Timberline Resources Corporation ("Timberline" or the "Company") announced today that advanced development activities are progressing at its Butte Highlands Gold Project, an underground gold mine located south of Butte, Montana.
The underground development drifts have been advanced by approximately 550 feet, six core holes have been drilled for exploration and metallurgical purposes, two groundwater monitoring wells have been completed, and a second de-watering well is currently being drilled.
With this recent advancement, the decline is advancing toward the bulk sample area, which is in the upper portion of the mineralized material. Additional underground work bays and drill stations have also been developed, along with infrastructure development for the secondary escapeway raise. Results from exploration drilling in previously unexplored areas have not identified new areas of mineralization, but geologic reviews and analyses continue.
A portion of the development is advancing toward the underground intersection with the historical adit in preparation for development of one of the previously permitted groundwater discharge outfall facilities in that area. An additional Land Application Discharge ("LAD") site for water discharge on the surface is also nearing completion, which will supplement the existing LAD sites.
The 30-day public comment period related to the Draft Environmental Impact Statement recently completed by the Montana Department of Environmental Quality ("MDEQ") ended on November 9, 2013. The MDEQ is evaluating the comments in preparation for the release of the Final Environmental Impact Statement ("Final EIS"), a Record of Decision ("ROD"), and the Final Hard Rock Operating Permit ("Final HROP"). The schedule for the issuance of the Final EIS, the ROD, and the Final HROP is largely dependent upon the MDEQ's evaluation of the public comments.
Timberline President and CEO Paul Dircksen commented, "We are pleased with the continued progress of the development at Butte Highlands. The operations team is working diligently to be prepared to commence production as quickly as possible upon receipt of all required permits. While the timing of the final permit issuances is largely beyond our control, we remain focused on permitting and development objectives."
All of the site activities continue to be carried out under the authorization of the exploration license previously granted to our joint venture company, Butte Highlands JV, LLC ("BHJV"), which is operating the project.
Timberline owns a 50-percent carried-to-production interest in BHJV, which owns the Butte Highlands Gold Project where mining is expected to commence following the issuance of the final hard rock operating permit and the U.S. Forest Service approval of a road-use plan of operations for material haulage. Timberline's joint venture partner is funding all mine development costs through to commercial production with Timberline's share of those costs to be repaid from proceeds of future mine production.