TORONTO, Oct. 18, 2012 /CNW/ - Treasury Metals Inc. announced today two strategic property acquisitions located adjacent and alongside the Goliath Gold deposit area. A Goliath property map, which highlights the newly acquired land positions, is available at the attached link:
The first new property, approximately 96 hectares of additional surface and mineral rights, is contiguous to, and located along strike of the eastern end of the mineral resource at Goliath and extends the strike length by an additional 1.6 kilometres. The northeast projection of the Goliath Gold deposit dips south-southeast towards the newly acquired land position and its coverage includes down dip exploration targets. Recent drilling results along the eastern end of the resource, where a new mineralized shoot was identified in the C-Zone, is interpreted to project towards the northeast section of the newly acquired property. Former drilling along the property boundary, by previous owner Teck Exploration Ltd., also demonstrated a number of high-grade gold mineralized intersections.
The Company is planning to drill a number of prospective targets on the property, starting in the northeast block. Further details on the next phase of the Company's flagship Goliath Gold Project exploration program will be provided shortly. The new property will also provide greater operational flexibility for both mining and infrastructure in the future due to its close proximity to the proposed open pit outlined in the Company's recent preliminary economic assessment.
Treasury Metals is purchasing a 100% interest of both properties and no net smelter royalty with be assigned. The purchase price for the two acquisitions totals $1.8 million.
The second acquisition, approximately 65 hectares of additional surface rights, is located northeast of the mineral resource area of the Goliath Gold deposit. This property acquisition increases the Company's operational flexibility for both mining and infrastructure.
"These acquisitions are a key part of our consolidation strategy due to their immediate vicinity within the resource area, and we are pleased that we were able to close on these agreements with both sellers," commented Martin Walter, President and Chief Executive Officer. "The acquisitions will increase our property holdings at the Goliath Gold Project to a total of 50 km2 and will significantly assist our exploration and development activities."
The Company is also announcing that Harry Burgess has retired from the board of directors. The Company would like to thank Harry for his service and guidance to the Company's technical team. Mr. Burgess will continue to assist Treasury Metals in a consulting capacity in matters relating to the ongoing development programs at the Goliath Gold Project.
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.
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.
SOURCE: Treasury Metals Inc.
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on Treasury Metals, please visit the Company's website at www.treasurymetals.com.
Vice President, Corporate Development
President and CEO