Treasury Metals (TSE:TML) continues to report encouraging drill results from a 20,000 meter diamond drill program underway at its Goliath Gold Project in the Kenora Gold District in Ontario, Canada.
The highlight from today’s results was drill hole TL11-135 which intersected 32.7 grams per tonne gold over 16.6 meters, including a higher grade 5.25 meter intersect averaging an impressive 78.86 grams per tonne gold. The hole was drilled at the eastern end of the current resource envelope. Treasury also noted that over 20 counts of visible gold were observed over the full interval.
TL11-135 wasn’t the only interesting hole reported today. TL11-134 cut 12.92 meters averaging 2.5 grams per tonne gold, while TL11-136 returned 3.4 meters averaging 5.32 grams per tonne gold.
Treasury has two rigs operating on the project with the intent of both upgrading the current inferred and indicated resource (inferred 10.6 million tonnes @ 2.7 g/t gold, indicated 3.4 million tonnes @ 35 g/t gold) to indicated and measured while also increasing the total resource. An updated resource estimate is expected in the third quarter, and will become a key component of a feasibility study due for completion at the end of this year.
“The result of drill hole TL11-135 is very exciting, especially given the amount of visible gold observed by our team in Dryden. We have not seen that in past drill core from this project,” Martin Walter, CEO of Treasury Metals commented.
“These results, coupled with the results recently reported to date from the eastern area, are indicative of a high-grade gold zone. We have yet to close off this gold zone, suggesting there is still ample potential to build ounces up-plunge and at depth in this area.”
Treasury recently closed a $5 million private placement financing. led by Cormark Securities, which consisted of 3.125 million flow-through common shares at a price of $1.60 per share.
Initial metallurgical test work for Goliath Gold are expected in June.