Timberline Resources Corp (TLRS)

[Picassa]

Is this the next GORO ?

Timberline Resources held a conference call this past week as a follow up to their announcement that they would be acquiring Staccato Gold. The acquisition brings in a second late stage project into Timberline. Timberline’s core asset, Butte Highlands Gold Project of 750,000 ounces of gold (expandable), will be in production Q1/Q2 2011 at a rate of 70,000 ounces per year, around a $450 cash cost. Staccator’s core asset, the Lookout Mountain Project of ~600,000 ounces of gold (expandable), is a project that needs a little more drilling to expand the resource but could realistically be in production in 2.5-3 years. The capex for the Lookout Mountain project would be similar to Butte Highlands (ie $15-20 million), would be a heap leach operation, probably be a 30,000-50,000 ounce/year production potential at $400 cash cost. The combination of the two projects has realistic potential to make timberline a 100,000+ ounce gold producer over the next 3 years.