Treasury Metals Inc.

Treasury Metals Inc.

January 20, 2010 07:30 ET

Treasury Metals Intersects Additional High-Grade Gold in Western Area of Main Zone, Goliath Gold Project

17.80 g/t Au over 6.5 metres including 59.02 g/t Au over 1.5 metres

TORONTO, ONTARIO--(Marketwire - Jan. 20, 2010) - Treasury Metals Inc. ("Treasury" or the "Company") (TSX:TML) announces further high-grade gold assay results from its recently completed 4,500 metre (31 drill holes) diamond drilling program at the Goliath Gold Project. These latest assay results further confirm the presence of a high-grade gold ore shoot within the western area of the Main Zone, Thunder Lake Gold Deposit.

These results confirm continuity of the Main Zone of gold mineralization west of the current resource having similar intersection widths and high gold grades. Of particular significance is hole TL09-84, located in the westernmost section (and near surface) of the current resource, which returned an intercept of 17.80 g/t Au over 6.5 metres including 59.02 g/t Au over 1.5 metres. The mineralization in this area of the deposit remains open at depth and to the west for more than 1.5 kilometres which includes the newly acquired extension of the Goliath Gold Project (see press release dated 15/12/09).

Scott Jobin-Bevans, Treasury's President and CEO, said, "These drill hole results validate our model that multiple high-grade gold ore shoots exist within the current resource and that the western portion of this resource can be expanded through delineation and targeting of these high-grade structures. This particular shoot is modelled over a strike length of about 200 metres and shows excellent potential for vertical continuity that we will test in subsequent drilling programs."

Significant gold intersections from the current 4 drill holes (TL09-78 through TL09-80 and TL09-84) include:

Drill Hole From (m) To (m) *Interval (m) Au (g/t) Comments
TL09-78 75.60 77.00 1.40 6.53 within westernmost area of resource
TL09-79 34.30 35.50 1.20 2.07 within westernmost area of resource
TL09-80 119.50 120.50 1.00 8.41 within westernmost area of resource
TL09-84 67.50 74.00 6.50 17.80 within westernmost area of resource
including 67.50 70.50 3.00 37.74 (averaged - see note below)
including 67.50 69.00 1.50 59.02 --

*intervals represent approximate true widths

Results from the sample interval 67.50 to 70.50 metres consisted of two 1.5 metre samples that are derived from the original assay result and coarse reject duplicates. The original two samples assayed 77.07 g/t Au over 1.5 metres and 19.38 g/t Au over 1.5 metres resulting in an average of 48.23 g/t Au over 3.0 metres. The coarse duplicate samples assayed 40.97 g/t Au over 1.5 metres and 16.46 g/t Au over 1.5 metres resulting in an average of 28.71 g/t Au over 3.0 metres. Comparisons are made in the following table:

Drill Hole From (m) To (m) Interval (m) Sample Original
Au (g/t)
Reject Duplicate
Au (g/t)
TL09-84 67.50 69.00 1.50 706294 77.07 40.97
TL09-84 69.00 70.50 1.50 706295 19.38 16.45
TL09-84 67.50 70.50 3.00 Average: 48.23 28.71

Assays continue to be reported, reviewed and interpreted and results from the remaining 5 drill holes of the Phase 2 drilling program are expected to be released by the end of this month. Previous drill hole results from this program were reported on December 14th, 2009 and January 13th, 2010.

This latest drilling program was designed to test the area immediately west and along strike of the current mineral resources of the Thunder Lake Gold Deposit. The majority of drill holes were collared at 25 metres intervals in order to better target for high-grade gold ore shoots and in preparation of building further resources. As results of the core sample assays become available they will be press released and posted on the Company website, along with collar locations and associated maps.

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 as 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. 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 will be completed in the future.

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

  • Wanda Cutler
    (416) 303-6460