Robust PFS Economics Position Treasury Metals for Growth as Advances Goliath Gold Complex Towards Production

About

Treasury Metals Inc. (TSX: TML, OTCQX: TSRMF) is a Canadian gold mining company focused on advancing its 100% owned Goliath Gold Complex located in northwestern Ontario. The Goliath Gold Complex includes three gold deposits - Goliath, Goldlund and Miller - within the prolific Wabigoon Greenstone Belt near Dryden, Ontario. The company's experienced management team has a track record of successfully permitting, financing, developing and operating mines.

Interview with Treasury Metals

PFS Highlights Robust Economics for Flagship Project

Treasury Metals recently announced results of a Pre-Feasibility Study (PFS) that outlines robust economics for its flagship Goliath Gold Complex. The PFS envisions a 13-year combined open pit and underground mining operation with average annual production of 90,000 ounces of gold over the initial 9 years. With initial capital costs of $335 million, the project generates an after-tax NPV of $336 million and 25.4% IRR at a base case gold price of $1,750/oz.

The PFS confirmed low all-in sustaining costs of $1,072/oz, providing significant potential for cash flow generation. The project also has strong leverage to higher gold prices, with the NPV increasing to $425 million at recent spot gold prices of $1,850/oz. The PFS economics position the Goliath Gold Complex as a potentially high-margin project in a favorable mining jurisdiction.

Advancing Towards a Construction Decision

With the PFS complete, Treasury Metals will begin feasibility study work and project optimization to further improve economics. The company will also continue advancing permitting efforts with the goal of making a construction decision within the next 18 months. The experienced Treasury Metals team has a track record of successfully taking projects through permitting and into production.

In addition, there remains exploration upside at the Goliath Gold Complex, providing potential to further expand resources and mine life. The company plans additional drilling starting in 2023 to target resource growth.

Attractive Leveraged Gold Exposure

With robust PFS economics, exploration upside and a clear path towards production, Treasury Metals offers investors attractive exposure to a large-scale gold development project with significant leverage to the gold price.

As Treasury Metals advances engineering and permitting efforts over the coming months, shares represent a compelling investment opportunity for investors seeking leveraged gold exposure and mine development upside.

Risks & Opportunities

Risks

• Execution risk in advancing the project to production on time and on budget
• Changes in capital and operating costs during feasibility study and detailed engineering
• Fluctuations in gold prices impacting project economics
• Financing risks to raise required capital for construction
• Permitting delays from regulatory processes and community/First Nations opposition
• Technical challenges with ore body and metallurgy

Opportunities

• Potential to improve project economics through optimization and engineering
• Additional exploration upside to expand resources and extend mine life
• Strong leverage to higher gold prices significantly boosts project valuation
• Potential re-rating as project derisks towards construction decision
• Future M&A interest from mid-tier/major gold producers as asset gets derisked
• Jurisdiction benefits from established mining industry support/infrastructure

5 Takeaways for Investors

1. Large-scale gold development project with robust PFS economics - After-tax NPV of $336M and 25.4% IRR at base case $1,750/oz gold price.
2. Significant production profile - Average of 90,000 oz/year production over initial 9 years of 13-year mine life.
3. Exploration upside - Potential to expand resources and extend mine life through additional drilling.
4. Strong leverage to gold price - NPV increases to $425M at recent $1,850/oz spot gold price.
5. Clear path to production - Experienced management team focused on feasibility study, permitting, and financing, targeting a construction decision within 18 months.

Conclusion

With robust PFS economics, strong production potential, and significant leverage to gold prices, Treasury Metals offers investors an attractive opportunity to gain exposure to a large-scale Canadian gold development project. As the company advances engineering and permitting efforts over the coming months, Treasury Metals is positioned to unlock further value from its flagship Goliath Gold Project. For investors seeking leveraged gold exposure combined with mine development upside, Treasury Metals represents a compelling investment case worth considering.