New Drilling Returns Higher Grade Gold At Eureka Project

COEUR D'ALENE, ID  - Timberline Resources Corporation reported initial results from the second phase of the 2021 drilling program at its 100%-controlled Eureka Project in Nevada. The Company recently completed the 6,536-meter (m) program initiated in July 2021. These results are from six reverse circulation (RC) holes, comprising approximately 1,410m, and partial results from two core holes. These holes are from the Water Well Zone (WWZ), which lies immediately east of the Lookout Mountain gold resource.

The most significant new gold intercepts in these holes include: 22.9m at 6.11 grams per tonne (g/t) gold from 140.8m depth in BHSE-220C, including 12.2m at 8.92 g/t gold from 151.5m depth; 10.7m at 2.96 g/t gold from 229.2m depth in BHSE-211C; 22.9m at 1.11 g/t gold from 219.5m depth in BHSE-198; and 6.10m at 2.85 g/t gold from 161.5m depth in BHSE-204.

Patrick Highsmith, President and CEO, said, "This new drilling in the Water Well Zone has returned the best hole to date in this area, and one of the best holes on the Eureka Project. As we have progressed northward, we have not only encountered richer and thicker gold mineralization, but the target horizon is also much shallower than we have previously seen. It appears as though core drilling is providing much better information than reverse circulation on the geology and gold content. We are currently making plans to twin more RC holes at the Water Well Zone with core holes."

Drill holes BHSE-204, 205, and 220C were all drilled from the same pad. This location is the farthest north drill site to date at the WWZ, representing a step out of 134m northeast from BHSE-195. Initial drilling in this area by RC holes BHSE-204 and 205 intercepted carbonaceous jasperoid (silica altered) with notable pyrite and orpiment (arsenic sulfide mineral), all of which are often associated with gold in Carlin-type deposits. The mineralized interval also occurred much shallower than expected. Based on these favorable indications, the Company elected to expedite the assays in these two holes and announce the partial results before receipt of assays above and below the interval of interest.