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 August 22, 2012
Treasury Metals Identifies New Mineralised Shoot at Goliath Gold Project

 

TSX:TML

TORONTO, Aug. 22, 2012 /CNW/ - Treasury Metals Inc. ("Treasury Metals" or the "Company") (TSX:TML) is pleased to report the results of 20 drill holes of diamond drilling from its 2012 exploration program at its 100% owned Goliath Gold Project. Located near the unincorporated community of Wabigoon and approximately 20 kilometres east of the City of Dryden, Ontario, the Goliath is Treasury's flagship project. The Company's 2012 exploration program, which is a core drilling program of 20,000 meters in total, is designed to test a number of high-quality exploration targets outside of the already identified mineral resource (see Press Release November 9, 2011) on areas within the greater than 49 km2property block.

The most significant results in this recent phase of drilling correspond to a new mineralised shoot that early interpretation suggests could be an extension of the C Zone deposit. These results include7.35m @ 1.39 g/t Auin drill hole TL12-267, and7.00m @ 3.44 g/t Auin drill hole TL12-268. This new easterly trending mineralised shoot, see accompanying C Zone Long Section, is tentatively interpreted with a 45 - 55 degree rake. "The interpreted mineralised shoot is significant because of its close proximity to the proposed open pit outlined in the Company's recent Preliminary Economic Assessment as it adds the potential for new open pit mineable gold ounces," commented Martin Walter, Treasury Metals President and Chief Executive Officer.

In the Fold Zone, an area approximately 2.5km to the east and along strike of the current mineral resource boundary, results from 7 drill holes have extended the pattern of mineralization reported previously (see Press Release July 19, 2012). Geological lithologies identified in this area are a mixed sequence of pelitic metasediments, amphibolite, and mafic meta-volcanics. Significant sections of near massive pyrrhotite mineralization are frequently encountered in drilling as well as narrow high-grade auriferous horizons or shear zones. These auriferous shear zones are frequently accompanied by sphalerite, galena, and copper sulfides. The best Fold Zone intercept in this drilling phase corresponds to1.5m @ 17.52 g/t Au in TL12-247that includes a halo of lower grade mineralization over a total intercept width of 6m located within a highly fractured zone with fractures infilled with pyrite, sphalerite and chalcopyrite.

These results reported and tabled below correspond to two main exploration target areas within the Goliath property. To view further details of these and previous drilling results including diamond drilling plan maps and drill hole locations, please visit the Company's website,www.treasurymetals.com.

Recent Drilling Highlights:

  1. Eastern Resource Extension. Fourteen drill holes were drilled along 350 meters of strike length on the eastern end of the current resource area to test its vertical extent from 25 - 200 meters below the surface. The primary target for this program has been the C Zone, which sits approximately 40 meters into the footwall from the Main Zone. Results received to date indicate modest grade over substantial widths as exemplified by drill hole TL12-258 intersecting23.66 m @ 0.56 g/t Au. Other noteworthy results include2m @ 11.62 g/t Au in drill hole TL12-240; this intercept is interpreted to be in a zone footwall to the C Zone where follow-up drilling to the east is now warranted. Further follow-up drilling in the C Zone has potential to increase the resource size and upgrade Inferred resources into the Indicated resource category.

  2. Fold Zone. Six holes were drilled in a NNW fence, 3.1 km to the Northeast of the eastern end of the present resource, to test a prospective 1.2 km lithologic section down to a depth of approximately 300 meters, across the strike projection of the auriferous horizon in a structurally complex area described as the Fold Zone. Results of particular interest from this drilling in this area are intercepts of2m @ 6.00 g/t Au in TL12-247 and 1.5 meters at 17.52 g/t as well as 3.0 meters @ 2.27 Au in TL12-245.

    The first hole at the western end of the second of three fences across the Fold Zone,TL12-248is also significant in that 2 separate 8.0 meter intercepts returning0.39 and 0.33 g/t Aurespectively occur in the 28m down hole interval between 172 - 200 meters that also includes a separate intercept of1.5m @ 12.44 g/t Au.

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.

Eastern Extension

Drill Hole Local Section From To Intercept (m) g/t
TL12260 L3+00W 196.55 206.5 9.95 0.73
TL12260 L3+00W 212.5 225.5 13.00 0.65
TL12261 L2+75W 146.34 150.75 4.41 5.40
TL12261 L2+75W 211.5 226 14.50 0.63
TL12263 L2+00W 158 168 10.00 0.32
TL12264 L1+50W 159.9 162.6 2.70 0.76
TL12265 L2+50W 115 123.5 8.50 0.72
TL12265 L2+50W 142.55 145 2.45 0.50
TL12267 L2+75W 39.39 43.4 4.01 0.99
TL12267 L2+75W 106.5 111.25 4.75 1.94
TL12267 L2+75W 219 226.35 7.35 1.39
TL12268 L3+00W 113 120 7.00 3.44
TL12269 L3+50W 20 22.25 2.25 1.56
TL12269 L3+50W 92.08 110.5 18.42 0.55
TL12270 L3+25W 245.75 254.75 9.00 0.62
TL12270 L3+25W 267 272.1 5.10 0.71
TL12272 L0+00BL 240 241 1.00 2.76
TL12273 L1+00W 88.75 90.75 2.00 1.70
TL12273 L1+00W 196.35 201.5 6.52 0.52
TL12274 L1+00W 72 73 1.00 3.10
TL12274 L1+00W 238.5 240.5 2.00 1.26
TL12275 L1+75W 178 181.5 3.50 0.59
TL12275 L1+75W 278.3 286 7.70 0.52
TL12276 L2+25W 101.5 104 2.50 2.78
TL12276 L2+25W 184.5 192.12 7.62 0.33

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

Fold Zone

Drill Hole Local Section From To Intercept (m) g/t
TL12247 NE 77A 21 27 6.00 4.69
*includes NE 77A 22.5 24 1.50 17.52
TL12249 Az 330 60 36 37.5 1.50 3.32
TL12250 Az 330 33 85.45 86.45 1.00 5.86
TL12251 NE PR F2 194 196 2.00 1.21
TL12252 NE PR F2 52.5 58.5 6.00 0.34
TL12253 NE PR F2 70.93 71.93 1.00 0.32
TL12254 NE 93 118.5 120 1.50 3.04
TL12254 NE 93 267 268.5 1.50 1.73

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

For additional information on Treasury Metals and a complete map of drill holes and their locations, please visit the Company's website atwww.treasurymetals.com.

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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