COEUR D'ALENE, Idaho, April 16, 2007 (PRIME NEWSWIRE) -- Timberline Resources Corporation (OTCBB:TBLC) today announced preliminary second quarter revenue figures for its wholly-owned contract drilling subsidiary, Kettle Drilling, Inc. ("Kettle"). For the quarter ending in March 2007, unaudited results indicate total consolidated revenues of approximately $3.5-million, roughly double the revenue generated a year ago. This marks the fourth consecutive quarter of record revenues at Kettle since it was acquired by Timberline in March 2006. Kettle specializes in underground drilling services in support of active mining operations and advanced exploration projects.
Timberline Chairman and CEO John Swallow stated, "As expected, our newly-priced contracts and the continued commissioning of our four new drills have resulted in a considerable revenue increase. We expect this trend to continue through our September year-end and have accordingly revised our 2007 revenue projection to at least $16-million. We are currently evaluating several available options for the continued growth of our drilling operations and will pursue the strategy that we believe is most beneficial to our shareholders."
Three of the four recently purchased new drills are now in active service, working contracts for Barrick Gold, U.S. Gold, and Klondex Mines. The fourth drill will be delivered to a Barrick mine site later this month. Kettle and its subsidiary, World Wide Exploration, S.A. de C.V. ("World Wide"), now have 14 rigs in service on active contracts with Newmont Mining, Industrias Penoles, Teck Cominco, Kinross Gold, and Kennecott Exploration.
Timberline also announced today that it will present at the EdgeWater Spring 2007 Small Cap/Micro Cap Conference in Denver on Wednesday, April 18. The Timberline presentation will be available later this week on the Company's website at www.timberline-resources.com.
Timberline also provided updates on its exploration projects at Conglomerate Mesa, East Camp Douglas, Long Canyon, and Downeyville.
At Conglomerate Mesa, Timberline has expanded its land position from 250 to more than 300 claims. The newly-staked ground includes targets for gold and for silver-lead-zinc. Also, a Notice of Intent has been submitted to the Bureau of Land Management requesting approval to reopen an access road and to conduct limited drilling later this year. Timberline continues to work at Conglomerate Mesa under terms of a Memorandum of Understanding signed in September 2006, with the expectation of a definitive agreement being finalized shortly.
At East Camp Douglas, data compilation and geologic mapping continue in preparation for a drill program this summer. Past operators, including several major mining companies, have drilled 126 holes and taken 2,403 soil samples on and around the property, all of which were recently input to a digital project-scale database. Possible drill targets are currently being assessed. The project is the result of long-term efforts to consolidate the East Camp Douglas district, an area that has seen considerable exploration along with historic small-scale mining.
At Downeyville, a ground magnetic survey is planned to commence this month. Timberline collected 23 rock chip samples from mapped structures and mine dumps with nine returning assays ranging from strongly anomalous to ore-grade, with values of up to 28-percent zinc, 0.24 ounces per ton (oz/t) gold, and 12.8 oz/t silver. Downeyville is one of several Timberline exploration properties that have seen historic small-scale production.
At Long Canyon, mapping, sampling and prospecting are underway to outline exploration plans for this early-stage project. Sampling of narrow quartz veins by prior operators has returned assays of up to 3.9 grams per tonne (g/t) gold and 529 g/t silver.
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.