Timberline Resources Corp (TLRS)

[baystock1]

Obviously the previous scenario has a less than 100% probability of materializing due to permitting risks, price of gold risks. If you want an investment with only gold price risk and no permitting or production ramp up risk, then you should invest in an already producing company such as Kinross or Pan American Silver, etc. But if you have some spec money for a higher risk/higher reward situation such as TLR, by all means that should be considered as part of a diversified investment portfolio. From the current trading prices the downside is quite limited and can be measured in pennies while the potential upside is in multiple dollars. Everyone should take the amount of risk that they are comfortable with, but I was buying a lot of shares during last weeks high volume sell off.

The following 3 things mitigate the risk for this play IMO:
1)draft hard rock permit in hand
2)carried for 50% where JV partner incurs all the cost. Also the partner was initially SMD who can be viewed as a smart money partner since hard rock underground mining was their business
3)There is a 2nd project in the pipeline Lookout mountain/South Eureka to fall back on if the final permit for Butte Highlands is delayed beyond mid 2013