Timberline Resources Targets Confirmation, Delineation and Expansion of High Grade Gold Zone at Lookout Mountain, Nevada
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Timberline Resources Targets Confirmation, Delineation and Expansion of High Grade Gold Zone at Lookout Mountain, Nevada

Wednesday, September 4, 2019 8:30 AM
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COEUR D’ALENE, IDAHO / ACCESSWIRE / September 4, 2019 / Timberline Resources Corporation (OTCQB:TLRS)(TSXV:TBR) (“Timberline” or the “Company”) reports that exploration has commenced on its Lookout Mountain, Nevada joint venture (JV) project with PM & Gold Mines, Inc. (“PM&G”). As previously announced (see press release dated July 11, 2019 at http://timberlineresources.co/press-releases), PM&G can earn an initial 51% interest in the project by funding US$6 million over a 2-year period.

Past core and rotary drilling have partially delineated a NW-SE trend of high-grade (defined as drill hole intercepts of ≥0.10 ounces/ton (opt) (3.43 grams/tonne (g/t)), Carlin-style gold mineralization in the Lookout Mountain historical open pit mine area, where 17,700 ounces of gold averaging 0.12 opt (4.11 g/t) were produced in 1987. These include 48 intercepts (Table 1) of ≥0.25 oz/ton ((8.6 gram/tonne (g/t), and 64 intercepts of 0.10 - 0.25 opt (3.4 - 8.6 g/t) (Figures 1, 2, 3)(see also press release dated July 11, 2019 at http://timberlineresources.co/press-releases and Updated Technical Report on the Lookout Mountain Project, MDA, Effective March 1, 2013, Filed on SEDAR April 12, 2013).

The trend extends approximately 1,000 feet (305 m) within the pit area and is open to the southeast and is 100-300 feet (30-91 m) wide (Figure 2). It includes relatively flat-lying, high-grade zones at multiple elevations (Figure 3) including some exposed in the historic pit. The gold mineralization is constrained at least in part by stratigraphy and zones of collapse breccias. The breccias locally contain orpiment and realgar (arsenic sulfides), which are commonly found in many major Carlin-style gold deposits.

Figure 1. Representative Lookout Mountain Drill Core ≥ 0.5 opt (17.1 g/t) High-grade Zone Gold Assays


Steven Osterberg, Timberline’s President and CEO, stated, “Our work with the JV has further characterized the high-grade Carlin-style gold mineralization at Lookout Mountain. Detailed pit mapping, core logging and modelling have provided a much clearer understanding of the distribution and controls of the gold mineralization. We plan to aggressively delineate the high-grade zones with core drilling anticipated to begin in September.”

Timberline Director and Nevada Carlin-style gold expert David Mathewson added: “I am excited to see the JV efforts focused on the high-grade gold trend. From my experience on the central Carlin Trend at Rain, the Bullion District, Gold Quarry and Mike deposits, and in the North-area, the mineralization at Lookout is classic Carlin-style gold as found in many of Nevada’s very large gold deposits. There is a clear association of the gold with breccias, secondary dolomite, iron-enrichment, and anomalous arsenic and mercury. I look forward to the fall drilling program.”

Figure 2. Lookout Mountain Open Pit-area Drill Holes with High-grade Gold Intercepts

Figure 3. Northwest-Southeast Vertical Section through Lookout Mountain Open Pit-area High-grade Gold Zone

Program Planning

A 6-month, $2.6 million program and budget include 12,000 ft (3,600 m) of core drilling and 12,500 ft (3,800 m) of reverse circulation (RC) drilling. Drill contractors have been identified and are estimated to begin drilling in September on currently approved sites.

Core drilling will infill to test continuity of the high-grade zones, strategically twin selected historical RC holes for evaluation of relative gold recovery, and test for extensions of the high-grade gold mineralization to the southeast of the pit. RC drilling will test for shallow, oxide gold mineralization to the immediate north and northwest of the pit. Drilling will also test to expand the “orpiment-gold” zone (Figure 2) discovered in drilling by Timberline in 2015 (see press release dated April 20, 2015 at http://timberlineresources.co/press-releases).

Geophysical surveys (IP/resistivity and gravity) are planned to advance exploration for new zones of Carlin style gold mineralization east of the Lookout Mountain open pit, including opportunities in the historical Oswego mine area where nine grab samples collected in 2018 over a 281-foot road-cut ranged from 0.090 opt (3.086 g/t) to 1.135 opt (38.914 g/t)(see press release dated June 12, 2018 at http://timberlineresources.co/press-releases).

Table 1. Lookout Mountain High-grade Gold (≥ 0.25 opt (8.6 g/t)) Drill Intercepts1

Drill Hole

Gold
(opt)

From
(feet)

To
(feet)

Interval

(Feet)

Gold
(g/t)

From
(meters)

To
(meters)

Interval (Meters)

BH05-01

0.370

270

330

60

12.669

82.32

100.61

18.29

BH05-03

2.240

193

196

3

76.800

58.84

59.76

0.91

BH06-02

0.360

445

472

27

12.356

135.67

143.90

8.23

BH06-10

0.537

0

50

50

18.422

0.00

15.24

15.24

BH06-13

1.467

148

151

3

50.286

45.12

46.04

0.91

BH06-13

0.277

385

409.5

24.5

9.509

117.38

124.85

7.47

BH06-16

0.376

0

32.7

32.7

12.881

0.00

9.97

9.97

BHSE-029C

0.349

391

449

58

11.953

119.21

136.89

17.68

BHSE-032

0.425

140

150

10

14.571

42.68

45.73

3.05

BHSE-034

0.460

135

140

5

15.771

41.16

42.68

1.52

BHSE-037C

0.810

222

223

1

27.771

67.68

67.99

0.30

BHSE-126C

0.967

31

46.2

15.2

33.138

9.45

14.09

4.63

BR-1

0.424

35

75

40

14.537

10.67

22.87

12.20

BR-1

1.315

65

75

10

45.086

19.82

22.87

3.05

BR-19

0.370

35

45

10

12.686

10.67

13.72

3.05

BR-19

1.315

65

75

10

45.086

19.82

22.87

3.05

BR-19

0.323

220

235

15

11.086

67.07

71.65

4.57

BR-19

0.319

385

450

65

10.945

117.38

137.20

19.82

BR-26

0.323

440

460

20

11.057

134.15

140.24

6.10

EFL-4

0.270

95

100

5

9.257

28.96

30.49

1.52

EFL-5

0.250

0

5

5

8.571

0.00

1.52

1.52

LM-05

0.259

0

65

65

8.888

0.00

19.82

19.82

LM-13

0.360

10

15

5

12.343

3.05

4.57

1.52

RTC-201

0.317

0

46

46

10.885

0.00

14.02

14.02

RTC-201

0.504

57

65

8

17.263

17.38

19.82

2.44

RTR-020

0.520

20

25

5

17.829

6.10

7.62

1.52

RTR-044

0.338

0

65

65

11.578

0.00

19.82

19.82

RTR-044a

0.290

0

10

10

9.943

0.00

3.05

3.05

RTR-044a

0.310

85

90

5

10.629

25.91

27.44

1.52

RTR-048

0.400

180

185

5

13.714

54.88

56.40

1.52

RTR-049

4.760

110

115

5

163.200

33.54

35.06

1.52

RTR-049

0.820

240

250

10

28.114

73.17

76.22

3.05

RTR-059

0.600

95

105

10

20.571

28.96

32.01

3.05

RTR-071

0.283

0

45

45

9.714

0.00

13.72

13.72

RTR-095

0.368

25

65

40

12.600

7.62

19.82

12.20

RTR-098

0.370

0

45

45

12.686

0.00

13.72

13.72

RTR-133

0.507

235

250

15

17.371

71.65

76.22

4.57

RTR-134

0.350

415

470

55

12.000

126.52

143.29

16.77

RTR-153

0.325

30

60

30

11.143

9.15

18.29

9.15

RTR-153

0.360

240

245

5

12.343

73.17

74.70

1.52

RTR-156

0.300

55

60

5

10.286

16.77

18.29

1.52

RTR-159

0.250

15

25

10

8.571

4.57

7.62

3.05

RTR-163

0.920

60

65

5

31.543

18.29

19.82

1.52

RTR-180

0.340

365

375

10

11.657

111.28

114.33

3.05

RTR-181

0.265

265

335

70

9.086

80.79

102.13

21.34

RTR-190

0.329

475

525

50

11.280

144.82

160.06

15.24

RTR-191

0.557

440

485

45

19.086

134.15

147.87

13.72

RTR-258

0.410

500

510

10

14.057

152.44

155.49

3.05

1 See Updated Technical Report on the Lookout Mountain Project, MDA, Effective March 1, 2013, Filed on SEDAR April 12, 2013 for sample preparation, analyses, and security, and data verification

Lookout Mountain Gold Resource

Plans are to incorporate the results of the delineation of the NW-SE trending high-grade gold mineralization into an updated resource model. This high-grade trend is distinct from an existing N-S trending resource which was prepared by Mine Development Associates (“MDA”) of Reno, Nevada in 2013 (Table 2).

Table 2. Lookout Mountain Gold Resource(1)(2)(3)

Resource Category

Tons

Tonnes

Gold (opt)

Gold (g/t)

Gold Ounces

Measured

3,043,000

2,761,000

0.035

1.200

106,000

Indicated

25,897,000

23,493,000

0.016

0.549

402,000

Measured & Indicated

28,940,000

26,254,000

0.018

0.617

508,000

Inferred

11,709,000

10,622,000

0.012

0.411

141,000

Notes:

  1. 0.006 opt (0.21 g/t) cut-off applied to oxidized material to capture mineralization potentially available to open pit extraction and heap leach processing. 0.030 opt (1.03 g/t) cut-off applied to unoxidized material to capture mineralization potentially available to open pit extraction and lower heap leach recoveries or sulfide processing.
  2. Rounding may cause apparent discrepancies.
  3. Refer to Updated Technical Report on the Lookout Mountain Project, MDA, effective March 1, 2013, Filed on SEDAR April 12, 2013.

The full MDA resource study can be seen at http://timberlineresources.co/wp-content/uploads/2015/07/LookoutMt_-43-101_2013.pdf.

About Timberline Resources

Timberline Resources Corporation is focused on advancing district-scale gold exploration and development projects in Nevada. These include its 23 square-mile Eureka property, comprising the Lookout Mountain, Windfall, and Oswego projects which lie along three separate structural-stratigraphic trends defined by distinct geochemical gold anomalies, as well as being operator of both the Paiute joint venture project with a subsidiary of Barrick Gold, and the Elder Creek joint venture with McEwen Mining. All of these properties lie on the prolific Battle Mountain-Eureka gold trend. Timberline also controls the Seven Troughs property in Northern Nevada, which is one of the state's highest-grade former producers. Timberline has increased its owned and controlled mineral rights in Nevada to over 43 square miles (27,500 acres). Detailed maps and NI 43-101 estimated resource information for the Eureka property may be viewed at http://timberlineresources.co/.

Timberline is listed on the OTCQB where it trades under the symbol "TLRS" and on the TSX Venture Exchange where it trades under the symbol "TBR".

Steven Osterberg, Ph.D., P.G., Timberline’s President and Chief Executive Officer, is a Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the technical contents of this release.

Forward-looking Statements

Statements contained herein that are not based upon current or historical fact are forward-looking in nature and constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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 intended Agreement and the joint venture contemplated thereby, anticipated exploration and potential of the Project, completion of the Offering, and the size of the Company’s owned and controlled mineral rights. When used herein, the words "anticipate," "believe," "estimate," “upcoming,” "plan," “target”, "intend" and "expect" and similar expressions, as they relate to Timberline Resources Corporation, its subsidiaries, 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 changes in the Company’s business resulting in changes in the use of proceeds, and other such factors, including risk factors discussed in the Company's Annual Report on Form 10-K for the year ended September 30, 2018. Except as required by 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.

For Further Information Please Contact:

Steven A. Osterberg
President and CEO
Tel: 208-664-4859
E-mail: [email protected]

SOURCE: Timberline Resources Corporation

Timberline Resources Corporation
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