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Treasury Metals commences feasibility study on Goliath Gold project

Published by
Global Mining Review,

Treasury Metals Inc. has announced it has initiated the preparation of the feasibility study on the company's Goliath Gold Project located in northwestern Ontario, Canada. Treasury is targeting a 3Q18 release for the feasibility study. 

The company has engaged the services of Sedgman (Sedgman), a member of the CIMIC Group, as Project Lead for the Feasibility Study, with support from several well established independent engineering and consulting firms. The feasibility study is a major project milestone that builds on the company's recently completed Preliminary Economic Assessment (PEA) and continued progress on the advanced stage environmental permitting work. The PEA, as released on 8 March, 2017, demonstrated robust economics with a 25% after-tax internal rate of return and an after-tax NPV5% of CAN$306 million. 

The Feasibility Study will incorporate an updated NI 43-101 Mineral Resource Estimate based on the current exploration programme (30 000 m) and all previous drilling completed since the 2015 Mineral Resource Estimate (13 535 m). The company recently commenced its planned 30 000 m drill programme. The first component of the infill drill programme consists of 5000 m of drilling on the Central Shoot of the Main Zone with a goal of converting Inferred Mineral Resources into the Indicated Mineral resource category. Another 10 000 m of infill drilling on the Western and Eastern Shoots followed by another 15 000 m of exploration drilling intended to investigate the potential for additional high grade shoots along strike to the NE of the current Goliath Mineral Resource (see press release dated 1 August, 2017 for further details and images related to the exploration programme).  The initial work on the feasibility study will analyse several trade-off studies focused on identifying the optimal mining rate for both underground and open pit operations, evaluating the use of new, industry leading mining technologies such as battery powered mobile equipment and the optimisation of backfill technologies and tailings storage currently being implemented in newer operations in northern Ontario. 

Chris Stewart, President and Chief Executive Officer, commented:

"Our team continues to execute on the advancement of the Goliath Project and will work closely with our professional partners to achieve our goal of developing Ontario's next opencast and underground mine while minimising our environmental footprint. The excellent infrastructure, accessibility to power, highways and the local communities combined with traditional mineral processing and mining methods simplifies this study and enhances the project economics. The objective of the feasibility study is to optimise all aspects of the design such that we are ready to make a production decision in the second half of 2018." 

Sedgman will oversee the preparation of the feasibility study report while also completing additional engineering, optimisation work, and earthworks support studies to better define the capital and operating costs associated with processing and surface infrastructure for the Project. WSP Canada Inc. will be responsible for tailings storage facilities and surface geotechnical work. P&E Mining Consultants Inc. will continue work on Mineral Resource modelling and lead the mine design and production scheduling along with any associated costs. Amec Foster Wheeler will continue to advance the environmental permitting process and preparation of the final EIS. Updates related to the mine permitting process will continue to be provided throughout the period.  

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