SPOKANE, Wash., Jan. 3, 2005 (PRIMEZONE) -- Timberline Resources Corporation (Pink Sheets:TBLC) announced today that it has leased four western Montana silver-copper properties to Sterling Mining Company (Pink Sheets:SRLM).
The Minton Pass, Lucky Luke, East Bull, and Standard Creek properties are all located within the Montana Copper-Sulfide Belt in Lincoln and Sanders counties. All four prospects have the potential for Revett Formation hosted high-tonnage, low-grade silver and copper mineralization, similar to that found in well-known deposits at Troy, Rock Creek and Montanore. The properties were originally identified and held by U.S. Borax and its successor company, Kennecott Exploration, in the 1980s and early-1990s.
The agreement calls for Timberline to receive immediate debt forgiveness and repayment of certain expenses from Sterling. Timberline will then retain a 1 percent net smelter royalty (NSR) on any future production from the claims and will also receive annual cash payments of $5,000 per claim group beginning in 2007.
Timberline President Stephen Goss stated, "We are pleased to announce the lease of these properties to Sterling as it will allow us to focus our regional efforts on earning into Hecla's Snowstorm Trend Project, as detailed in our announcement last month."
Timberline Resources Corporation is a Spokane-based junior mineral exploration company focused on the cost-effective acquisition, exploration, and development of promising mineral properties in the western United States. Timberline stock trades on the OTC Market under the symbol "TBLC".
Certain statements contained in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based on beliefs of management as well as assumptions made by and information currently available to management. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from expected results.