Treasury Metals Inc. (TSX:TML) has announced that it has commenced a 20,000 metre diamond drilling program at its wholly-owned Goliath Gold Project located approximately 20 kilometres east of the City of Dryden, Ontario.
The Company retained the services of Distinctive Drilling Services Inc. to conduct the drilling. The bulk of the 20,000 metres will be aimed at upgrading a significant portion of the gold ounces within the current resource, from the Inferred category to the Indicated and Measured categories in order to begin a mine feasibility study on the project.
On the basis of recently interpreted structural information Treasury Metals believes it can improve the grade of the deposit. Two distinct structures where identified: F1 structures which are characterized by intense folding, an east-west strike and a southwest plunge; and, a second set of structures (F2) that intersect and fold the F1 structures. The Company's structural geologist believes that the best potential for highest gold concentrations is at or near the F1-F2 intersections and in areas where there is an increased density of F2 structures, resulting in the formation of high-grade shoots.
To date, almost all the diamond drilling has been oriented to intersect the dominant F1 structure, resulting in a bias against properly testing the F2 structures. By re-orienting the drill, the Company believes there is excellent potential to improve the grade of the deposit and gain a better understanding of the geometry of these high-grade structures. At the completion of this drilling, the Company will be in a position to begin a feasibility study that will lead to a mine decision.
In addition to upgrading and increasing the current resources, Treasury Metals also plans to build shallow gold ounces along strike of the deposit, to the west and northeast, where historical drilling indicates prospective high-grade gold mineralization. In particular, the northeast strike extension of the current resource shows promise for multiple new high-grade structures. The Company believes that the Goliath Gold Project has the geological potential to become a multi-million ounce property.
The Company also announced today that it has granted 1,330,000 options at a strike price of $0.70 to consultants, members of the management team and Board of Directors.