Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Treasury Metals has released initial results from a 15,000-metre drill program it began in December at its flagship Goliath gold project in northwestern Ontario, including 7 metres of 14.8 g/t gold in the Eastern C Zone.
Highlights from the Main zone at the project include:
Highlights from the Eastern C Zone target, where infill and expansion drilling are being conducted, include:
Results from the Eastern C Zone show consistent zones of strong alteration and a mineralized envelope with high-grade lenses within it. Treasury reports that some holes designed to test the Eastern C Zone target unexpectedly intersected Main zone mineralization.
Infill drilling will continue at the C Zone and at the eastern area of the Main zone before new downhole targets are tested. The drill campaign includes 5,000 metres aimed at upgrading inferred resources at the C Zone East area; 5,000 metres to test recent targets identified through a downhole IP survey; and 5,000 metres for exploration drilling on strike extensions across the Goliath property.
According to a PEA released in 2017, the initial capex for an open pit and underground mine at Goliath would be C$133 million with an after-tax net present value of C$306 million
The project, 20 km east of Dryden, contains measured and indicated resources of 15.3 million tonnes grading 2.26 g/t gold and 8.2 g/t silver for 1 million contained ounces of gold and 4.3 million oz. silver. Inferred resources add 2 million tonnes grading 3.43 g/t gold and 8.8 g/t silver.
According to a preliminary economic assessment released in 2017, the initial capex for an open pit and underground mine at Goliath would be C$133 million with an after-tax net present value of C$306 million and an internal rate of return of 25%.
Treasury Metals received federal approval environmental assessment approval last August and can now apply for final permits needed to start construction.
(This article first appeared in the Canadian Mining Journal)
