|June 07, 2011|
Treasury Metals Reports Exceptional 96% to 97% Gold Recoveries from Goliath Gold Project
TORONTO, ONTARIO--(June 7, 2011) - Treasury Metals Inc. ("Treasury Metals" or the "Company") (TSX:TML) today announced the results of a metallurgical testwork program completed at G&T Metallurgical Services Ltd. ("G&T" and part of the Stewart Group) in Kamloops, B.C. The metallurgical test results have demonstrated exceptional gold recoveries from the Goliath Gold Project in northwestern Ontario. The sample is categorized as being non-refractory and free milling, yielding a gold recovery of 96 to 97%. A simple gravity recovery circuit plus cyanide leach of the gravity tailings is identified as the best metallurgical flow-sheet for the Goliath Gold Project.
Martin Walter, Chief Executive Officer, commented, "These results are very encouraging as they clearly demonstrate that very high gold recovery rates are possible using known low-cost separation methods. On the basis of these results, we now plan to expand our metallurgical program to include purposed drilled holes in the recently identified eastern high grade zone and develop our plans to include advanced exploration, including the possibility of opening the historical decline to obtain new bulk samples."
John A. Wells, an independent Metallurgical Consultant was retained by the Company to oversee the test work at G&T and to provide a preliminary flowsheet together with an independent assessment of the gold and silver recovery. Mr. Wells' concluded, "The samples from the Goliath Gold Project gave excellent gold recovery by gravity and cyanidation, with low reagent consumption, low work index and excellent settling. This is indicative of free milling, clean, non-refractory ore. These results can support the development of a concentrator design and capital and operating costs at scoping or pre-feasibility study level."
The Company commenced initial metallurgical test work earlier this year (see press release dated April 4, 2011) with G&T which followed up on the historical work performed by Teck Exploration Ltd. in 1998. The G&T program tested a composite of 30 half-core samples taken from the Goliath Gold Project that were crushed to minus 6 mesh and mixed together to provide one composite for testwork. The test program was set up to investigate two flowsheets, namely whole ore cyanidation, and flotation, (with gravity included in both). Based on this work, G&T reported that the ore is non-refractory and free milling, with a gold recovery of 96 to 97% using gravity and cyanidation. Test KM2906-01, at a p80 grind of 105 microns, for example, yielded 71% of the gold to the Knelson concentrate. The overall gold recovery did not appear to be very sensitive to either primary grind sizing or target sodium cyanide concentration in the ranges tested. On the basis of this testing, about 96 percent of the feed gold can be recovered at a primary grind sizing of 105 microns, K80 and target NaCN concentration of 500 ppm.
The sample tested had a measured gold and silver feed grade of about 3.5 and 25 g/tonne, respectively. Minor concentrations, all below 0.1 percent, of copper, lead, and zinc were also present in the sample. Silver recoveries were reported as being 50 to 60%.
Technical information in this press release has been reviewed and approved by Mr. John Wells, M.A. Sc., Treasury Metals' Consulting Metallurgist, who is a qualified person under the definitions established by National Instrument 43-101. The Qualified Person for the above testing at G&T is John Folinsbee, P. Eng., Vice President Operations.
To learn more about Treasury Metals, please visit the Company's website at www.treasurymetals.com.
This release includes certain statements that may be deemed to be "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that management of the Company expect, are forward-looking statements. Actual results or developments may differ materially from those in forward-looking statements. Treasury Metals disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, save and except as may be required by applicable securities laws.
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