Paiute Project Review

Transcription

1 Paiute Project Review Battle Mountain District, Nevada May 2018

2 Cautionary Statements Forward Looking Statements Statements contained herein that are not based upon current or historical fact are forward-looking in nature and constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of Such forward-looking statements reflect the Company's expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. These statements include but are not limited to: statements regarding the Elder Creek Project and Paiute Project, including potential acquisition by Timberline, timing of acquisition, JV earn-in success, resources and exploration tonnage and grade targets, drill readiness, and statements regarding future extraction operations. When used herein, the words "anticipate," "believe," "estimate," upcoming, "plan," target, "intend" and "expect" and similar expressions, as they relate to Timberline Resources Corporation, its subsidiaries, or its management, are intended to identify such forward-looking statements. These forward- looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties, and other factors that could cause the Company's actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward- looking statements. Factors that could cause or contribute to such differences include, but are not limited to, risks related to exploration projects, risks related to mining activities, risks related to potential future transactions, risks related to the Company continuing as a going concern, risks related to the ability to finance any payments due, risks related to project development decisions, risks related to mineral resource estimates and other such factors, including risk factors discussed in the Company's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Except as required by Federal Securities law, the Company does not undertake any obligation to release publicly any revisions to any forward-looking statements.. Cautionary Statements This presentation reports certain historical assays collected by previous companies for the properties noted. These assays have been completed by known and respected laboratories which consistently perform analyses for the mineral extraction industry using standard sample preparation and analysis techniques. Final laboratory reports which identify the laboratory, assay dates, and certificate numbers, and sample preparation and analytical procedures are available. Steven Osterberg, Ph.D., P.G., Timberline s President and CEO, is a Qualified Person as defined by NI and has reviewed and approved the technical contents of this presentation. 2

3 Location and Targets: Battle Mountain-Eureka Trend Nevada: world-class jurisdiction Battle Mountain District: North end of the prolific Battle Mountain- Eureka Trend >25 million oz gold 2 billion lbs. copper Excellent Infrastructure I-80: ~10 km Interstate Railroad: ~10km Power: ~ 5 km Mining Community Exploration Target* 250 MT to 500 MT of 0.5% - 0.8%, and oz/ton (opt) Structural oxide Au-Ag (Lonetree-type) 1 M oz opt Elder Creek Paiute Project * Resource target estimate based on intrusive size, magnetic signature, rock sample assays, and comparison to known mines of this deposit type. 3

4 Location: Battle Mountain Gold - Copper District 3 Producing Mines & 1 Copper-Gold Development Project Newmont s Lone Tree Gold Mine Phoenix Gold & Copper Mine Copper Basin Copper-gold development SSR Mining s Marigold Mine Complex Converse 4 Moz Au Marigold Mine Complex 5 Moz Au Lone Tree 7 Moz Au Elder Creek Paiute Immediately northwest of Newmont s Copper Basin Project; north of Buckingham Moly porphyry Adjacent to Timberline s Elder Creek JV Project with McEwen Mining Trenton/ Valmy N. Peak 1.2 Moz Buffalo Canyon 1.4 Moz Au Buckingham Moly 1.0 Mo Copper Basin 1.2 Moz Au 164 Mlbs Cu 2.3 Moz Ag Newmont Mine Phoenix Mine Complex 14.0 Moz Au 1.65 Blbs Cu 15 Moz Ag 5 miles 4

5 Claim Block and Joint Venture Terms Joint Venture Ownership Structure: Timberline owns 73.7% of the joint venture with Lac Minerals (USA) (Barrick subsidiary) No mandatory work commitments required Timberline as Operator proposing work budgets with Lac 30-day option for pro rata participation or dilution. If dilution reaches 10% or less, then Lac converts to a 2% NSR 5

6 Battle Mountain District Geology and Major Gold and Copper Systems Elder Creek Project Paiute Project 6

7 Battle Mountain District Under-Explored Porphyry Systems Newmont Buckingham Porphyry Mo-Cu Silver Standard Marigold Mine Newmont Copper Basin Au-Cu Porphyry Paiute Au-Cu Porphyry McEwen-JV Elder Creek Porphyry s Cu-Au-Mo-Ag

8 Summary Geology: Mappable Zoning Outer biotite hornfels isograd coincident limit of pyrite-pyrrhotite(?) hornfels and Au-Ag zone Calc-silicate hornfels and Cu zone Quartz vein stockworks and Mo zone Barren core after Ivosevic and Theodore,

9 Geology: Mineralization Styles, Intrusions, and Structure Property boundary 2-styles of Mineralization: Calc-alkaline, porphyry coppermolybdenum Gold-silver bearing vein systems (e.g. Golden Era) Golden Era 1 Eocene-Oligocene Intrusives: Biotite-hornblende-bearing Monzogranite Porphyritic Leucogranite 2 3 Quartz-eye Granodiorite porphyry Major Structural Orientations: Steeply dipping faults, fracture zones and dikes N E, N10-20 W, and N50 E 2 Photograph locations 500 m

10 Paiute Project Geology: Mappable Zonation Mappable Zonation Biotite-pyrite-pyrrhotite(?) hornfels Calc-silicate hornfels and Cu Zone Quartz vein stockworks and Mo Zone Golden Era Historic drill holes concentrated south of cliam block 96-3c 96-5 Most are shallow (<125 m total depth) Deepest Holes: 96-3c (303 m); 96-5 (179.8 m); both vertical Gold Zone: N10-20 E trending corridor Au-Ag-As mineralization Drill-hole Biotite Hornfels Calc-silicate Hornfels Quartz Stockworks Fault 500 m

11 Rock and Soil Sample Grid Coverage Golden Era 96-5 Geochemical Samples Rocks: 12 elements Soils: 11 elements Calc-silicate hornfels and Cu Zone Historic drill holes concentrated south of cliam block Most are shallow (<125 m total depth) Deepest Holes: 96-3c (303 m); 96-5 (179.8 m); both vertical Gold Zone: N10-20 E trending corridor Au-Ag-As mineralization 500 m Mappable Zonation Biotite Hornfels Calc-silicate Hornfels Quartz Stockworks Rock Sample Site Soil Sample Site Drill-hole Fault

12 Paiute Project Historic Rock and Soil Sample Gold Assay Results Two Major Orientations of Gold in Rocks and Soils N10 E - N20 E Zone With fault-controlled quartz-sericite pyrite alteration N20 W Zone Golden Era With hornblende-biotite granodiorite porphyry intrusions Au > 50 ppb (soil) 96-5 Au (ppm) in rock > 10.0 (max ppm) < 0.5 Au (ppb) in soil > < m

13 Au, As, Ag in Soil; Ag/Au in Soil and Drill Hole Au-As Moderate Correlation N10-20 E structural corridor Golden Era Ag abundance near Monzogranite and Breccia Pipe Ag/Au Ratios <10 in soil <5 in drill hole Intersection of two gold trends Ag / Au < 5 (drill-hole) Ag / Au < 10 (soil) Ag > 0.5 ppm (soil) As > 50 ppm (soil) Au > 50 ppb (soil) Drill-hole 500 m

14 Paiute Project Cu and Mo in Historic Rock Chips and Location of Soil Anomalies Mo anomaly is centered on Monzogranite Mo-deficient core associated with breccia pipe and central part of monzogranite intrusive Cu soil anomaly extends North and Northwest of Monzogranite and overlies zones of N-NW, and N-NE striking quartz-eye granodiorite dikes Golden Era 96-5 Mo > 5 ppm (soil) Cu > 200 ppm (soil) Cu (ppm) in rock > 3000 (maximum of 0.9% Cu) < 300 Soil Sample Site Drill-hole 500 m

15 Summary of Cu and Mo Soil Anomalies with Cu/Zn and Ag/Au in Soil Golden Era 96-5 Cu/Zn Zonation Progressive increase towards contact zone between granodiorite porphyry dikes and monzogranite Suggesting increased temperature from flank to core of magmatichydrothermal system Ag/Au <10 Zonation Occurs peripheral to Cu>200 ppm in soil anomaly with largest zone of low Ag/Au existing in the northwestern part of claim area Zones inferring potential of concealed Au-Cu porphyry Cu/Zn >3 and Ag/Au <10 Over granodiorite porphyry near DH 96-5 Ag / Au < 10 Cu / Zn > 3 Cu / Zn > 1 Mo > 5 ppm (soil) Cu > 200 ppm (soil) 500 m Drill-hole

16 Cu, Au, As, and Bi Soil Anomalies Golden Era 96-5 Au-As-Bi Mineralization N-NE trending coincident with phyllic-alteration N-NW Zone of elevated Au and Cu near DH 96-5 Zone of increased fracturing and actinolitic alteration Bi > 1 ppm (soil) As > 50 ppm (soil) Au > 50 ppb (soil) Cu > 200 ppm (soil) Drill-hole 500 m

17 Geophysics: Airborne Magnetics Au-Cu Target Zone Characterized by N-NW trending ground magnetic gradient 96-5 Au > 50 ppb (soil) Cu > 200 ppm (soil) Biotite Hornfels Calc-silicate Hornfels Quartz Stockworks Drill-hole Fault 500 m

18 2018 Confirmatory High-Grade Structural Gold Outcrop Rock Sampling SAMPLE Au (g/t) Ag g/t) As (ppm) Bi (ppm) 18PC , PC >10,000 8,200 18PC >10, PC , PC PC , PC , PC PC PC , PC PC >10, PC <2 18PC , PC <2 18PC PC >10,000 4,880 18PC >10, PC , PC >10, PC , *Samples are selective. may not represent true mineralization of prospect **The above assays were determined by ALS USA Inc. from representative samples. The samples were crushed and pulverized and a fraction was selected for analyses. Gold was determined by 30 g Fire Assay with an Atomic Adsorption finish. Samples assaying over 10 ppm gold were reassayed and completed with a gravimetric finish. Silver and base metals concentrations were initially analyzed using Aqua Regia ICP-AES.

19 Gold-Copper Porphyry Target Model DH 96-5: 178.3m: Cu-Au 1.45 gpt. Au & 1-2% Cpy.

20 Gold-Copper Porphyry System Petrology Summary DH96-5 The high gold assay of Hole 96-5 coincides with chalcopyrite mineralization several times more intense than in other samples, reaching as much as 1 or 2 percent over short intervals (<1.5 meters). This mineralization comes with increased silicification. Hole 96-5 was lost due to technical drilling difficulties when, visible copper mineralization was increased within a section assaying ppm Au (no Cu assays determined)

21 Representative Outcrop Rock Photographs Location1 (see page 8): Breccia textures in quartzsericite-limonite(after pyrite) altered Cambrian Harmony sandstone in the Golden Era mine area. Veinlets are truncated by the silica-goethite-rich matrix to the breccia. The breccia fabric strikes N20oE and dips 73oNW, which coincides with the trend of the Au-As-Bi mineralized corridor that extends through this area. Nearby rock-chip samples return up to 9.9 ppm Au, > 100 ppm Ag, > 1% As, > 1000 ppm Bi and 0.3% Cu. Photo taken looking west (near m E, m N; NAD 27, zone 11N).

22 Representative Outcrop Rock Photographs Location 2 (see page 8). Photograph of N25oW / 80oSW fracture set in quartz-hornblendebiotite granodiorite porphyry along ridge top located about 100 m east of the collar to drill-hole The fractures control actinolite-chloritealbite (high-temperature propylitic) alteration and range from 15 to 20 fractures per linear meter, measured across the strike-direction. Nearby rock-chip samples return up to 4.1 ppm Au, 17 ppm Ag, 364 ppm As, 3.3 ppm Bi, 0.1% Cu and 19 ppm Mo. Photo taken looking northnorthwest ( m E, m N; NAD 27, zone 11N).

23 Location 3 (see page 8). Photograph of finegrained, granular quartz veins and veinlets with local pink selvedges (secondary feldspar?) in block of biotite-hornfels after finegrained sandstone of the Cambrian Harmony Formation. Photo taken (near m E, m N; NAD 27, zone 11N).

24 Review Conclusions Paiute Project: NW portion of porphyry system with metal zoning and a footprint that exceeds 3 km x 1 km At least two phases of porphyritic granodiorite intrusions of late Eocene age Central zone of quartz vein stockworks that is flanked by proximal calc-silicate hornfels and distal biotitepyrrhotite hornfels Late-stage phyllic alteration and Au-Ag-Bi-As-bearing veins and fault zones form a NNE-trending corridor (> 2000 m by 250 m) in the western part of the area NNW-trending zone of actinolite-chlorite-albite fractures coincides with anomalous Cu-Au-Ag in the central part of the area Metal zoning characterized by central Mo, proximal Cu-Au-Ag and distal Au-As-Bi indicate the potential for a concealed Au-Cu porphyry system near the structural intersection in the vicinity of drill-hole 96-5 The bottom-most part of 96-5 (TD = m) contains 1-2% chalcopyrite (no Cu-assay results) and 1.4 ppm Au in granodiorite porphyry that shows variable sericite-chlorite, secondary amphibole (actinolite?) and weak hydrothermal biotite alteration