Treasury Metals (TSE:TML) said initial results from its phase II drilling program at its Goliath gold project near Dryden, Ontario continue to show high grade mineralization.
The current drilling program is designed to upgrade resources and expand mineralization in the Main and C zones, which will allow the company to finalize underground engineering plans for its feasibility study as well as plan the final open pit outline.
Of the highlights from the campaign, which first focused on the western area of the Main zone, include 2 metres at 199.75 grams per tonne (g/t) gold. The company said this hole, TL14-374, drilled several specks of visible gold and was located about 41 metres down plunge of a previous highlight hole that intercepted 6 metres of 22.3 g/t gold.
Other notable holes in the western Main zone include 4.87 g/t gold over 3.5 metres, 3.81 g/t gold over 8 metres and 4.5 metres of 3.86 g/t gold.
Treasury said drilling so far has returned significant grades over mineable widths in the area, with more drilling to follow that will focus on adding indicated ounces to the underground resource.
The company is also planning to move onto exploring the newly developing zone discovered earlier in the phase I program last August, where drilling intercepted 12.8 metres at 2.71 g/t gold.
The Canadian gold developer just recently raised $800,000 to advance its flagship project, with a bankable feasibility study planned for the first half of this year.
Environmental approvals and provincial permitting are expected sometime in the second half of 2015. Based on a preliminary economic assessment from 2012, the Goliath project is outlined to become a combined open pit and underground operation, producing an annual average of 80,000 ounces of gold equivalent over 10 years.
Output is forecast by management to start up in the second quarter of 2016, with plans for staged development.