Name and Location
Goliath gold project, Ontario, Canada.

Client
Treasury Metals.

Project Description
The Goliath project currently has National Instrument 43-101-compliant indicated and inferred resources of 1.7-million ounces of gold and silver.

The mining operation is expected to produce 80 000 oz/y to 100 000 oz/y of gold equivalent over the first ten years of mine life.

The project proposes the development, construction, operation and closure of a gold mine that will process 2 700 t/d of gold-bearing rock and any of the associated infrastructure. Subsequent underground operations will be developed in the latter years of the project’s mine life and will be funded from the project’s initial cash flow.

The mine layout places all mine-related facilities in close proximity to the proposed openpit and, where possible, on private land parcels owned by Treasury. The project footprint will cover an estimated 188 ha during the maximum extent of operations, with 133 ha, or 71%, of the footprint on Treasury private lands.

Operation will occur at a rate of about 2 700 t/d of ore to process a total of about 5.5-million tonnes of openpit ore and 3.5-million tonnes of underground ore over the 10- to 12-year operational phase of the mine.

Overburden, waste rock and low-grade ore extracted from the openpit will be stockpiled and stored in nearby storage areas – the waste rock storage area, the overburden storage area and the low-grade stockpile.

The processing plant at the project will consist of a standard gravity/carbon-in-leach (CIL) circuit with cyanide destruction of CIL tails. Tailings will be stored in a constructed tailings storage facility (TSF). A high proportion of the ore processing plant water requirement will be sourced though the integrated site water management of water recycled from the TSF, openpit dewatering and runoff collected from stockpile collection ponds. Initially, start-up water will be sourced from irrigation ponds south of the Treasury Metals project office, located in the former Ontario Ministry of Natural Resources tree nursery facility.

Excess site water will be discharged to Blackwater Creek using a polishing pond and additional water treatment. Treasury has committed to discharging all water at applicable federal and provincial discharge requirements. Potable water will be sourced primarily from groundwater resources.

Mining operations will be supported by the development of an explosives storage facility and several ancillary buildings. A maintenance garage, warehousing, and administration complex will be developed adjacent to the processing facility. In addition, Treasury intends to use existing infrastructure provided in the warehousing and office facilities at the current project office.

No on-site accommodations will be constructed as part of the development.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value at a 5% discount of $144-million and a 32.4% internal rate of return. The project has a payback period of 2.8 years.

Value
The first phase of the project comprises low initial start-up expenditure of about $92-million, with cash flows from the first three years of operations funding underground development.

Duration
Treasure is advancing through the Canadian permitting process to begin production at its open gold mine and 2 700 t/d processing facility by 2015.

Latest Developments
Treasury has achieved a significant milestone in developing its flagship Goliath gold project, after filing an environmental-impact statement (EIS) with the Canadian Environmental Assessment Agency (CEAA).

With the submission of the EIS, a renewed round of public and Aboriginal consultation and engagement will be initiated.
Tetra Tech WEI and Treasury’s engineering team led development of the EIS, after the CEAA issued the EIS guidelines in February last year.

With Treasury’s EIS filing, the legislated period to complete the environmental assessment process has restarted.
The EIS covers all aspects of the project’s development, operational and closure stages, and addresses all matters related to socioeconomic and environmental effects, and will be used to avoid, mitigate and reduce environmental impacts.

“The EIS will be reviewed internally by the federal regulatory agencies for concordance with the requirements of the EIS guidelines.

“After this has been completed, the CEAA will organise a series of public and Aboriginal consultation meetings involving the government, Treasury and the technical consultants who contributed to the EIS,” Goliath Gold project VP Norm Bush has said.

The company expects these meetings to be completed within the last two months of 2014.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Treasury Metals investor relations, tel +1 416 214 4654, fax +1 416 599 4959 or email info@treasurymetals.com.