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.
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.
SOURCE Treasury Metals Inc.