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Treasury Metals yields gold recovery rates above 96% from Goliath

Treasury Metals (TSE:TML) said Tuesday that it has received stellar gold recovery rates from its metallurgical test program on the Goliath gold project, located in northwestern Ontario.

The sample, categorized as being non-refractory and free milling, yielded a gold recovery of between 96% to 97%.

"These results are very encouraging as they clearly demonstrate that very high gold recovery rates are possible using known low-cost separation methods," said CEO Martin Walter.

"On the basis of these results, we now plan to expand our metallurgical program to include purposed drilled holes in the recently identified eastern high grade zone."

In addition, the company said it may also open up the historical decline to obtain new bulk samples.

A gravity recovery circuit, with cyanidation of the tailings, was identified as the best metallurgical flow-sheet for the project.

The independent metallurgical consultant used to oversee the testwork and analysis commented: "The samples from the Goliath Gold Project gave excellent gold recovery by gravity and cyanidation, with low reagent consumption, low work index and excellent settling."

"These results can support the development of a concentrator design and capital and operating costs at scoping or pre-feasibility study level."

The metallurgical program, which tested a composite of 30 half-core samples from the Goliath property, begin in April this year, and followed up on historical work done by Teck Exploration in 1998.

The sample tested had a measured gold and silver feed grade of about 3.5 grams per tonne (g/t) and 25 g/t, respectively. Silver recoveries were reported as being between 50 to 60%, the company said.

Three drill rigs are currently operating at the Goliath project to complete the recently expanded 30,000 metre campaign, with two rigs on the eastern target. The western zone of the property also shows promise, said Treasury, especially to a deeper extent.