COEUR D'ALENE, Idaho, March 13, 2007 (PRIME NEWSWIRE) -- Timberline Resources Corporation ("Timberline") (OTCBB:TBLC) today announced plans to advance its 100-percent owned Snowstorm Project in north Idaho's "Silver Valley."
Timberline plans to reactivate the Snowstorm Project this year as the Silver Valley experiences investment activity not seen in several decades, led by Hecla Mining Company ("Hecla") (NYSE:HL) at its neighboring Lucky Friday Mine. Hecla recently reported that it has completed a positive scoping study which outlines how it could increase annual production there by as much as 70-percent, extend the mine life, lower its cost per ounce, and increase the mineable resource. The study also estimates $150 to $200 million of capital for a new mill, a surface shaft to the existing levels, and an underground shaft to more than 1,000 feet below the deepest identified resources. Based on the study's positive economics, Hecla expects to begin a prefeasibility study shortly, to be completed by year-end. Hecla went on to add that it is conducting the first generative exploration program on its Silver Valley properties in 50 years. Hecla maintains a 4-percent NSR royalty on the Snowstorm Project.
Hecla is joined by relative newcomers U.S. Silver Corporation (TSX-V:USA), Sterling Mining Company (OTCBB:SRLM), and SNS Silver Corp. (TSX-V:SNS) which control the Galena, Sunshine, and Crescent mines, respectively. All three companies have raised significant capital to support expansion and/or continued exploration and development of their projects.
Timberline VP of Exploration Paul Dircksen stated, "Hecla's planned investment at Lucky Friday is timely and adds to our excitement about the potential for economic discovery at Snowstorm. Although we have been approached by several potential exploration partners, we have been unable to reach acceptable terms to-date. While we remain very open to bringing in an experienced and qualified partner, given the current investment interest in the Silver Valley and the persistent strength of metals prices, we are also pleased to maintain our 100-percent ownership and advance the project ourselves."
The work plans at Snowstorm include the rehabilitation of underground access to the Snowstorm No. 3 haulage level, enabling the drill testing of known copper-silver mineralization that surrounds the historic high-grade stopes, both peripherally and down-plunge. Past drilling peripheral to the Snowstorm workings, primarily by Hecla, has demonstrated a "halo" grading approximately 1-percent (20 pounds per ton) copper and 1 ounce per ton (oz/t) silver and containing an estimated 5 to 10 million tons of mineralized material. The Timberline drill program will seek to confirm and expand this historical resource. The anticipated cost of this next exploration phase is approximately $250,000 to $400,000.
The Snowstorm Project features the Snowstorm Mine, an historic operation that produced 800,000 tons of ore averaging 4-percent copper and 6 oz/t silver. Snowstorm mineralization occurred as disseminated copper and silver found in the same Revett Formation quartzites that host the Troy, Rock Creek, and Montanore deposits on the Montana Copper Sulfide Belt, but was of a much higher grade. The mineralized horizon at the Snowstorm Mine was discovered in outcrop and subsequently developed with four adits, each driven at lower elevations to access its nearly vertical structure. The horizon appears to have been offset by a structure near the lowest adit and little systematic exploration has been conducted for this lower portion of the Snowstorm ore body.
Timberline Resources Corporation is a unique, growth-oriented company that combines positive cash flow from its ownership of Kettle Drilling, Inc. with "blue sky" upside from its mineral exploration division. Timberline common stock is quoted on the OTC Bulletin Board under the symbol "TBLC."
Statements contained herein that are not based upon current or historical fact are forward-looking in nature. Such forward-looking statements reflect the Company's expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. When used herein, the words "anticipate," "believe," "estimate," "plan," "intend" and "expect" and similar expressions, as they relate to Timberline Resources Corporation, or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties, and other factors that could cause the Company's actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, such factors, including risk factors, discussed in the Company's Annual Report on Form 10-KSB, as amended, for the year ended September 30, 2006. Except as required by the Federal Securities law, the Company does not undertake any obligation to release publicly any revisions to any forward-looking statements to reflect.