Treasury Metals Inc.

Treasury Metals Inc.

March 23, 2010 12:19 ET

Treasury Metals Intersects 20.03 g/t Au at a Vertical Depth of 469 Metres on Goliath Gold Project and Accelerates Expiry Date of Warrants

TORONTO, ONTARIO--(Marketwire - March 23, 2010) - Treasury Metals Inc. ("Treasury" or the "Company") (TSX:TML) is pleased to announce further high-grade gold assay results from its recently announced +5,000 metre diamond drilling program targeting deeper gold mineralization on the Goliath Gold Project. In addition, the Company is announcing acceleration of the expiry date of certain share purchase warrants.

These results, from 2 drill holes collared about 900 metres apart, targeted high-grade structures in the eastern and western regions of the current mineral resource (Thunder Lake Gold Deposit). A map of collar locations and list of the drill hole collars and survey information will be posted to the Company's website. Significant gold intersections from these 2 drill holes (TL10-87 and TL10-88) include:

Drill Hole From (m) To (m) Interval*(m) Au (g/t) Au (oz/t) Comments
TL10-87 496.00 509.00 13.00 1.51 0.04 Main Zone: strong alteration/elevated sulphides
including 508.00 509.00 1.00 13.85 0.40 high-grade component of Main Zone
TL10-88 462.00 483.00 21.00 1.93 0.06 Main Zone: strong alteration/elevated sulphides
including 471.00 478.00 7.00 3.89 0.11 --
including 477.00 478.00 1.00 20.03 0.58 high-grade component of Main Zone
*intervals are not necessarily representative of true widths 

Of note, the intersection in TL10-87 is approximately 55 metres down-dip of an historic intersection in TL-129 that reported 2.0 metres of 28.84 g/t Au. In addition, the intersection in TL10-88 is approximately 40 metres down-dip of an historic intersection in TL-151 that reported 1.5 metres of 128.26 g/t Au.

Core samples from three more drill holes (TL10-89 to 91) are currently in the laboratory and assays are pending. Two rigs on the Property are drilling holes TL10-92 and TL10-93, which are targeting gold mineralization at depths of more than 800 metres.

Scott Jobin-Bevans, Treasury's President and CEO, said, "We continue to intersect multiple high-grade ore shoots as we drill deeper on the Project. The goal of this program is to begin proving the vertical continuity of gold mineralization that starts at surface and defines a million ounce gold resource. In just the first two holes we have confirmed high-grade gold at significant distances below previous high-grade intercepts and anticipate further high-grade intercepts as we continue to test the deep potential of this deposit."

In addition, the Company is also announcing that pursuant to the terms of the warrants (the "Warrants") issued as part of the Company's non-brokered private placement offering (the "Offering") on May 22, 2009 of 4,267,500 units at a price of $0.20 per unit for gross proceeds of $853,500, the Company has elected to exercise its right (the "Acceleration Right") to reduce the period within which the Warrants may be exercised, and has sent written notice of the acceleration to each of the holders of Warrants.

The Acceleration Right was triggered when the trading price of the Company's common shares on the Toronto Stock Exchange was at a price equal to or greater than $0.60 for a period of 20 consecutive trading days. Warrant holders will be entitled to exercise the Warrants until 5:00 p.m. (Toronto time) on April 28, 2010. All Warrants not exercised on or before such time will expire and be of no further force and effect.

About the Thunder Lake Gold Deposit, Goliath Project
The Thunder Lake Gold Deposit contains more than 1.0 million estimated ounces of gold, consisting of 130,000 indicated ounces (820,000 tonnes at 4.8 g/t Au; Main Zone) and 920,000 inferred ounces (7,000,000 tonnes at 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 Thunder Lake Gold Deposit to date has intersected the Main Zone over a strike length of about 1,700 metres, with thicknesses of 0.5 to 30 metres (average width of 7.6 metres at 0.5 g/t Au cut-off) and a high-grade core with an average width of 1.9 metres (3.0 g/t Au cut-off).

The Company has implemented a quality assurance and 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 samples shipped to Accurassay Laboratories in Thunder Bay, Ontario. The other half of the core is retained for future assay verification. Other QA/QC procedures include the insertion of blind blanks and standards for every tenth sample in the sample stream. Blind quarter core duplicates were assayed for 5% of the samples. The laboratory re-assays at least 10% of all samples (pulps and rejects) and additional checks may be run on anomalous values including gravimetric analysis and pulp metallics. Gold analysis is conducted by lead collection, fire assay with atomic absorption or gravimetric finish on a 30 gram sample. Check assays by a secondary lab are completed as necessary.

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 100% owned flagship property, the 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.

Treasury Metals also has royalty revenue from Sierra Minerals' 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

Forward-looking Statements
Securities regulators encourage companies to disclose forward-looking information to help investors understand a company's future prospects. This press release contains statements about our future financial condition, results of operations and business. These are "forward-looking" because we have used what we know and expect today to make a statement about the future. Forward-looking statements usually include words such as may, expect, anticipate, believe or other similar words. We believe the expectations reflected in these forward-looking statements are reasonable. However, actual events and results could be substantially different because of the risks and uncertainties associated with our business or events that happen after the date of this press release. You should not place undue reliance on forward-looking statements. As a general policy, we do not update forward-looking statements except as required by securities laws and regulations.

Contact Information

  • Treasury Metals Inc.
    Scott Jobin-Bevans