Treasury Metals Inc. (Treasury or the Company) (TSX:TML) is pleased to provide an updated National Instrument 43-101 Resource Estimate on its 100% owned Goliath Gold Project located 20 kilometres east of Dryden, Ontario. The Resource Estimate was completed by independent consultant A.C.A. Howe International Limited (Howe) of Toronto.
This Resource Estimate (the 2011 Resource Estimate) is an update to the NI 43-101 Resource Estimate previously released in July 2010 (the 2010 Resource Estimate), and includes results from a database representing an additional 60,000 metres totalling 134 new drill holes. The 2011 Resource Estimate takes into account two in-fill focused drilling programs: 12,000 metres completed in 2010 and 48,000 metres in 2011.
2011 Resource Estimate Highlights Include:
Indicated mineral resource of 810,000 ounces of gold and gold equivalent ounces of silver including both potential surface mineable plus underground, an increase of more than 200% from the 2010 Resource Estimate.
Inferred mineral resource of 900,000 ounces of gold and gold equivalent ounces of silver including both potential surface mineable plus underground.
This successful conversion of upgrading the Inferred resources to Indicated categories confirms the continuity of the gold shoots within the deposit and significantly decreases the risks of the project's future development, commented Mr. Martin Walter, President and Chief Executive Officer of the Company. The significant increase of the overall resource to 1.7 million ounces of gold confirms the longevity of our flagship project located in Dryden, Ontario. The 48 km2 Goliath Gold Project is a newly discovered gold resource located in an area with excellent infrastructure.
2011 Resource Estimate
The 2011 Resource Estimate, which uses a combination of historical and current drilling results, includes 134 additional holes up to drill hole TL11-228 primarily consisting of in-fill drilling in late 2010 and throughout 2011. The 2011 Resource Estimate does not incorporate potential metal credits from by-product metals of lead, zinc and copper.
Resources were defined using a block cut-off grade of 0.3 g/tonne Au for surface resources (<150 metres deep) and 1.5 g/tonne Au for underground resources (>150 metres deep). Surface plus underground Indicated Resources total 9.14 million tonnes with an average grade of 2.6 g/tonne Au and 10.4 g/tonne Ag for 760,000 ounces gold and 3,070,000 ounces silver for a total of 810,000 gold equivalent ounces. Surface plus underground Inferred Resources total 15.9 million tonnes with an average grade of 1.7 g/tonne Au and 3.9 g/tonne Ag for 870,000 ounces gold and 1,990,000 ounces silver for a total of 900,000 gold equivalent ounces. The Main Zone and C Zone contained the majority of resources from both categories and are the primary targets for underground mining. A summary of mineral resources by resource category is as follows:
Mineral Resource Estimate Parameters and Assumptions:
1. Cut-off grade for mineralised zone interpretation was 0.5 g/tonne.
2. Block cut-off grade for surface resources (less than 150 metres deep) was 0.3 g/tonne.
3. Block cut-off grade for underground resources (more than 150 metres deep) was 1.5 g/tonne.
4. Gold price was $US 1500 per troy ounce.
5. Zones extended up to 150 metres down-dip from last intercept. Along strike, zones extended halfway to the next cross-section.
6. Minimum width was 2 metres.
8. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
9. Resource estimate prepared by Doug Roy, M.A.Sc., P.Eng.
10. A specific gravity (bulk density) value of 2.75 was applied to all blocks (based on 30 samples).
11. Non-cut. Top-cut analysis of sample data suggested no top cut was needed because of the absence of high-grade outliers.
12. Silver equivalency parameters: Metallurgical recovery: Gold 95%, Silver 72%; Price: Gold $1500, Silver $35. I.E.: 1 ounce gold = 57 ounces silver.
13. Totals have been rounded to show the correct number of significant digits, reflecting the accuracy of the estimate
Part of the increase in mineral resources is attributed to a lowering of block cut-off grades, justified by increased gold price. The cut-off grade for potentially surface mineable resources (less than 150 m depth) was decreased from 0.5 g/tonne to 0.3 g/tonne. The cut-off grade for deeper resources (greater than 150 m depth) was decreased from 2.0 g/tonne to 1.5 g/tonne.
Technical information related to the 2011 Resource Estimate contained in this news release has been reviewed and approved by Doug Roy, M.A.Sc., P.Eng., an Associate Mining Engineer with A.C.A. Howe International Limited, 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. The 2011 Resource Estimate technical report will be filed on SEDAR within 45 days.
To learn more 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.
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.
Treasury Metals Inc.
Vice President, Corporate Development
Treasury Metals Inc.
President and CEO