Coeur d’Alene, Idaho – June 30, 2020 – Timberline Resources Corporation (OTCQB: TLRS; TSX-V: TBR) (“Timberline” or the “Company”) has issued a notice of default to PM & Gold Mines, Inc. (“PM&G”) pursuant to terms of the Lookout Mountain Joint Venture Agreement. The Agreement allows PM&G to earn an initial 51% interest in the project by funding $6 million in work expenditures over a 2-year period (see press release dated July 11, 2019 at http://timberlineresources.co/press-releases), of which $3 million was to have been expended during the first year.  PM&G has 30 days from June 28, 2020 to cure the default by making an in-lieu cash payment to Timberline of approximately $2.24 million.

Steven Osterberg, Timberline’s President and CEO, stated, “Lookout is a large Carlin-type gold system associated with a surface footprint of at 4-5 km along trend and ≥1 km width. The current NI 43-101 compliant gold resource of 508,000 oz Measured & Indicated and 141,000 oz Inferred remains open in all directions. We plan to expand the resource mineralization and to delineate and extend zones high-grade gold mineralization within it. With the improved capital markets, we look forward to advancing the project at the conclusion of the cure period.” 

Lookout Mountain Project

Past core and rotary drilling at Lookout Mountain partially delineated a trend of high-grade (intercepts of ≥0.10 ounces/ton (opt) (3.43 grams/tonne (g/t)) gold mineralization in the historical open-pit mine area (Figure 1), which produced 17,700 ounces of gold averaging 0.12 opt (4.11 g/t) in 1987 (see also press releases dated July 11, 2019 and September 4, 2019 at http://timberlineresources.co/press-releases and Updated Technical Report on the Lookout Mountain Project, MDA, Effective March 1, 2013, filed on SEDAR April 12, 2013). The drilling includes 46 intercepts in 38 drill holes (Table 1) of ≥ 0.25 opt (8.6 g/t) gold.  The high-grade gold mineralization occurs in relatively flat-lying to steep-dipping zones where structures intersect favorable stratigraphy. Associated alteration includes decalcification, collapse breccias, jasperoid, and chalcedonic silicification, which are characteristic of major Carlin-type gold deposits.

Plans include reverse circulation (RC) and core drilling. The core drilling will test continuity of the high-grade mineralization and provide important technical information. Some core holes will twin selected historical RC and conventional rotary holes to compare gold grades and recoveries. In addition, RC drilling will test for shallow, oxide gold mineralization north of the historic pit including a largely untested gap of approximately 1,500 ft (~450 m) between the current NI 43-101 resource and the Rocky Canyon mineralized area. It will also step out around the “orpiment-gold” high-grade mineralization discovered by drilling east of the pit area in 2015  (see press release dated April 20, 2015 at http://timberlineresources.co/press-releases).

Figure 1.  Lookout Mountain Open Pit-area Drill Holes, High-grade Gold Intercepts and Proposed Drilling Areas

Table 1.   Lookout Mountain High-grade Gold (≥ 0.25 opt (8.6 g/t)) Drill Intercepts1 

Drill
Hole

 Gold
(opt)
From (feet)

To
(feet)

Interval (feet)   Gold
(g/t)
From (meters)  To (meters) Interval (meters)
BH05-01 0.370 270 330 60 12.7 82.3 100.6 18.3
BH05-03 2.24 193 196 3 76.8 58.8 59.8 0.9
BH06-02 0.360 445 472 27 12.4 135.7 143.9 8.2
BH06-10 0.537 0 50 50 18.4 0.0 15.2 15.2
BH06-13 1.47 148 151 3 50.3 45.1 46.0 0.9
BH06-13 0.277 385 409.5 24.5 9.51 117.4 124.9 7.5
BH06-16 0.376 0 32.7 32.7 12.9 0.0 10.0 10.0
BHSE-029C 0.349 391 449 58 12.0 119.2 136.9 17.7
BHSE-032 0.425 140 150 10 14.6 42.7 45.7 3.1
BHSE-034 0.460 135 140 5 15.8 41.2 42.7 1.5
BHSE-037C 0.810 222 223 1 27.8 67.7 68.0 0.3
BHSE-126C 0.967 31 46.2 15.2 33.1 9.5 14.1 4.6
BR-1 0.424 35 75 40 14.5 10.7 22.9 12.2
BR-1 1.32 65 75 10 45.1 19.8 22.9 3.1
BR-19 0.323 220 235 15 11.1 67.1 71.7 4.6
BR-19 0.319 385 450 65 10.9 117.4 137.2 19.8
BR-26 0.323 440 460 20 11.1 134.2 140.2 6.1
EFL-4 0.270 95 100 5 9.3 29.0 30.5 1.5
EFL-5 0.250 0 5 5 8.6 0.0 1.5 1.5
LM-05 0.259 0 65 65 8.9 0.0 19.8 19.8
LM-13 0.360 10 15 5 12.3 3.1 4.6 1.5
RTC-201 0.317 0 46 46 10.9 0.0 14.0 14.0
RTC-201 0.504 57 65 8 17.3 17.4 19.8 2.4
RTR-020 0.520 20 25 5 17.8 6.1 7.6 1.5
RTR-044 0.338 0 65 65 11.6 0.0 19.8 19.8
RTR-044a 0.290 0 10 10 9.94 0.0 3.1 3.1
RTR-044a 0.310 85 90 5 10.6 25.9 27.4 1.5
RTR-048 0.400 180 185 5 13.7 54.9 56.4 1.5
RTR-049 4.76 110 115 5 163 33.5 35.1 1.5
RTR-049 0.820 240 250 10 28.1 73.2 76.2 3.1
RTR-059 0.600 95 105 10 20.6 29.0 32.0 3.1
RTR-071 0.283 0 45 45 9.71 0.0 13.7 13.7
RTR-095 0.368 25 65 40 12.6 7.6 19.8 12.2
RTR-098 0.370 0 45 45 12.7 0.0 13.7 13.7
RTR-133 0.507 235 250 15 17.4 71.7 76.2 4.6
RTR-134 0.350 415 470 55 12.0 126.5 143.3 16.8
RTR-153 0.325 30 60 30 11.1 9.2 18.3 9.2
RTR-153 0.360 240 245 5 12.3 73.2 74.7 1.5
RTR-156 0.300 55 60 5 10.3 16.8 18.3 1.5
RTR-159 0.250 15 25 10 8.57 4.6 7.6 3.1
RTR-163 0.920 60 65 5 31.5 18.3 19.8 1.5
RTR-180 0.340 365 375 10 11.7 111.3 114.3 3.1
RTR-181 0.265 265 335 70 9.09 80.8 102.1 21.3
RTR-190 0.329 475 525 50 11.3 144.8 160.1 15.2
RTR-191 0.557 440 485 45 19.1 134.2 147.9 13.7
RTR-258 0.410 500 510 10 14.1 152.4 155.5 3.1

1 See Updated Technical Report on the Lookout Mountain Project, MDA, Effective March 1, 2013, Filed on SEDAR April 12, 2013 for sample preparation, analyses, and security, and data verification 

Lookout Mountain Gold Resource

Plans are to incorporate the results of the drilling to update the resource model prepared by Mine Development Associates (“MDA”) of Reno, Nevada in 2013 (Table 2).

Table 2.  Lookout Mountain Gold Resource(1)(2)(3)
Resource Category Tons Tonnes Gold (opt) Gold
(g/t)
Gold Ounces
Measured 3,043,000 2,761,000 0.035 1.200 106,000
Indicated 25,897,000 23,493,000 0.016 0.549 402,000
Measured & Indicated 28,940,000 26,254,000 0.018 0.617 508,000
Inferred 11,709,000 10,622,000 0.012 0.411 141,000

Notes:

(1) 006 opt (0.21 g/t) cut-off applied to oxidized material to capture mineralization potentially available to open pit extraction and heap leach processing. 0.030 opt (1.03 g/t) cut-off applied to unoxidized material to capture mineralization potentially available to open pit extraction and lower heap leach recoveries or sulfide processing.
(2) Rounding may cause apparent discrepancies.
(3) Refer to Updated Technical Report on the Lookout Mountain Project, MDA, effective March 1, 2013, Filed on SEDAR April 12, 2013.

The full MDA resource study can be seen at https://secureservercdn.net/45.40.144.200/a7f.d1e.myftpupload.com/wp-content/uploads/2015/07/LookoutMt_-43-101_2013.pdf

About Timberline Resources:

Timberline Resources Corporation is focused on advancing district-scale gold exploration and development projects in Nevada. These include the Lookout Mountain joint venture project with PM & Gold Mines operated by Timberline and the Windfall project, both in the Eureka district. The Company is operator of both the Paiute joint venture project with Nevada Gold Mines, and the Elder Creek joint venture with McEwen Mining, both in the Battle Mountain district.  These properties all lie on the prolific Battle Mountain-Eureka gold trend.  Timberline also owns the Seven Troughs property in Northern Nevada, which is one of the state’s highest-grade former gold producers. Timberline controls over 43 square miles (27,500 acres) of mineral rights in Nevada.  Detailed maps and NI 43-101 estimated resource information for the Eureka property and NI 43-101 technical reports for the Elder Creek and Paiute projects may be viewed at http://timberlineresources.co/.

Timberline is listed on the OTCQB where it trades under the symbol “TLRS” and on the TSX Venture Exchange where it trades under the symbol “TBR”.

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 include, but are not limited to, statements regarding the advancement of projects, and exploration potential.  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. There are no assurances that the Company will complete the earn-in on the Elder Creek project as contemplated or at all. Factors that could cause or contribute to risks involving forward-looking statements include, but are not limited to, changes in the Company’s business and other factors, including risk factors discussed in the Company’s Form 10-Q for the quarter ended March 31, 2020.  Except as required by 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) accept responsibility for the adequacy or accuracy of this release.

For Further Information Please Contact:   

Steven A. Osterberg
President and CEO
Tel:   208-664-4859
E-mail:  info@timberline-resources.com