TSX: TML
TORONTO, March 1, 2017 /CNW/ - Treasury Metals Inc.
(TSX: TML) ("Treasury" or the "Company") is
pleased to announce a corporate update and project development
strategy to further advance the Company's Goliath Gold Project
located in Northwestern Ontario.
The Company aims to be in a position to make a construction
decision during the third quarter of 2018 pending the successful
recommendation of a Feasibility Study to be completed at the
Goliath Gold Project.
The Company's key objectives for Goliath and proposed timelines
are provided, as follows:
Highlights:
- Updated PEA: An updated National Instrument 43-101
Preliminary Economic Assessment ("PEA") by CSA Global Canada
Geosciences Ltd. will be released in early March 2017 integrating recent engineering and
resource modelling work and providing an up-to-date economic
analysis of the Goliath Gold Project. The updated PEA will
incorporate the 2015 NI 43-101 Mineral Resource Estimate to
highlight the strength of the project along with current operating
and capital cost information;
- Phase I 2017 Exploration Program: The Company recently
commenced an initial Phase I 5,000 m condemnation and step-out
exploration drilling program focusing on a number of
"high-priority" near surface targets along strike to the northeast
of the main resource area (see Figure A);
- Phase II 2017 Exploration Program: A Phase II 30,000
metre underground infill drilling program is planned to commence by
mid-May, 2017. An updated NI 43-101 Resource Estimate incorporating
our 2016 exploration, 2017 Phase I and Phase II drilling programs
will be completed at the conclusion of this drill program;
- Feasibility Study: The Company anticipates commencing a
Feasibility Study on the Goliath Gold Project starting in
August 2017 targeting a completion
date of June 2018, which will
incorporate the updated NI 43-101 Resource Estimate as well as
additional engineering, optimization work, finalized metallurgical
and grinding testwork and earthworks geotechnical support studies
that will be completed over the course of the next sixteen
months.
- Permitting Progress: The Company continues to make
permitting progress including the submission on February 22, 2017 of draft Information Request
responses as part of the Federal Government of Canada's Environmental Impact Statement
("EIS") review;
- Community Engagement: Aboriginal community engagement
continues to progress for the stage of the project and long-term
relationship agreements are anticipated as the above milestones are
completed; and
- Option Exercise: Prior to March
17, 2017, the Company will exercise an option to repurchase
an outstanding US$10/oz Au production
fee from Extract Capital Master Fund Ltd. and Loinette Leasing Ltd.
for total consideration of US$350,000, thereby eliminating the future cost
of the fee in its entirety and enhancing the overall project
economics at Goliath.
Chris Stewart, President and
Chief Executive Officer, commented: "We have completed a
comprehensive development review and I am pleased to announce that
we have created a strategic 18-month plan to advance the Goliath
Gold Project towards a construction decision in mid-2018.
Concurrently, our permitting has advanced on schedule with the
recent federal Information Request submission being an important
milestone in this process. We are also excited about the potential
to further expand the underground mineral resource area at Goliath,
and will be initiating a significant underground infill and
expansion drilling program later this year to delineate this
potential. Finally, the updated PEA will allow us to communicate
the considerable progress made at Goliath in recent years."
"We have a lot of work ahead of us to accomplish these goals,
but are confident in our team's ability to meet them. Building
strong partnerships with the local community and Aboriginal groups,
along with various governmental agencies, will be of paramount
importance to us achieving our objectives. We look forward to
the opportunity to develop the Goliath Gold Project and transition
Treasury into a responsible junior gold producer that will invest
and create many jobs in the local communities of Northwestern Ontario."
Exploration Programs
a) Condemnation
and Step-Out Exploration Drilling Program (Phase I)
A new interpretation of the geology of the Eastern Alteration
Corridor and the preparation of new longitudinal sections of the
Main, B and C Zone altered felsic volcanic rock units has
identified 27 new potential gold-bearing shoots which are now being
drill tested. Significant gold mineralization was previously
intersected by a number of historical drill holes, including a hole
by Treasury TL12261 that returned 5.40 g/t Au over a sample length
of 4.41 m and a Teck Exploration hole TL208 that intersected 4.16
g/t Au over a core length of 7.6 m located just 40 m from
surface.
The 39 hole drill program will test the gold potential of these
shoots over a strike distance up to 1,700 m from the proposed open
pit. Successful drill testing of these targets may allow Treasury
to outline some new significant gold-bearing shoots for follow-up
drill testing and near surface resource evaluation.
The current planned drill program and targets are outlined in
Figure A.
b) Infill Drilling
Program (Phase II)
Following an in-depth review of the H2-2016 infill drill program
by Treasury and P&E Mining Consultants Inc. ("P&E"), a
Phase II program consisting of 30,000 metres of underground infill
drilling has been designed. This program will involve drilling an
additional 40 to 50 holes allowing for further resource conversion
from inferred to the indicated category and potential expansion of
known gold mineralization into areas where gold mineralization was
previously unknown.
Further, the mineral resource estimate update will be
supplemented by an infill sampling program of existing drill core.
A successful second phase of infill core sampling should assist in
defining new zones of gold mineralization and is a low cost
technique of potentially adding value at this stage of development
of the Goliath Gold deposit.
Federal and Provincial Permitting
The Company, along with assistance and direction from AMEC
Foster Wheeler ("AMEC"), has submitted a draft of the responses to
CEAA for review prior to a formal submission of Information Request
responses as part of the Federal Government of Canada's Environmental Assessment process
("Federal EA").
As part of the formal submission, Treasury and AMEC will provide
an updated Impact Review report that describes all potential
impacts of the project and proposed mitigation measures for each
impact. Some of the required work included an updated assessment of
the general site layouts and overall water balance as well as
completing a geotechnical field program to support onsite
infrastructure for both permitting and the Feasibility Study. The
Company expects the formal submission of the Information Requests
including Impact Review to the Federal government in early May of
2017 following the draft submission made on February 22, 2017.
The Company expects the Federal EA should be completed with a
formal decision towards the end of 2018. This timeline includes the
anticipated time for the Company to develop and submit responses to
requests from the Federal EA process as well as the allotted time
for the Government's review.
On a parallel process with the Federal EA, Treasury continues to
work on technical reports to support the provincial permitting
process. Communication is ongoing with various provincial
ministries to confirm the application formats and technical support
required for each specific permit that will be granted under
provincial authority. Both provincial mine closure plan and
tailings storage facility construction reports continue to be
advanced.
Treasury expects the provincial permitting process to move in a
similar timeline to the federal EA and will provide updates as work
progresses.
The strategy and timelines outlined in this press release are
contingent upon the Company obtaining the necessary funding to
support corporate plans over the next eighteen months as well as
the successful Feasibility Study evaluation.
To view further details about the Goliath Gold Project, please
visit the Company's website at www.treasurymetals.com.
About Treasury Metals Inc.:
Treasury Metals Inc. is a gold focused exploration and
development company with assets in Canada and is listed on the Toronto Stock
Exchange ("TSX") under the symbol "TML". Treasury Metals Inc.'s
100% owned Goliath Gold Project in northwestern Ontario is slated to become one of
Canada's next producing gold
mines. With first-rate infrastructure currently in place and gold
mineralization extending to surface, Treasury Metals plans on the
initial development of an open pit gold mine to feed a 2,500 per
day processing plant with subsequent underground operations in the
latter years of the mine life.
Follow us on Twitter @TreasuryMetals
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.