Timberline Completes Formation of Joint Venture Operating Company

 

COEUR D’ALENE, ID - Timberline Resources Corporation reported that it and Ron Guill have formed a joint venture operating company, Butte Highlands JV, LLC ("BHJV"), for the further exploration, development, and mining of its Butte Highlands Gold Project just south of Butte, Montana.  Timberline also announced that it has finalized the Operating Agreement for the joint venture with Highland Mining, LLC, an affiliate of Small Mine Development, LLC ("SMD"), which is controlled by Guill, a Timberline Director.

Timberline and Highland have agreed that Highland will fund the development of the underground gold mine at Butte Highlands, and that SMD will perform all development activities to advance the project to production.  Under terms of the agreement, Timberline will be carried to production by Highland, and both Timberline's and Highland's 50-percent share of costs will be paid out of proceeds from future mine production.

Development for the mine is expected to begin with the cutting of the mine portal following receipt of the company's exploration permit for a development ramp, additional drilling, and a 10,000 ton bulk sample for metallurgical testing.  The Company has addressed all of the questions raised by the Montana Department of Environmental Quality with regards to its permit.  The project remains on schedule, and there do not appear to be any unexpected impediments to its approval which is expected shortly.

Timberline CEO Randal Hardy stated, "We have developed a very close relationship with Ron Guill and SMD.  Highland Mining was specifically formed by Guill to be the operating company of our gold project at Butte Highlands.  Even prior to finalizing this agreement, we have been working closely together - advancing the permitting, the exploration programs, and the mine planning in preparation for beginning our development ramp later this summer.  We have taken the next step and the pieces are all fitting nicely into place to move this project toward production."

Guill added, "I am pleased to be partnering with Timberline in the advancement of the Butte Highlands Gold Project.  Over the past several months, we have spent in excess of $750,000 advancing the exploration, permitting, engineering, and site preparation required prior to breaking ground.  It's exciting for me and the team at SMD to have the opportunity to work on a project in which we have a substantial equity position.  We look forward to advancing this project to production and view our partnership with Timberline as a model for working together on future projects."

The Butte Highlands Gold Project is located 15 miles south of Butte, Montana within a favorable geologic domain that has hosted several multi-million ounce gold deposits including Butte, Golden Sunlight, Montana Tunnels, and Virginia City.

The company’s address is 101 E. Lakeside, Coeur d'Alene, ID 83814, 208.664.4859, Fax: 208.664.4860, www.timberline-resources.com, email: [email protected].