Treasury Metals (TSE:TML) reported Monday drill results from the first phase of its 2012 exploration program at the Goliath gold project east of Dryden, Ontario, showing there is potential to expand the resource at the site.
first phase of the 20,000 metre program was designed to test a number
of targets on the 49 square kilometre property block outside of the
known mineral resource area.
The company said Monday that the
first phase so far has found both high and low grade gold values in a
new lithologic sequence in the northeast, several kilometres from the
The 2012 drilling campaign started in February and was made up using historical data from Teck Resources (NYSE:TCK) (TSE:TCK.B), as well as additional geological information from Treasury's own airborne survey completed last July.
noted that there is approximately 11.5 kilometres of strike length
along the prospective auriferous horizon beginning at the end of the
eastern resource area, and continuing to the far northeast corner of
the property block.
The drilling so far has also indicated the possibility of additional open pit material to the west of the current proposed pit.
addition, the C Zone is of "relatively constant thickness" with typical
plus cut-off grade values along the eastern end of the resource,
Treasury said. It is shown projecting toward the newly-acquired property
toward the northeast.
Recently, Treasury acquired around 129
hectares of property, covering prospective ground along strike to the
northeast, which is expected to extend coverage over previously untested
down-dip targets, it said, as exploration expands eastward.
Goliath property now sits on an NI 43-101 compliant resource of 1.63
million ounces of gold (1.7 million ounces of gold-equivalent) in the
inferred and indicated categories combined, at an average grade of 2.0
grams per tonne (g/t).
Treasury is expecting to produce an
updated mineral resource estimate in early 2013. The company's 2012
drilling program followed its 50,000 metre in-fill and expansion
drilling campaign last year, which led to the latest resource estimate
released in November 2011.
Highlights of latest drilling program were focused on three main areas.
first, the Fold Zone, saw five holes drilled in a north-northwest
fence, 3.1 kilometres to the northeast of the eastern end of the current
resource. Of particular interest were intercepts of 2 metres at 6 g/t
gold in hole TL12-247, and 3 metres of 2.27 g/t gold.
hole TL12-248 returned two separate 8 metre intercepts, at 0.39 and
0.33 g/t gold, respectively, ocurring in the 28 metre interval that
holds a separate intercept of 1.5 metres at 12.44 g/t gold.
the Western Resource Extension area, 10 holes were drilled to test 700
metres of strike, where the most significant results yielded 3.32 metres
of 1.05 g/t gold in hole TL12-235. This was some 700 metres to the west
of the proposed main open pit.
Additional drilling is planned for this area later in the year, Treasury said.
in the Eastern Resource Extension area, 13 holes were drilled to
primarily target the C Zone, where the company saw substantial widths of
mineralization with hole TL12-258. This hole hit 23.66 metres of 0.56
g/t gold, while hole TL12-240 returned 2 metres at 11.62 g/t gold.
company said the latter hole is interpreted to be in a zone footwal to
the C Zone, where follow-up drilling to the east is warranted. This has
the potential to increase the resource size, and upgrade the inferred
resources to the indicated cateory, the gold miner added.
diamond drill holes from the 20,000 metre exploration program primarily
focused in the Fold Zone, the Eastern Resource Extension and the Far
East area of the property will be released in the near future, Treasury
An updated preliminary economic assessment is also anticipated soon.