Tuesday, 15 May 2012

Treasury Metals to update PEA on Goliath Gold project

Treasury Metals Inc. (TSE:TML) Tuesday gave an update on its ongoing development programs at its 100 percent-owned Goliath Gold Project, located near Dryden, Ontario.

As a result of the project's increased mineral resources, the company has retained the services of A.C.A. Howe International independent mining consultants to lead and manage an updated Preliminary Economic Assessment that is expected to be completed towards the end of June.

Currently underway, the PEA will concentrate on establishing the economic parameters of mining operations including capital and operating costs for an initial open-pit mine followed by underground mine production.

The updated PEA will also analyze process facilities, open pit and underground optimization studies, mining planning and scheduling, including CAPEX and OPEX for both mining and plant operations.

The PEA will update the 2010 Preliminary Economic Assessment and reassess the project's economics using the company's increased resource estimate that was released in November 2011.

In November, Treasury unveiled an Indicated mineral resource of 810,000 ounces of gold and an Inferred mineral resource of 900,000 ounces of gold and gold equivalent ounces of silver.

Treasury's newest resource will allow Howe to model an open-pit and underground operation with a much higher production rate and increased scale in general from the initial PEA. The PEA will be prepared according to the guidelines in NI 43-101.

This economic study will allow the company's staff engineers and consultants to maximize opportunities for both cost reductions and project enhancements as we move the project forward.

A number of development programs are running simultaneously to support the PEA and the advancement of the Goliath Gold Project.
Further engineering activities and permitting for the advanced exploration program are all currently underway and will be updated to the market in due course.

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