Also, geochemical characterization of mine and waste rock is in progress by InterraLogic, Inc. and Enviroscientists, Inc. is directing environmental baseline studies and developing plans for the upcoming field season to lead to potential mine permit applications in early 2014.
Mr. Dircksen continued, "These studies will provide the basis for completion of our PEA by mid-year and, pending favorable results, more detailed investigations will follow in support of a Feasibility Study and submission of a Plan of Operations targeted for early 2014. We continue to advance the project toward production with confidence that it has considerable resource expansion opportunity and excellent potential to host a low cost, open pit, heap-leach gold operation."
The MDA resource estimates are summarized below at the noted cut-off grades:
Lookout Mountain Gold Resource(2)(3) Grams of Ounces of Gold per Metric Gold per Tonne GoldResource Category(1) Short Tons Tonnes Ton (opt) (g/t) OuncesMeasured 3,043,000 2,761,000 0.035 1.20 106,000Indicated 25,897,000 23,493,000 0.016 0.55 402,000 ---------- ------------ ---------- --------- ---------Measured & Indicated 28,940,000 26,254,000 0.018 0.62 508,000Inferred 11,709,000 10,622,000 0.012 0.41 141,000Notes: 1) 0.006 opt (0.21 g/t) cut-off applied to oxidized material to capture mineralization potentially available to open pit extraction and heap leach processing. 0.030 opt (1.03 g/t) cut-off applied to unoxidized material to capture mineralization potentially available to open pit extraction and lower heap leach recoveries or sulfide processing. 2) Rounding may cause apparent discrepancies. 3) The effective date of the Lookout Mountain updated gold resources is February 20, 2013.
The full MDA Resource Estimate with various cut-off grades can be seen at http://timberline-resources.com/main.php?page=208.
Timberline's 2013 South Eureka drill program will prioritize expansion of the gold resource to the south of Lookout Mountain, including approximately 2,500 feet of strike extension toward South Adit in which assay data is currently of insufficient density to calculate resources. The Company also plans to drill test several targets at increased depth. In 2012, a hydrology hole beneath Lookout Mountain intercepted high-grade gold mineralization (0.138 opt (4.72 g/t gold) over the final 15 feet (4.6 meters)) down dip of the current resource, indicating considerable additional geologic potential at depth.
Timberline's district-scale South Eureka property is strategically located within the greater Eureka Mining District, just four miles from Barrick Gold's two-million ounce Archimedes / Ruby Hill mine. South Eureka features three distinct structural zones and includes past-producing open pits, along with several areas containing historic, non-compliant, gold resources and untested targets. These successfully drill-tested areas are combined and included in the summarized table below.
Area Category Gold OuncesLookout Measured & Indicated(1)- NI 43-101 Compliant 508,000MountainLookout Inferred(1)- NI 43-101 Compliant 141,000MountainWindfall Exploration target at 0.024 - 0.027 opt using a 188,000 0.010 opt cutoff -200,000Rocky Canyon Historic (1,400,000 tons at 0.025 opt) 35,000 (Alta Gold, 1998)
