treasury metals

Treasury Metals has started to look at advancing two gold properties in the Dryden area into one operation.

The company has closed a $11.52 million private financing deal to launch a preliminary economic assessment to combine the Goliath open-pit property with the newly acquired Goldlund gold property.

The combined 300-square-kilometre properties is expected to produce a minimum 3.1 million ounces of combined gold into an integrated development.

Treasury Chief Executive Officer Greg Ferron says proceeds from the financing will fund the completion of a combined Goliath-Goldlund economic study expected within 2020.

Ferron adds the money will also help advance key engineering and environmental baseline data on Goldlund, and complete 25,000 metres of infill and expansion drilling program on the combined projects.

The announcement follows more encouraging news for Treasury Metals.

The company has releasing positive results of a drill program underway at the Goldlund Gold project.

Officials say drilling by First Mining Gold continues to show mineralization in the eastern portion of the property and supports the potential for expansion.

Greg Ferron says Goldlund continues to return strong results, supporting the potential for resource growth

A total of 46 holes have so far been completed in the main zone area.

 

Treasury Metals is excited about the future with the planned acquisition of the Goldlund property about 35-kilometres from the Goliath Gold project in the Dryden-Wabigoon area.

The major transaction brings roughly 3.1 million ounces of combined gold into an integrated development.

Mark Wheeler is the Director of Projects and he says the immediate priority is getting everything secured to move Goliath towards production.

Wheeler says the federal government has approved the environmental assessment for Goliath and provincial permits are pending.

However, he notes it’s too early to provide any firm information on when those assessments will be completed.

Wheeler says “Goldlund project itself is more early stage. We think of that as a bit more of a future opportunity. As it goes forward we will be continuing to investigate and look at the options of that going forward. So we see that as more of a future timeline.”

In terms of the amalgamated properties, Wheeler says there is a lot of studying to do.

“There is a resource there. There is known gold on the property. So I think long-term, in the future, we could see some sort of combination or Goldlund produce as a producing mine in its own.”

However, Wheeler points out “I think there is a lot of work to do going forward as we look at how the two projects go forward on their own or some sort of combined fashion.”

He adds even though there are no concrete plans at this time he hopes to act as quickly as possible on how to proceed.

To hear more from Mark Wheeler, visit the Audio link below.

Treasury Metals has struck gold in the Dryden area.

The company is acquiring a major gold property next to its proposed Goliath Gold mine project.

Toronto based Treasury has signed a share purchase agreement with First Mining Gold of Vancouver to purchase the Goldlund Gold Project.

The 280-square-kilometre property is directly northeast of the Goliath project, 20 kilometres east of Dryden, with only two kilometres separating the properties.

The major transaction brings roughly 3.1 million ounces of combined gold into an integrated development.

The deal is scheduled to close in mid-August.

Treasury Metals has received federal environmental approval to proceed with the Goliath project and is now working on obtaining provincial permits.

Goldlund hosts a large near-surface gold resource estimated to contain 809,200 ounces of gold in the indicated category, plus 876,954 ounces of gold in the inferred category.

Treasury officials say the property holds great potential for more discoveries.

Under the terms of the agreement, First Mining will receive 130 million common shares of Treasury, 35 million common share purchase warrants of Treasury and a cash payment of $5 million.

A favourable federal environmental report for Treasury Metals means the company can now move forward with its Goliath Gold project, about 20-kilometres east of Dryden.

Chief Executive Officer Greg Ferron says the approval of the EA is a significant de-risking milestone for the project and their shareholders.

Ferron says the company has made major commitments and efforts to the advance the project.

He says “We would like to thank the local communities, the representatives of the local Indigenous communities, the public, and the various government agencies for their work and participation.

Treasury can now proceed with obtaining final permits and the authorizations required to make a decision and begin construction.

Project Director Mark Wheeler says the project team worked closely across multiple government ministries since 2014 alongside Indigenous communities and local public stakeholders.

Wheeler says approval allows them to devote full focus on the remaining technical studies and permitting, and to prepare for a future construction decision.

He adds they continue to work on de-risking and optimizing the project through 2019, making significant progress on advanced engineering studies, community engagement and construction permit applications.