Press Releases

 July 09, 2012
Treasury Metals Reports Drilling Results for 1st Phase of Exploration Program



TORONTO, July 9, 2012 /CNW/ - Treasury Metals Incorporated ("Treasury Metals" or the "Company") (TSX:TML) is pleased to report 29 diamond drill hole results corresponding to 9,233 m in the 1st†Phase of the 2012 exploration program at the Goliath Gold Project, which is 100% owned by Treasury Metals and is located approximately 20 kilometres east of the City of Dryden, Ontario.

This 1st†Phase of the 2012 exploration program, which is a core drilling program of 20,000 m in total, was designed to test a number of targets on the greater than 49 km2†property block outside of the known mineral resource area. The program, which commenced February 2012, was designed using historical Teck Resources Limited ("Teck") data and additional geological information interpreted by the Company's airborne survey completed in July 2011. These exploration activities follow on the Company's 2011 in-fill and expansion drilling campaign of 50,000 m, which formed part of the new resource estimate completed in November 2011 (see press release dated November 9th, 2011 for further details).

The 1st†Phase of the 20,000 m exploration program to date has (1) encountered both high grade and low grade Au values in a new lithologic sequence in the NE, several kilometres from the present resource. It is worth mentioning that there is approximately 11.5 km of strike length along the prospective auriferous horizon beginning at the end of the eastern resource area and continuing to the far Northeast corner of the property block; (2) indicated the possibility of additional open pit grade material to the west of the current proposed open pit; and (3) the C Zone is of relatively constant thickness with typical plus cut-off grade values along the eastern end of the resource; it is shown projecting towards the newly acquired property towards the northeast.

Reported 1st†Phase results correspond to three main exploration target areas and are summarized below. To view further details of the 1st†Phase, including five diamond drilling plan maps and drill hole locations, please visit the Company's website. Results are also reported in a table below at the end of the release.

2012 Exploration Program, 1st†Phase Highlights:

  1. Fold Zone. Five holes (1,983 m) were drilled in a NNW fence, 3.1 km to the Northeast of the eastern end of the present resource, to test 1,200 m of lithologic section down to a depth of approximately 300 m, across the strike projection of the auriferous horizon in a structurally complex area described as the Fold Zone. The folded aspect of this area is clearly depicted in last year's airborne EM and aeromag geophysical surveys, and sparse drilling from earlier Teck holes provided additional control. Of particular interest are intercepts of†2m @ 6.00 g/t Au in TL12-247 and 3m @ 2.27 Au in TL12-245.†Lithologies tend to be mixed dark meta-seds, mafic meta-volcanics, and amphibolites in this area, and the EM anomaly is caused by a +50m wide semi-massive pyrrhotite horizon as observed in TL12-247; no significant gold values are associated with this interval. Follow-up hole TL12-255 was drilled approximately 30 m to the Northeast of TL12-247; a comparable pyrrhotite interval was also intercepted with spotty gold values in the 0.1 - 0.5 g/t Au range over a 50 m section beginning some 40 m above the sulfide zone.

    The first hole at the western end of the second of three fences across the Fold Zone,†TL12-248†(297 m), is also significant in that 2 separate 8 m intercepts reporting†0.39 and 0.33 g/t Au†occur in the 28m interval between 172 m - 200 m that also includes a separate intercept of†1.5m @ 12.44 g/t Au.†There are encouraging features in hole TL12-248 including intervals of semi-massive sulphides along with local garnets and sphalerite mineralization. Results from remaining fences can be expected in the near future.

  2. Western Resource Extension.†Ten holes (3765 m) were drilled to test 700 m of strike length in the western¬† extension, either down dip or along strike, beginning on local section L17 +25W which marks the western extent of the current proposed open pit outline. This drilling included a fence of 4 holes to test possible gold mineralization in the footwall banded iron formation, and to test an IP anomaly to the south in the footwall block. The down-dip extent tested was 400 m below surface on the east, and rising to 50 m below surface on the west. From an exploration perspective the most significant results may correspond to TL12-235†(3.32m @ 1.05 g/t Au)†which is some 700 m to the west of the proposed main open pit. There are no other Goliath Gold Project drill holes to the west of TL12-235 except for previous Teck hole TL38 (1.5 m of 0.38 g/t Au) located 325 m away along strike. Additional drilling is planned to further delineate this area later in the year.

  3. Eastern Resource Extension. Thirteen drill holes (3188 m) were drilled along 550 m of strike length on the eastern end of the resource area to test a vertical extent varying from 75 - 400 m below the surface. The primary target for this program has been the C Zone, which is usually about 40 m into the footwall from the Main Zone. The C Zone remains only sparsely tested in this strike segment, and five previously drilled Teck holes were re-entered and extended since previous drilling here frequently stopped after passing through the Main Zone. Results received to date indicate generally modest grade but substantial widths as exemplified by TL12-258 with†23.66 m @ 0.56 g/t Au. Other noteworthy results include†2m @ 11.62 g/t Au in TL12-240; this intercept is interpreted to be in a zone footwall to the C Zone where follow-up drilling to the east is warranted. Follow-up drilling in the C Zone has potential to increase the resource size and upgrade Inferred resources into the Indicated category.

The Company's recent acquisition of approximately 129 hectares of property, expected to close on July 31, 2012, covering highly prospective ground along strike to the Northeast, will extend coverage over previously untested down-dip targets as exploration expands eastward. The new property will also allow for much greater operational flexibility for both mining and infrastructure in the future.

Additional diamond drill holes from the 20,000 m exploration program primarily focused in the Fold Zone, the Eastern Resource Extension and the Far East area of the property will be released in the near future.

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, who is the Qualified Person for the Goliath Gold Project under the definitions established by National Instrument 43-101.

Fold Zone

Drill Hole Local Section Zone From To Intercept (m) g/t
TL12-244 Az 330 78 N/A 179.5 190 10.50 0.26
TL12-244 Az 330 77 N/A 399 400.5 1.50 2.95
TL12-245 Az 330 78 N/A 51 54 3.00 2.27
TL12-245 Az 330 79 N/A 201 204.4 3.40 1.50
TL12-246 Az 330 78 N/A 77.74 78.74 1.00 2.80
TL12-247 Az 330 77 N/A 102 104 2.00 6.00
TL12-248 Az 330 72 N/A 171.85 180 8.15 0.39
TL12-248 Az 330 72 N/A 187.5 189 1.50 12.44
TL12-248 Az 330 72 N/A 191.5 200 8.50 0.33
TL12-255 Az 330 75 N/A 36 39 3.00 0.49
TL12-255 Az 330 75 N/A 46.5 48 1.50 1.51
TL12-255 Az 330 75 N/A 262.5 267 4.50 0.52

*Intervals do not necessarily indicate true widths. All depths and assays reported at two decimal places.

Western Resource

Drill Hole Local Section Zone From To Intercept (m) g/t
TL12-230 L17+50W Main 119.2 124.18 4.98 1.82
TL12-232 L17+75W C 440.5 442 1.50 3.83
TL12-234 L20+50W HW 145.82 148.82 3.00 2.80
TL12-234 L20+50W Main 172 177 5.00 0.92
TL12-235 L24+50W C 199.18 202.5 3.32 1.05
TL12-236 L23+50W HW 116 121.5 5.50 0.66
TL12-236 L23+75W Main 229.5 234 4.50 0.45
TL12-237 L22+75W HW 176 179 3.00 0.45
TL12-237 L22+75W Main 298 300 2.00 1.08
TL12-238 L20+00W Main 347.5 349.75 2.25 1.78
TL12-239 L18+50W HW 317.28 319.94 2.66 0.73

Eastern Resource

Drill Hole Local Section Zone From To Intercept (m) g/t
TL12-240 L0+25W FW 311 313 2.00 11.62
TL12-241 L0+25W HW 157 165 8.00 0.49
TL12-241 L0+25W C 461 463 2.00 3.72
TL12-242 L2+00W C 289.3 293.4 4.10 0.76
TL12-243 L2+50W HW 135 139 4.00 2.06
TL12-243 L2+75W C 488 497.79 9.79 0.66
TL216-12RE L3+75W C 99 105.75 6.75 0.49
TL216-12RE L3+75W C 108 113 5.00 0.40
TL219-12RE L4+25W C 117.99 127.27 9.28 0.47
TL220-12RE L4+50W C 120.5 126.5 6.00 0.43
TL231-12RE L4+00W C 157 177 20.00 0.29
TL234-12RE L4+75W C 148.2 168.25 20.05 0.30
TL12-256 L4+00W Main 146.6 155 8.40 0.74
TL12-256 L4+00W C 228.75 243.5 14.75 0.40
TL12-257 L3+75W C 186.29 194.5 8.21 0.55
TL12-258 L3+50W Main 112.55 116.55 4.00 0.68
TL12-258 L3+50W C 181.87 205.53 23.66 0.56
TL12-259 L3+25W C 88.75 96.78 8.03 0.63
TL12-259 L3+25W C 109.07 117.75 8.68 0.62

Quality Assurance and Quality Control
The Company has a quality assurance and quality control (QA/QC) program to ensure sampling and analysis of all exploration work is conducted in accordance with the CIM Exploration Best Practices Guidelines. The drill core is sawn in half with one-half of the core sample shipped to Accurassay Laboratories in Thunder Bay, Ontario. The other half of the core is retained for future assay verification, and/or metallurgical testing. Other QA/QC procedures include the insertion of blind blanks and standards for every tenth sample in the sample stream. Selected quarter core duplicates were assayed for 5% of the samples. The laboratory re-assays 10% of all samples (pulps and rejects) and additional checks are routinely run on anomalous values including gravimetric analysis and pulp metallics. Gold analysis is conducted by lead collection, fire assay with atomic absorption and/or gravimetric finish on a 30 gram sample. Check assays by a secondary lab are completed as necessary.

Forward-looking Statements

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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