Timberline Drills 12.1 g/t Gold Over 17.7 Metres at Lookout Mountain
COEUR D'ALENE, IDAHO -- (Marketwire) -- 12/22/10 -- Timberline Resources Corporation (TSX VENTURE: TBR)(NYSE Amex: TLR) ('Timberline' or the 'Company') today reported assay results for a series of drill holes, including hole number BHSE-029C, which returned 0.35 opt (12.1 g/t) of gold over 58.0 feet (17.7 metres).
This high grade intercept represents significant sulfide bearing gold mineralization within the Lookout Mountain mineral system currently being advanced as part of the greater South Eureka Property. BHSE-029C was drilled as a metallurgical in-fill hole and is complemented by other historic drill holes within the zone, including:
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Interval Length Interval Length Gold Grade(i) Gold Grade(ii)
Hole ID Feet (ft) Metres (m) (opt) (g/t)
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BH06-02 27 8.2 0.37 12.5
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BH06-07 92 28.0 0.22 7.6
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BH06-13 33 10.6 0.23 7.8
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BR - 19 65 19.8 0.32 10.8
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BR - 26 20 6.1 0.33 11.2
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(i) Troy ounces per ton (opt)
(ii) Grams per tonne (g/t)
Since September, Timberline has drilled over 28,000 feet (core and RC) within the project, including 9,000 feet of RC drilling subsequent to the last drilling update. (See press release of November 15, 2010) Reported assay results further define the outlined mineralization and indicate thicker intercepts of low grade material which expand the known mineralization to the south of the historic Lookout Mountain Pit. Bulk channel samples and drill core have been submitted to Kappes-Cassiday in Reno for ongoing metallurgical testing. The potential for a low cost heap leach operation to recover gold continues to be supported by excellent gold recoveries from the cyanide shake leach results (71% - 94% recovery) listed in table below.
Significant drill intercepts within the oxide zone include:
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From To Length
Feet (ft) Feet (ft) Feet (ft) Gold
Hole ID Metres (m) Metres (m) Metres (m) Grade(i) NaCN Recovery
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365 ft 420 ft 55 ft 0.031 opt
BHSE-039 111.3 m 128.0 m 16.7 m 1.06 g/t 85.3%
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20 ft 235 ft 215 ft 0.020 opt
BHSE-040 6.1 m 71.6 m 65.5 m 0.67 g/t 93.0%
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275 ft 430 ft 155 ft 0.023 opt
BHSE-042 83.8 m 131.1 m 47.3 m 0.77 g/t 73.0%
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450 ft 560 ft 110 ft 0.023 opt
BHSE-048 137.2 m 170.7 m 33.5 m 0.77 g/t 94.3%
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240 ft 415 ft 175 ft 0.025 opt
BHSE-050 73.2 m 126.5 m 53.3 m 0.86 g/t 71.4%
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612 ft 646 ft 34 ft 0.024 opt
BHSE-029C 186.5 m 196.9 m 10.4 m 0.82 g/t Not Complete
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(i) Troy ounces per ton (opt) and grams per tonne (g/t)
Paul Dircksen, Timberline's Executive Chairman and Vice-President of Exploration stated, 'We continue to be very pleased with our progress at our South Eureka Property. This typical sediment-hosted gold project located in the productive Battle Mountain-Eureka Trend in Nevada contains both high-grade sulfide mineralization as well as widely-disseminated lower grade oxide gold mineralization. Drill results continue to support and expand our resource model and metallurgical data continues to support our premise that the oxide mineralization is amenable to become a run-of-mine heap leach operation. We are on schedule to produce an independent 43-101 resource estimate by March 2011. Exploration activities continue to enhance targets for further exploration and potential resource expansion.'
Timberline continues to evaluate opportunities to acquire additional advanced stage properties, such as South Eureka, that meet and are consistent with the goal of adding value by further advancing exploration, and then realizing that added value for shareholders by monetizing projects for development to production.
About Timberline Resources
Timberline is a U.S.-based exploration/development company with a focus on advanced-stage precious metals properties. The Company's management team has a solid track record of achievement in building successful companies and discovering, exploring, and developing economic mineral deposits. Currently, Timberline is executing an aggressive exploration program at its South Eureka Property, a large drill-tested and highly prospective property in Nevada's Battle Mountain - Eureka gold trend. In addition, Timberline has two other business units. The Company has a 50% carried-to-production interest at the Butte Highlands Joint Venture which is currently in development and targeted to begin gold production in early 2012, where the Company has also undertaken additional surface drilling to test the extent of the mineralized zone. Timberline also has a wholly-owned subsidiary, Timberline Drilling, which provides cash flow to the Company from its underground and surface drilling operations at operating mines and advanced development and exploration projects.
Timberline is listed on the NYSE Amex where it trades under the symbol 'TLR' and on the TSX Venture Exchange where it trades under the symbol 'TBR'.
Statements contained herein that are not based upon current or historical fact are forward-looking in nature. 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 of the Company's continued drill program at Butte Highlands, the timing of assay results from such drilling program being released, the Company's 50/50 joint venture with Highland Mining LLC, the development and production of the Company's Butte Highlands project and South Eureka project, the targeted production date for the Butte Highlands project, targeted dates for the South Eureka technical report and PEA, results of the Company's drilling subsidiaries, possible growth of the Company and the Company's expected operations. When used herein, the words 'anticipate,' 'believe,' 'estimate,' 'upcoming,' 'plan,' 'intend' and 'expect' and similar expressions, as they relate to Timberline Resources Corporation, 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, such factors, including risk factors, discussed in the Company's Annual Report on Form 10-K for the year ended September 30, 2010. 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
Executive Chairman
208.664.4859
Timberline Resources Corporation
Randy Hardy
CEO
208.664.4859
www.timberline-resources.com