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; and
- 4 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.
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 that was 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)