Toronto’s Treasury Metals is moving a step closer to mining its Goliath Gold Project in northwestern Ontario.
The Toronto gold explorer said it’s starting a feasibility study and has selected Sedgman, a member of the CIMIC Group, to be the project lead. The study will be released in the third quarter of 2018.
Treasury is calling this a “major project milestone” as the company picks up steam, combined with its mine permitting work, toward making a final production decision next year.
The proposed open-pit/underground mine project is 20 kilometres east of Dryden and two kilometres north of the Trans-Canada Highway.
A preliminary economic assessment released in March forecasts an operation with an average annual gold production of 87,850 ounces per year over a 13-year mine life, and a head grade of 3.8 grams per tonne over that span.
Treasury’s schedule shows mine construction starting next year with production slated for 2020.
The feasibility study will cover the optimal mining rate for both underground and open pit operations and evaluate what new mining innovations can be employed such as using battery-powered mobile equipment, utilizing backfill technologies and the tailing storage methods being used at newer operations in Northern Ontario.
The study will also have an updated mineral estimate that includes the results from a 30,000-metre combination infill and step-out drill program that the company announced in early August.
Treasury Metals president-CEO Chris Stewart is thrilled to be pressing forward.
"Our team continues to execute on the advancement of the Goliath Project and will work closely with our professional partners to achieve our goal of developing Ontario's next open-pit and underground mine while minimizing our environmental footprint.
“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. 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."