01/31/08
COEUR D’ALENE, Idaho, Jan. 31, 2008 (PRIME NEWSWIRE) — Timberline Resources Corporation (OTCBB:TBLC) today announced the receipt of necessary permits to proceed with exploration and drilling at its Conglomerate Mesa Project in Inyo County, California. The project hosts structurally and stratigraphically controlled, sediment-hosted gold mineralization similar to the “Carlin-type” deposits of north-central Nevada. Timberline management believes that Conglomerate Mesa represents one of the premier gold exploration projects remaining within the Great Basin province of the western United States.
Timberline VP of Exploration Paul Dircksen stated, “We are pleased to receive permitting approval to proceed at our highest-priority project, Conglomerate Mesa, with our first exploration program since finalizing our Option-to-Purchase agreement last summer. Beginning next week, we will reopen an access road, perform additional mapping and sampling, and conduct an initial 7-hole diamond drill program to test four areas of elevated gold values, as outlined by soil and rock chip geochemistry and past drilling. Our program launch at Conglomerate Mesa, along with our active drill program and permitting progress at our early-stage Walker Lane properties, demonstrates our commitment to a major acceleration of our exploration programs over the next several months.”
The mineralized zones of focus are part of a 2.5-mile long gold trend at Conglomerate Mesa identified by prior operators, Newmont Mining and BHP-Billiton, whose drill programs totaled 31 completed holes over a 5- square-mile area. Newmont completed 21 holes, intersecting significant mineralization in 15 of them. BHP intersected multiple intervals of significant mineralization in all 10 of their holes, with four or more such intervals in 7 of the holes. Given the largely reconnaissance nature of these early-stage drill programs, Timberline management believes that these results are exceptional and suggest the potential for a district-scale, multi-million ounce gold deposit at Conglomerate Mesa.
Newmont’s exploration efforts focused primarily on just one of the property’s mineralized zones (“Resource Area”) where they outlined a resource estimate pre-dating (and not compliant with) NI 43-101 standards totaling 175,000 ounces of gold contained in 3-million tons grading 0.06 ounces per ton (oz/t). BHP later identified a much larger hydrothermal gold system with excellent bulk-mineable potential. Eight target zones were identified by soil geochemistry and surface road cut channel sampling with one sample returning 40 feet of 0.37 oz/t gold (within 140 feet of 0.12 oz/t) at the Dragonfly Zone. BHP later conducted a widely-spaced, 10-hole drill program with one hole, also at Dragonfly, returning three separate 30 to 40 foot intervals of 0.05 to 0.11 oz/t gold.
As part of due diligence efforts at Conglomerate Mesa prior to its acquisition, Timberline collected rock chip surface samples from three of the known mineralized zones, returning gold assays ranging from 0.07 to 0.52 oz/t.
Despite its location between two prolific mining districts (Cerro Gordo and Santa Rosa) and the excellent surface gold grades encountered by Newmont, BHP, and Timberline, the Conglomerate Mesa property did not see historic mining because the sediment-hosted gold particles are micron-sized and therefore could not be panned by prospectors. This same style of mineralization is present at deposits within Nevada’s Carlin and Battle Mountain/Eureka trends, which were also not historically mined, and which did not develop into world-class mining camps until the 1970s.
Timberline also announced today that early-stage drill testing of some of its Walker Lane projects is now underway, beginning with a 5,000-foot program at Downeyville. Geophysical surveys, along with geologic mapping and sampling, have led to the selection of priority targets for structurally-controlled, ore-grade, gold-silver skarn mineralization. Upon program completion, the drill rig will move to the Gold Gate and HD projects.
This press release has been reviewed and approved by Paul Dircksen, a Qualified Person as defined by NI 43-101.
Timberline Resources Corporation is a unique, growth-oriented company that combines positive cash flow from its mine services division with “blue sky” upside from its mineral exploration division. Timberline common stock is quoted on the OTC Bulletin Board under the symbol “TBLC.”
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. 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, 2007. 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.
CONTACT: Timberline Resources Corporation
John Swallow, Executive Chairman
(208) 664-4859
www.timberline-resources.com
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