The Company also wishes to clarify that its joint venture partner on the Butte Highlands Property, Highland Mining LLC, has decided to advance the Butte Highlights project into production without first establishing mineral resources supported by an independent technical report or completing a feasibility study. A production decision without the benefit of a technical report independently establishing mineral resources or reserves and any feasibility study demonstrating economic and technical viability creates increased uncertainty and heightens economic and technical risks of failure associated with the Butte Highlands project.
The Company intends to file an updated technical report on the Butte Highlands Property to clarify and correct previous disclosure that were not compliant with NI 43-101. The Company will be working with its independent geological consultant, Mine Development Associates to prepare and file the updated technical report. The Company's web site (www.timberline-resources.com) has been revised and non-compliant disclosures removed (including corporate presentations and fact sheets) or corrected to comply with NI 43-101.
South Eureka Property and Lookout Mountain Project, Nevada
Certain materials on the Company's website relating to the South Eureka Property and Lookout Mountain Project included disclosure which was non-compliant with NI 43-101. In certain fact sheets (including one dated March 2013), corporate presentations (including one dated June 2012) and certain pages on the Company's website, the Company:
-- disclosed a "positive internal preliminary economic scoping study" at Lookout Mountain implying that a preliminary economic assessment ("PEA") has been completed;-- disclosed combined measured and indicated resources which is not permissible under NI 43-101; and-- disclosed estimates of quantities of mineralization without disclosure of the range of grades, range of quantity and the inclusion of prominent cautionary language required by NI 43-101.
The Company has not yet completed a valid PEA on its Lookout Mountain Project and retracts the disclosure implying a PEA had been completed.
The Company has also removed the other non-compliant disclosure on its website. Material on the website which disclosed combined measured and indicated resources will be replaced with material that separates disclosure of each resource category. The target estimates that do not disclose a quantity and grade range and the appropriate prominent cautionary language required by NI 43-101 will be replaced with compliant disclosure.
The Company's independent geological consultant, Mine Development Associates, is preparing an updated technical report to support the increase in the resource estimate on the Lookout Mountain Project as announced in the Company's news release of February 28, 2013. The Company expects that the report will be filed on or before April 14, 2013, in compliance with the requirements of NI 43-101.
Steven Osterberg, Ph.D., P.G., Timberline's Vice-President of Exploration, is a Qualified Person as defined by NI 43-101 and has reviewed and approved the technical contents of this release.
About Timberline Resources
Timberline Resources Corporation is exploring and developing advanced-stage gold properties in the western United States. Timberline holds a 50-percent carried interest ownership stake in the Butte Highlands Joint Venture in Montana where gold production is targeted to commence in 2013. Timberline's exploration is primarily focused on the goldfields of Nevada, where it is advancing its flagship Lookout Mountain Project toward a production decision while exploring a pipeline of quality earlier-stage projects at its South Eureka Property and elsewhere. Timberline management has a proven track record of discovering economic mineral deposits and developing them into profitable mines.