TORONTO, ONTARIO--(Nov. 6, 2008) - Treasury Metals Inc. ("Treasury" or the "Company")(TSX:TML) is pleased to report the results of the first independent Mineral Resource Estimate at its 100% owned Goliath Project located alongside the Trans-Canada Highway near Dryden, Ontario. The Mineral Resource Estimate ("Mineral Resource") was completed by A.C.A. Howe International Limited ("Howe") in accordance with National Instrument 43-101 and CIM Standards on Mineral Resources and Reserves.
Indicated and Inferred Mineral Resources have been determined in the Main Zone of the Thunder Lake Gold Deposit, which was the focus of a 55 hole (13,305 m) drilling program that began in February 2008. The Mineral Resources include current holes up to TL0845 (45 drill holes from the 2008 program) and 185 historic drill holes and are summarized in the Table 1 below. Mineral resources are not mineral reserves and by definition do not demonstrate economic viability.
Table 1 Summary of Thunder Lake Mineral Resources (undiluted)
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Category Zone Cut-off Grade Tonnes Above Average Grade Ounces Au
(g/tonne Au) Cut-off (g/tonne Au)
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Indicated Main 3.0 560,000 5.9 110,000
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Inferred H 3.0 480,000 4.7 70,000
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Main 3.0 2,520,000 6.4 520,000
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B 3.0 130,000 4.2 18,000
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C 3.0 90,000 4 12,000
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D 3.0 50,000 3.1 5,000
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Total Inferred 3.0 3,270,000 5.9 625,000
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"We are pleased to have verified and improved the historic mineral resource estimate which was the aim of the first phase of diamond drilling, plus we now have a much better understanding of the Main Zone," said Scott Jobin-Bevans, CEO & President of Treasury. "The model completed by Howe indicates mineralization is open along strike to the northeast and west and at depth, we feel that the gold system indicates strong potential to host a one million plus ounce deposit. In addition, we have not considered the associated silver credits in this estimate which will be the aim of future estimations."
"Treasury is currently planning further drilling and an exploration program aimed towards expanding the gold resource at the Thunder Lake Deposit and assessing other areas within the large land package which have potential to host additional gold resources," added Dr. Jobin-Bevans. "Treasury also intends to initiate a Preliminary Economic Assessment on the Thunder Lake Deposit in early 2009 along with baseline environmental studies and continuing community engagement."
The estimated zones, in order from hanging wall to footwall (south to north), were the H, Main, B, C and D zones. As modelled, the Main Zone has a strike length of approximately 1,400 metres and extends to a depth of about 775 metres. The majority of drill holes (current and historic) are located within 400 metres of surface with few between 400 m and 800 metres below surface.
Indicated Resources, located from surface to about 200 metres depth, occur in 3 separate regions of the model that are separated by 50-75 metres of Inferred Resources. Inferred Resources are encompassed by the entire mineralized envelope of the Main Zone.
The average true width of the Main Zone (entire mineralized envelope) is 7.6 metres.
Table 2 Cut-off Sensitivities for Thunder Lake Mineral Resources (undiluted)
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Total Indicated Resources - Main Zone
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Block Cut-off Tonnes Above Cut-off Average Grade Ounces Au
(g/tonne Au) (g/tonne Au)
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6 170,000 10.0 50,000
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5 250,000 8.6 70,000
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4 360,000 7.4 90,000
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3 560,000 5.9 110,000
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2 820,000 4.8 130,000
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1 1,930,000 2.9 180,000
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Total Inferred Resources - All Zones
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Block Cut-off Tonnes Above Cut-off Average Grade Ounces Au
(g/tonne Au) (Rounded) (g/tonne Au)
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6 1,100,000 9.2 320,000
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5 1,600,000 8.2 420,000
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4 2,200,000 7.2 510,000
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3 3,300,000 5.9 625,000
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2 6,700,000 4.1 890,000
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1 13,600,000 2.7 1,200,000
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Inferred Resources were outlined graphically, on cross-sections and longitudinal-sections. Blocks were categorised as Inferred if they were within 50 metres from a drill hole intercept. Indicated Resources were outlined graphically within areas where the intercept spacing was approximately 25 metres or less (slightly shorter than the variogram range of 29 metres).Assays within each zone were composited into single intercepts. The interval length, dip, average zone dip (70 degrees) and average zone strike (180 degrees) values were used to calculate the true intercept thickness. No top-cut value was used.Block grades were estimated using 1.5 metre regularised samples from within the interpreted zones and ordinary kriging. Block volumes were calculated by multiplying the block's horizontal thickness by its size in the easting (10 metres) and elevation (10 metres) directions. The horizontal thickness was used to correct the volume for the block's dip. Block mass values were calculated by multiplying the volume by an average specific gravity value of 2.78 t/m3 (based on specific gravity values determined from holes TL0801 through TL0808).The historical Inferred Mineral Resource Estimate (non-compliant with NI43-101) was reported as 2.974 million tonnes grading 6.47 g/tonne Au, calculated using a cut-off grade of 3.0 g/tonne Au and a minimum thickness of 3.0 metres (CAMH, 2007).The Main Zone, which has been irregularly drill tested to vertical depths of approximately 700 metres, extends over a minimum strike length of approximately 1,600 metres and dips 70-75 degrees to the south or southeast. The Main Zone, as defined by the newly completed Howe Mineral Resource, represents only a small portion of the greater than 4 km long prospective trend in the Goliath Project area.The Independent Qualified Person for the NI 43-101 compliant Mineral Resource Estimate is Doug Roy, M.A.Sc., P.Eng. of Howe. The NI 43-101 Technical Report on the Mineral Resource Estimate will be filed on SEDAR within 45 days of this press release.Treasury's exploration programs and pertinent disclosure of a scientific nature are prepared and/or designed and carried out under the overall supervision of Scott Jobin-Bevans, Ph.D., P.Geo., Treasury's President and CEO, who serves as the Qualified Person as defined by National Instrument 43-101. Details regarding Treasury's QA/QC procedures have been specified in an earlier press release.About Treasury Metals Inc.Treasury Metals Inc. is a mineral exploration and development company with a growth-orientated strategy to acquire and develop quality precious and base metals assets in Canada. The Company's flagship asset is the 100% owned Goliath Project, an advanced-stage, high-grade gold deposit with the potential for additional silver, lead and zinc credits. The 100% owned Lara Project is an advanced stage, high-grade base and precious metals project with significant potential for additional resources in its Lara Deposit. The Company also has an existing royalty revenue from Sierra Minerals' (TSX:SIM) Cerro Colorado Mine in Mexico and other monetizable assets. The management team and board are seasoned mining industry veterans with proven track records. As a spin-off company of Laramide Resources (TSX:LAM), Treasury benefits from a strong existing shareholder base. The Company web site is:www.treasurymetals.com.This press release was reviewed and approved by Treasury's President & CEO and Qualified Person Scott Jobin-Bevans, Ph.D., P.Geo.Forward-looking InformationSecurities regulators encourage companies to disclose forward-looking information to help investors understand a company's future prospects. This press release contains statements about our future financial condition, results of operations and business. These are "forward-looking" because we have used what we know and expect today to make a statement about the future. Forward-looking statements usually include words such as may, expect, anticipate, believe or other similar words. We believe the expectations reflected in these forward-looking statements are reasonable. However, actual events and results could be substantially different because of the risks and uncertainties associated with our business or events that happen after the date of this press release. You should not place undue reliance on forward-looking statements. As a general policy, we do not update forward-looking statements except as required by securities laws and regulations.
