Treasury Metals (TSE:TML) has unveiled additional drill results from its Goliath gold project in northwestern Ontario, with results showing near-surface intersections as high as 4.18 grams per tonne (g/t) gold.
The assays are from an infill drilling program designed to convert the C Zone and near-surface inferred resources into the higher indicated category, as well as from three additional holes done as part of a hydrogeological drilling campaign.
The results from the main zone include near surface intercepts of 7.5 metres at 3.82 g/t gold from 36 metres depth, and 25 metres at 1.42 g/t gold from 152 metres depth, including 6 metres at 4.18 g/t gold in a hole located on the eastern edge of the proposed open pit, outside the current indicated resource area.
Hole TL13-331 also hit 21 metres of 0.87 g/t gold from 24 to 45 metres, including 3.0 metres at 3.64 g/t gold.
The company said that two of the above holes are significant due to their near-surface location within a "sparsely drilled" area between the eastern and centre pits, representing a potential reduction of the overall waste to ore stripping ratios on the main zone of the project.
Treasury also reported Wednesday results from the C Zone, which is located around 30 metres behind the main zone area, with holes showing intercepts of 13 metres at 0.94 g/t gold from 70.5 metres, and 8.5 metres at 1.52 g/t gold from 260 metres depth.
The gold company has been defining near surface resources at the C Zone since drilling started in the region late last year. Treasury believes the area has the potential to increase the current open pit mineable resource at Goliath, and reduce the overall waste-to-ore stripping ratios.
Since finishing the drilling program, Treasury has been working on a gap analysis to determine the location of the holes required to upgrade all ounces within the current open pit design, including both the main and C zones.
A new resource update will follow, which will be used to support a full feasibility study at the project, while the company also works on wrapping up its environmental impact statement - scheduled for later this year.
Earlier this month, Treasury closed the final tranche of a non-brokered private placement financing, raising a total of $1.78 million in the offering for the advancement of its Goliath gold project.
The project boasts near-term production potential, with the company forecasting production start-up in late 2015, with average annual life-of-mine output of around 80,000 gold equivalent ounces at cash costs of $698 an ounce.
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