Treasury Metals (TML.TO) has released an updated resource estimate at its Goliath Gold project which incorporated an additional 173 new diamond drill holes and 29 historical drill holes. The measured and indicated resource estimate now contains 1.17M gold-equivalent ounces with an additional 341,300 ounces in the inferred category for a total of 1.5 million gold-equivalent ounces.
The open pit now contains almost 800,000 ounces gold at an average grade of just over 1.2 g/t with an additional 3.3 million ounces silver at an average grade of in excess of 5 g/t. The underground resource estimate now contains 650,000 ounces gold at 4.5 g/t and this should be viable considering the weak Canadian Dollar.
Treasury Metals had a working capital deficit as of at the end of June, and even after raising C$1.9M, the deficit will persist. This means Treasury will either have to raise more cash or refinance the short-term debt.
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Disclosure: The author holds no position in Treasury Metals. Please see our disclaimer for current positions.
