Treasury Metals

Project Overview

The Goliath Gold Project is located in Northwestern Ontario, 20 km east of Dryden and 2 km north of the TransCanada Highway. This excellent location is also served by power lines, gas supply, water supply and existing workshops, offices and storage facilities. The City of Dryden and Wabigoon Lake First Nation are well equipped with skilled personnel and services to support mine development. The property is 100% owned by Treasury Metals Inc.

The 45 km² Goliath Gold Project is Treasury Metals’ flagship project which encompasses the Thunder Lake Gold deposit.The large property host numerous highly prospective targets that show potential to hosts gold mineralization including about 6 km of prospective strike along trend from the Thunder Lake Gold deposit.

Regional Exploration
Treasury Metals is focused on consolidating land positions in the Kenora Mining District and developing projects that could feed a possible gold mill at the Goliath Project. There are numerous projects in the area and Treasury is actively engaged with other property holders and using its local knowledge to stake prospective land.

The Thunder Lake Gold Deposit has successfully advanced to the Preliminary Economic Assessment (PEA) stage of mine development. In 2010, A.C.A. Howe International completed an independent PEA on the deposit, updated the mineral resource estimate and made recommendations for the further project development.

Indicated Mineral Resources (Open Pit and Underground) of 3.4 million tonnes at 2.5 g/t, containing 270,000 ounces of gold. The underground component was estimated at 490,000 tonnes at 5.7 g/t.
Inferred Mineral Resources (Open Pit and Underground) of 10.6 million tonnes at 2.75 g/t, containing 930,000 ounces of gold. The underground component was estimated at 5.2 million tonnes at 4.4 g/t.
Gold mineralization has been identified over 3.8 km of strike length in a minimum of 6 sub-parallel zones, and drilled at 800m below surface in the deepest hole. 5 high grade structures have been identified
A.C.A. Howe International Limited state that there is “… potential to increase this resource, both by expanding the known resources and by drill testing other target areas including the under-explored regions northeast and west of the Thunder Lake Deposit”. Treasury Metals concurs and has committed to a 20,000m mineral resource upgrade and exploration program.

Summary of Non-Diluted Mineral Resources by Resource Category (ACA Howe, 2010)

2011 Exploration and Property Development
The Company is drilling three sections of the Main Zone located one kilometre along strike from each other. The Eastern and Central sections of the Main Zone have remained the focus of the current drilling campaign and as reported previously results from the Western and Western-Central Zones are increasingly promising and have become a significant target for the Company. The 50,000 metres of drilling that we just completed is one of the largest drilling programs ever completed at Goliath including the historical work by Teck Exploration Limited. Cumulative drilling in the current campaign is 50,000 metres (115 holes) – up from an initially announced 20,000 metres and all of these results along with data from a previous program completed in late 2010 will be incorporated into a revised resource calculation expected to be released to the market in November 2011. See our 2011 News Release section for results highlights. http://treasurymetals.com/news.php

Other developments
Treasury Metals continues to develop the Goliath Project towards Pre-Feasibility Status through: Environmental Baseline Studies which were initiated in Fall 2010 and are ongoing. Water monitoring has commenced as have flora and fauna studies.

Metallurgical Testing is also ongoing and samples for pre-feasibility status work have been submitted to G&T Metallurgical, BC, who will also develop optimal flow sheet for mill selection and production requirements.

Preliminary Engineering Studies have included an Underground First option which also considers optimized economic / production models and considers the use of existing portal and decline to fast-track underground production.

Land Position
Treasury Metals has consolidated a significant land position in Eagle-Wabigoon-Manitou Lakes Greenstone Belt near Dryden, Ontario. The Goliath Property includes 3,696 ha of mining claims and 17 patented claims totaling 764 ha. The total property area is approximately 45 km²

Treasury Metals is the first company to consolidate these all the separate properties into one project area that can be systematically explored. We believe that the many gold occurrences on the Goliath Property is indicative of a larger system of orogenic / hydrothermal gold mineralization.

Geology and Gold Mineralization
The Goliath Project is located within the Eagle – Wabigoon – Manitou greenstone belt of the Wabigoon Subprovince of the Archaean Superior Province, northwestern Ontario and is situated north of a regional structure, the Wabigoon Fault. The Wabigoon Subprovince is now host to several multi-million ounce, NI 43-101 compliant mineral resources, including; Rainy River (Rainy River Resources), Hammond Reef (Osisko) and further to the east historic mining district of Beardmore - Geraldton. Treasury Metals considers this is a very prospective terrain in which to conduct gold exploration.

Geological setting of the Goliath and Goldcliff projects within the Wabigoon Greenstone Belt

The Goliath project area is underlain by a lower amphibolite metamorphic grade volcanogenic-sedimentary complex of felsic metavolcanic rocks and classic metasedimentary rocks. The assemblage itself comprises quartz-porphyritic felsic to intermediate metavolcanic rocks represented by biotite gneiss, mica schist, quartz-porphyritic mica schist, a variety of metasedimentary rocks and minor amphibolites. Compositional layering in metasedimentary rocks strikes ~70° to 90°and dips from 70° to 80° south-southeast. The Thunder River Mafic Metavolcanics underlie the south part of the Property. The mafic rocks are pillowed locally and are exposed as amphibolites and mafic dykes, which consists mainly of chlorite or green schist.

The mineralised zones are tabular composite units defined on the basis of anomalous to strongly elevated gold concentrations, increased sulphide content and distinctive altered rock units and are concordant to the local stratigraphic units and shear fabric. Stratigraphically, gold mineralisation is contained in an approximately 100 to 150 metre wide central zone composed of intensely altered felsic metavolcanics (quartz-sericite and biotite- muscovite schist) with minor metasedimentary rocks. Overlying hanging wall rocks consist of altered felsic metavolcanics (sericite schist, biotite - muscoviteschist and metasedimentary rocks), with the footwall comprising meta-sedimentary rocks with minor porphyries, felsic gneiss and schist. Gold within the central unit is concentrated in a pyritic alteration zone, consisting of quartz-sericite schist (MSS), quartz-eye gneiss and quartz-feldspar gneiss.

Geological setting of the Goliath and Goldcliff projects in the Wabigoon Subprovince.

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