Mine project announces feasibility study

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A 3D rendering of the proposed open pit operations at the Goliath Gold Project, east of Dryden. Image courtesy Treasury Metals

By Dryden Observer Staff

A proposed gold mining operation just east of Dryden is hoping to wrap up a feasibility study that will guide a ‘production decision’ by the third quarter of 2018.

Treasury Metals Inc. made the announcement Aug. 30, saying the initial work will focus on identifying the optimal mining rate for both underground and open pit operations, evaluating the use of new industry-leading mining technologies such as battery powered mobile equipment and the optimization of backfill technologies and tailings storage currently being used in newer operations in northern Ontario.

Independent engineering and consulting firm Sedgman has been commissioned to complete the study.

Treasury Metals CEO Chris Stewart says the study is a major project milestone that builds on the Company’s recently completed Preliminary Economic Assessment (PEA) and continued progress on the advanced stage environmental permitting work.

“The excellent infrastructure, accessibility to power, highways and the local communities combined with traditional mineral processing and mining methods simplifies this study and enhances the project economics,” said Stewart in a release. “The objective of the feasibility study is to optimize all aspects of the design such that we are ready to make a production decision in the second half of 2018.”

The company has completed over 130,000 metres of diamond core drilling since 2008, in addition previous drilling performed by the project’s former owners Teck Resources.

The company anticipates low initial start-up costs of $133 million and calculates the project’s Net Present Value (after tax) at $306 million.

The mining plan envisions underground production beginning in the second year with the open pit operating over an additional seven years at a reduced output to supplement underground production to a total of 2,500 tonnes per day over the course of a 13 year total mine life. Total gold production is estimated at 1.14 million ounces of gold and 2.0 million ounces of silver.

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