Highlands Gold Project Permitting Update

 

COEUR D'ALENE, ID - Timberline Resources Corporation reported that it recently filed its Underground Exploration Plan with Montana's Department of Environmental Quality (DEQ). The work plan at Butte Highlands is primarily aimed at advancing the deposit toward near-term development and production. The review and approval process is expected to take approximately 60 days after which the Company expects to begin the development ramp and drilling. The plan includes:

 Driving a 6,700-foot decline, providing access for 10 to 15 underground drill stations and doubling as a production ramp.

 60,000 feet of underground drilling to further define and potentially expand known mineralized zones and to provide material for metallurgical testing.

 Additional surface drilling to test the deposit's western extension discovered last fall in Hole #08-03. (See Timberline's press release dated October 21, 2008 for more information.)

  A 10,000-ton bulk sample to provide material for pre-production ore characterization.

 Additional water monitoring drill holes for further definition of the hydrological character, verifying continuity with last year's single test hole.

In support of the project, Timberline has recently acquired approximately 150 acres of private land adjacent to and just south of its main Butte Highlands property. The strategic parcel is expected to reduce development and mining costs by providing improved portal access and more optimal facilities locations and staging areas.

Butte Highlands 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 property was extensively drilled by Placer Dome, Battle Mountain, ASARCO, and Orvana Minerals in the 1980s and 1990s, and contains historic mineralization outlined by Orvana (not compliant with NI 43-101 or SEC Guide 7) exceeding 500,000 ounces of gold at a grade of nearly 0.30 ounces of gold per ton (oz/t). Past drilling highlights include gold intercepts of 50 feet of 0.65 oz/t, 31 feet of 1.06 oz/t, and 11.50 feet of 1.99 oz/t.