Treasury Metals Inc.

Treasury Metals Inc.

December 08, 2010 13:39 ET

Treasury Metals Commences 20,000 Metre Diamond Drilling Program

TORONTO, ONTARIO--(Marketwire - Dec. 8, 2010) - Treasury Metals Inc. ("Treasury" or the "Company") (TSX:TML) is pleased to announce 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.

About Treasury Metals

Treasury Metals Inc. is a Canadian mining company that is focussed on expanding the Company's gold resources and developing its 100% owned flagship Goliath Gold Project located in the Kenora Gold District of Northwestern Ontario. The NI 43-101 compliant gold resource contains non-diluted underground Indicated Resources of 490,000 tonnes grading 5.7 g/t Au (90,000 ounces) and Inferred Resources of 5,200,000 tonnes grading 4.4 g/t Au (740,000 ounces) and surface Indicated Resources of 2,900,000 tonnes grading 1.9 g/t Au (180,000 ounces) and Inferred Resources of 5,400,000 tonnes grading 1.1 g/t Au (190,000 ounces). Treasury also receives revenue from a Net Smelter Royalty they hold on Goldgroup Mining Inc.'s Cerro Colorado Mine located in Mexico.

Technical information in this press release has been reviewed and approved by Scott Jobin-Bevans, Treasury's President, 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

This press release contains forward-looking statements such as the expected use of the net proceeds from the private placement, our future financial condition, business plans and objectives, results of operations and business. Such statements are based on operations, estimates, forecasts and projections. They are not guarantees of future performance or events and involve risks and uncertainties that are difficult to predict and may be beyond Treasury Metals' control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in forward-looking statements, including those set forth herein and in other public filings. In addition, such statements relate to the date on which they are made. Consequently, undue reliance should not be placed on such forward-looking statements. Treasury Metals disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, save and except as may be required by applicable securities laws.

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