|May 15, 2012|
Treasury Metals to Update Preliminary Economic Assessment on the Goliath Gold Project
TORONTO, May 15, 2012 /CNW/ - Treasury Metals Inc. ("Treasury Metals" or the "Company") (TSX:TML) is pleased to announce an update on its ongoing development programs at its 100% owned Goliath Gold Project, located approximately 20 kilometres east of the City of Dryden, Ontario.
As a result of the project's increased mineral resources, the Company has retained the services of A.C.A. Howe International Limited ("Howe") independent mining consultants to lead and manage an updated Preliminary Economic Assessment (the "PEA") that is expected to be completed towards the end of June. Currently underway, the PEA will concentrate on establishing the economic parameters of mining operations including capital and operating costs for an initial open-pit mine followed by underground mine production. The updated PEA will also analyze process facilities, open pit and underground optimization studies, mining planning and scheduling, including CAPEX and OPEX for both mining and plant operations.
The PEA will update the 2010 Preliminary Economic Assessment and reassess the project's economics using the Company's increased resource estimate that was released on November 9th, 2011, completed by Howe (see press release November 9th, 2011). The newest resource will allow Howe to model an open-pit and underground operation with a much higher production rate and increased scale in general from the initial PEA. The PEA will be prepared according to the guidelines in National Instrument Policy 43-101.
This economic study will allow the Company's staff engineers and consultants to maximize opportunities for both cost reductions and project enhancements as we move the project forward.
A number of development programs are running simultaneously to support the PEA and the advancement of the Goliath Gold Project. John Wells has been contracted as an independent consultant to oversee G&T Metallurgical Services Ltd., which will carry out additional advanced stage metallurgical test work. This testing will determine a detailed flow sheet for a gravity and C.I.L. process, including SAG and Ball Mill sizing, optimal grind size and process water balances. The Company's ongoing Environmental Baseline Studies (EBS), initiated in the fall of 2010, will support both the PEA and advanced exploration programs. Further engineering activities and permitting for the advanced exploration program are all currently underway and will be updated to the market in due course.
Technical information in this press release has been reviewed and approved by Mr. John J. Chulick, a consulting geologist registered in the State of California, and Mark Wheeler, P. Eng., Senior Mining Engineer, who are both Qualified Persons for the Goliath Gold Project under the definitions established by National Instrument 43-101.
To view further details of the Goliath Gold Project and the 2011 Resource Estimate technical report, 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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