ONTARIO – Toronto’s Treasury Metals has updated the preliminary economic assessment for its Goliath gold project 20 km east of Dryden. The assessment looked at a combined open pit and underground mine life of more than 10 years. Average annual production would be 80,000 oz AuEq and an operating cash costs of $698 per AuEq oz. Preproduction capital expenses will be $90 million, based on buying new equipment.
"The project has good grade and is located right here in Ontario surrounded by world class infrastructure; this all makes for good business sense," said Martin Walter, president and CEO of the company. "We also have significant exploration potential to increase the project's gold inventory both at depth, along strike and within other areas across the 49-km2 land package that the company controls.”
The Goliath gold deposit includes the Main, Footwall and Hangingwall zones. These zones have an indicated resource of 9.1 million tonnes with an average grade of 2.6 g/t Au and 10.4 g/t Ag, two-thirds of which could be mined using open pit techniques. The inferred resource is 15.9 million tonnes at 1.7 g/t Au and 3.9 g/t Ag. The focus of recent exploration efforts is the main area, that extends to 600 metres below surface over a strike length of 2,300 metres.
The company has posted details of its 2012 exploration plans at TreasuryMetals.com.