Treasury Metals (TSX:TML) is a gold exploration and development company focused on its 100% owned Goliath Gold Project located in the Kenora Mining District in Northwestern Ontario. Goliath is a newly discovered gold resource with an NI 43-101 compliant resource of 1.7 million ounces of gold in the Inferred and Indicated categories combined. The advanced stage, high-grade gold deposit is based 2 km from the TransCanada highway and 20 km east of the city of Dryden, within the Eagle-Wabigoon-Manitou greenstone belt. The district is also home to a number of other major gold deposits. Treasury Metals is the new gold vehicle managed by the former Aquiline Resources executive team.

Goliath Gold Project

Project Overview

The Goliath Gold Project is located in Northwestern Ontario, near the community of Wabigoon and 20 km east of Dryden and 2 km north of the Trans-Canada Highway. This excellent location is also served by power lines, gas supply, water supply and existing workshops, offices and storage facilities. Northwestern Ontario is well equipped with skilled personnel and services to support mine development. The property is 100% owned by Treasury Metals Inc.

The 49 km² Goliath Gold Project is Treasury Metals' flagship project which encompasses the historic Teck/Corona/Laramide Thunder Lake Gold deposit. The large property hosts numerous highly prospective targets that show potential to host gold mineralization including about six kilometres of prospective strike along trend from the Goliath deposit. The current Goliath Gold deposit has a NI 43-101 compliant resource containing 1.7 million ounces of gold in the Inferred and Indicated categories combined (810,000 Indicated and 900,000 Inferred).

Regional Exploration
Treasury Metals is focused on consolidating land positions in the Kenora Mining District and developing projects that could feed a possible gold mill at the Goliath Project. There are numerous projects in the area and Treasury is actively engaged with other property holders and using its local knowledge to stake prospective land.

Preliminary Economic Assessment - The Goliath Gold Project has successfully advanced to the Preliminary Economic Assessment (PEA) stage of mine development. In 2012, A.C.A. Howe International completed an updated independent PEA on the deposit, updated the mineral resource estimate and made recommendations for the further project development.

Highlights of the Economic Assessment include:

2012 Exploration and Property Development

The new 2012 exploration program, a core drilling program of 20,000 metres, has been designed to test a number of high-priority targets identified on the greater than 49 km2 project outside of the current mineral resource area (see Press Release November 9, 2011). Initially, the program will focus on the west end of the property to test a number of geophysical anomalies as well as to test down-dip projections from relatively shallow gold mineralization intercepted during previous drilling campaigns. The program will also drill along strike of the current resource area, to the northeast, where historical drilling by Teck Exploration Ltd. (“Teck”) indicates prospective high-grade gold mineralization. The northeast strike extension of the current resource shows promise for the discovery of multiple new high-grade structures and the potential to add additional ounces to the overall resource. Both of these areas have had little or no drilling by Treasury Metals. The program was designed using historical Teck data and additional geological information interpreted by the Company’s airborne survey completed in July 2011.

The most significant results in the most recent phase of drilling correspond to a new mineralised shoot that early interpretation suggests could be an extension of the C Zone deposit. These results include 7.35m @ 1.39 g/t Au in drill hole TL12-267, and 7.00m @ 3.44 g/t Au in drill hole TL12-268. This new easterly trending mineralised shoot, see accompanying C Zone Long Section, is tentatively interpreted with a 45 – 55 degree rake. “The interpreted mineralised shoot is significant because of its close proximity to the proposed open pit outlined in the Company’s recent Preliminary Economic Assessment as it adds the potential for new open pit mineable gold ounces,” commented Martin Walter, Treasury Metals President and Chief Executive Officer.

In the Fold Zone, an area approximately 2.5km to the east and along strike of the current mineral resource boundary, results from 7 drill holes have extended the pattern of mineralization reported previously (see Press Release July 19, 2012). Geological lithologies identified in this area are a mixed sequence of pelitic metasediments, amphibolite, and mafic meta-volcanics. Significant sections of near massive pyrrhotite mineralization are frequently encountered in drilling as well as narrow high-grade auriferous horizons or shear zones.  These auriferous shear zones are frequently accompanied by sphalerite, galena, and copper sulfides. The best Fold Zone intercept in this drilling phase corresponds to 1.5m @ 17.52 g/t Au in TL12-247 that includes a halo of lower grade mineralization over a total intercept width of 6m located within a highly fractured zone with fractures infilled with pyrite, sphalerite and chalcopyrite.
These results reported and tabled below correspond to two main exploration target areas within the Goliath property.

Recent Drilling Highlights:

1. Eastern Resource Extension. Fourteen drill holes were drilled along 350 meters of strike length on the eastern end of the current resource area to test its vertical extent from 25 – 200 meters below the surface. The primary target for this program has been the C Zone, which sits approximately 40 meters into the footwall from the Main Zone. Results received to date indicate modest grade over substantial widths as exemplified by drill hole TL12-258 intersecting 23.66 m @ 0.56 g/t Au. Other noteworthy results include 2m @ 11.62 g/t Au in drill hole TL12-240; this intercept is interpreted to be in a zone footwall to the C Zone where follow-up drilling to the east is now warranted. Further follow-up drilling in the C Zone has potential to increase the resource size and upgrade Inferred resources into the Indicated resource category. 
   
   
2. Fold Zone. Six holes were drilled in a NNW fence, 3.1 km to the Northeast of the eastern end of the present resource, to test a prospective 1.2 km lithologic section down to a depth of approximately 300 meters, across the strike projection of the auriferous horizon in a structurally complex area described as the Fold Zone. Results of particular interest from this drilling in this area are intercepts of 2m @ 6.00 g/t Au in TL12-247 and 1.5 meters at 17.52 g/t as well as 3.0 meters @ 2.27 Au in TL12-245. 
   
   The first hole at the western end of the second of three fences across the Fold Zone, TL12-248 is also significant in that 2 separate 8.0 meter intercepts returning 0.39 and 0.33 g/t Au respectively occur in the 28m down hole interval between 172 – 200 meters that also includes a separate intercept of 1.5m @ 12.44 g/t Au.

To view further details of these and previous drilling results including diamond drilling plan maps and drill hole locations, please visit the News Release section on the Company’s website, www.treasurymetals.com. 

Other developments
Treasury Metals continues to develop the Goliath Project through Environmental Baseline Studies which were initiated in Fall 2010 and are ongoing.

Treasury Metals has also announced the results of the advanced level metallurgical testwork program completed at G&T Metallurgical Services Ltd. (part of ALS Metallurgy “ALS”) with John A. Wells retained to oversee the program on behalf of the Company. The results confirm excellent gold recoveries from the Goliath Gold Project in northwestern Ontario consistent with the Company’s scoping study level work performed in 2011 and the large bulk sample performed by former owner Teck Resources Ltd. The advanced level metallurgical test results could support a Feasibility Study on the Goliath project in the future.

Metallurgical testing focused on assessment of two principal flowsheets that involved gravity concentration and cyanidation unit operations while incorporating optimization of the selected flowsheet. The recovery of gold is consistently high in all tests, and ranged between 93 and 98 per cent. The gravity recovery circuit plus Carbon in Leach (CIL) processing of the gravity tails was identified as the best metallurgical flowsheet for the Goliath Gold Project reporting an average gold extraction of 96 per cent. In addition, a high proportion of the gold reported to a gravity concentrate ranging between 69 and 72 per cent. The results also confirmed that the leach kinetics were rapid and majority of the gold in the gravity tails solubilized within six to ten hours.

The test results demonstrated medium hardness ore, low to moderate cyanide and lime consumption, good settling and low viscosity, and all of this is supported by the mineralogy, that shows well liberated gold. A copy of the ALS Metallurgy Technical Report titled “Feasibility Metallurgical Testing, Goliath Gold Project” is available on the Company’s website (www.treasurymetals.com). The flowsheet is below.

Land Position
Treasury Metals has consolidated a significant land position in Eagle-Wabigoon-Manitou Lakes Greenstone Belt near Dryden, Ontario. The Goliath Property consists of 137 contiguous unpatented mining claims (254 units – 4,064 hectares) and 19 patented land parcels (approximately 817 hectares). The total area of the claim group is approximately 4,881 hectares (approximately 49 km2) covering portions of Hartman and Zealand townships near the community of Wabigoon and east of the city of Dryden.

Treasury Metals is the first company to consolidate the separate Teck/Corona/Laramide properties into one project area that can be systematically explored. We believe that the many gold occurrences on the Goliath Property is indicative of a larger system of orogenic / hydrothermal gold mineralization.

Geology and Gold Mineralization
The Goliath Project is located within the Eagle – Wabigoon – Manitou greenstone belt of the Wabigoon Subprovince of the Archaean Superior Province, northwestern Ontario and is situated north of a regional structure, the Wabigoon Fault. The Wabigoon Subprovince is now host to several multi-million ounce, NI 43-101 compliant mineral resources, including; Rainy River (Rainy River Resources), Hammond Reef (Osisko) and further to the east historic mining district of Beardmore - Geraldton. Treasury Metals considers this is a very prospective terrain in which to conduct gold exploration.

The Goliath project area is underlain by a lower amphibolite metamorphic grade volcanogenic-sedimentary complex of felsic metavolcanic rocks and classic metasedimentary rocks. The assemblage itself comprises quartz-porphyritic felsic to intermediate metavolcanic rocks represented by biotite gneiss, mica schist, quartz-porphyritic mica schist, a variety of metasedimentary rocks and minor amphibolites. Compositional layering in metasedimentary rocks strikes ~70° to 90°and dips from 70° to 80° south-southeast. The Thunder River Mafic Metavolcanics underlie the south part of the Property. The mafic rocks are pillowed locally and are exposed as amphibolites and mafic dykes, which consists mainly of chlorite or green schist.

The mineralised zones are tabular composite units defined on the basis of anomalous to strongly elevated gold concentrations, increased sulphide content and distinctive altered rock units and are concordant to the local stratigraphic units and shear fabric. Stratigraphically, gold mineralisation is contained in an approximately 100 to 150 metre wide central zone composed of intensely altered felsic metavolcanics (quartz-sericite and biotite- muscovite schist) with minor metasedimentary rocks. Overlying hanging wall rocks consist of altered felsic metavolcanics (sericite schist, biotite - muscoviteschist and metasedimentary rocks), with the footwall comprising meta-sedimentary rocks with minor porphyries, felsic gneiss and schist. Gold within the central unit is concentrated in a pyritic alteration zone, consisting of quartz-sericite schist (MSS), quartz-eye gneiss and quartz-feldspar gneiss.

Goldcliff Property

Martin Walter (MBA, B.Sc. (Geology)): President and CEO, Director
Mr. Walter brings more than 15 years of operational and international mineral and mine development experience to the Company. He has worked on numerous precious metals projects worldwide as a consulting geologist and has held a number of executive level positions, including at Aquiline Resources Inc., where he served as Executive Vice President and Director. He is currently serving as a director of Crown Point Ventures Ltd. where he has been instrumental in building the assets of the company and the production team in Argentina. Mr. Walter holds a degree in geology from Ballarat University, Australia as well as an MBA from the University of Toronto.

Dennis Gibson (C.G.A.): Chief Financial Officer
Mr. Gibson holds a Bachelor of Commerce from Concordia University, is a Certified General Accountant and has held various senior financial positions for the past thirty years. Mr. Gibson served as Vice President, CFO and Corporate Secretary for Vector Intermediaries Inc from 1996 to 2004, as CFO for Aquiline Resources Inc. from April 2006 to December 2009 and as CFO for Laramide Resources Ltd. from April 2006.
Greg Ferron (B.Com): VP Corporate Development
As VP Corporate Development, Mr. Ferron will focus on leveraging his years of business development and corporate finance experience in his role at Treasury Metals. Prior to joining, Mr. Ferron held various positions with increasingly greater responsibilities at the Toronto Stock Exchange and the TSX Venture Exchange for the past nine years, including being a member of the stock list committee. His last position at the Exchange was heading the global business development for the mining sector. Prior to that, Mr. Ferron was a Senior Account Manager and Financial Analyst at Scotiabank. He brings a vast network of contacts and relationships to his role at Treasury Metals. Mr. Ferron holds a Bachelor of Commerce from the University of Guelph and a Management Certificate, Financial Analysis and Investment Management from the University of Toronto.

John Chulick (MBA, B.Sc. Geology): Head of Exploration
Mr. Chulick is an experienced mining exploration geologist with more than 35 years of experience, primarily with precious metal companies including senior level roles with Aquiline and Meridian Gold Inc. His previous management experience including directing surface and underground exploration at Meridian's El Penon mine in northern Chile and he was directly responsible for building Aquiline's Navidad project into one of the world's largest silver deposits. Mr. Chulick is a registered geologist in the State of California, U.S.A.

Norm Bush (B.Sc. Mech Eng): Vice President Goliath Gold Project
Mr. Bush is an engineer with more than 25 years in executive positions, primarily in the Forestry sector. He has led teams that completed major capital projects including extensive upgrades and additions to Domtar's world-class pulp mill located in Dryden. He is a former Vice President at Domtar LLC and Weyerhaeuser, and General Manager at MacMillan Bloedel Ltd. Mr. Bush is a graduate of Queen's University in Kingston, Ontario.

Laramide Resources Ltd. 12%

Corona Gold Corp 11%

Management 11%

Sprott Asset Management 5%

Teck 3%