Treasury Metals (TSE:TML) has today reported drilling results from the C Zone at its Goliath gold project in northwestern Ontario, which the company says could represent a "significant increase" to the current open pit mine shells and the mineable ounces within them.
The C Zone mineralization at the site is located around 30 to 50 metres next to the project's Main Zone of mineralization.
Earlier this month, the Toronto-based company said it had begun its 2013 exploration drilling program at Goliath, with the main focus to further delineate the C Zone within the proposed open pit to bring inferred resources to indicated resources, and add ounces.
Further exploration of the C Zone high grade gold shoot would follow, which was discovered in the central part of the Goliath deposit last month.
These latest results include near surface intersections of 27 metres at 1.9 grams per tonne (g/t) gold from 51 metres depth in hole TL 12-295 and 12 metres of 2.2 g/t gold from 33 metres depth in hole TL 12-293.
Hole TL12-290 also intersected 3.0 metres at 9.0 g/t gold from 73 metres depth.
The company said that the first of these holes, TL-295, is thought to be the up-dip extension traced to the surface of the recently discovered high grade shoot of the C Zone. Treasury made this high grade shoot find in what it calls a "re-entry hole", and concluded that certain drill holes done by the previous operator on the project needed to be extended in length to thoroughly test the mineralization.
This strategy has led to "several new mineralized zones" being discovered, the gold explorer said, including 1.5 metres of 15.7 g/t gold in hole TL 148-12RE, and and 8.3 metres at 1.0 g/t gold in TL227-12RE.
The company said these recent results are important as they represent the first high-grade gold intersections that are coming together as an ore shoot within the project's C Zone, from where results "have the potential to reduce the overall waste-to-ore stripping ratios, especially in the eastern section of the deposit".
"We are certainly excited about these new intersections as they occur in areas with relatively little past drilling," said president and CEO Martin Walter.
"This new drilling in the C Zone will have a positive impact on the proposed open pit economics which are already robust based on our Preliminary Economic Assessment that was published in July of 2012.
"The project has good grade, reasonable CAPEX and is located right here in Ontario surrounded by infrastructure. This makes for good business sense."
Drilling will continue to infill the drilling pattern on the project's C Zone, which covers an area measuring roughly 1.2 km in strike length and to a depth of 200 metres. The campaign is ongoing, with some 12 holes still awaiting results.
The company is working toward a feasibility study on its project this year, and earlier this month said that the Canadian Environmental Assessment Agency (CEAA) decided to have the Goliath property subject to an environmental assessment.
CEAA used the project description to develop the guidelines that Treasury has to follow to create the environmental impact statement (NYSEARCA:EIS), which is required under the government's permitting process. The company's technical team has been compiling the ongoing environmental baseline studies since 2010.
The scope of the Goliath operation includes an initial open pit, followed by a combination of both open pit and underground mining methods of 10 to 12 years of mine life.
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