Goliath Gold Project

Treasury Metals (TSX: TML) is a Canadian gold exploration and development company focused on its 100% owned high-grade Goliath Gold Project, which currently demonstrates 1,165,800 ounces Au Eq Measured and Indicated and 341,300 ounces Au Eq Inferred (See press release dated August 28, 2015). The Project, which is located in the Kenora/Dryden district in northwestern Ontario, is slated for near-term Canadian gold production.

Treasury Metals is advancing through the Canadian permitting process to begin production at its open-pit gold mine and up to 2,500 tpd processing facility in the near future. Subsequent underground operations will be developed in the latter years of mine life and will be funded from the project's initial cash flow.
  • 100%-owned high-grade, flagship Goliath Gold Project demonstrating an indicated and inferred resource of 1,165,800 ounces Au Eq Measured and Indicated and 341,300 ounces Au Eq Inferred (see press releases)
  • Results of drilling programs have defined high-grade near-surface intersections, indicating significant upside potential for both resource and project economics
  • Low initial start-up CAPEX of $92M with cash-flows from initial 3 years of open-pit production funding underground development
  • Stable, mining-friendly jurisdiction of Northwestern Ontario
  • Strong leadership team with successful capital markets, mine and operations expertise

Location: 20 km east of Dryden, Northwestern Ontario
Resource: 1,165,800 ounces Au Eq Measured and Indicated and 341,300 ounces Au Eq Inferred
Host to: Gold, Silver
Stage: Advancing to bankable feasibility study
Infrastructure: Mining-related Infrastructure & skilled local workforce readily available

3D View of Goliath Gold Project Mine Infrastructure

In August 2012, Treasury Metals completed an updated preliminary economic assessment on its Goliath Project. Key Highlights include:
  • After-tax NPV 5% of $144M and 32.4% IRR
  • Producing 80,000 - 100,000 oz annually over 10+ years of mine life
  • Payback Period of 2.8 years
  • Low initial start-up CAPEX of $92M
  • LOM average feed grade of 2.87 g/t Au and 9.30 g/t Ag
After-tax NPV5%
Annual Au + Ag Ounces
80, 000 - 100,000
LOM Average Feed Grade
2.87 g/t Au

The preliminary economic assessment is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Treasury Metals has completed more than 120,000 metres of diamond core drilling since 2008 (in addition to Teck Resources' historical drilling).

  Resource Category Block Cut-off AuEq g/t Tonnage Au (g/t) Contained Au (ounces) Ag (g/t) Contained Ag (ounces) AuEq (g/t) Contained AuEq (ounces)
Open Pit Measured 0.35 1,015,000 1.90 62,100 7.8 256,000 2.00 65,200
  Indicated 0.35 17,174,000 1.22 675,700 5.2 2,869,000 1.29 710,400
M+I 0.35 18,189,000 1.26 737,800 5.3 3,125,000 1.33 775,600
Inferred 0.35 1,351,000 0.99 42,800 4.3 186,000 1.04 45,000
Underground Measured 1.90 103,000 7.32 24,200 23.1 76,000 7.60 25,100
  Indicated 1.90 2,264,000 4.84 352,400 14.4 1,044,000 5.02 365,000
M+I 1.90 2,367,000 4.95 376,600 14.7 1,120,000 5.13 390,100
Inferred 1.90 2,120,000 4.22 287,300 10.9 743,000 4.35 296,300
Total Measured 0.35&1.90 1,117,000 2.40 86,300 9.2 332,000 2.51 90,300
  Indicated 0.35&1.90 19,437,000 1.65 1,028,100 6.3 3,913,000 1.72 1,075,500
M+I 0.35&1.90 20,554,000 1.69 1,114,400 6.4 4,245,000 1.76 1,165,800
Inferred 0.35&1.90 3,470,000 2.96 330,100 8.3 928,000 3.06 341,300

Notes from Resource Estimate:
  1. Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
  2. The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category.
  3. The mineral resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council.
  4. A gold price of US$1,397/oz and silver price of US$22.93/oz based on the April 30, 2015 three year trailing average prices and an exchange rate of US$1.06=Cdn$1.00 were utilized in the AuEq cut-off grade calculations of 0.35 g/t AuEq for Open Pit and 1.90 g/t AuEq for Underground mineral resources.
  5. Open Pit mining costs were assumed at Cdn$5.00/t for mineralized material, Cdn$3.15/t for waste rock and Cdn$2.00/t for overburden, while Underground mining costs were assumed at Cdn$70.00/t, with process costs of Cdn$13.81/t, G&A of Cdn$2.72/t, and process recoveries of 95% for gold and 70% for silver.
  6. The Au:Ag ratio used for AuEq was 82.68.
  7. A bulk density model averaged 2.76 t/m3 for mineralized material.
  8. Totals in the table may not sum due to rounding.
* Independent NI 43-101 Mineral Resource Estimate completed by P&E Mining Consultants.