Canadian Mining Journal

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GOLD STUDY: PEA points to economic potential at Goliath project

ONTARIO - The preliminary economic assessment (PEA) prepared for Treasury Metals' Goliath gold project near Dr...



ONTARIO – The preliminary economic assessment (PEA) prepared for Treasury Metals’ Goliath gold project near Dryden points toward the economic potential of surface and underground mining with a stand-alone 1,500-t/d gravity-flotation processing plant. At a gold price of US$850/oz, the project would have an after-tax net present value (NPV) of C$91 million and an internal rate of return (IRR) of 43%.

The pre-production capital expense is estimated to be C$38 million, an amount that would be paid back after four years of operation.

Resources are divided their suitability for surface or underground mining. The indicated resource is 2.9 million tonnes at 1.9 g/t Au (surface) and 490,000 tonnes at 4.7 g/t (underground). The inferred resource is 5.4 million tonnes at 1.1 g/t (surface) and 5.2 million tonnes at 4.4 g/t (underground).

Drill hole locations and assay data are posted at www.TreasuryMetals.com.