Treasury Metals Inc.
TSX : TML

Treasury Metals Inc.

November 12, 2010 17:24 ET

Treasury Metals Third Quarter Results and Exploration Update

TORONTO, ONTARIO--(Marketwire - Nov. 12, 2010) - Treasury Metals Inc. ("Treasury" or the "Company") (TSX:TML) today released its report for the third quarter ending September 30, 2010. The Company is also pleased to provide an update from its exploration program on the Goliath Gold Project, located approximately 20 km east of the City of Dryden in northwestern Ontario.

Goliath Gold Project Update (August to November 2010)

Following a positive National Instrument 43-101 ("NI 43-101") compliant Preliminary Economic Assessment ("PEA") on the Goliath Gold Project completed by Independent consultants A.C.A. Howe International Limited ("Howe"), Treasury Metals initiated the following work on the Project:

  • Planned a 15,000- 20,000 metre drilling program within the current resource, in consultation with Howe, aimed at upgrading a portion of the gold ounces from the Inferred category to the Indicated and Measured categories.
  • Trenched a portion of the Main Zone to expose the mineralization at surface. Two distinct structures were 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 F1 structures. The Company's structural geologist believes the best potential for highest gold concentrations is at or near F1-F2 intersections and in areas of increased density of F2 structures. Drilling is planned that will test this theory which could improve deposit grades.
  • Retained the services of Klohn Crippen Berger to begin an Environmental Baseline Study.

The Company continues to advance the Goliath Gold Project through expansion of the current resources (Thunder Lake gold deposit) and property-wide exploration programs planned for the remainder of 2010. In addition, Treasury continues to actively seek new acquisition opportunities in the Kenora Gold District that are accretive to its existing Ontario gold property portfolio.

Operations

Treasury Metals has assembled the Goldcliff Project by acquiring, through a property option agreement, four unpatented mining claims (12 units) and through staking, 22 unpatented mining claims (248 units), totalling 4,160 hectares. The Goldcliff Project, located about 40 kilometres south-southeast of Dryden, Ontario, represents a new discovery in the Kenora Gold District and contains several gold showings. Initial due diligence sampling by the Company identified visible gold in a grab sample that assayed 106.43 g/t Au. A prospecting program is being planned.

Nine Months Ended September 30, 2010

During the nine-month period ended September 30, 2010 Treasury invested $1,852,588 on mineral properties as compared to $297,764 during the same period in 2009. The increase is a result of the Company meeting its flow-through obligations. 

For the nine months ended September 30, 2010, Treasury incurred a net loss of $239,942 compared to a loss of $711,519 for the same period in 2009, mainly due to a decrease in stock based compensation charges, and to decreases in professional fees, legal services, administrative and salary expenses.

For the three month period ending September 30, 2010, the Company's net NSR revenue was $109,052 as compared with $132,604 in 2009. The decrease is mainly a result of lower production partially offset by increased gold prices and an increased NSR which rose to 3% from 2.5% in the quarter.

As at September 30, 2010, the Company had a negative working capital position of $482,451. The Company has marketable investment in exchange trades companies not included in working capital having a market value at September 30, 2010 of $1,630,375 as compared to $1,750,105 at December 31, 2009. The market value of these investments on November 12, 2010 is $2,260,600.

Outlook 2010

The Company believes that the Goliath Gold Project and Lara Polymetallic Project each have excellent potential and will continue to focus on advancing these assets.

The objectives of the Company are to (i) increase and improve current mineral resources at the Goliath Gold Project and concurrently investigate the sensitivities to develop these resources toward feasibility; (ii) enhance its geological knowledge of the Lara Polymetallic Project and develop targets on the property for future drilling programs; (iii) aggressively target, review and, if desirable, acquire and develop advanced gold assets in northwestern Ontario in order to augment and strengthen its current mineral property portfolio; and, (iv) target, review and, if desirable, acquire and develop advanced gold assets in other geopolitically stable regions of The Americas.

In conducting its search for additional mineral properties, the Company may consider acquiring properties that it considers prospective based on criteria such as the exploration history or location of the properties, or a combination of these and other factors.

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 and CEO, who is a qualified person under the definitions established by National Instrument 43-101.

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.

For additional information on Treasury Metals and its projects, please visit the Company's website at www.treasurymetals.com.

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.

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