Treasury releases First Mining’s Goldlund drill results

2020-07-07 12:19 ET – News Release

Mr. Greg Ferron reports


Treasury Metals Inc. has released further results from the drill program under way at the Goldlund gold project. Drilling by First Mining Gold Corp. continues to define mineralization in the eastern portion of the defined resource area at Goldlund and supports the potential for resource expansion at the project.

Treasury Metals is in the process of closing a definitive share purchase agreement with First Mining and Tamaka Gold Corp. to acquire Goldlund, after which First Mining will hold a large equity position in Treasury. Goldlund is located adjacent to Treasury’s Goliath gold project, which is advancing toward a construction decision, in Northwestern Ontario. Treasury’s acquisition of Tamaka Gold, which includes Goldlund, is expected to close in mid-August, 2020, which will allow for numerous potential co-development opportunities for Treasury’s Goliath gold project and Goldlund (see press release dated June 3, 2020, in connection with the transaction).

Latest highlights from holes drilled at the Goldlund Main zone include:

  • Hole GL-20-018 intersected 5.42 grams per tonne gold over 10 metres:
    • Including 22.03 g/t Au over two m.
  • Hole GL-20-025 intersected 1.82 g/t Au over 31.2 m:
    • Including 3.08 g/t Au over 16 m and 20.12 g/t Au over one m.
  • Hole GL-20-027 intersected 1.39 g/t Au over 38.7 m:
    • Including 5.22 g/t Au over 1.6 m and 19.54 g/t Au over 1.3 m.
  • Hole GL-20-028 intersected 2.51 g/t Au over 22 m:
    • Including 3.58 g/t Au over 15 m, 5.46 g/t Au over 9.6 m and 24.08 g/t Au over 1.6 m.

Greg Ferron, chief executive officer of Treasury Metals, stated: “Drilling at Goldlund continues to return strong results, supporting the potential for resource growth at the Main zone. We are excited to close the Goldlund gold acquisition in mid-August as we positively integrate the two projects and create a district-scale opportunity within Treasury Metals. These results demonstrate the growth potential from the regional consolidation within this multimillion-ounce-gold district in Ontario.”

The 13 holes highlighted in this news release are all located in the northeastern portion of the Goldlund deposit. Drilling in this area focused on outlining and extending new mineralization between zone 2 and zone 3, as well as defining mineralization in zone 2. Drill results from this northeastern area have confirmed the continuity of higher-grade mineralization over approximately 400 metres of strike length, with mineralization remaining open in both directions. Drill intercepts up to 22 metres wide were encountered within the main mineralized zone, averaging approximately 10 metres in thickness with grades of: 5.46 g/t gold over 9.6 metres (hole GL-20-028); 3.08 g/t gold over 16 metres (hole GL-20-025); and 2.98 g/t gold over 10 metres (GL-20-029). Drilling also intersected a number of narrow, one to seven m wide, parallel mineralized zones in the suite of mafic volcanics between zones 2 and 3, which could potentially add new areas of mineralization to the currently identified resource.

To date, a total of 46 holes (approximately 8,588 metres) have been completed at the Main zone as part of the 2019/2020 drill program. This news release incorporates results from a further 13 holes completed to date, following on from First Mining’s March 2, 2020, and May 6, 2020, news releases, which announced the results of prior holes. Drilling has been completed on approximately 50 m spacing, with the overall goal of the drill program to define and extend mineralization in the eastern and western portions of the Main zone area. The remainder of the drill program will continue to focus on defining mineralization to the northeast, with results from the remainder of the program to be released as they become available.

Select assay results from 13 holes from the Main zone drill program are provided in an attached table.

Drill result details

Treasury Metals has not independently verified the data in the press release issued on July 7, 2020, by First Mining. As per the First Mining press release and at the request of IIROC, disclosed herein is the quality assurance/quality control program for these drill results and the First Mining drill program.

Quality assurance/quality control procedures

The quality assurance/quality control program for the 2019/2020 drilling program at Goldlund consists of the submission of duplicate samples and the insertion of certified reference materials and blanks at regular intervals. These are inserted at a rate of one standard for every 20 samples (5 per cent of total) and one blank for every 30 samples (3 per cent of total). The standards used in the 2019/2020 Goldlund drilling program range in grade from 0.5 g/t Au to nine g/t Au and are sourced from CDN Resource Laboratories in Langley, B.C. Blanks have been sourced locally from barren granitic material.

Field duplicates from quartered core, as well as coarse or pulp duplicates taken from coarse reject material or pulverized splits, are also submitted at regular intervals with an insertion rate of 4 per cent for field duplicates and 4 per cent for coarse or pulp duplicates. Additional selected duplicates are being submitted to an umpire lab for check assaying. SGS also undertakes its own internal coarse and pulp duplicate analysis to ensure proper sample preparation and equipment calibration.

Qualified person

Hazel Mullin, PGeo, director, data management and technical services, of First Mining, is a qualified person for the purposes of National Instrument 43-101 — Standards of Disclosure for Mineral Projects, and she has reviewed and approved the scientific and technical disclosure contained in this news release.

About Treasury Metals Inc.

Treasury Metals is a gold-focused company with assets in Canada. Treasury’s flagship Goliath gold project is located in a multimillion-ounce-gold district in Northwestern Ontario.

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