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| Timberline Acquires Iron Butte Property Within 11,000-Acre Nevada Claim Package | |
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08/28/13
Coeur d'Alene, Idaho - August 28, 2013 - Timberline Resources Corporation (NYSE MKT: TLR; TSX-V: TBR) ("Timberline" or the "Company") announced today that it has entered into a Lease and Option-to-Purchase Agreement (the "Agreement") to evaluate, explore, and develop a package of 584 mineral claims in Nevada comprised of a series of six separate properties, including the Iron Butte Project, totaling in excess of 11,000 acres. The properties, primarily focused in the productive gold trends of central Nevada, are being acquired from David Knight, a well-known and respected professional Nevada geologist. All of the properties exhibit anomalous gold and copper values in outcrop or in historic drill holes.
Timberline CEO Paul Dircksen commented, "Iron Butte is the most exciting of the claim blocks covered by this agreement. 211 drill holes comprising over 100,000 feet of drilling have outlined significant gold mineralization along a strike distance of 9,000 feet proximal to the range front with an overall width of 4,000 feet within structural intersections in volcanic rocks and Paleozoic sediments."
A NI 43-101 technical report filed on SEDAR by Sagittarius Capital Corp on November 29, 2011 with an effective date of September 20, 2011 included the following historical estimate(1):
| Cut Off Grade(g/t) | Tons | Gold Grade(g/t) | Silver Grade(g/t) | Ounces of
Gold
| Ounces of
Silver | | 0.250 | 47,555,637 | 0.372 | 6.824 | 568,590 | 10,432,796 | | 0.333 | 21,180,858 | 0.480 | 9.065 | 326,780 | 6,173,156 |
| Parameters Used for Historical Estimate | | Block Size | 20x20x20 ft | Search Radius | 200 ft | Tonnage Factor | 12 ft3/ton | | X-range | 6,000 ft | Y-range | 7,860 ft | Z-range | 1,800 ft |
The Agreement provides, subject to regulatory approval, for issuances of restricted shares of the Company's common stock as follows: a) 900,000 shares immediately; b) 1 million shares in September 2014; and c) 1.5 million shares in March 2016.
No cash payments are required until March 2015 when annual advance royalty payments of $25,000 commence. The option to purchase the claims, subject to the reservation of a royalty, is exercisable at any time prior to March 2017. Should Timberline exercise the purchase option, the purchase price includes a cash payment of $2 million, not due until March 2017. The Agreement does not require any annual work commitments, and provides Timberline with a first right of refusal on certain other Nevada properties controlled by Mr. Knight and currently under lease to third parties.
Mr. Dircksen continued, "Significant potential exists to upgrade and expand the historical resource at Iron Butte to a current resource estimate, and it will be Timberline's plan to systematically assimilate and evaluate all previous data in order to outline a program of resource definition and expansion. Iron Butte is located along the southern boundary of the prolific Battle Mountain - Eureka Gold Trend, near Newmont's multi-million ounce Phoenix complex and the Cove-McCoy mine, where there was historic production of 2.6 million ounces of gold and 100 million ounces of silver. The Iron Butte property has the footprint of a district-scale project and fits well in the Timberline business plan to acquire properties with the potential for substantial near-term resource definition, expansion, and production."
Significant results from previous drilling at Iron Butte include 115 feet grading 0.048 ounces per ton (opt) gold and 0.856 opt silver (35 metres grading 1.65 grams per tonne (g/t) gold and 29.3 g/t silver), including 50 feet grading 0.074 opt gold (15.2 metres grading 2.52 g/t gold), and 100 feet grading 0.052 opt gold (30 metres grading 1.78 g/t gold). Other significant results from road cut channel samples include 105 feet grading 0.041 opt gold and 1.14 opt silver (32 metres grading 1.42 g/t gold and 39.1 g/t silver), and 80 feet grading 0.034 opt gold and 0.137 opt silver (24 metres grading 1.15 g/t gold and 4.7 g/t silver). Targets include a bulk-minable epithermal stockwork system, high-grade bonanza veins, and Carlin-style deposits at depth. Thick quartz veins cut through broad zones of alteration and low-grade mineralization.
timberline-resources.com
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