Timberline Demonstrates Mineralization Continuity With Strong Drill Results from Its Lookout Mountain Gold Project
COEUR D'ALENE, IDAHO -- (Marketwire) -- 09/26/12 -- Timberline Resources Corporation (NYSE MKT: TLR)(NYSE Amex: TLR)(TSX VENTURE: TBR) ("Timberline" or the "Company") today reported additional results from the ongoing infill drill program at its Lookout Mountain Project near Eureka, Nevada. Several drill intercepts encountered mineralization greater than one gram per tonne of gold over significant lengths, demonstrating excellent mineralization continuity. Highlights from the latest batch of assay results include:
-- 167 feet (50.9 metres) with an average gold grade of 0.030 ounces per
ton (opt) (1.03 grams per tonne (g/t)) in Hole BHSE-134C
-- 72 feet (21.9 metres) with an average gold grade of 0.033 opt (1.13
g/t), within 249 feet (75.9 meters) with an average gold grade of 0.014
opt (0.48 g/t) in Hole BHSE-145C
-- 84 feet (25.5 metres) with an average gold grade of 0.037 opt (1.28 g/t)
in Hole BHSE-150C
-- 20 feet (6.0 metres) with an average gold grade of 0.47 opt (16.12 g/t)
in Hole BHSE-151C
-- All of these intervals include multiple higher grade intercepts (See
table below)
Timberline's Chief Executive Officer, Paul Dircksen, said, "These results continue to strengthen our confidence in the gold resource at Lookout Mountain. The depth and grade of the mineralization are increasing as we drill infill holes to greater depths, and excellent recoveries from bottle-roll tests continue to show that the vast majority of mineralization occurs in oxide material. Where core holes are being drilled for metallurgical testing in close proximity to previous reverse circulation holes, consistent assay results between the holes is confirming our confidence in gold grade continuity. We expect to use these results to upgrade a substantial portion of our Inferred resource into the Measured and Indicated categories."
Timberline's 2012 drill program at Lookout Mountain has focused on upgrading the gold resource, obtaining material for additional metallurgical studies, testing deeper zones of mineralization, and establishing a series of monitor wells to facilitate advancing the project to a near term production decision. Initial metallurgical recoveries of gold continue to indicate excellent potential for a low capital, low operating cost, heap-leach operation.
The following table summarizes significant drill results from Lookout Mountain:
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Length Length
From (feet) Gold From (metres) Gold NaCN
Drill Hole (feet) (1) (opt)(2) (metres) (1) (g/t)(2) Recovery(3)
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BHSE-134C 13 30 0.013 4.0 9.1 0.45 96%
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8 53 0.010 2.6 16.2 0.34 97%
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223 92 0.034 68.1 28.0 1.17 88%
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433 167 0.030 132.0 50.9 1.03 73%
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Including 433 91 0.050 132.0 27.7 1.71 87%
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Including 454 35 0.106 138.4 10.8 3.63 90%
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Including 473 6 0.366 144.2 1.8 12.55 96%
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BHSE-140C 18 37 0.010 5.5 11.4 0.34 85%
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244 67 0.015 74.4 20.4 0.51 76%
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510 115 0.025 155.5 35.1 0.86 82%
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BHSE-145C 186 12 0.018 56.7 3.7 0.63 75%
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513 249 0.014 156.4 75.9 0.48 87%
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Including 562 72 0.033 171.3 21.9 1.13 89%
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Including 570 20 0.088 173.6 6.1 3.02 91%
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Including 573 13 0.100 174.7 4.0 3.44 99%
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BHSE-147C 0 36 0.019 0.0 11.0 0.65 86%
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268 140 0.015 81.7 42.6 0.50 89%
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BHSE-144 140 15 0.014 42.7 4.6 0.48 100%
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BHSE-148C 167 36 0.019 50.9 11.0 0.64 88%
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226 28 0.020 68.7 8.5 0.67 100%
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BHSE-149C 290 42 0.023 88.4 12.9 0.78 88%
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391 63 0.015 119.2 19.2 0.51 87%
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BHSE-150C 138 84 0.037 42.1 25.5 1.28 79%
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Including 186 22 0.104 56.5 6.6 3.57 83%
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Including 191 3 0.357 58.2 0.8 12.23 95%
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BHSE-151C 48 12 0.011 14.6 3.5 0.37 74%
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232 26 0.026 70.8 7.8 0.91 97%
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273 12 0.013 83.2 3.7 0.43 89%
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501 20 0.470 152.7 6.0 16.12 89%
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Including 506 9 1.030 154.2 2.6 32.26 100%
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Including 510 3 2.460 155.3 0.9 84.41 94%
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BHSE-158 0 10 0.037 0.0 3.1 1.25 81%
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635 105 0.014 193.5 32.0 0.48 13%
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BHSE-159 150 90 0.021 45.7 27.4 0.73 95%
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Notes:
1. True widths of the drill intercepts have not been determined
2. Troy ounces per ton (opt) and grams per tonne (g/t)
3. NaCN represents a Sodium Cyanide leach recovery of the gold content of
the sample
Core holes 134C and 140C are twins of, and extend mineralization encountered in, RC holes 070 and 082 that were drilled in 2011 and lost before target depth. All intercepts below 335 feet (102 metres) depth in hole 134C are new, and all intercepts below 380 feet (116 metres) in depth on hole 140C are also new. The higher grades from these deeper intercepts will improve the overall grade in the southern region of the resource, as well as establish continuity in a plus-1 gram zone running north-south through the South Lookout Mountain portion of the resource. Assays are pending on four recently drilled RC holes that will test this same zone 400 - 600 feet (122 - 183 metres) south of holes 134C and 140C.
The South Eureka property features three extensive mineralized trends and also includes a pipeline of earlier-stage projects that feature past-producing open pits along with several areas containing historic gold resources. Lookout Mountain is the most advanced project within the South Eureka land package. Timberline's current gold resource estimate at Lookout Mountain, which was prepared by Mine Development Associates ("MDA") of Reno, Nevada, consists of:
- 390,000 ounces Measured & Indicated Gold Resource(1)
(20,765,000 tons at 0.019 opt gold (18,838,000 tonnes at 0.65 g/t))
- 221,000 ounces Inferred Gold Resource(2)
(18,385,000 tons at 0.012 opt gold (16,679,000 tonnes at 0.41 g/t))
The resources were calculated utilizing a cut-off grade of 0.006 ounces of gold per ton (opt) (0.21 grams per metric tonne (g/t)) for oxide material and 0.030 opt (1.03 g/t) for sulfide material. Approximately 83-percent of the resource ounces are from oxide material and 17-percent are from sulfide material. The effective date of the resource is April 17, 2012, and the complete technical report is filed on SEDAR. The full MDA Resource Estimate with various cut-off grades may be viewed at http://timberline-resources.com/main.php?page=208.
Gary Edmondo, Timberline's Great Basin District Geologist, is a Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the technical contents of this release. He has verified the drill results and other data disclosed in this news release, including sampling, analytical and test data. Field work has been conducted under his supervision. The Timberline sampling and analysis program included an industry standard QA/QC program. After logging and cutting or dividing the sample intervals in half, the samples were picked up by Inspectorate America Corporation and taken to their ISO-9001 certified assay lab in Sparks, Nevada for analysis. The samples were analyzed for gold using a standard 30g fire assay with an AA finish. Samples returning a gold value in excess of 3 ppm were re-analyzed using a 30g fire assay with a gravimetric finish.
The Lookout Mountain mineral resources were modeled and estimated by MDA by evaluating the drill data statistically, utilizing geologic interpretations provided by Timberline to interpret gold mineral domains on cross sections spaced at 50- to 100-foot intervals across the extents of the Lookout Mountain mineralization, rectifying the mineral-domain interpretations on level plans spaced at 10-foot intervals, analyzing the modeled mineralization geostatistically to aid in the establishment of estimation parameters, and interpolating grades into a three-dimensional block model. Mike Gustin is a Qualified Person as defined by National Instrument 43-101 and is responsible for the resource estimate.
About Timberline Resources
Timberline Resources Corporation is exploring and developing advanced-stage gold properties in the western United States. Timberline holds a 50-percent carried interest ownership stake in the Butte Highlands Joint Venture in Montana where gold production is targeted to commence in mid-2013. Timberline's exploration is primarily focused on the goldfields of Nevada, where it is advancing its flagship Lookout Mountain Project toward a production decision while exploring a pipeline of quality earlier-stage projects at its South Eureka Property and elsewhere. Timberline management has a proven track record of discovering economic mineral deposits and developing them into profitable mines.
Timberline is listed on the NYSE MKT where it trades under the symbol "TLR" and on the TSX Venture Exchange where it trades under the symbol "TBR".
(1) Cautionary note to U.S. investors concerning estimates of measured and indicated resources: This press release uses the terms "measured resources", "indicated resources" and "measured & indicated resources." We advise U.S. investors that while these terms are defined in and required by Canadian regulations, these terms are not defined terms under United States Securities and Exchange Commission ("SEC") Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant "reserves" as in-place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into SEC Industry Guide 7 reserves.
(2) Cautionary note to U.S. investors concerning estimates of inferred resources: This press uses the term "inferred resources". We advise U.S. investors that while this term is defined in and required by Canadian regulations, this term is not a defined term under SEC Industry Guide 7 and is normally not permitted to be used in reports and registration statements filed with the SEC. "Inferred resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred resource will ever be upgraded to a higher category. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant "reserves" as in-place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of an inferred resource exists or is economically or legally minable.
Forward-looking Statements
Statements contained herein that are not based upon current or historical fact are forward-looking in nature and constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements reflect the Company's expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. These statements include but are not limited to statements regarding the timing and results of the Company's continued exploration and drill program at South Eureka and Lookout Mountain, the timing of assay results from such drilling program being released, the Company's ability to expand and upgrade the South Eureka resource, the timing or results of the Company's drill programs at Butte Highlands, including the timing of obtaining necessary permits, the development and production of the Company's Butte Highlands project and projects on its South Eureka property, the potential life of the mine at the Butte Highlands project, the targeted production date for the Butte Highlands project, targeted date for production at South Eureka, the potential for a heap-leach mine at South Eureka, targeted dates for the South Eureka technical report and economic scoping study, and possible growth of the Company and the Company's expected operations, including potential development of an open pit extraction and run-of-mine heap leach processing and operation at South Eureka. When used herein, the words "anticipate," "believe," "estimate," "upcoming," "plan," "target", "intend" and "expect" and similar expressions, as they relate to Timberline Resources Corporation, its subsidiaries, or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties, and other factors that could cause the Company's actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, whether or not the Company completes the purchase of the Butte Highlands JV, LLC membership interests, risks related to the timing and completion of the drilling programs at Butte Highlands and South Eureka, risks and uncertainties related to mineral estimates, risks related to the inherently dangerous activity of mining, and other such factors, including risk factors discussed in the Company's Annual Report on Form 10-K for the year ended September 30, 2011. Except as required by Federal Securities law, the Company does not undertake any obligation to release publicly any revisions to any forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Timberline Resources Corporation
Paul Dircksen
CEO
208.664.4859