEq);
-
Indicated:
1,075,500 ounces AuEq (19.44 Mt at 1.72 g/tonne
AuEq);
-
Inferred:
341,300 ounces AuEq (3.47 Mt at 3.06 g/tonne
AuEq).
- New "Measured" Resources identified totalling 90,300
ounces AuEq (Open Pit and Underground).
- Total "Measured" and "Indicated" Mineral Resources now totals
1,165,800 ounces AuEq (20.56 Mt at 1.76 g/t AuEq), an
increase of 44% from the 2011 Resource Estimate.
- Open Pit Resources increased from 348,000 "Indicated" ounces
AuEq in 2011 to a combined "Measured" and "Indicated" Resource of
775,600 ounces AuEq in 2015 that more than doubles the near surface
gold Resources.
- The combined "Measured" and "Indicated" underground gold
resource totals 2,367,000 tonnes and grades 5.13 g/t AuEq for a
total of 390,100 AuEq ounces.
- Gold Resources at Goliath remain open at depth and along
strike.
"We are very pleased with the conversion of ounces into the
"Measured" and "Indicated" categories with this resource as the
basis of our upcoming Feasibility Study. These results show
the strength of the deposit as we continue down the development
path towards our goal of mine operation," said Mr. Martin Walter, President and Chief Executive
Officer, Treasury Metals.
Resources were defined using a block cut-off grade of 0.35
g/tonne AuEq for Open Pit Resources (>130 metres elevation above
sea level or <260 metres depth from surface) and 1.9 g/tonne
AuEq for Underground Resources. Open Pit plus Underground
"Measured" and "Indicated" Resources total 20.6 million tonnes with
an average grade of 1.69 g/tonne Au and 6.4 g/tonne Ag for
1,114,400 ounces gold and 4,245,000 ounces silver for a total of
1,165,800 ounces AuEq. "Inferred" Resources for Open
Pit and Underground total 3.47 million tonnes with an average grade
of 2.96 g/tonne Au and 8.3 g/tonne Ag for 330,100 ounces gold and
928,300 ounces silver for a total of 341,300 ounces AuEq.
The Main Zone and C Zone contain the majority of mineral
resources from both categories. The 2015 Resource Estimate, which
uses a combination of historical and current drilling results, does
not incorporate potential metal credits from by-product metals of
lead or zinc.
The following table summarizes the NI 43-101 Mineral Resource
Estimate in the "Measured", "Indicated" and "Inferred" Resource
categories:
Mineral Resource Estimate Statement (1-8)
|
Category
|
Cut-off
AuEq g/t
|
Tonnage
|
Au
(g/t)
|
Contained
Au
(oz)
|
Ag
(g/t)
|
Contained
Ag
(oz)
|
AuEq
(g/t)
|
Contained
AuEq
(oz)
|
|
Open
Pit
|
Measured
|
0.35
|
1,015,000
|
1.90
|
62,100
|
7.8
|
256,000
|
2.00
|
65,200
|
Indicated
|
0.35
|
17,174,000
|
1.22
|
675,700
|
5.2
|
2,869,000
|
1.29
|
710,400
|
M+I
|
0.35
|
18,189,000
|
1.26
|
737,800
|
5.3
|
3,125,000
|
1.33
|
775,600
|
Inferred
|
0.35
|
1,351,000
|
0.99
|
42,800
|
4.3
|
186,000
|
1.04
|
45,000
|
Underground
|
Measured
|
1.90
|
103,000
|
7.32
|
24,200
|
23.1
|
76,000
|
7.60
|
25,100
|
Indicated
|
1.90
|
2,264,000
|
4.84
|
352,400
|
14.4
|
1,044,000
|
5.02
|
365,000
|
M+I
|
1.90
|
2,367,000
|
4.95
|
376,600
|
14.7
|
1,120,000
|
5.13
|
390,100
|
Inferred
|
1.90
|
2,120,000
|
4.22
|
287,300
|
10.9
|
743,000
|
4.35
|
296,300
|
Total
|
Measured
|
0.35&1.90
|
1,117,000
|
2.40
|
86,300
|
9.2
|
332,000
|
2.51
|
90,300
|
Indicated
|
0.35&1.90
|
19,437,000
|
1.65
|
1,028,100
|
6.3
|
3,913,000
|
1.72
|
1,075,500
|
M+I
|
0.35&1.90
|
20,554,000
|
1.69
|
1,114,400
|
6.4
|
4,245,000
|
1.76
|
1,165,800
|
Inferred
|
0.35&1.90
|
3,470,000
|
2.96
|
330,100
|
8.3
|
928,000
|
3.06
|
341,300
|
- Mineral resources which are not mineral reserves do not have
demonstrated economic viability. The estimate of mineral
resources may be materially affected by environmental, permitting,
legal, title, taxation, socio-political, marketing, or other
relevant issues.
- The quantity and grade of reported Inferred resources in
this estimation are uncertain in nature and there has been
insufficient exploration to define these Inferred resources as an
Indicated or Measured mineral resource and it is uncertain if
further exploration will result in upgrading them to an Indicated
or Measured mineral resource category.
- The mineral resources in this press release were estimated
using the Canadian Institute of Mining, Metallurgy and Petroleum
(CIM), CIM Standards on Mineral Resources and Reserves, Definitions
and Guidelines prepared by the CIM Standing Committee on Reserve
Definitions and adopted by the CIM Council.
- A gold price of US$1,397/oz
and silver price of US$22.93/oz based
on the April 30, 2015 three year
trailing average prices and an exchange rate of US$1.06=Cdn$1.00
were utilized in the AuEq cut-off grade calculations of 0.35 g/t
AuEq for Open Pit and 1.90 g/t AuEq for Underground mineral
resources.
- Open Pit mining costs were assumed at Cdn$5.00/t for mineralized material, Cdn$3.15/t for waste rock and Cdn$2.00/t for overburden, while Underground
mining costs were assumed at Cdn$70.00/t, with process costs of Cdn$13.81/t, G&A of Cdn$2.72/t, and process recoveries of 95% for
gold and 70% for silver.
- The Au:Ag ratio used for AuEq was 82.68.
- A bulk density model averaged 2.76 t/m3 for
mineralized material.
- Totals in the table may not sum due to rounding.
Treasury also continues work on its Federal Environmental
Assessment for the Goliath Project. The first public comment
period has ended and Treasury is now in the process of responding
to "Information Requests" from the Canadian Environmental
Assessment Agency's technical review of the Environmental Impact
Statement.
Qualified Persons
The mineral resource estimates were prepared by Eugene Puritch, P.Eng., Antoine Yassa, P.Geo., and Yungang Wu, P.Geo. of
P&E Mining Consultants Inc. of Brampton, Ontario, Independent Qualified
Persons ("QP"), as defined by National Instrument 43-101. Mr.
Puritch has reviewed and approved the contents of this news
release. The 2015 Resource Estimate technical report will be filed
on SEDAR within 45 days of this news release.
For more information about Treasury Metals, please visit the
Company's website at www.treasurymetals.com.
Cautionary Notes Concerning Estimates of Mineral
Resources
This news release uses the terms "Measured",
"Indicated" and "Inferred" resources as a relative measure of the
level of confidence in the resource estimate. Readers are cautioned
that mineral resources are not economic mineral reserves and that
the economic viability of resources that are not mineral reserves
has not been demonstrated. Under Canadian rules, estimates of
inferred mineral resources may not form the basis of feasibility or
pre-feasibility studies or economic studies except for Preliminary
Assessment as defined under NI 43-101. Readers are cautioned not to
assume that that further work on the stated resources will lead to
mineral reserves that can be mined economically.
Forward-looking Statements
This release includes
certain statements that may be deemed to be "forward-looking
statements". All statements in this release, other than statements
of historical facts, that address events or developments that
management of the Company expect, are forward-looking statements.
Actual results or developments may differ materially from those in
forward-looking statements. Treasury Metals disclaims any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, save and except as may be required by applicable
securities laws.
SOURCE Treasury Metals Inc.