Finally good update.
Good Afternoon, From Gold Investment Letter:
For those of you interested in low priced juniors that have huge leverage potential, I'm updating two of our positions today. First is Timberline Resources (TLRS/TBR) which I own a significant percentage of the company. I filed a 13G in August 2017 and my overall position has increased in that time. The company has raised more money so I might be below 5% now though, although it's close.
I've had some frustrations with management and the board of directors which has slowed my enthusiasm for their story at times. That said, I believe the company's assets are worth more than 5 times their current market capitalization. One thing I give them credit for recently is the joint venture they closed on the Eureka gold project in Nevada as the terms are solid for TLRS. The deal with PM & Gold focuses on the Lookout Mountain and Oswego portion of Eureka (not the Windfall area).
To earn a 51% interest, PM has to spend $6 million in just two years with the minimum expenditure being $3M in year one, which has already begun. The company can earn 70% by completing a feasibility study within 5 years, which would no doubt take their overall investment close to $10m or more.
For now, let's value Timberline's 49% at $6m USD, which was just validated by another company's checkbook. TLRS at .10 is worth just $6M! Not to mention the value creation that $6M in work will do for this project, which I believe has multi million ounce gold potential (it has 650,000 ounces in 43-101 resource now). The news flow and drill results, after a very slow few years of development, will bring attention and excitement to the Timberline story over the next year, starting quite soon.
The company owns the Windfall (past producer-drilling planned soon 3,000m) project at Eureka, the Seven Troughs project (high grade early stage prospect), and two Battle Mountain Trend assets. Elder Creek is a huge copper porphyry system partnered with McEwen Mining (MUX) and Piute is in JV with Barrick .
Elder Creek could be an enormous lynch pin for Timberline as the initial discovery hole was impressive last year (between 33 and 152 meter intercepts of .21-.44% Copper). The system here is huge and so is the growth potential. It's fairly early days but I can tell you that 3 separate geologists I've spoken to have commented that Timberline is onto something "massive" here. They all invested in the company after being onsite.
For example, and this is still to be proven obviously, but one commented that Elder Creek will "dwarf Pumpkin Hollow". Nevada Copper, which we cover here, has a quarter of a billion dollar market cap based solely on the value of Pumpkin Hollow! NCU's enterprise value is almost 50 fold more than Timberline's and that's with their stock trading at all time lows.
In summary, there will be a lot of drilling and news on multiple properties at Timberline Resources (TLRS/TBR) in the coming months/quarters. How can a company with a handful of solid and real gold/copper projects in Nevada be valued a little better than a hot dog stand in NYC ($5-6m) with gold trading above $1,500 an ounce?! This is a perfect long term call option on the price of gold and the leverage could prove incredible. There is also very little stock for sale below .10 US. I would add TLRS to .12 and TBR to .16 to build a fresh position before gold really gets its legs to the $1,600-$1,700 area yet in 2019.
Here is their August 2019 investor presentation....look for yourself:
Gold Investment Letter