| | | Coeur d'Alene, Idaho - May 21, 2015 (click here to view this press release in pdf format) - Timberline Resources Corporation (NYSE MKT: TLR; TSX-V: TBR) ("Timberline" or the "Company") is pleased to announce the filing of a positive Preliminary Economic Assessment ("PEA"), disclosed in the Company's press release dated April 27, 2015, on the Company's Talapoosa project ("Talapoosa" or the "Project") located in western Nevada. The PEA was prepared by WSP Canada Inc., with technical contributions from Mineral Property Development, Inc., McClelland Laboratories, Inc., Enviroscientists Inc., and DOWL LLC.
The PEA report is available under the Company's profile at www.sedar.com and on Timberline's website at www.timberline-resources.com.
Kiran Patankar, Timberline's President and Chief Executive Officer, commented, "As we noted in our April 27th press release, the PEA development scenario demonstrates robust economics using conservative metals price assumptions and, importantly, fits within the scope of the previously permitted operation. With the filing of the PEA report, our stakeholders can now see the level of detailed analysis that capitalized on Talapoosa's extensive historic engineering and permitting work.
Two key findings in the PEA further support the Project's low-risk profile. First, Talapoosa has current permits in place for open pit mining and heap leaching operations, including an approved BLM Plan of Operations and a Nevada Reclamation Permit that remain active for the life of the Project. Second, the results of 13 separate metallurgical testing programs conducted between 1981 and 2015 suggest that conventional heap leaching at a relatively fine crush size is the preferred approach for processing mineralized material from Talapoosa. Results from the recent and historic programs provided the basis for the estimated heap leach recoveries used in the PEA.
The report recommends proceeding with a two-phased work program, including additional metallurgical testing and completion of a Pre-Feasibility Study, with an estimated total cost of US$3.6 million. Based on these positive PEA results, our key priority is to complete the recommended work program and deliver a Pre-Feasibility Study in Q1 2016."
PEA Highlights
After-tax NPV5% of $136 million and 39% IRR at $1,150/oz gold price and $16/oz silver priceEstimated average annual production of 55,000 oz of gold and 679,000 oz of silver for 11 yearsLOM all-in sustaining costs of $599/oz gold (net of silver byproduct at $16/oz silver price)Low initial capital requirement of $51 million required to achieve productionPEA Disclaimer
The PEA is preliminary in nature and the economic analysis it presents is based, in part, on Inferred Resources that are considered too speculative geologically to have mining and economic considerations applied to them that would enable them to be categorized as Mineral Reserves. Estimates of Inferred Resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. There is no certainty that the economic forecasts contained within the PEA will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
About Timberline Resources
Timberline Resources Corporation is focused on advancing district-scale gold exploration and development projects in Nevada, including its recently optioned Talapoosa project in Lyon County. Current mineral resources(1) at the Talapoosa project include 1.01 million gold ounces and 13.65 million silver ounces (M&I), plus an additional 0.23 million gold ounces and 2.17 million silver ounces (Inferred). Timberline also controls the 23 square-mile Eureka project lying on the Battle Mountain-Eureka gold trend. At Eureka, the Company continues to advance its reported resource(2) of 508,000 ounces (M&I) and 141,000 ounces (Inferred) of gold at the Lookout Mountain project area, and has recently completed a drill program at the Windfall project area. Exploration potential occurs within three separate structural trends defined by distinct geochemical gold anomalies. Timberline also owns the Seven Troughs property in northern Nevada, known to be one of the state's highest grade, former producers, as well as a 50% carried-to-production interest in the Butte Highlands high-grade underground gold project in Montana.
Timberline is listed on the NYSE MKT where it trades under the symbol "TLR" and on the TSX Venture Exchange where it trades under the symbol "TBR".
Mr. Steven Osterberg, Ph.D., P.G., Timberline's Vice-President of Exploration, is a Qualified Person as defined by National Instrument 43-101 and has reviewed and approved disclosure of the technical contents of this news release.
(1) Refer to Technical Report and Resource Estimate on the Talapoosa Project, Nevada, WSP Canada Inc., Effective March 24, 2015, Filed on SEDAR April 1, 2015. Talapoosa resources include 28.4 million tonnes at 1.11 g/t Au and 15.0 g/t Ag (M&I) and 10.2 million tonnes at 0.72 g/t Au and 6.7 g/t Ag (Inferred).
(2) Refer to Updated Technical Report on the Lookout Mountain Project, MDA, Effective March 1, 2013, Filed on SEDAR April 12, 2013. Lookout Mountain resources include 26.3 million tonnes at 0.62 g/t Au (M&I), and 10.6 million tonnes at 0.41 g/t Au (Inferred).
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