COEUR D'ALENE, Idaho, June 25, 2007 (PRIME NEWSWIRE) -- Timberline Resources Corporation ("Timberline") (OTCBB:TBLC) today provided updates on several of its exploration projects. Timberline's contract drilling and mineral exploration divisions combine to provide investors with exposure to ongoing bull markets in mining and exploration without risks inherent to mine operation and/or sole reliance on speculative early-stage drill plays.
Last week, shareholders of the Butte Highlands Mining Company approved the sale of the advanced-stage Butte Highlands gold project to Timberline. Upon closing the deal, Timberline plans to launch a surface and underground drill program to validate and expand the project's historical resource. (See Timberline's press release dated May 22, 2007 for details.) Subsequent to signing the purchase agreement, Timberline located an additional 54 unpatented mineral claims adjacent to the property and began compiling exploration and drilling data from past operators including Placer Dome, Battle Mountain, ASARCO, and Orvana Minerals.
At the East Camp Douglas gold project along Nevada's Walker Lane Mineral Belt, data compilation and geologic mapping programs have been completed, with two primary targets and five secondary targets selected for drill testing. The project is the result of long-term efforts to consolidate the East Camp Douglas district, an area that has seen considerable exploration by several major mining companies along with historic small-scale mining.
Also along the Walker Lane Mineral Belt, Timberline will perform initial-phase drill programs later this year on its Downeyville and Long Canyon properties, along with a new acquisition, the Gold Gate project. Timberline plans to complete the programs with a soon-to-be purchased drill rig, operated by Kettle Drilling personnel but primarily dedicated to its own exploration projects. Funds have been allocated for the purchase and several drill rig options are now being assessed.
At Downeyville, a magnetic survey covering the entire 22-claim project area has been completed, outlining structurally-controlled anomalies associated with a source intrusive. The survey, combined with geologic mapping and sampling results, has outlined a series of priority drill targets. Rock chip samples from mapped structures and mine dumps during previous exploration at Downeyville have returned values of up to 28-percent zinc, 0.24 ounces per ton (oz/t) gold, and 12.8 oz/t silver.
At Long Canyon, a magnetic survey has revealed significant magnetic highs, indicating a possible structural control for mineralization which merits drill testing. The Long Canyon property demonstrates the potential for porphyry-style mineralization similar to other systems found along the Walker Lane.
Finally, Timberline has signed a Memorandum of Understanding (MOU) to enter a Lease/Option to Purchase on the Gold Gate Project. Select rock chip samples from this early-stage, low-sulfidation, quartz-adularia gold-silver exploration prospect range up to 14.1 ppm gold, 7,166 ppm silver, and 73,210 ppb mercury. Under terms of the agreement, Timberline has the right to purchase 100-percent of the project subject to a 2-percent Net Smelter Returns (NSR) royalty of which 1-percent may be purchased for US$1-million.
Timberline Resources Corporation is a unique, growth-oriented company that combines positive cash flow from its ownership of Kettle Drilling, Inc. with "blue sky" upside from its mineral exploration division. Timberline common stock is quoted on the OTC Bulletin Board under the symbol "TBLC."
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, as amended, for the year ended September 30, 2006. 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 to reflect.