COEUR D'ALENE, Idaho, July 17, 2008 (PRIME NEWSWIRE) -- Timberline Resources Corporation (AMEX:TLR) announced today that a drill rig has been mobilized to its Butte Highlands Gold Project in southwestern Montana to begin a planned 17-hole, 8500-meter core drill program this week. The Butte Highlands project lies on patented ground with no underlying royalties and is 100-percent owned by Timberline.
The drill program will initiate Timberline's Preliminary Scoping Study at Butte Highlands to assess opportunities for near-term underground production, as outlined in its press release dated May 19, 2008. Drilling will focus on the validation and expansion of historic mineralization estimates with a combination of in-fill and step-out holes. Resulting data will support the planning and permitting of an exploration decline while sampled core will be used for metallurgical testing. The drill program will be performed by Timberline's subsidiary, Kettle Drilling, Inc.
Timberline V-P of Exploration Paul Dircksen stated, "We are pleased to resume work at Butte Highlands which, we believe, has the potential for near-term development and production, the expansion of known mineralized zones, and the discovery of new zones. With our 'in-house' capability to explore, permit, drill, develop, and mine, we believe that Butte Highlands provides an ideal showcase for our vertically-integrated business model."
Butte Highlands was extensively drilled by Placer Dome, Battle Mountain, ASARCO, and Orvana Minerals in the 1980s and 1990s, and contains historic mineralization outlined by Orvana (not compliant with NI 43-101 or SEC Guide 7) exceeding 500,000 ounces of gold at a grade of nearly 0.3 ounces per ton (oz/t). Past drilling highlights include gold intercepts of 50 feet of 0.65 oz/t, 31 feet of 1.06 oz/t, and 11.5 feet of 1.99 oz/t.
Timberline Resources Corporation has taken the complementary businesses of mining services and mineral exploration and combined them into a unique, forward-thinking investment vehicle that provides investors exposure to both the "picks and shovels" and "blue sky" aspects of the mining industry.
Timberline has contract drilling subsidiaries in the western United States and Mexico and an exploration division focused on high-potential, district-scale gold projects. With its anticipated acquisition of a premier American underground mine contractor, Small Mine Development, Timberline will strengthen its position as an emerging, vertically-integrated resource company. Timberline is listed on the American Stock Exchange and trades under the symbol "TLR".
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.