Timberline Completes Successful Drill Program at Lookout Mountain
Step-Out
Drilling Results Indicate Resource Expansion Opportunity
Coeur
d'Alene, Idaho - February 17, 2011 - Timberline Resources Corporation
(NYSE Amex: TLR; TSX-V: TBR) ("Timberline" or the
"Company") announces the successful completion of its 2010
exploration program and the receipt of all drill assays at its Lookout
Mountain Gold Project along the prolific Battle Mountain-Eureka Trend of
central Nevada.
Timberline's
Executive Chairman and Vice-President of Exploration, Paul Dircksen stated,
"With consistently positive assays and recoveries, our 2010 drill
results strongly support our belief in the potential for near-term
development of a low capital, low operating cost, open pit, heap-leach gold
mine at Lookout Mountain. We will now complete our 43-101-compliant
resource estimate, continue bench-scale metallurgical testing, and begin our
Preliminary Economic Assessment (PEA). We are greatly encouraged with
results from step-out drilling to the south which indicate that the deposit
remains open along strike and at depth. We are now planning a follow-up
drill program with objectives to expand the existing Lookout Mountain
resource and to test other priority targets at our South Eureka
property."
Highlights
from the most recent drilling at Lookout Mountain include:
- Intervals of significant
oxide gold mineralization within the southern resource area, indicating
excellent potential for resource expansion. Holes BHSE-068 and BHSE-070
were drilled as offset holes 150 and 350 feet south, respectively, of
Hole BHSE-062, which included an interval of 71.6 metres (235 feet)
grading 1.22 g/t (0.036 opt) gold. (See
Timberline Press Release of February 8, 2011.) Due
to poor ground conditions, Hole BHSE-070 was abandoned in
mineralization.
- Holes BHSE-075 and BHSE-076
were lost prior to intersecting targeted known flat-lying gold
mineralization within a favorable stratigraphic host. The
mineralized intercepts in Hole BHSE-076 indicates the presence of
structurally controlled higher-grade gold mineralization associated with
the broader low-grade mineralized halo that was targeted.
- Continued ore-grade
intercepts, including Hole number BHSE-076 containing intervals of 2.50
g/t (0.073 opt) gold over 19.8 metres (65 feet) and 1.15 g/t (0.034 opt)
gold over 18.3 metres (60 feet) with excellent gold recoveries as shown
in the table below.
Significant
drill results and gold recoveries include:
Hole ID
|
From
Feet (ft)
Metres (m)
|
To
Feet (ft)
Metres (m)
|
Length
Feet (ft)
Metres (m)
|
Gold Grade*
|
Gold Recovery
|
Comments
|
BHSE-068
|
590 ft
179.8 m
|
680 ft
207.2 m
|
90 ft
27.4 m
|
0.019 opt
0.65 g/t
|
90.7%
|
Oxide
|
BHSE-070
|
210 ft
64.0 m
|
300 ft
91.4 m
|
90 ft
27.4 m
|
0.037 opt
1.27 g/t
|
92.4%
|
Oxide
|
BHSE-071
|
245 ft
74.7 m
|
295 ft
89.9 m
|
50 ft
15.2 m
|
0.021 opt
0.72 g/t
|
90.4%
|
Oxide
|
BHSE-072
|
235 ft
71.6 m
|
280 ft
85.3 m
|
45 ft
13.7 m
|
0.019 opt
0.65 g/t
|
95.1%
|
Oxide
|
BHSE-073
|
800 ft
243.8 m
|
825 ft
251.4 m
|
25 ft
7.6 m
|
0.025 opt
0.87 g/t
|
55.0%
|
Sulfide / Oxide
|
BHSE-076
|
20 ft
6.1 m
|
85 ft
25.9 m
|
65 ft
19.8 m
|
0.073 opt
2.50 g/t
|
83.1%
|
Oxide
|
BHSE-076
|
120 ft
36.6 m
|
180 ft
54.9 m
|
60 ft
18.3 m
|
0.034 opt
1.15 g/t
|
86.5%
|
Oxide
|
* Troy
ounces per ton (opt) and grams per tonne (g/t)
All data
is currently being compiled, cross-sections are being generated, and grade
shells are being constructed to enable Mine Development Associates (MDA) of
Reno to complete a NI 43-101 compliant resource at Lookout
Mountain. Timberline expects to release the updated resource in early
March.
Lookout
Mountain is the most advanced project within Timberline's 23 square-mile
South Eureka land package and is located just a few miles from Barrick Gold
Corporation's two-million ounce Archimedes / Ruby Hill mine. Lookout
Mountain hosts significant oxide gold mineralization amenable to low-cost,
heap-leach recovery, along with a smaller, high-grade, sulfide
resource. In September 2010, Timberline embarked on a $2.5-million South
Eureka work program, primarily designed to complete a NI 43-101 compliant
resource estimate at Lookout Mountain. The program has included 7,500
feet of core drilling, 30,000 feet of reverse circulation drilling, extensive
metallurgical testing, and detailed geological mapping to better understand
mineralization controls and outline additional drill targets.
Paul
Dircksen 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 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.
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.
Paul
Dircksen, Executive Chairman
Randy
Hardy, CEO
Phone: 208.664.4859
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