Treasury Metals Inc.

Treasury Metals Inc.

August 12, 2009 10:39 ET

Treasury Metals Confirms High-Grade Gold Within +3 Kilometre Alteration Corridor, Northeast of the Thunder Lake Gold Deposit

TORONTO, ONTARIO--(Marketwire - Aug. 12, 2009) - Treasury Metals Inc. ("Treasury Metals" or the "Company")(TSX:TML) is pleased to report initial results from its ongoing exploration program at its 100% controlled Goliath Gold Project, located 20 kilometres east of Dryden, Ontario, Canada. The current surface exploration program is focusing on the northeast extension of the Thunder Lake Gold Deposit which contains anomalous gold mineralization over a minimum strike length of 3.0 kilometres.

The Thunder Lake Gold Deposit ("TLGD") contains more than 1.0 million estimated ounces of gold, comprised of 113,000 indicated ounces and 890,000 inferred ounces, 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). Drilling of the TLGD has intersected the Main Zone over a strike length of 1,700 metres and a thickness of 0.5 to 30 metres (average width of 7.6 metres).

During the 1990s Teck Resources Limited and Corona Gold Corp. completed exploration diamond drilling along strike northeast of the TLGD. All 51 historic drill holes completed within the 3.0 kilometre corridor returned anomalous gold intersections ranging from 100 ppb Au to 45.37 g/t Au and reported similar rock types (dominantly quartz-sericite schist/felsic volcanic rocks), alteration and structures to those observed in the Main Zone of the TLGD. In addition, up to 9.47 g/t Au over 1.1 m was reported from altered metasedimentary rocks, suggesting additional target rock types for gold mineralization.

Highlights from the historic drilling include:

(i)Distance from Interval Au
DDH Resource (m) From (m) To (m) (m) (g/t)
TL-095 100 77.90 79.10 1.20 6.93
TL-167 1100 144.50 145.80 1.30 3.67
TL-208 750 532.50 534.00 1.50 45.37
TL-233 1000 72.50 73.50 1.00 4.02
TL-262 2800 31.70 33.00 1.30 4.45
TL-271 1350 59.20 60.00 0.80 8.85
TL-271 1350 60.00 60.80 0.80 25.87
TL-272 1200 83.20 84.20 1.00 4.57
TL-272 1200 187.70 188.80 1.10 9.47

(i) from easternmost extent of the NI 43-101 Mineral Resource Estimate
on the Thunder Lake Gold Deposit

In addition to these 7 high-grade intercepts, 22 of the 51 drill holes intersected greater than 1 g/t to 3 g/t Au and a further 22 holes intersected greater than 100 ppb to 1 g/t Au; many of the drill holes include multiple intersections of anomalous gold concentrations outside of the principal intersection.

Treasury Metals recently completed channel sampling on surface outcrops located about 50 metres northeast and along strike from drill hole TL-95 metres and about 150 metres northeast of the current resource. The 26.20 metre continuous channel sampling, which covered altered sulphide-bearing felsic volcanic rocks, assayed as high as 20.52 g/t Au over 1.0 m, showing continuance of the high-grade gold system northeast of the TLGD.

Scott Jobin-Bevans, President and CEO of Treasury Metals stated, "As we review the extensive historic database, we are seeing excellent opportunity for adding additional gold announces immediately west and northeast of the current mineral resource. We are confident that this Project has the makings of a multi-million ounce, high-grade gold deposit and that this Project could form the basis for gold production in a new region of northwestern Ontario."

In June, Treasury Metals initiated exploration on its approximately 53 km2 Goliath Gold Project. As part of ongoing exploration Treasury Metals has been compiling and reviewing historic diamond drill core assays, drill core, drill logs and geological and geophysical data. Objectives of the current surface program are to delineate drill targets along strike to the west (+650 metres strike) and northeast (+3,000 metres strike) of the TLGD. The program will also examine prospective ground that covers greater than 6 kilometres of prospective strike in the far east portion of the Property, along with other regions of the Property that are off-trend from the TLGD.

The Company is planning an initial exploration diamond drilling program in order to confirm some of the higher grade historic intercepts along strike of the TLGD. A more extensive drilling program is also being planned which will aim to increase mineral resources along strike to the west and northeast of the TLGD.

Appointment of New Director

The Company is pleased to announce that Mr. Douglas H. Bache has been appointed to the Board of Directors, effective immediately.

Doug Bache has twenty years of corporate finance and development experience in the natural resource industry. Mr. Bache has advised and managed various mining companies over the past ten years, including providing corporate development advice to Consolidated Thompson Iron Mines Limited, First Uranium Corporation and Aberdeen International Inc. Mr. Bache is President of DHBache & Company Inc. and provides corporate finance and strategic advice to junior mining companies.

Mr. Scott Jobin-Bevans, President and CEO of Treasury Metals stated, "Doug is a terrific addition to our Board and we look forward to working with him as we grow the Company. He understands the various aspects of building and operating a mining company from the ground up and fits well with our current merger and acquisitions strategy and consolidation of the fragmented junior gold market. We are pleased to have Doug join the Treasury Metals team as we advance our current projects and look for new opportunities."

Doug has established and managed mining companies including First Uranium Corporation, Norvista Resources Corporation and Valencia Ventures Inc. Prior to establishing DHBache & Company in 2006, he held various senior financial positions with North American Palladium Limited and Inco Limited. Prior to joining Inco in 1999, Mr. Bache was a banker with CIBC World Markets and Societe Generale Canada providing corporate finance and M&A advice to mining clients. Mr. Bache holds a Bachelor of Mathematics (Business) degree from the University of Waterloo (1983).

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 with the potential for a multi-million ounce gold resource. 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 for the Goliath Gold Project 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, please visit the Company's website at

Forward-looking Statements

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