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Treasury Metals boosts Goliath M&I gold resources by 9%

Drill rig as Treasury Metals’ Goliath gold project in northwestern Ontario. Credit: Treasury Metals

Treasury Metals (TSX: TML) has provided an updated mineral resource estimate for its Goliath gold complex, which encompasses the Goliath, Goldlund and Miller deposits, located in northwestern Ontario.

The 2021 drill program targeted resource conversion to higher confidence levels, overall resource growth and strengthening geological understanding for the Goliath complex. The 176 new holes that went into this update have improved the confidence of the mineral resource, converting 173,600 oz. of gold from inferred to the measured and indicated (M+I) categories. In addition, the inferred category has grown by 254,800 oz.

Overall, the combined M+I resources for the gold complex increased by 9% to 2.14 million oz., contained within 67.7 million tonnes averaging 0.98 g/t gold. Around 62% of the M+I ounces are above the 1.00 g/t cut-off grade, and 40% above 2.20 g/t. The inferred resource increased 48% to 782,800 oz., in 32.6 million tonnes grading 0.75 g/t gold.

This updated resource will form the basis for the pre-feasibility study on the Goliath project, which is expected in the second half of 2022.

The company also plans to continue its exploration activities on the Goliath gold complex and its 330-sq. -km land package, building on the discoveries at Caracal and Ocelot made earlier this year.

“As shown by the last two press releases related to Caracal and Ocelot, the property holds potential for new discoveries of Goldlund-Miller style mineralization. Knowledge gained from our work on the Goliath model are being deployed in the exploration of the Far East, South Syncline and Fold Nose targets,” Maura Kolb, director of exploration, stated.

Earlier this year, Treasury entered a royalty agreement with an affiliate of Sprott Resource Streaming and Royalty, under which the company will receive $20 million in exchange for a 2.2% net smelter returns royalty covering all minerals produced from the Goliath complex.