09/14/04
Spokane, Washington – September 14, 2004 – Timberline Resources Corporation (OTC:TBLC) announced today that it has signed a Letter of Intent (LOI) with Hecla Mining Company (NYSE:HL) to earn 49-percent of Hecla’s Snowstorm Trend Project in north Idaho’s “Silver Valley”.
The proposed project area features the historic Snowstorm Mine, a small but highly profitable operation from the early-1900s that produced 800,000 tons of ore averaging 4-percent copper and 6 ounces per ton silver. Mineralization at the Snowstorm occurred as disseminated copper and silver found in the same Revett quartzites that host the well-known Troy, Rock Creek and Montanore deposits in western Montana, but was of a significantly higher grade. The property lies in the southwest corner of the Montana Copper Sulfide Belt where it overlaps the northeast corner of the Coeur d’Alene Mining District.
The LOI calls for Timberline to conduct and fund a Phase I exploration program on the property ending no later than October 2006, with minimum exploration expenditures of $250,000 required to earn a 49-percent participating interest in the project. Following the delivery of a Phase I report and a Phase II exploration proposal from Timberline, Hecla can elect to maintain its 51-percent participating interest or can opt out and retain a 4-percent net smelter returns royalty on future production from the project. The LOI requires the two parties to finalize the “earn-in” agreement prior to October 15, 2004.
Upon finalization of the agreement, work will commence immediately with initial surface mapping and sampling programs progressing into the fall as weather permits. Compilation of data from previous Snowstorm exploration efforts will be pursued through the winter, in advance of geophysics, drilling, and other fieldwork planned for next spring. The Phase I program will be directed by Timberline Vice-President of Exploration and former Hecla Geologist, Randy Anderson. Timberline Resources Corporation is a Spokane-based junior mineral exploration company focused on the cost-effective acquisition, exploration, and development of promising mineral properties in the western United States. Timberline stock trades on the OTC Market under the symbol “TBLC”.
Certain statements contained in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based on beliefs of management as well as assumptions made by and information currently available to management. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from expected results.
CONTACT: Timberline Resources Corporation
Bill Hoyt, Investor Relations
(785) 383-9246
www.timberline-resources.com