Timberline Resources Corporation (TSX VENTURE:TBR)(NYSE Amex:TLR) has reported on the progress and results of its drilling and metallurgical testing at its South Eureka Property, a sediment-hosted gold project located in the prolific Battle Mountain Eureka Trend in Nevada.
Upon the Bureau of Land Management's final approval of Timberline's Plan of Operation in September 2010, the Company proceeded with its planned $2.2 million exploration program.
Over 12,000 feet (3,658 metres) of Reverse Circulation (RC) drilling has been completed and assay results have been received for four holes, with seven additional holes currently in the lab.
Additionally, seven core holes have been completed, and the core from four of those holes has been submitted to Kappes, Cassiday & Associates (KCA) in Reno, Nevada for metallurgical testing. The core samples from the remaining three holes will be submitted to KCA this week, and assay results from all of these holes will be reported when the testing and assays have been completed.
Paul Dircksen, Timberline's Executive Chairman and Vice-President of Exploration stated, "We are very pleased with the progress and results at our Lookout Mountain Project on the South Eureka Property - particularly considering our very late start due to permitting requirements. Our on-site staff and contractors are to be commended for the rapid advancement of this project. All four holes for which assays have been received are infill drill holes targeting open zones of mineralization or aiming to better define high grade mineralization. The assay results are consistent with our projections, and we are especially pleased with the results from hole BHSE-035 which indicates a broader zone of better grade gold with exceptional metallurgy. Furthermore, all drilling and assay results to date support the geologic model for our resource estimate, including the sulfide intervals that establish continuity of the higher-grade sulfide mineralization."
Mr. Dircksen added, "Our NaCN shake test results confirm the positive metallurgical characteristics of the oxide mineralization which support our view that the operation may be able to process run-of-mine material without the added cost of crushing or grinding the ore. With a grade that is on par with many other sediment-hosted gold deposits in Nevada, metallurgical characteristics amenable to a low-cost heap leach operation, and gold prices at historical levels, we see significant value coming from this project."
Timberline is aggressively pursuing the objectives of its exploration program at South Eureka which include:
- 7,500 foot (2,286 metre) core drill program focused primarily on obtaining core for process metallurgical scoping studies;
- 30,000 foot (9,144 metre) Reverse Circulation (RC) drill program directed primarily at in-fill and resource definition drilling necessary to complete a NI 43-101 technical report, including a compliant resource, for the Lookout Mountain Project by early March 2011;
- Drill testing of high grade sulfide/refractory lenses within the oxide resource area to better understand the controls and geometry of sulfide mineralization;
- Metallurgical testing by KCA on core samples to define the heap leach characteristics and process parameters;
- Channel sampling and bulk sampling within the historic Lookout Mountain pit for bench-scale metallurgical testing;
- Detailed geologic mapping and sampling to identify and target additional exploration targets on the South Eureka Property but outside of the main Lookout Mountain resource area;
- Incorporating all collected data into a Preliminary Economic Assessment (PEA) to be completed by early summer 2011.
Timberline's CEO, Randy Hardy, said, "We are also on track to obtain our Hard Rock Operating Permit at the Butte Highlands JV gold project in Montana by the end of the 3rd quarter of 2011. Underground development is advancing steadily at the project, and underground definition drilling is expected to begin by the end of November. Timberline Drilling, our wholly-owned contract drilling subsidiary, is doing an excellent job core drilling at Butte Highlands and South Eureka, and their surface and underground diamond drilling services are increasingly in demand due to their solid reputation of delivering superior customer service and the increased call for drilling at exploration projects and operating mines that are feverishly drilling to replace depleted reserves. We are looking forward to successfully meeting several significant milestones in 2011, including advancing the exploration programs at our South Eureka Property, gold production at Butte Highlands, and continued operational and financial improvements at Timberline Drilling."
The Company also announced that with increasing demand for drills and improved drilling margins at Timberline Drilling in the United States, along with an increasingly-difficult operating environment and growing country-related risk in Mexico, they have discontinued their drilling services operation in Mexico which was operated by their wholly-owned Mexican subsidiary, World Wide Exploration, S.A. de C.V. ("WWE"). All of the drills and related assets of WWE have been repositioned in the United States for deployment by Timberline Drilling, including one drill that has already been mobilized for a potentially long-term contract.
Timberline management recently gave a corporate presentation to a large group of investors at the New Orleans Investment Conference and will also be presenting at the San Francisco Hard Assets Conference which will be held at the Marriott Marquis on November 21-22, 2010. Investors are invited to attend and to visit company management at booth # 416 in the exhibit hall.
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.
Source: Timberline Resources Corporation