COEUR D'ALENE, Idaho, Oct. 21, 2008 (GLOBE NEWSWIRE) -- Timberline Resources Corporation (AMEX:TLR) today announced initial results from drilling at its 100-percent owned, royalty-free Butte Highlands Gold Project.
Timberline completed the first four holes (totaling 6,757 feet) of its planned 17-hole surface core drilling program before the early onset of heavy snowfall forced the cessation of exploration activities for the season. Assays have been received for the first three holes with results confirming known mineralized zones and identifying a new high-grade gold zone to the northwest. The program was designed to validate and expand the historic estimates, to obtain material for petrographic and metallurgical evaluation, and to assess 3-D control for planning and permitting the exploration decline and, ultimately, a producing mine.
The most encouraging hole to-date, BH-DDH 08-03, was drilled 100 feet northwest of previously-tested mineralization boundaries. The hole returned several mineralized gold intervals, including 2.0 feet of 0.62 ounces per ton (oz/t), 37.0 feet of 0.22 oz/t, 5.0 feet of 0.26 oz/t, 9.0 feet of 0.43 oz/t, and 35.0 feet of 0.14 oz/t. These results demonstrate the northwest extension of the Upper, Middle, and Lower zones, while the latter two intervals comprise a new discovery at depth, a potential offset portion of previously-identified zones. Both the extension and the discovery have the potential to greatly increase mineralization estimates at Butte Highlands.
Results for BH-DDH 08-02, intended to test a narrow gold zone proximal to a diorite dike, were also positive and encouraging. In addition to a 7.2-foot interval grading 0.11 oz/t gold within typical Wolsey shale host rock, the hole also intercepted a 267-foot zone of mineralized diorite with grades up to 0.18 oz/t gold, including 25.0 feet grading 0.10 oz/t. It is important to note that the identification of slightly higher-grade diorite material, or the delineation of similarly wide zones of lower-grade material with underground bulk mining potential, could have a significant positive impact on mineralization estimates as they do not currently include diorite-hosted gold. Additional testing of diorite targets will be considered for future drilling phases, most likely from underground.
Timberline Vice-President of Exploration Paul Dircksen stated, "Although this year's program was abbreviated, it has thus far achieved or exceeded our goals and expectations by meeting grade requirements throughout the main zone and providing an exciting new discovery to the northwest. Given the depth and relative difficulty of surface drilling at Butte Highlands, we are contemplating a redesigned program for 2009, reducing the number of surface holes and prioritizing the rapid development of the exploration decline to expedite drilling from underground."
Highlights from the first three completed holes are included in the table below.
Butte Highlands Drilling Highlights
Drill Hole From To Length Gold
(ft) (ft) (ft) (oz/t)
BH-DDH 08-01 1335.6 1337.0 1.4 0.27
BH-DDH 08-02 1171.4 1178.6 7.2 0.11
1321.0 1588.0 267.0 up to
0.18
Including 1326.0 1351.0 25.0 0.10
BH-DDH 08-03 1207.0 1209.0 2.0 0.62
1242.0 1279.0 37.0 0.22
Including 1242.0 1260.0 18.0 0.24
Including 1272.7 1279.0 6.3 0.41
1294.0 1299.0 5.0 0.26
1404.0 1409.0 5.0 0.11
NW Extension 1560.2 1569.2 9.0 0.43
NW Extension 1580.0 1615.0 35.0 0.14
Sampled core from BH-DDH 08-04, a step-out hole to the southeast, are currently at the assay lab with results expected within the next few weeks. Submitted samples demonstrate substantial intervals of retro-grade skarn mineralization which is often indicative of ore-grade gold. As with the successful step-outs to the northwest, the confirmation of southeastern extensions of previously-identified zones may also increase mineralization estimates.
Butte Highlands is located 15 miles south of Butte, Montana within a favorable geologic domain that has hosted several multi-million ounce gold deposits including Butte, Golden Sunlight, Montana Tunnels, and Virginia City. The property 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 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.
A preliminary in-house economic analysis was recently conducted as part of Timberline's ongoing Preliminary Scoping Study at Butte Highlands. The analysis was performed by Small Mine Development ("SMD"), which is expected to perform all development work for the project and is familiar with district geology. The results are very encouraging, indicating the potential for excellent returns at gold prices as low as $500 per ounce.
This press release has been reviewed and approved by Paul Dircksen, a Qualified Person as defined by NI 43-101. Drilling was conducted by Timberline Drilling, Inc., a wholly-owned subsidiary of Timberline. Assaying was conducted by ALS Chemex of Sparks, Nevada.
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.