Treasury Metals Announces Positive Preliminary Economic Assessment for Goliath Gold Complex

$477 Million pre-tax NPV₅%; pre-tax IRR OF 37.3% (post-tax $328 Million and 30.2%) at US$1,600 per ounce gold

TSX: TML OTCQX: TSRMF     

Highlights (all currencies are reported in Canadian {dollars} until in any other case specified):

• LOW CAPITAL INTENSITY PROJECT WITH PRE-PRODUCTION CAPITAL COST OF $233 MILLION AND PRE-TAX PAYBACK PERIOD OF LESS THAN 2 YEARS
• ROBUST ECONOMICS WITH POST-TAX $328 MILLION NPV₅%; IRR OF 30.2%; AT US$1,600 PER OUNCE GOLD
• MINE LIFE OF 13 YEARS, WITH AVERAGE ANNUAL GOLD PRODUCTION DURING FIRST 9 YEARS OF 102,000 OUNCES AND TOTAL LOM RECOVERED GOLD OF ~1.1 MILLION OUNCES
• WORLD-CLASS INFRASTRUCTURE INCLUDES EXISTING HYDRO POWER, NATURAL GAS AND CP RAIL LINES PLUS TRANS-CANADA HIGHWAY
• BOARD APPROVAL TO ADVANCE THE PROJECT TO THE PRE-FEASIBILITY STUDY STAGE
• LEVERAGE TO GOLD PRICE: $726 MILLION NPV5% PRE-TAX AT RECENT SPOT PRICE OF US$1,850 PER OUNCE GOLD

TORONTO, Feb. 2, 2021 /PRNewswire/ – Treasury Metals Inc. (TSX: TML) (OTCQB: TSRMF) (Frankfurt: TRC1) (“Treasury” or the “Firm“) is happy to announce the outcomes from a preliminary financial evaluation (“PEA”) for the Firm’s Goliath Gold Advanced (“GGC” or the “Undertaking”), which incorporates the Goliath, Goldlund and Miller deposits alongside a potential 65-kilometre pattern in northwestern Ontario. The PEA, ready by Ausenco Engineering Canada Inc. (“Ausenco”) in accordance with Nationwide Instrument 43-101 (“NI 43-101”), demonstrates the potential to develop a low-cost 5,000 tonnes per day (“tpd”) mixed open pit and underground mining operation with robust economics and the chance for vital profit to the Firm, Indigenous Nations and native stakeholders.

“With the announcement of the PEA outcomes at the moment, mixed with receipt of the federal Environmental Evaluation approval in 2019, now we have confirmed the Goliath Gold Advanced has adequate crucial mass and we count on Treasury Metals to grow to be one in every of Ontario’s subsequent gold producers. Our strong base case for the undertaking helps a 13-year mine life with common annual manufacturing of 102,000 ounces of gold for the primary 9 years with a post-tax NPV of $328 million and IRR of 30.2%,” stated Jeremy Wyeth, President and CEO of Treasury Metals. “The undertaking is underpinned by a high-quality useful resource, and now we have taken a conservative strategy to useful resource estimation, with the whole M&I ounces nearly unchanged from earlier estimates. We additionally see vital exploration potential throughout our 330-square-kilometre land package deal. In 2021, we’re specializing in in-fill and definition drilling to raised outline the useful resource, whereas additionally initiating step-out drilling to check new targets round each the Goliath and Goldlund deposits.”

Treasury continues to advance Goliath Gold Advanced via the graduation of trade-off optimization research as a part of the pre-feasibility stage research work, baseline environmental work, neighborhood engagement and different crucial actions to the required stage to facilitate the provincial allowing course of.

Goliath Gold Advanced PEA Overview

The Goliath Gold Advanced PEA was ready by Ausenco in collaboration with different technical consultants and the Firm’s operations and exploration groups (see Certified Individuals part under).

The PEA was ready in accordance with Nationwide Instrument 43-101 and the technical report that summarizes the outcomes of the Goliath Gold Advanced PEA will likely be filed on the Firm’s web site and on SEDAR (www.sedar.com) inside 45 days of this information launch. 

PEA Assumptions and Financial Outcomes

The PEA is preliminary in nature, contains inferred mineral sources which are thought of too speculative geologically to have the financial issues utilized to them that will allow them to be categorized as mineral reserves, and there’s no certainty that the PEA will likely be realized. Mineral sources that aren’t mineral reserves should not have demonstrated financial viability.

Mining and Processing
The PEA considers a mixed open pit and underground mining operation using the sources from three completely different pit areas over the lifetime of the mine. It’s envisioned that mining will likely be initiated on the Goliath undertaking resulting from each its proximity to the processing facility and its current federal EA approval. With vital environmental and baseline work underway it has been assumed that mining on the Goldlund deposit will observe the preliminary begin of manufacturing by roughly one yr. The Goliath underground operations are anticipated to start growth in yr three with first underground manufacturing to return in yr 4 of the proposed mining operations. Proposed open pit and underground mining is envisioned as being typical truck and loader/shovel and lengthy gap stoping, respectively.

The method plant will deal with 1.8Mt of ore per yr at a median throughput of 4,875 tonnes per day with an availability of 92%. The plant design features a three-stage crushing circuit, ball mill, gravity focus, classification, normal leach and Carbon-In-Leach (CIL) expertise, and cleansing earlier than deposition right into a Tailings Storage Facility (TSF).

The method plant has been designed to appreciate a median restoration of 95.7% of the gold sourced from Goliath, 91.9% sourced from Goldlund, and 89.6% sourced from Miller over the lifetime of the undertaking. Of this, the gravity circuit recovers 17%-44% of the gold throughout the three completely different ore sources. Gold restoration has been based mostly on metallurgical take a look at work accomplished on Goliath and Goldlund materials between 2011 and 2017 with the arrogance in recoveries reflecting the extra in depth metallurgical work achieved at Goliath in comparison with Goldlund and Miller.  Metallurgical testing deliberate for 2021 at Goldlund and Miller is predicted to enhance restoration assumptions.

The Firm will present extra particulars associated to Tailings Administration and Closure within the PEA report filed on SEDAR inside 45 days.

A mine plan abstract is included in Appendix 1 on the finish of this information launch.

Working Prices
Mining prices for proprietor operated mining have been developed from first ideas with native vendor quotations and detailed haulage profiles. Course of plant working prices have been developed based mostly on the labour necessities and calculated consumption charges of reagents, consumable supplies, and electrical energy related to the plant gear. Costing elements have been utilized leveraging in-house knowledge based mostly on comparable gold milling operations in Ontario. Processing prices embody plant upkeep and maintenance.

Preliminary and Sustaining Capital Prices
Preliminary capital prices within the PEA are estimated to be $233 million together with a contingency of 5% on mining gear, and 25% on all different direct prices, excluding pre-production stripping.  Lifetime of mine sustaining capital is estimated at $313 million, primarily for Goliath underground growth and TSF building. A small sustaining capital price range is allotted to the processing plant, with common plant upkeep and maintenance accounted for in working prices.

Web site closure and reclamation embody ultimate closure prices for the Goliath, Goldlund and Miller tasks. Prices handle demolition of amenities, placement of covers on the tailing facility and waste rock storage areas, and revegetation of disturbed areas.

Financial Sensitivity to Gold Value
Sensitivities of post-tax NPV and post-tax IRR to gold value per ounce are as follows:

All-In-Sustaining-Price*
All-in-sustaining prices (“AISC“)* are constructed up as follows:

Mineral Useful resource Estimate
The mineral useful resource estimate for Goliath used as the premise for the PEA with an efficient date of December 16, 2020 was accomplished utilizing a complete of 726 floor drill holes with an aggregated size of 238,036 metres and a complete of 96,912 assays. The QP answerable for the useful resource estimate is Pierre Desautels P.Geo of AGP Mining Consultants.

For Goldlund, the mineral useful resource estimate with an efficient date of October 23, 2020 was accomplished utilizing a complete of 176,498 metres of drill core and channel samples entered as pseudo holes distributed in 856 floor drill holes, 189 floor trench channel samples, 480 underground drill holes, and 246 underground channel samples for a complete of 114,102 gold assays. The QP answerable for the estimate is Chris Keech P. Geo. of CGK Consulting Providers Inc.

For Miller, the mineral useful resource estimate with an efficient date of October 26, 2020 was accomplished utilizing a complete of 96 floor drill holes totalling 7,386 metres. Of these, 26 intersected the mineralized domains and have been used within the useful resource estimate. The QP answerable for the estimate is Paul Daigle P. Geo of AGP Mining Consultants.

The desk summarizes the useful resource estimate for all three deposits. The fabric amenable to open pit extraction was reported inside Lerchs-Grossman optimized useful resource constraining shell, whereas the fabric amenable to underground extraction was reported inside a three-dimensional wireframe representing a chance of being coherent mining shapes with cheap prospect of being accessed. Open pit useful resource constraining shell and underground useful resource shapes have been offered by AGP’s Engineering group.

For the Goliath Deposit, a gold value of US$1,700 /ounce and a silver value of US$23 /ounce was used for the cut-off dedication. For open pit sources, a cut-off of 0.25 g/t gold was used. Assets under the open pit shell used a cut-off of 1.60 g/t gold to outline attainable underground sources.  For the Goldlund and Miller Deposits, a gold value of US$1,700 /ounce was used for the cut-off dedication. For open pit sources, a cut-off of 0.26 g/t gold was used. Assets under the open pit shell at Goldlund used a cut-off of 1.60 g/t gold to outline attainable underground sources.

General, a extra conservative strategy was taken to the mineral useful resource estimation methodologies on all websites in anticipation of a possible future mining and building choice. For each Goliath and Goldlund a probabilistic estimation strategy was used to mannequin the gold and silver mineralization.

For Goliath, this differs from the earlier mineral useful resource estimate strategy that used discrete wireframes created from each geological contacts and drill assay outcomes for the underground mannequin and wider wireframes for the open pit mannequin. With the brand new methodology, the whole mineralized hall for the Major Zone and C-Zone have been wireframed conventionally after which, internally sub-divided in a low grade, medium grade and excessive grade elements utilizing a probabilistic strategy.  The ensuing single mannequin respects the identified geological data whereas making certain that the grade distribution is extra consultant of the sphere situation. This has resulted in having a extra conservative strategy to continuity of the mineralization in each the low grade (Open Pit) and excessive grade (Underground) zones.

For Goldlund, the mineral useful resource estimation strategy has thought of a extra conservative therapy of unsampled historic intervals to restrict the affect of high-grade samples throughout the mineralized zones. The Goldlund chance mineral useful resource estimation strategy has additionally revised the search technique and geological domains to make sure that the modelling higher displays the controls on gold mineralization.  This has resulted in a extra conservative mineral useful resource estimate with extra tonnes at a decrease common grade above cut-off.  Drilling is at the moment underway that particularly targets areas which have inadequate drill gap density with the purpose of accelerating the arrogance within the continuity and including inferred mineral sources in these areas. 

The outcomes of those up to date useful resource estimates permit for a a lot bigger proportion of Measured and Indicated sources to be included within the proposed mining plan.  The next graph reveals the excessive proportion of Measured and Indicated sources throughout the proposed mine plan. Extra exploration drilling is at the moment ongoing that’s anticipated to reinforce useful resource continuity based mostly on this strategy to beforehand assumed ranges.

Additional particulars on the mineral useful resource estimate will likely be out there within the technical report on www.sedar.com and on the Firm’s web site at www.treasurymetals.com.

Allowing and Approvals
The strategy to environmental allowing and approvals for the Goliath Gold Advanced will likely be to deal with the Goliath, Goldlund and Miller deposits as three distinct tasks for provincial allowing, all being processed on the mill facility throughout the current federal EA approval for Goliath.

The schedule for allowing and approvals for the Goliath Gold Undertaking is extra superior than the schedule for Goldlund and Miller, given {that a} Federal Environmental Evaluation (EA) has already been accomplished for this Undertaking. Particularly, on August 19, 2019, Treasury Metals acquired Federal Authorities approval underneath the Canadian Environmental Evaluation Act, 2012 for the Goliath Gold Undertaking, with the Minister of Surroundings and Local weather Change Canada concluding that with implementation of applicable mitigation measures, the Undertaking just isn’t prone to trigger vital antagonistic environmental results. Due to this fact, following the discharge of the PEA, the Goliath Gold Undertaking could proceed immediately into provincial allowing and different environmental approvals utilizing the up to date proposed mining plan, whereas extra baseline knowledge assortment will likely be accomplished for Goldlund and Miller to assist anticipated future provincial approval processes. A full yr of baseline knowledge assortment has been accomplished for the Goldlund website and can proceed all through the rest of 2021 to assist the anticipated future provincial approval processes.

Alternatives
The PEA has outlined a lot of initiatives which will improve the undertaking which embody:

• For Goldlund, 6,400 metres of extra infill drilling in Zone 1 to substantiate the continuity of high-grade mineralization and convert indicated to measured mineralization; 29,000 metres of extra infill drilling in Zones 2, 3, 4, 6, 8, and 9 to transform inferred mineralization to indicated mineralization; and seven,200 metres of exploration drilling to substantiate the northeast extensions of Zones 1 and 4.
• For Goliath, the main target will likely be on changing the remaining Inferred sources to the Indicated class in preparation for a Pre-Feasibility Research. The proposed useful resource conversion program consists of roughly 31,000 metres of extra drilling throughout the complete strike of proposed underground mine plan. A small, restricted drill program can be proposed for useful resource growth between masking a strike size of 200 metres on the jap portion of the deposit which may end in adequate materials amenable to open pit extraction. This small program consists of roughly 3,000 metres of extra drilling. 
• Additional metallurgical take a look at work to extend gold restoration at Goldlund and Miller.
• The usage of mined out open pit areas present a chance for the storage of tailings and waste materials.  There’s a vital quantity that could possibly be utilized for storage on a long run foundation that will each cut back price, and importantly present a chance to restrict the footprint and quantity of tailings saved above floor.
• The transport of Goldlund mineralized supplies represents a major price that could possibly be diminished by way of ore sorting expertise.  Goldlund materials has been proven to be amenable to such expertise and prioritized for research.
• The optimization of transporting materials from the Goldlund and Miller websites to the Goliath Mill facility represents a chance for diminished price. Extra research will likely be accomplished within the subsequent section to raised outline the capital and working prices of varied choices together with completely different trucking choices and using applied sciences resembling Railveyor that present environment friendly transport choices.
• Extra testing of the correlation of gold to silver on the Goldlund and Miller deposits has the chance so as to add silver to the useful resource if accomplished.  The restricted take a look at knowledge on the Goldlund useful resource just isn’t adequate to be included as a part of the useful resource, nevertheless it needs to be famous that on this restricted testing there does look like silver related to some samples.  A extra fulsome assay program needs to be instituted to re-assay out there samples and embody assaying for future drill applications to analyze whether or not or not adequate correlation is feasible to create a silver by product from mining.

Subsequent Steps
The Firm intends to right away provoke trade-off and optimization research as a part of a proper Pre-Feasibility Research, baseline environmental work, and different crucial research with a view to finishing all required engineering work to facilitate the provincial allowing course of later this yr. Engagement with native communities and Indigenous Nations may even proceed all year long.

As well as, the Firm will proceed exploration drilling on the Goldlund deposit totalling roughly 42,000 metres, which is able to embody each infill and definition drilling, in addition to extra drilling on the Miller deposit. The Firm intends to mobilize a second drill on the Goliath deposit within the spring to conduct infill and definition drilling totalling roughly 27,000 metres with a view to discover targets at depth and alongside strike that are outdoors the prevailing useful resource. Contingent on the success of the drill program and market circumstances, the Firm could take into account mobilizing a 3rd exploration drill.

Certified Individuals
The PEA for the Treasury Metallic Goliath Gold Advanced summarized on this information launch was accomplished by Ausenco along with different technical consultants and will likely be included in a NI 43-101 technical report which will likely be out there underneath Treasury’s SEDAR profile at www.sedar.com, and on the Treasury web site at www.treasurymetals.com inside 45 days of this information launch.  The affiliation and areas of duty for every of the Certified Individuals concerned in getting ready the PEA, upon which the technical report will likely be based mostly, are as follows: Mr. Tommaso Roberto Raponi, P.Eng – Certified Particular person for Processing and Metallurgy; Mr. Pierre Desautels, P.Geo. – Certified Particular person for Goliath Mineral Useful resource Analysis; Mr. Christopher Keech, P.Geo – Certified Particular person for Goldlund Mineral Useful resource Analysis;  Mr. Paul Daigle, P.Geo – Certified Particular person for Miller Useful resource Analysis; Mr. Gordon Zurowski, P.Eng – Certified Particular person for Mine Engineering and Costing;  Reagan McIsaac, Ph.D., P.Eng. – Certified Particular person for Tailings Administration; Sheila Daniel, P.Geo. – Certified Particular person for Closure and Closure Costing,

By advantage of their schooling, membership to a acknowledged skilled affiliation and related work expertise, Mr. Tommaso Roberto Raponi, Mr. Pierre Desautels, Mr. Christopher Keech, Mr. Paul Daigle, and Mr. Gordon Zurowski, are impartial Certified Individuals as outlined underneath NI 43-101.

Information Verification
The Certified Individuals answerable for the preparation of the PEA and the technical report in respect thereof have verified the info disclosed on this information launch, together with sampling, analytical, and take a look at knowledge underlying the data contained on this information launch. Geological, mine engineering and metallurgical opinions included, amongst different issues, reviewing mapping, core logs, and re-logging current drill holes, assessment of geotechnical and hydrological research, environmental and neighborhood elements, the event of the lifetime of mine plan, capital and working prices, transportation, taxation and royalties, and assessment of current metallurgical take a look at work. Within the opinion of the Certified Individuals, the info, assumptions, and parameters used to estimate Mineral Assets, the metallurgical mannequin, the financial evaluation, and the PEA are sufficiently dependable for these functions. The technical report in respect of the PEA, when filed, will include extra detailed data regarding particular person obligations, related high quality assurance and high quality management, and different knowledge verification issues, and the important thing assumptions, parameters and strategies utilized by the Firm.

Mark Wheeler, P.Eng., Director, Initiatives, and Adam Larsen, Exploration Supervisor, are each thought of as a “Certified Particular person” for the needs of Nationwide Instrument 43-101 Requirements of Disclosure for Mineral Undertaking (“NI 43-101“), and have reviewed and accepted the scientific and technical disclosure contained on this information launch on behalf of Treasury.

Twitter @TreasuryMetals

About Treasury Metals Inc.
Treasury Metals Inc. is a gold centered firm with property in Canada. Treasury’s Goliath Gold Advanced, which incorporates the Goliath, Goldlund and Miller deposits alongside a 65-kilometre pattern, is positioned in Northwestern Ontario. The deposits profit considerably from glorious entry to the Trans-Canada Freeway, associated energy and rail infrastructure, and shut proximity to a number of communities together with Dryden and Sioux Lookout, Ontario. The Firm additionally owns a number of different tasks all through Canada, together with the Lara Polymetallic Undertaking, Weebigee-Sandy Lake Gold Undertaking JV, and grassroots gold exploration property Gold Rock.

To view additional particulars about Treasury, please go to the Firm’s web site at www.treasurymetals.com.

About Ausenco
Ausenco is a world firm based mostly throughout 26 places of work in 14 international locations, with tasks in over 80 areas worldwide. Combining deep technical experience with a 30-year observe report, Ausenco delivers progressive, value-add consulting research, undertaking supply, asset operations and upkeep options to the mining & metals, oil & gasoline and industrial sectors.

Ahead-Wanting Statements
This information launch comprises data and projections that represent “forward-looking statements” underneath relevant securities legal guidelines. All statements on this launch, aside from statements of historic information, that handle occasions or developments that administration of the Firm count on, are forward-looking statements. Ahead-looking statements are continuously, however not at all times, recognized by phrases resembling “expects”, “anticipates”, “believes”, “plans”, “tasks”, “intends”, “estimates”, “envisages”, “potential”, “attainable”, “technique”, “objectives”, “aims”, or variations thereof or stating that sure actions, occasions or outcomes “could”, “may”, “would”, “may” or “will” be taken, happen or be achieved, or the detrimental of any of those phrases and related expressions. Ahead-looking data on this information launch contains, however just isn’t restricted to statements relating to: the Firm’s expectations regarding the event of the Goliath Gold Advanced, together with, with out limitation, the anticipated mine life and annual gold manufacturing of any mine to be developed, the flexibility of the Firm to implement a “hub and spoke” regional manufacturing technique, the anticipated working prices, preliminary and sustaining capital prices, all-in sustaining prices, closure prices and post-tax NPV and IRR of any such growth, the processing methodologies anticipated for use in reference to any such growth and the gold restoration of such processing methodologies; the economics and profit to the Firm, Indigenous Nations and native stakeholders that will outcome from any such growth; the mineralization of the Goliath Gold Advanced; the exploration potential throughout the Firm’s 330 square-kilometre land package deal and the outcomes of future exploration actions thereon; expectations relating to the Firm’s skill to increase its useful resource in parallel with growth; the strategy to allowing that will likely be taken by the Firm with respect to the Goliath Gold Advanced and the timing of receiving all essential permits; expectations relating to future work anticipated to be accomplished on the Goliath Gold Advanced, together with, with out limitation, trade-off and optimization research, baseline environmental work, exploration drilling and different crucial research and the anticipated timing thereof; expectations relating to the timing of the Firm progressing to the feasibility stage with respect to its analysis of the Goliath Gold Advanced; expectations relating to the initiatives prompt by the PEA that may improve the Goliath Gold Advanced undertaking, together with, with out limitation, extra infill drilling, additional metallurgical testing work, using mined out open pit areas for the storage of tailings materials, using ore sorting expertise, the optimization of transporting materials from the Goldlund and Miller websites to the Goliath Mill facility, extra testing of the correlation of gold to silver on the Goldlund and Miller deposits and the assessment of finding the method plant and tailings storage facility on the Goldlund property. Precise outcomes or developments could differ materially from these described in or implied by the forward-looking statements contained herein. Treasury disclaims any intention or obligation to replace or revise any forward-looking statements, whether or not on account of new data, future occasions or in any other case, save and besides as could also be required by relevant securities legal guidelines.

Ahead-looking statements on this information launch mirror the Firm’s views with respect to future occasions and are essentially based mostly upon a lot of assumptions and estimates that, whereas thought of cheap by administration, are inherently topic to vital enterprise, financial, aggressive, political and social uncertainties and contingencies. Many elements, each identified and unknown, may trigger precise outcomes, efficiency or achievements to be materially completely different from the outcomes, efficiency or achievements which are or could also be expressed or implied by the forward-looking statements contained on this presentation and the Firm has made assumptions and estimates based mostly on or associated to many of those elements. Such elements embody, however will not be restricted to: the chance of that the assumptions underlying the PEA and the Firm’s monetary projections, together with, with out limitation, assumptions regarding the value of gold and the alternate fee from USD to CAD, are inaccurate; the chance that that the outcomes of the Firm’s exploration of the Goliath Gold Advanced up to now doesn’t an precisely mirror of the mineralization of the Goliath Gold Advanced; the chance that the Firm with not be capable of undertake all deliberate growth and allowing actions in a fashion according to its expectations and with out materials delay; the chance that the Firm won’t be able to keep up all essential current permits; the truth that mineral reserve and mineral useful resource figures regarding the Goliath Gold Advanced are solely estimates and are topic to revision based mostly on creating data; well being, security and environmental dangers; the chance that the Firm won’t must sources to finance the event of the Goliath Gold Advanced as contemplated or in any respect; uncertainties associated to negotiations with contractors and different materials events in reference to the event of the Goliath Gold Advanced; dangers related to the mining business, together with operational dangers in exploration and growth on account of the COVID-19 pandemic; and such extra dangers listed underneath the heading “Threat Components” within the Firm’s Annual Data Kind dated March 27, 2020 and in different filings of the Firm with securities and regulatory authorities which can be found on SEDAR at www.sedar.com.

Ought to a number of of those dangers or uncertainties materialize, or ought to assumptions underlying the forward-looking statements show incorrect, precise outcomes, efficiency or achievements may fluctuate materially from that expressed or implied by the forward-looking statements contained herein. Readers are cautioned to not place undue reliance on the forward-looking data.

Appendix 1

Mine Plan Abstract

SOURCE Treasury Metals Inc.

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