TSX:TML
TORONTO, April 17, 2017 /CNW/ - Treasury Metals
Inc. (TSX: TML) ("Treasury" or the "Company") has
filed on SEDAR a National Instrument 43-101 updated Preliminary
Economic Assessment ("PEA") on its Goliath Gold Project ("Goliath"
or the "Project") located in northwestern Ontario. The PEA, announced on March 8, 2017, was prepared by CSA Global Canada
Geosciences Ltd. ("CSA Global") with the assistance of P&E
Mining Inc. and the Company's operations and exploration teams (see
Qualified Persons section below). The updated PEA integrates recent
engineering and incorporates the 2015 NI 43-101 Mineral Resource
Estimate from the Goliath Gold Project ("Updated Mineral
Resource").
Highlights of the PEA included (all currencies are
reported in Canadian dollars unless otherwise specified):
- The updated 2017 PEA benefits from increased mineable resources
with the Updated Mineral Resource and a higher grade profile while
using a more conservative approach related to all mining costs,
capital costs and dilution compared with the 2012 PEA;
- Significantly improved economics with an after-tax NPV at a 5%
discount of C$306 million and IRR of
25% at US$1,225 per ounce gold
(Au);
- The PEA benefits from a 37% increase in the Life of Mine
("LOM") gold production profile;
- Average annual production of 87,850 oz Au over a 13 year
combined open pit and underground mine life; peak production
exceeding 100,000 oz per year Au from Years 3-6;
- LOM head grade of 3.81 g/tonne Au, an increase of 33% from the
2012 PEA; and
- Attractive total cash cost is estimated at US$525 per equivalent gold ounce ("AuEq") and an
all-in sustaining cost ("AISC"), as defined by the World Gold
Council, estimated at US$611 per
AuEq;
Goliath is located in northwestern Ontario, lying 20 kilometres east of the city
of the Dryden. The total area of
the Project is 49 km2 and is owned 100% by the Company.
The site benefits significantly from excellent access to
infrastructure and is directly adjacent to the Trans-Canada highway
and Canadian Pacific Railway. The Project has access to electrical
and natural gas power, rail, paved roadways to site and several
nearby communities.
The mining plan used in the PEA envisions an optimized open pit
generating immediate revenues to fund underground development.
Underground ("UG") production begins in the second year with the
open pit operating over an additional seven years at a reduced
output to supplement UG production to a total of 2,500 tonnes per
day over the course of a 13 year total mine life. Total gold
production is estimated at 1.14 million ounces of gold and 2.1
million ounces of silver. Initial capital to fund construction is
estimated at C$133.2 million with an
additional C$132.5 million in
sustaining capital over the LOM primarily to fund the underground
expansion.
The mine is proposed to produce an average head grade of 3.81
g/t gold and 10.55 g/t silver with Open Pit and UG mining producing
average grades of 1.58 g/t and 4.87 g/t of gold, respectively. The
infill diamond drilling programs completed since the PEA completed
by Treasury in 2012 (the "2012 PEA") has resulted in improved
project economics and overall confidence in the mine plan. The
stripping ratio of waste rock to ore has been reduced to 6:1, which
represents a 35% improvement over the 2012 PEA. This stripping
ratio does not include pre-production stripping of approximately
1.3 million m3 of overburden material. When all
waste rock and overburden material is included, the LOM stripping
ratio is 7.9:1. All mined ounces in the open pit are within the
Measured and Indicated categories. Seventy per cent of the mineable
ounces within the Underground are classified within the Measured
and Indicated categories which represent a significant increase
from the 2012 PEA. UG production is envisioned to be carried out at
an average rate of 1,600 tonnes per day using the long hole stoping
method on 30 metre sublevels. Average UG operating costs have
been estimated at $77/tonne, a 28%
increase over the cost assumption in the 2012 PEA.
In the March 8, 2017 press release
announcing the PEA, the Company disclosed total cash cost estimated
at US$518 per equivalent gold ounce
("AuEq") and an all-in sustaining cost ("AISC"), as defined by the
World Gold Council, estimated at US$566 per AuEq. The final total Cash Cost and
all-in sustaining cost were calculated at US$525 AuEq and AISC at US$611, respectively. There were no changes to
the financial model used in the PEA or any other changes from the
March 8, 2017 press
release.
The PEA was prepared in accordance with National Instrument
43-101 and the technical report that summarizes the results of the
2017 PEA is available on the Company's website
www.treasurymetals.com and on Sedar (www.sedar.com).
Cautionary statement required by NI 43-101
According to the cautionary statement required by NI 43-101, it
should be noted that this assessment is preliminary in nature as it
includes Inferred Mineral Resources that cannot be categorized as
reserves at this time and as such there is no certainty that the
preliminary assessment and economics will be realized.
Qualified Persons
Technical information related to the PEA contained in this news
release has been reviewed and approved by Douglas Roy, M.A.Sc., P.Eng., an Associate
Mining Engineer with CSA Global, who is an independent Qualified
Person as defined by NI 43-101, with the ability and authority to
verify the authenticity and validity of this data. Technical
information in the press release has also been reviewed and
approved by Mark Wheeler, P. Eng.,
Director Projects, who is a Qualified Person for the Goliath Gold
Project under the definitions established by National Instrument
43-101.
The 2015 Mineral Resource Estimate was prepared by Eugene Puritch, P.Eng., FEC, Antoine Yassa, P.Geo., and Yungang Wu, P.Geo. of
P&E Mining Consultants Inc. of Brampton, Ontario, all of whom are Independent
Qualified Persons ("QP"), as defined by National Instrument
43-101.
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 Ontario, 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. Treasury Metals is currently in the
mine permit process on the Goliath Gold Project.
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.