Treasury Metals Inc.
TSX : TML

Treasury Metals Inc.

October 06, 2009 12:05 ET

Treasury Metals Commences 4,500 Metre Diamond Drilling Program at Goliath Gold Project, Ontario, Canada

TORONTO, ONTARIO--(Marketwire - Oct. 6, 2009) - Treasury Metals Inc. ("Treasury Metals" or the "Company") (TSX:TML) reports that it has initiated a second round of diamond drilling on its 100% controlled Goliath Gold Project, located about 20 kilometres east of Dryden, Ontario, Canada.

The diamond drilling program, planned for a minimum of 4,500 metres, has been designed to concentrate on shallow targets in the western and northeastern extensions of the Thunder Lake Gold Deposit ("TLGD") but may also include some deeper drilling in these two areas and within the current mineral resource itself. Previous diamond drilling by Teck Resources Limited and Corona Gold Corp. intercepted anomalous (greater than or equal to 100 ppb Au) and higher grade gold concentrations within an alteration corridor that stretches about 650 metres to the west and 3,000 metres to the northeast of the TLGD (see Company News Release, 12/08/09).

"The goal of this program is to add gold ounces by building on historic drilling and the results of our own modelling and interpretation in the areas along strike of the current mineral resource," commented Scott Jobin-Bevans, President and CEO of Treasury Metals. "In addition, we will look at upgrading and adding ounces within the current million ounce gold resource. This is just the start of a larger drilling campaign; the drill rigs are on site and we are commencing immediately."

During the 1990s Teck Resources Limited and Corona Gold Corp. completed exploration diamond drilling to the west and along strike of the TLGD. All 18 historic drill holes completed along strike and within the 650 metre western alteration corridor returned anomalous gold intersections ranging from 100 ppb Au to 15.71 g/t Au and encountered similar mineralization, alteration, rock types and structures to those observed in the Main Zone of the TLGD. As was also described in the mineralized rocks northeast of the TLGD and within the current mineral resource, anomalous gold concentrations were reported from altered felsic volcanic and metasedimentary rocks, suggesting multiple rock types as targets for gold mineralization along strike of the TLGD.

Highlights from 8 historic drill intercepts, located west of the Thunder Lake Gold Deposit:

DDH1Distance from Resource (m)From (m)To (m)2Interval (m)Au (g/t)Au (oz/ton)
TL-1435059.4760.030.567.150.21
TL-9915093.0094.001.0015.710.46
TL-25530085.5086.501.004.040.12
TL-25640014.2015.701.504.570.13
TL-25845061.8063.301.503.590.11
TL-25950061.0062.401.405.810.17
TL-26365099.00100.501.505.420.16
TL-27447529.0030.301.304.410.13
TL-274--30.3031.601.304.180.12
TL-274--34.3035.701.403.030.09

1from westernmost extent of the NI 43-101 Mineral Resource Estimate on the Thunder Lake Gold Deposit
2approximate true widths

In addition to these 8 higher grade intercepts, 6 of the 18 drill holes intersected greater than 1 g/t Au to 3 g/t Au and a further 4 holes intersected greater than 100 ppb Au to 1 g/t Au; many of the drill holes include multiple intersections of anomalous gold concentrations (greater than or equal to 100 ppb Au) outside of the principal intersection.

In June 2009, Treasury Metals initiated a surface exploration program on its approximately 53 km2 Goliath Gold Project. The Company continues to integrate this information with historic diamond drill core assays, drill core, core logs and the historic and newly acquired geological and geophysical data. Additional diamond drilling is being planned that will target specific exploration opportunities along the greater than 6 kilometres of prospective formational strike in the far east portion of the Property and other areas of the Property that are off-trend from the TLGD.

About Treasury Metals

Treasury Metals Inc. is a mineral exploration and development company with a growth-orientated strategy to acquire and develop quality gold assets in the Americas. Treasury Metals' management team is committed to increasing shareholder value through aggressive exploration and development of its Goliath Gold Project and by pursuing strategic opportunities, including potential acquisitions that meet the Company's corporate goals of expansion and growth toward becoming a future mid-tier gold producer.

The Company's flagship project is the 100% owned Goliath Gold Project, an advanced-stage, high-grade gold deposit. The Thunder Lake Gold Deposit contains more than 1.0 million estimated ounces of gold, consisting of 130,000 indicated ounces (820,000 tonnes @ 4.8 g/t Au; Main Zone) and 920,000 inferred ounces (7,000,000 tonnes @ 4.1 g/t Au; All Zones), using a cut-off grade of 2.0 g/t Au (see NI 43-101 report – "Report on the Goliath Project, Kenora Mining Division, Northwestern Ontario, Canada" dated December 19, 2008 – filed on SEDAR). Mineral resources are not mineral reserves and by definition do not demonstrate economic viability. Drilling of the TLGD to date has intersected the Main Zone over a strike length of about 1,700 metres, with thicknesses of 0.5 m to 30 metres (average width of 7.6 metres) and a high-grade core with an average width of 1.9 metres.

Treasury Metals also has royalty revenue from Sierra Minerals' (TSX:SIM) Cerro Colorado Mine in Mexico and other monetizable assets. Treasury Metals has a strong shareholder base and its management team and board are seasoned mining industry veterans with proven track records.

Technical information in this press release has been reviewed and approved by Scott Jobin-Bevans, Treasury Metals' President and CEO, who is a qualified person under the definitions established by National Instrument 43-101. For additional information on Treasury Metals and its projects, please visit the Company's website at www.treasurymetals.com.

Forward-looking Statements
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