Lookout Mountain is the most advanced
project within Timberline's 23 square-mile South Eureka
land package. Timberline acquired Staccato
Gold in 2010 because Lookout Mountain (and other South Eureka
locations) hosts significant oxide gold mineralization amenable to low-cost,
heap-leach recovery and has the potential for near-term open pit production
with relatively modest capital expenditures. Subsequent drilling and
metallurgical results from the project have consistently met or exceeded
Timberline's recently updated gold resource estimate at Lookout Mountain (including the South Adit zone), which was prepared by Mine Development Associates ("MDA") of Reno, Nevada, consists of:
ounces Measured Gold Resource
(3,043,000 tons at 0.035 opt gold (2,761,000 tonnes at 1.20 g/t))
ounces Indicated Gold Resource
(25,897,000 tons at 0.016 opt gold (23,493,000 tonnes at 0.55 g/t))
- 141,000 ounces Inferred Gold Resource
(11,709,000 tons at 0.012 opt gold (10,622,000 tonnes at 0.41 g/t))
Gold ounces in the Measured & Indicated Resource(1) categories increased by 30-percent from the 2012 resource estimate, and are now
78-percent greater than Timberline's initial 2011 resource estimate. Many of
these ounces were upgraded from the Inferred Resource(2) category as
the 2012 exploration program concentrated primarily on infill drilling of the
existing mineralization. Approximately 84-percent of the resource ounces are
from oxide material and 16-percent are from sulfide material.
Also in 2012, Timberline's technical consultants conducted initial investigations to support potential mine permitting and planning at Lookout Mountain, including:
- Golder Associates, Inc. completed a scoping-level pit slope evaluation at Lookout Mountain concluding that rock conditions appear favorable for the development of moderately steep to steep pit slopes.
- Schlumberger, Inc. initiated collection of baseline hydrologic data including installation of three monitoring wells and water quality samples.
- Kappes Cassiday and Associates continues to perform metallurgical leach studies with planning in progress for program expansion in the current year.
- Newfields, LLC has delivered a heap leach pad and rock storage area facilities alternatives analysis based on the location of the Lookout Mountain resource.
Also, geochemical characterization of mine and waste
rock is in progress by InterraLogic, Inc. and Enviroscientists, Inc. is
directing environmental baseline studies and developing plans for the upcoming
field season. These studies will provide the basis for completion of a Preliminary
Economic Assessment (PEA) by mid-year 2013 and, pending favorable results, more
detailed investigations will follow in support of a Feasibility Study and
submission of a Plan of Operations targeted for early 2014.
The 2012 drill program at Lookout Mountain was successful in demonstrating mineralization continuity and confirming the underlying geologic model while providing material exhibiting positive metallurgical characteristics for low-cost, heap-leach processing. Drill intercepts from outside the defined resource zone continue to provide strong indication that additional drilling along strike will expand the gold resource.
Drilling highlights from 2012 include Hole BHSE-152 which intercepted 0.138 opt (4.72 g/t) gold over its final 15 feet (4.6 metres) and was terminated due to ground conditions. This newly discovered zone is below the historical pit at Lookout Mountain where gold was produced in the late 1980s, and establishes that high-grade mineralization occurs down dip of the presently-defined resource. This deeper potential has never been tested along the 4,000 feet (1.22 km) of strike length where the resource has been defined.
Timberline's 2013 South Eureka drill program will prioritize expansion of the gold resource to the south of Lookout Mountain, including approximately 2,500 feet of strike extension toward South Adit in which assay data is currently of insufficient density to calculate resources.
The MDA resource estimates are summarized below at the noted cut-off grades:
|Lookout Mountain Gold Resource (2) (3)|
|Resource Category (1)||Short Tons||Metric Tonnes||Ounces of Gold per Ton (opt)||Grams of Gold per Tonne(g/t)||Gold Ounces|
|Measured & Indicated||28,940,000||26,254,000||0.018||0.62||508,000|
- 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.
- Rounding may cause apparent discrepancies.
- The effective date of the Lookout Mountain gold resources is February 20, 2013.
The full MDA Resource Estimate with various cut-off grades can be seen at http://timberline-resources.com/main.php?page=208.