Timberline Resources Corp (TLRS)

[baystock1]

Technical Gold Trader Gary Savage: “Big Players Use Panic Selling Events To Enter Billion Dollar Positions In Gold & Miners”

http://bullmarketthinking.com/technical-gold-trader-gary-savage-big-players-use-panic-selling-events-to-enter-billion-dollar-positions-in-gold-miners/


While I don't really think that any big players were accumulating TLR, I am sure the same tactics used by the big players in accumulating the bigger/higher quality gold shares are being imitated by smaller traders on the junior miners. TLR was very close to a breakout with the 50 dma on the verge of crossing over the 200 dma. This has been delayed by the orchestrated sell off we saw last week.

The following long term gold chart provides a great road map for where gold and gold shares are headed. Gold to $4000 by 2nd half of 2014:
http://bullmarketthinking.com/wp-content/uploads/2012/12/Long-Term-Gold-Chart.png

TLR looks to me to be a highly levaraged way to play this spike in the gold price as it will transition into being a gold producer within this time frame. Where will TLR share price be in this 18-21 month time frame with $4000 POG ? By then Butte will be producing 25,000 oz per year and TLR will be well on its way to tripling production to 75,000 oz per year as South Eureka comes close to coming on line with an additional 50,000 oz per year.

At the spike high price of $4000, assuming $1000 per oz operating cost, the cash flow margin will be 75000 * 3000 = $200 million per year. So a billion dollar market cap is not out of the question. 2nd half 2014 would be the time to sell while the herd is trying to get on board for several dollars per share instead of the pennies per share price of entry now.