In good M&A transactions, one and one ideally gives more than the sum of two. That wants Treasury Metals (TSX: TML; FRA: TRC1) with a preliminary profitability calculation (PEA) for the two neighboring gold projects Goldlund and Goliath in Ontario.
The Goldlund project originally came from the portfolio of a subsidiary of First Mining (TSX: FF). In August of this year, Treasury Metals acquired this subsidiary in return for the issue of Treasury shares from First Mining. Combining Goldlund with Treasury Metals’ adjacent Goliath gold project has created a multi-million-ounce gold project.
Treasury has selected Ausenco Engineering Canada (“Ausenco”) as the primary advisor to the PEA. The study is expected to be completed at the beginning of the first quarter of 2021. Both projects together already have around 2 million ounces of gold measured and indicated. The PEA is intended to underline that the two projects can be sensibly combined and that with a combined production of more than 100,000 ounces per year, a mine life of more than 12 years.
Consolidation of projects for more efficiency
Goliath has a federal environmental permit for a mine and a processing plant. The site is 3,000 meters from the Trans-Canada Highway and rail corridors, 200 meters from a 115/230 kVa power line, and 20 kilometers from the city of Dryden. The recently acquired Goldlund project is located approximately 35 kilometers from Goliath, 27 kilometers of which are on a developed provincial road. Specifically, the PEA is designed to demonstrate the benefit of world class infrastructure to the cost and schedule of mine development.
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