Dr. Steven Osterberg reports
TIMBERLINE PROVIDES TALAPOOSA PROJECT UPDATE
Timberline Resources Corp. has provided a project update on Talapoosa including a current assessment of resource expansion opportunities, geochemical sampling results, and progress in the continuing metallurgical and geotechnical testwork on the Talapoosa gold project in Lyon county, Nevada.
The Talapoosa resource consists of 1,012,802 ounces of gold at an average grade of 1.11 grams per tonne (g/t) gold and 13,649,358 ounces of silver at an average grade of 14.97 g/t silver in the measured and indicated resources (M&I) categories, with an additional 233,532 ounces of gold at 0.72 g/t gold and 2,172,766 ounces of silver at 6.65 g/t silver in the inferred resource category (see "Technical report and resource estimate on the Talapoosa project, Nevada," effective March 24, 2015). A positive preliminary economic assessment (PEA) was completed and released on April 27, 2015, by WSP Canada which envisioned the project as an open-pit gold heap leach operation (preliminary economic assessment on the Talapoosa project, Nevada, effective April 27, 2015).
Resource expansion opportunities
The company announced a positive review of assay data from historic drill holes in areas northwest and southeast of, and contiguous to, the Talapoosa resource area as defined in the PEA. Results from historic drilling identify these areas as high-priority drill targets for resource expansion as first noted in the National Instrument 43-101 "Technical report of the Talapoosa project, Lyon county, Nevada, USA," effective Sept. 17, 2010, and filed on SEDAR on Oct. 12, 2010.
Northwest of the PEA pit area at dike adit north, a resource expansion target is defined based on nine existing, historic drill holes spaced over a strike extent of approximately 600 metres. Historic drilling in this area included hole TAL-213 which intercepted 21.3 metres of 5.43 g/t gold and 27.57 g/t silver, and TAL-220 which intercepted 73.2 m of 0.98 g/t gold and 27.26 g/t silver.
HISTORIC DRILL HOLE RESULTS IN DIKE
ADIT NORTH TARGET AREA
Dike adit north
Au Ag
From To Interval grade grade
Hole (m) (m) (m) (g/t) (g/t)
TAL-182 124.8 146.3 21.5 1.32 27.24
TAL-202 141.8 195.1 53.4 0.38 20.53
TAL-206 120.4 143.3 22.9 0.75 14.70
TAL-209 72.7 166.3 93.6 0.81 17.73
including 72.7 89.4 16.7 1.43 37.54
including 146.5 166.0 19.5 2.01 36.02
TAL-212 115.9 169.2 53.4 0.87 39.35
TAL-213 41.2 62.5 21.3 5.43 27.57
TAL-214 59.5 70.1 10.6 0.09 22.59
TAL-220 68.6 141.8 73.2 0.98 27.26
TAL-222 147.9 213.4 65.5 0.94 14.31
including 196.7 213.4 16.8 2.86 33.89
In the southeast extension area, eight of nine historic drill holes intercepted mineralization near or greater than one g/t gold in multimetre intercepts distributed over approximately 600 metres of strike extension. A ninth hole intercepted lower-grade gold mineralization. Highlights included hole TAL-271 which intercepted 41.0 m of 1.38 (g/t) gold and 23.32 g/t silver and hole TAL-282 that bottomed in 58.2 m of 1.09 g/t gold and 5.88 g/t silver.
HISTORIC DRILL HOLE RESULTS IN
SOUTHEAST EXTENSION TARGET AREA
Southeast extension
Au Ag
From To Interval grade grade
Hole (m) (m) (m) (g/t) (g/t)
CON-10 135.7 141.8 6.1 0.96 NA
CON-39 123.2 129.6 6.4 0.57 NA
CON-40 115.7 135.6 19.9 2.13 0.00
TAL-186 98.8 126.4 27.5 0.89 19.69
TAL-188 131.1 157.0 25.9 0.99 27.12
TAL-271 94.6 135.6 41.0 1.38 23.32
TAL-272 121.8 125.1 3.3 2.18 4.03
TAL-280 54.6 82.3 27.8 0.93 9.62
TAL-282 123.3 181.4 58.2 1.09 5.88
Notes
NA: No assays reported.
Reported drill intercepts are not true widths.
At this time, there are insufficient data with
respect to the shape of the mineralization to
calculate its true orientation in space.
Historic drill data as reported here included
in database reviewed as part of the NI 43-101
"Preliminary economic assessment on the
Talapoosa project, Nevada," WSP Canada Inc.,
effective April 27, 2015.
The southeast extension and dike adit north areas provide opportunities for resource expansion both along strike and downdip. Drilling permits are currently in place to allow initial start-up anticipated for early 2017.
Timberline's president and chief executive officer Dr. Steven Osterberg commented: "In addition to the existing resource at Talapoosa, we are very excited about the growth potential of the deposit as demonstrated by historic drill data which is expected to be used for a targeted drill program in 2017. We believe the open extensions to the resource zone on strike and at depth as currently defined could represent a substantial increase in the current published resource."
Adjacent Appaloosa zone sampling
Timberline also released geochemistry results from surface rock sampling in the Appaloosa zone, which is a seven-kilometre trend located two kilometres north of and parallel to the Talapoosa resource area largely within the property boundary. Locally, erosional exposure within Talapoosa gulch has exposed mineralized hydrothermal breccia, altered volcanic rocks and vein material in historic adit dumps.
Sampling in 2016 identified 5.5 g/t gold and 42.40 g/t silver over a 6.55-metre channel sample across exposed hydrothermal breccia. Grab samples of vein material from existing waste dumps and altered outcrops assayed up to 17.4 g/t gold and 105.3 g/t silver. Geologic mapping indicates the breccia may be associated with a volcanic flow-dome complex. A nearby historic (1995) drill hole (CON-45) completed by Miramar intercepted 1.66 g/t gold over 24.4 metres (technical report of the Talapoosa project, Lyon county, Nevada, USA, effective Sept. 17, 2010). The seven km Appaloosa zone remains otherwise untested to date.
SURFACE ROCK SAMPLE GEOCHEMISTRY RESULTS
Sample
width Au Ag
Sample Type (m) (g/t) (1) (g/t) Description
N601151 0.165 2.2 dacite:
channel - - propylitic
2.13 altered
N601152 0.115 1.6 dacite:
propylitic
1.22 altered
N601153 1.52 1.669 10.5 dacite: argillic
6.55 (2) 5.5 (3) 42.4 (3) altered
N601154 1.37 0.171 1.7 dacite: argillic
altered
N601155 1.52 18.0 129.4 hydrothermal
breccia
N601156 2.13 2.572 29.2 hydrothermal
breccia
N601157 0.168 2.3 dacite:
- - propylitic
1.52 altered
N601158 17.4 105.3 quartz vein
grab material from
- dump
N601159 1.980 18.1 quartz vein
material from
- dump
N601160 - 3.379 8.1 chalcedony vein
N601161 0.932 9.2 vein material
Notes
(1) Analysis completed by Bureau Veritas Mineral Laboratories, Sparks,
Nev., by crush, split and pulverized one-kilogram sample split to 200
mesh; Au analyzed by 30-gram fire assay with atomic absorption
spectroscopy finish, with follow-up gravimetric finish on greater than
10 parts per million Au samples; silver assay by four-acid digestion
ICP-ES (inductively coupled plasma emission spectroscopy) analysis.
(2) Composite channel sample width.
(3) Composite channel sample assay.
Dr. Osterberg continued, "In addition to Talapoosa, the results from the surface sampling and the nearby historic drill hole demonstrate the parallel Appaloosa zone is at least locally mineralized with gold and silver and provides a substantial opportunity for a new discovery within the property holding."
Talapoosa metallurgical test program
The company also announced progress in the metallurgical and geotechnical program at Talapoosa begun recently (see press release on July 20, 2016). The program is designed as an initial test to optimize crushing and gold and silver recoveries from mineralized material.
Four composite samples from two zones representing the majority of the Talapoosa deposit were crushed using high-pressure grinding roll (HPGR) technology. Crushed materials have undergone successful agglomeration and permeability tests and have been loaded into columns for gold leaching to simulate heap leach pad processing.
Dr. Osterberg added: "We are encouraged by the benefits of using HPGR technology and the agglomeration and permeability test results. We look forward to the column leach test data from the ongoing metallurgical program. With follow-up verification, we anticipate that these results will confirm gold and silver production at an attractive low-cost per-ounce basis as estimated in the project PEA."
About Timberline Resources
Timberline Resources is focused on advancing district-scale gold exploration and development projects in Nevada, including its Talapoosa project in Lyon county, where the company has completed and disclosed a positive preliminary economic assessment. 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 Lookout Mountain and Windfall project areas.
Dr. 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.
© 2024 Canjex Publishing Ltd. All rights reserved.