Timberline Resources has declared that high-grade mineralized gold has been intercepted below the resource that is presently outlined at the Lookout Mountain project in Nevada.
This important intercept graded 4.72 g/t gold over 4.6 m of the hole, which ended in mineralization because of ground conditions. The intercept denotes that high-grade mineralization exists down dip of the currently-outlined resource. This fresh zone was identified beneath the current historical pit present at Lookout Mountain.
The high-grade mineralization present in hole BHSE-152 has a dual purpose, one is to form a water-monitoring well adjacent to the previous Lookout Mountain pit and second is to examine the potential of down dip feeder zone for high-grade mineralized gold. The drill program focused on the controlling structure of the presently reported resource, where a prospective cross fault was intersected. The intercept is about 183 m down dip from the prior drill program.
At Lookout Mountain, the present drilling campaign targeted to improve a huge portion of the present resource into the Indicated and Measured category; to receive material for further metallurgical studies; to examine deeper mineralization zones; and to form a sequence of monitor wells for developing the project to a future production decision. Preliminary gold metallurgical recoveries continue to demonstrate the prospective for a heap-leach operation.
According to Paul Dircksen, CEO of Timberline, the impact of the BHSE-152 hole intercept is to show the possibility for increased tonnages of high-grade mineralization. The company has not examine this deeper prospective along the 1.22 km of strike, where the present resource has been outlined. These drilling results confirm the existence of larger prospective of the South Eureka Property, particularly in the Lookout Mountain project. It is significant to observe that the hole is present in the lowest part of the mineralized zone. With these positive results, the company is intending to continue with testing of the high-grade mineralization with RC and core drill program in 2012 end and in upcoming campaigns.
Source: http://www.timberline-resources.com/