Timberline Resources Corporation (TSX VENTURE:TBR)(NYSE Amex:TLR) has reported continued favorable assay and gold recovery results from drilling at its Lookout Mountain Gold Project along the Battle Mountain – Eureka Trend of central Nevada.
Results included several ore-grade intercepts with excellent recoveries of oxide gold mineralization, including Hole BHSE-062 which returned 1.22 grams per tonne (g/t) (0.036 ounces per ton (opt)) over 71.6 metres (235 feet) with 92.0-percent recovery.
Paul Dircksen, Timberline's Executive Chairman and Vice-President of Exploration stated, "Our 2010 acquisition of Staccato Gold was driven by our belief that Lookout Mountain hosts significant oxide gold mineralization amenable to low-cost, heap-leach recovery and has the potential for near-term open pit production with relatively modest capital expenditures. As we methodically execute our exploration plan, drilling and metallurgical results have consistently met or exceeded our expectations."
Mr. Dircksen continued, "Upon receipt of the remaining drill results, Mine Development Associates (MDA) of Reno will complete our NI 43-101 resource estimate, which we expect by early March. We will then commence our Preliminary Economic Assessment (PEA) for Lookout Mountain as we advance the project toward a production decision. Coupled with anticipated gold production at Butte Highlands by early Q1 2012, we believe we are exceptionally well-positioned for the ongoing bull market in gold. We are very excited about our future at Timberline."
Holes numbered BHSE-062 and BHSE-065 were drilled north of historic hole number EBR-9-94 which intersected 90.1 metres (295 feet) grading 0.79 g/t (0.023 opt) gold. These holes tested the western margin of the Lookout Mountain area, intersected significant intervals of gold mineralization, demonstrated favorable metallurgy, and may potentially expand the reported resource. Assays are pending for holes BHSE-068 and BHSE-070, both drilled to the south of hole number EBR-9-94.
Holes numbered BHSE-064 and BHSE-066 were drilled along the eastern margin of known gold mineralization to help define its eastern extent. The holes returned somewhat narrower intercepts with higher gold grades and appear to indicate a near vertical structural control to the eastern boundary of mineralization.
Lookout Mountain is the most advanced project within Timberline's 23 square-mile South Eureka land package, located just a few miles from Barrick Gold Corporation's two-million ounce Archimedes / Ruby Hill mine. Lookout Mountain hosts significant oxide gold mineralization amenable to low-cost, heap-leach recovery, along with a smaller, high-grade, sulfide resource. In September 2010, Timberline embarked on a $2.5-million South Eureka work program, primarily designed to complete a NI 43-101 compliant resource estimate at Lookout Mountain. The program has included 7,500 feet of core drilling, 30,000 feet of reverse circulation drilling, extensive metallurgical testing, and detailed geological mapping to better understand mineralization controls and outline additional drill targets.
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