TORONTO, Dec. 11, 2012 /CNW/ - Treasury Metals Inc. is pleased to report drilling results that indicate the presence of a high-grade mineralized shoot in the footwall at the Company's flagship Goliath Gold Project located approximately 20 kilometres east of the City of Dryden in northwestern Ontario. The shoot, located in the central part of the Goliath deposit, has been intersected approximately 50 metres behind the project's Main Mineralised Zone. New interpretation suggests it will form part of the project's mineralised C Zone gold resource. These results are considered significant since this would be the first high-grade zone encountered within the project's sparsely drilled C Zone that parallels the main zone. It has the potential to add mineable gold ounces to the project's planned open pit and underground stopes.
The high-grade shoot was encountered as a result of extending previously drilled TL164 that was interpreted to have been cut-off short of intercepting the C Zone. Anomalously high gold values in TL11-220 (3.5 metres at 14.9 g/t Au) were interpreted to be substantially into the footwall beyond the Main Zone and determined follow-up possibilities in the C Zone. A subsequent database review indicates that as many as 80 previously drilled holes throughout the Main Zone (primarily drilled by Teck) have probably been cut-off before intercepting the C Zone as presently interpreted.
Recent drill hole intercepts, summarized in the table below, define a high-grade area measuring roughly 100 metres along strike and 150 metres down-dip with an interpreted 70 -75 degree rake to the west. These are the first holes of the Goliath exploration program commenced in late October 2012. Further exploration drilling is being carried out to test the C Zone and possible further footwall extensions in the area of the proposed open pit. Additional results will be released for this drilling as assays become available.
C Zone Drill Results:
|Drill Hole||From (m)||To (m)||*Interval (m)||Au (g/t)||Comments|
|TL08-52-12RE||469.6||472.0||2.4||5.1||Re-entered TML drill hole|
|TL164-12RE||485.3||502.4||17.1||5.9||Re-entered Teck drill hole|
|Including||485.3||490.5||5.2||18.6||VG, pulp metallic assay|
|Including||370.3||375.4||5.1||3.9||VG, pulp metallic assay|
*Intervals do not necessarily indicate true widths. See attached map for drillhole locations. All depths and assays rounded to one decimal place. Typical sample interval approximately 1m; weighted averages use 0.3 g/t Au cut-off except for 'included' higher grade sections.
Treasury Metals' President and Chief Executive Officer Martin Walter commented: "We are certainly excited about this new high-grade shoot since it occurs in an area with relatively little past drilling. Besides being open at depth, the shoot still has opportunity for further delineation along strike, and the upward extension into the future open pit still needs to be defined."
The mineralization that occurs in the C Zone is associated with an enrichment of base metal sulphides in a felsic meta-volcanic rock described in core logging as a muscovite-sericite-schist and is also typical of the Main Zone. A low-grade gold envelope (< 0.1 g/t Au cut-off) up to 30 metres thick typically envelopes a higher-grade interval of 1.0 - 5.0 metres thick; mineralization is conformable to the foliation.
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.
To view further details about the Goliath Project, an updated C Zone and Main Zone long section, please visit the Company's website at www.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.
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.
For further information:
Vice President, Corporate Development
President and CEO