Timberline Resources Corp (TLRS)

[ThSeeker]

Gold Investment Letter:
I will be attendig the Palisade Global Hard Asset conference on Jekyll Island this Thursday. We'll be meeting in the same rooms that J.P. Morgan and a small group of bankers created the Federal Reserve in 1913. Eric Sprott and G Edward Griffin are two of the keynote speakers for a small group of 50 high net worth investors. I look forward to recording video live and will recap key thoughts next week. In the meantime, I'm still playing catch up to the past weeks emails so if you haven't had a reply from me I will be getting back to everyone today/tomorrow!

This gold dip is a gift! I continue to build bigger and bigger positions in anticipation of a closing window where we can buy gold under $1,400 and silver under $20. I have deep conviction that gold is heading to $1,400 versus $1,100! If you are betting on the ladder, I fear that you are missing out on the big picture. My prediction is that gold will be $1,900-$2,000 an ounce in 2018. The last time gold reached $1,400 it took only 9 months to reach highs over $1,900 and this time I think it will happen faster.

Juniors that I continue to like as core long term positions are Timberline Resources (TLRS/TBR), Gungnir Resources (GUG/ASWRF), and Orca Gold (ORG/CANWF). ORG is at 59-60 cents this morning which is still below our "buy up to price" of 65 cents CDN, so add while you can under that price. With sanctions on Sudan officially removed and news flow from a 25,000 meter ongoing drill program, the wind is at the back of Orca and I expect new highs in Q4. In 2-3 years this could be a $5 stock.

Gungnir's chart is gorgeous! Drill results could be out any day now based on my discussion a month or so ago with management. Aurion Resources (AU.V), Gungnir's neighbor, continues to trade nicely back above $3 yesterday. AU was trading at 17 cents last May before their new discovery sent the share price almost 20 fold in the past 18 months! GUG has huge winner potential and still commands only a $10MM CDN market cap, which is paltry. Add GUG on weakness or up to .175.

Lastly, I have increased my already significant position in Timberline Resources (TLRS/TBR) over the past week. The 30 cent financing (TLRS) is being led by a group with a large investor following and they have committed $500K of the $1.25MM. The current financing is strategic in this respect and will also finance a new drill program at Talapoosa. With nearly 2 million ounces of gold resource in Nevada at $5 per ounce in the ground, buying TLRS/TBR around 30 cents US/40 cents CDN is a no brainer. With my recent purchases, including warrants, I own approximately 8% of the outstanding shares in Timberline.

I have very meaningful positions in GUG/ORG but my biggest by far is in Timberline. I'm simply convinced that there is deep value here and time is on the side of finding a partner to fund the looming option payments in 2018/2019. New $$ in the coffer and news flow from moving the project forward should create new enthusiasm in the share price and behind the scenes. Long term investors should be scooping up TLRS under 35 cents and TBR under 42 cents while things are quiet.

I will have updates on many other positions like Patriot, Bravada, Southern Silver, etc in the coming week or so. However, if I haven't said sell, my outlook hasn't changed from the last time I mentioned any of these stocks. I remain long all of these mentioned above but when not much is moving for the companies in terms of news it tends to simply be a waiting game.

I'm long GUG/ORG/TLRS

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Gold Investment Letter
Sincerely,
Eric Muschinski
Gold Investment Letter
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