Treasury Metals Inc. is pleased to announce that it has begun initial metallurgical test work at its Goliath Gold Project near Dryden, Ontario. Composite samples consisting of whole main zone intersections of half core taken from 7 diamond drill holes were recently submitted to G&T Laboratories Services Ltd. in Kamloops, B.C. The sample represents a degree of geographic diversity over the deposit and weighed 58.6 kg with an estimated grade of 4.5 g/t Au. Results from the program are expected by June 2011 and the Company will develop a preliminary flowsheet from these test results that will be used to support a feasibility study.
Treasury Metals has retained the services of Mr. John Wells to act as Metallurgical Consultant to lead this project. Mr. Wells will work on establishing metallurgical extraction processes and tabulating metallurgy data from the Company’s current drill program, an important step in moving the project towards production. Mr. Wells is a Consulting Metallurgical Engineer with 40 years of experience in minerals processing, particularly in the recovery of gold and silver. He has held senior positions in head office consulting, project development and operations with Goldfields Limited, AngloGold Ashanti and Barrick Gold Corporation, and he has completed more than 20 metallurgical programs including Aquiline Resources Inc.
Historical Metallurgical Work
As part of the underground sampling program in 1998, metallurgical work was performed by various companies including Teck Exploration Ltd (now Teck Resources Ltd.) and Corona Gold Corp. Four bulk samples from the Main Zone at Goliath Gold Project totalling 2,375 tonnes and grading greater than 3.0 g/t Au were collected from the underground advanced exploration workings. The original bulk sample of 2,375 tonnes had an estimated overall grade of 9.07 g/t Au and contained 692 ounces gold. Metallurgical results obtained on a composite sample of 24 kg from the No. 1 Shoot of the Main Zone indicated that cyanidation achieved the best recoveries for gold at 98.7%.Gravity and flotation resulted in recoveries of 97.3% Au and gravity alone recovered 69.1% Au. Final gold recovery was calculated at 96.85% and silver recoveries were approximately 38%.
Technical information in this press release has been reviewed and approved by Andrew Cheatle, P.Geo, Vice President, Exploration of Treasury Metals, who is a qualified person under the definitions established by National Instrument 43-101.