Shares of Treasury Metals (TSE:TML) advanced Wednesday after the company released additional drilling results from its flagship Goliath gold project in northwestern Ontario, upgrading the economics of the proposed open pit.
The results released today are part of the ongoing infill drilling of the proposed open pit, and the delineation of the company's recently discovered gold shoot with the Footwall C Zone.
The C Zone gold mineralization typically ranges from 30 to 60 metres parallel to and to the north of the project's main zone of mineralization.
From the C Zone, the company reported today intercepts of 17 metres grading 1.8 grams per tonne (g/t) gold and 35.3 metres at 1 g/t gold. At the Main Zone, Treasury hit 20 metres grading 1.1 g/t gold.
"In this successful exploration program, having commenced in October 2012, we have been able to trace wide, lower grade intervals to surface which stand to upgrade the economics of the proposed open pit from an ore and stripping ratio perspective, including both the C and Main Zones of the project," said the company in the statement on Wednesday, citing president and CEO Martin Walter.
Treasury says it expects to complete the open pit infill drilling program by the middle of this year.
The company has also started the process of re-drilling and re-sampling historical holes, with a focus on holes within the proposed open pit as past exploration by previous operators concentrated on higher grade underground mineralization rather than wide zones of open pit mineable material.
The gold development company is working toward a feasibility study on its project this year, with an environmental impact statement expected to be submitted in May.
Currently, the project holds 810,000 ounces at 2.75 g/t gold equivalent in the indicated category, and 900,000 ounces at 1.76 g/t gold in the inferred category.
Last month, the company reported near-surface drilling results including an intercept of 1 metre at 430 grams per tonne (g/t) gold from 16.7 metres depth in the Main Zone.
Shares of Treasury rose 2 percent, or one penny, to trade at 51 cents on Wednesday morning.
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