Timberline begins exploration at Lookout Mountain JV

Sep 4, 2019

2019-09-04 09:23 ET – News Release

Mr. Steven Osterberg reports

TIMBERLINE RESOURCES TARGETS CONFIRMATION, DELINEATION AND EXPANSION OF HIGH GRADE GOLD ZONE AT LOOKOUT MOUNTAIN, NEVADA

Exploration has commenced on Timberline Resources Corp.’s Lookout Mountain, Nevada, joint venture (JV) project with PM & Gold Mines Inc. (PM&G). As previously announced (see press release dated July 11, 2019), PM&G can earn an initial 51-per-cent interest in the project by financing $6-million (U.S.) over a two-year period.

Past core and rotary drilling has partially delineated a northwest-southeast trend of high-grade (defined as drill hole intercepts of 0.10 ounce/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 (see attached table) of 0.25 oz/ton (8.6 gram/tonne (g/t)) and 64 intercepts of 0.10 to 0.25 opt (3.4 to 8.6 g/t) (see also press release dated July 11, 2019, 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 to 300 feet (30 to 91 m) wide. It includes relatively flat-lying, high-grade zones at multiple elevations 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 sulphides), which are commonly found in many major Carlin-style gold deposits.

Steven Osterberg, Timberline’s president and chief executive officer, 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.”

Program planning

A six-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 discovered in drilling by Timberline in 2015 (see press release dated April 20, 2015).

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).

                               LOOKOUT MOUNTAIN HIGH-GRADE GOLD (0.25 OPT (8.6 G/T)) 
                                               Drill intercepts (1) 

Drill hole     Gold (opt)    From (ft)      To (ft)    Int. (ft)   Gold (g/t)     From (m)       To (m)     Int. (m)

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, security and data verification.

Lookout Mountain gold resource

Plans are to incorporate the results of the delineation of the northwest-southeast-trending high-grade gold mineralization into an updated resource model. This high-grade trend is distinct from an existing north-south trending resource which was prepared by Mine Development Associates (MDA) of Reno, Nev., in 2013 (see “Lookout Mountain gold resource” table).

                       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 and 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 sulphide 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 the company’s website.

About Timberline Resources Corp.

Timberline Resources 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.

Steven Osterberg, PhD, PG, 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.

We seek Safe Harbor.

http://timberlineresources.co/

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