Treasury Metals Sets Key Project Milestones for Goliath and Provides Corporate Update
Treasury Metals Sets Key Project Milestones for Goliath and Provides Corporate
Update
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 Northwest ern 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 propos ed 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 relea sed in early March 2017 integrating recent
engineering and resource modelling work and providi ng 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 drilli ng 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 addi tional 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 Stateme nt ("EIS") review;
• Community Engagement : Aboriginal community engagement continues to prog ress 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 Office r, commented: "We have completed a comprehensive
development review and I am pleased to announce tha t 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 w ill 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 ma ny 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 resourc e
conversion from inferred to the indicated category and potential expansion of known gold mineralizatio n
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 fr om 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 Cana da'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 form al submission of the Information Requests including
Impact Review to the Federal government in early Ma y 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 f or 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 th e
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 operat ions 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 developm ents
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.
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%SEDAR: 00027114E
For further information: Chris Stewart, President and CEO, T: 1.416.214.465 4,
[email protected]; Greg Ferron, Vice Pres ident, Corporate Development, T:
1.416.214.4654, [email protected]
CO: Treasury Metals Inc.
CNW 07:30e 01-MAR-17