Treasury Metals (TSE:TML) says it has consolidated the land around its Goliath gold deposit area in Ontario after two strategic property acquisitions for a total of $1.8 million.
"These acquisitions are a key part of our consolidation strategy due to their immediate vicinity within the resource area, and we are pleased that we were able to close on these agreements with both sellers," said president and CEO, Martin Walter.
"The acquisitions will increase our property holdings at the Goliath Gold Project to a total of 50 km2 and will significantly assist our exploration and development activities."
The company bought land adjacent and alongside the Goliath gold deposit area. The first new property, which consists of around 96 hectares of additional surface and mineral rights, is next to and along strike of the eastern end of the mineral resource at Goliath.
Treasury said Thursday this property extends the strike length by an additional 1.6 kilometres at the project.
Further, the northeast projection of the Goliath deposit dips toward the newly acquired land, and its coverage includes down dip exploration targets, the miner noted.
Recent drilling results along the eastern end of the resource, where a new mineralized shoot was found in the C-Zone, is interpreted to project toward the northeast section of the new property.
The company said that previous drilling along the property boundary by former owner Teck Exploration also showed "a number of high grade gold mineralized intersections".
Treasury is planning to drill a number of targets on this first new property, starting in the northeast block, with further details on the next phase of exploration at Goliath expected shortly.
The second acquisition, roughly 65 hectares of additional surface rights, is located northeast of the mineral resource area of the Goliath gold deposit.
This acquisition increases the company's operational flexibility for both mining and infrastructure, it said, as it is located nearby the proposed open pit.
The gold property developer did not disclose details of the sellers, but said that it is purchasing a 100 per cent interest in both properties, and no net smelter royalty will be assigned.
Last month, Treasury completed a previously announced financing that raised proceeds of $6 million, and announced what it called "excellent" gold recovery results from the project.
At the base case US$1,375 per ounce gold price, the life of mine pre-tax net present value (NYSE:NPV) of the Golden goliath project is estimated at $199.0 million based on a five per cent discount rate. The project's internal rate of return (NYSE:IRR) is expected to be 39.3 per cent, with a payback period of 2.2 years.
The Goliath property now sits on an NI 43-101 compliant resource of 1.63 million ounces of gold (1.7 million ounces of gold-equivalent) in the inferred and indicated categories combined, at an average grade of 2.0 g/t.
The project, located in northwestern Ontario, lies 125 kilometres east of the City of Kenora, and 20 kilometres east of Dryden.
In other news Thursday, the company said that Harry Burgess has retired from the board, but will continue to assist in a consulting capacity.
Shares in the miner advanced more than 1 per cent to 91 cents this afternoon.