January
12, 2009 - Coeur d'Alene - Timberline Resources Corporation (NYSE Alternext:TLR) today
announced the completion of a hydrogeologic study
at its 100-percent owned, royalty-free Butte Highlands Gold Project in southwestern Montana. The positive results of the
study represent a significant milestone in the permitting process and the
proposed underground exploration and development schedule. The study
was a requirement for permit application and Timberline anticipates
submitting the underground permit application to the State of Montana
Department of Environmental Quality in the first quarter of 2009.
In
support of the study, the Company drilled a 1,167-foot groundwater
monitoring well to identify groundwater quantity and quality at the project
site and sampled surface water from local stream systems. The
borehole tests yielded 12 gallons of water per minute for the full length
of the monitoring well which is within the range anticipated by Timberline
and Small Mine Development, LLC ("SMD"). The hydrogeologic study considered local geology,
precipitation, hydrologic basins, and other pertinent information needed to
predict water inflow into the anticipated underground workings.
Resulting data was used by AMEC Geomatrix
to develop a Conceptual Hydrological Model of the deposit to predict
potential mine inflow during planned exploration and mine production
activities.
Butte
Highlands is located 15 miles south of Butte, Montana within a favorable geologic domain that has hosted several
multi-million ounce gold deposits including Butte, Golden Sunlight, Montana
Tunnels, and Virginia City. The property was extensively drilled by Placer
Dome, Battle Mountain, ASARCO, and Orvana
Minerals in the 1980s and 1990s, and contains historic mineralization
outlined by Orvana (not compliant with NI 43-101
or SEC Guide 7) exceeding 500,000 ounces of gold at a grade of nearly 0.3
oz/t. Past drilling highlights include gold intercepts of 50 feet of
0.65 oz/t, 31 feet of 1.06 oz/t, and 11.5 feet of 1.99 oz/t.
Timberline
recently announced plans to form a 50/50 joint-venture with SMD at Butte
Highlands. Under terms of the agreement, Timberline will be carried to
production by SMD which will fund all project development costs and begin
development this summer. Timberline's 50-percent share of project
costs will be paid out of proceeds from future mine production. The
partnership is mutually regarded by Timberline and SMD as a model for
future opportunities in underground mine development and mining.
This
press release has been reviewed and approved by Paul Dircksen,
a Qualified Person as defined by NI 43-101.
Timberline
Resources Corporation has taken the complementary businesses of mining
services and mineral exploration and combined them into a unique,
forward-thinking investment vehicle that provides investors exposure to
both the "picks and shovels" and "blue sky" aspects of
the mining industry. Timberline has contract drilling subsidiaries in the
western United States and Mexico and an exploration division focused on
district-scale gold projects with the potential for near-term, low-cost
development. The Company is forming a 50/50 joint-venture with Small Mine
Development, LLC at Timberline's 100 percent owned, royalty-free
Butte Highlands Gold Project, which is scheduled for development beginning
in 2009. Timberline is listed on the NYSE Alternext
US and trades under the symbol "TLR".
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, including
but not limited to the Company's 50/50 joint venture with SMD, the
development and production of the Company's Butte
Highlands project, and the Company's expected operations in 2009. When
used herein, the words "anticipate," "believe,"
"estimate," "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-KSB for the year ended
September 30, 2008. Except as required by the Federal Securities law, the
Company does not undertake any obligation to release publicly any revisions
to any forward-looking statements.
John Swallow, Chairman
Phone: 208.664.4859
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