Treasury Metals Inc. (TML:TSX; TSRMF:OTCBB) intends to put the next gold mine into production in Northwest Ontario in 2021. On May 30th they released results from a 2018 drill program. To date this year they have completed 11,591 meters in 17 holes and released results. These are infill holes designed to expand the existing resource within the current open pit mine plan feasibility study. The best hole showed 65.78 g/t gold over three meters.
Treasury has begun a 5,000-meter drill program on what they call the East Resource target. Initial assay results will come out in June of 2018. The East Resource zone is not in the current mine plan.
The company released a PEA in early 2017 showing a 43-101 resource of about 1.5 million ounces of gold equivalent combining both the open pit and underground portion of the mine plan for the Goliath gold project. There is a PFS being completed now with release due in July of 2018. It will include an updated 43-101 resource but that will not include the 2018 drill results. Naturally the company will be using up-to-date prices for gold and silver as well as current costs and exchange rates.
I continue to look for one more down drop in the price of the metals. With the DSI for gold at 16 and silver at 10 we are near a bottom but I would be happier with fewer bulls. Great lows happen when people hate the metals. As of now, potential investors don't hate the metals as much as they love the 1,857 variations of bitcons. While it's common to see how fools become separated from their money, you just have to wonder how they got together in the first place.
Treasury Metals continues to make measured progress with their Goliath gold project. Plans call for production of 100k ounces. At today's prices an investor is getting ounces of gold in the ground at about $26 US. The share price was as high as $0.76 in September of 2017 and recently dropped to a new low of $0.415 for the year. Remember that prices for everything go up and they go down. The best time to invest in resource shares is when no one wants them. Buy low, sell high. Right now TML shares are low and you have to make an appointment a week in advance to sell. Things couldn't be more boring. That's a good thing.
At this stage of development, ounces of gold in a safe jurisdiction should be in the $40 to $80 range. If the company could prove up 2 million ounces, majors would start breathing hard. At that point ounces could be in the $200–$400 area. Remember, the majors have to replace all the ounces they are mining and they are not. For the last half dozen years the majors have been consuming their young.
Think of Treasury shares as a savings bond. They won't explode overnight like a junior who just drilled 100 meters of two-ounce gold but they are also not going to plunge overnight.
Treasury Metals is an advertiser. Do your own due diligence. They have done a great presentation that is up to date and for investors interested in a safe and boring gold project producing 100,000 ounces of gold a year for 13 years, go here.
Treasury Metals Inc.
TML-T $0.425 (May 30, 2018)
TSRMF-OTCBB 123 million shares
Treasury Metals website.
Bob and Barb Moriarty brought 321gold.com to the Internet almost 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.
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