Projects

Goliath Gold Project Overview

Location: 20 km east of Dryden, Northwestern Ontario
Resource: 1,229,800 ounces Au Eq Measured and Indicated and 226,700 ounces Au Eq Inferred
Host to: Gold, Silver
Stage: Exploration and Development
Infrastructure: Trans-Canada Highway, Hydro One 115/230 kV power availability, municipally controlled roads, TransCanada natural gas pipeline, CP Rail, and skilled local workforce readily available.
Jurisdiction: Stable, mining-friendly jurisdiction of Northwestern Ontario.

The Project, as proposed by Treasury, consists of the construction, operation, decommissioning, and remediation of an open-pit and underground gold mine and associated infrastructure located 20 kilometres east of the City of Dryden, Ontario. The proposed Project could create up to 450 jobs during construction and 250 jobs during operations over the life of the project. The Company continues to complete requirements for final authorizations and permits.

Treasury Metals announced an updated preliminary economic assessment on its Goliath Project on March 8, 2017. Key Highlights include:

  • After-tax NPV 5% of $306M and 25% IRR
  • Producing an average of 87,850 oz Au and 160,000 Ag annually over 13 years of mine life
  • Payback Period of 4.1 years
  • Low initial start-up CAPEX of $133M
  • LOM average feed grade of 3.81 g/t Au and 10.55 g/t Ag
After-tax NPV5%
$306M
Annual Production (Ounces)
87,850 Au with peak production exceeding 100,000 oz per year Au from years 3 to 6
LOM Average Feed Grade
3.81 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.

  Classification Block Cut-off
AuEq g/t
Tonnes Au
(g/t)
Contained Au
(ounces)
Ag (g/t) Contained Ag
(ounces)
AuEq
(g/t)
Contained AuEq
(ounces)
Pit
Constrained
Measured 0.40 762,000 1.91 62,100 8.9 217,000 1.99 48,700
  Indicated 0.40 11,849,000 1.37 675,700 5.5 2,083,000 1.42 541,000
M+I 0.40 12,611,000 1.40 737,800 5.7 2,300,000 1.45 589,600
Inferred 0.40 595,000 1.05 42,800 2.6 50,000 1.08 20,600
Out of Pit Measured 1.90 163,000 6.42 24,200 25.8 135,000 6.65 34,800
  Indicated 1.90 3,429,000 5.34 352,400 16.6 1,834,000 5.49 605,300
M+I 1.90 3,591,000 5.39 376,600 17.1 1,969,000 5.54 640,100
Inferred 1.90 1,414,000 4.43 287,300 11.4 519,000 4.53 206,100
Total Measured 0.40&1.90 925,000 2.70 86,300 11.8 352,000 2.81 83,400
  Indicated 0.40&1.90 15,277,000 2.26 1,028,100 8.0 3,917,000 2.33 1,146,300
M+I 0.40&1.90 16,202,000 2.29 1,114,400 8.2 4,269,000 2.36 1,229,800
Inferred 0.40&1.90 2,009,000 3.43 330,100 8.8 569,000 3.5 226,700
  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 Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
  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$1,250/oz and silver price of US$17.00/oz based on the July 31, 2018 approximate three year trailing average prices and an exchange rate of US$0.80=Cdn$1.00 were utilized in the AuEq cut-off grade calculations of 0.40 g/t AuEq for Pit Constrained (> 170 metres elevation above sea level or < 239 metres depth from surface) and 1.90 g/t AuEq for Underground mineral resources.
  5. Open Pit mining costs were assumed at Cdn$3.45/t for mineralized material, Cdn$3.30/t for waste rock and Cdn$2.00/t for overburden, while Underground mining costs were assumed at Cdn$78.00/t, with process costs of Cdn$18.15/t, G&A of Cdn$2.86/t, and process recoveries of 95.5% for gold and 62.6% for silver.
  6. The Au:Ag ratio used for AuEq was 1:112.17.
  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 (see press release Oct. 16, 2018).
* Independent NI 43-101 Preliminary Economic Assessment prepared by CSA Global Canada Geosciences Ltd. with the assistance of P&E Engineering Consultants and Treasury Metals Inc.’s operations and explorations teams in collaboration with a range of industry consultants (see press release dated March 8, 2017).