01/12/12
Coeur d'Alene, Idaho - January 12, 2012 - Timberline Resources Corporation (NYSE Amex: TLR; TSX-V: TBR) ("Timberline" or the "Company") today provided an initial mine plan and permitting update for the Butte Highlands Joint Venture Gold Project in southwestern Montana.
With the receipt of final assays from last year's 50,000-foot underground drilling program, Timberline's joint venture partner and project operator, Highland Mining ("Highland"), of Boise, Idaho, has provided Timberline with the following guidance:
-
The initial mine plan at Butte Highlands will target
production of approximately 400 to 500 tons per day for
the first four years of operation. The mineralized
material is expected to be direct shipped to a nearby
mill.
-
Results from hydrology studies at Butte Highlands
indicate the need to pump and discharge more water from
the mineralized area than previously anticipated. The
project will require an additional water discharge permit
and the construction of additional water treatment
facilities. Subsequently, Highland is now targeting the
issuance of the Hard Rock Operating Permit in mid-2012,
and the commencement of shipments to the mill later in
the year.
- Highland is working with the United States Forest Service and the public to evaluate and permit a haulage route from the mine site. Highland will include its proposal as part of its final operating permit application responses to be submitted to the Montana Department of Environmental Quality.
Highland is controlled by Ron Guill, a Timberline director and the Company's largest shareholder. Mr. Guill stated, "We have made considerable progress in the development and permitting of the gold mine at Butte Highlands. We are generating an initial mine plan for our first four years of production at a higher projected gold grade than was previously anticipated. However, as is very common with underground mining operations, our timelines have required modification as the project has advanced."
Timberline's unique partnership at Butte Highlands calls for its retention of a 50-percent project interest while being carried to production by Highland Mining. Once in production, Timberline is to receive 20-percent of project cash flow until Highland recovers its initial capital expenditures, at which time Timberline will receive 50-percent of cash flow. A feasibility study has not been completed on the Butte Highlands project, and there is no certainty the proposed operations will be economically viable.
Mine development and mining operations at Butte Highlands have been sub-contracted to Small Mine Development ("SMD"), an experienced underground mine operator which has performed mine development and mining operations for some of the largest mining companies in North America, including Newmont Mining and Barrick Gold.
About Timberline Resources
Timberline Resources Corporation is exploring and
developing advanced-stage gold properties in the western
United States. The Company is primarily focused on the
goldfields of Nevada, where it is advancing its flagship
Lookout Mountain Project toward a production decision while
exploring a pipeline of quality earlier-stage projects at
its South Eureka Property and elsewhere. Timberline also
features a 50-percent carried-to-production interest at its
Butte Highlands Joint Venture where gold production is
targeted to commence later this year. Timberline management
has a proven track record of discovering economic mineral
deposits and developing them into profitable mines.
Timberline is listed on the NYSE Amex where it trades under
the symbol "TLR" and on the TSX Venture Exchange
where it trades under the symbol "TBR".
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. These statements include but are
not limited to statements regarding the timing or results
of the Company's drill programs at Butte Highlands and
South Eureka, the timing of assay results from such
drilling programs being released, the district-scale
potential of the South Eureka project, the expansion of the
mineralization at the South Eureka project, the timing of a
production decision at the South Eureka project, the
Company's 50/50 joint venture with Highland Mining LLC,
the development and production of the Company's Butte
Highlands project and South Eureka project, the targeted
production date for the Butte Highlands project, possible
growth of the Company and the Company's expected
operations. When used herein, the words
"anticipate," "believe,"
"estimate," "upcoming,"
"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, risks related
to the timing and completion of the drilling programs at
Butte Highlands and South Eureka, risks and uncertainties
related to mineral estimates, risks related to the
inherently dangerous activity of mining, and other such
factors, including risk factors discussed in the
Company's Annual Report on Form 10-K for the year ended
September 30, 2011. Except as required by Federal
Securities law, the Company does not undertake any
obligation to release publicly any revisions to any
forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact Information:
Paul Dircksen, CEO
Phone: 208.664.4859
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