Elder Creek Porphyry Copper-Gold Project Battle Mountain District, Nevada June 2018
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 1934. 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 43-101 and has reviewed and approved the technical contents of this presentation. 2
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 Elder Creek Elder Creek Project I-80: < 1km Interstate Railroad: <1km Power: < 1km Mining Community Resource Target * 750,000-1,000,000 oz. oxide Au @ 0.015 0.04 oz./ton (opt) 500MT to 1.0BT of Cu-(Mo-Ag) porphyry resources @ 0.5% - 1.0% Cu * Resource target estimate based on intrusive size, magnetic signature, rock sample assays, and comparison to known mines of this deposit type. 3
Property Acquisition June, 2018 Timberline acquires ownership interest in Elder Creek and adjacent Paiute gold-copper properties in the Battle Mountain District of Nevada from America s Gold Exploration, Inc. (AGEI) Acquisition includes the right to earn into an existing joint venture agreement with McEwen Mining at the Elder Creek Project Proposed Earn-in: Elder Creek: Joint venture with McEwen Mining with AGEI as Operator 51% Earn-In for $2.6 M over 4 years by December 31, 2021 Year 1: $100,000 One Time Cash Payment by May 17, 2018 Year 1: $500,000 Work Commitment by December 31, 2018 Year 2: $500,000 Work Commitment by December 31, 2019 Year 3: $750,000 Work Commitment by December 31, 2020 Year 4: $750,000 Work Commitment by December 31, 2021 65% Earn-In for an additional $2.5M work commitment for a total of $5.1M over 6 years by December 31, 2023. Elder Creek & Paiute Projects 4
Paiute Project 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 Immediately northwest of Newmont s Copper Basin Project; north of Buckingham Moly, NE of Long Peak porphyry Adjacent to Timberline s Paiute Project Converse 4 Moz Au Marigold Mine Complex 5 Moz Au Trenton/ Valmy N. Peak 1.2 Moz Lone Tree 7 Moz Au Buffalo Canyon 1.4 Moz Au Long Peak Buckingham Moly 1.0 Bt @0.06% Mo Elder Creek Paiute 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 5
Claim Block and McEwen Mining Joint Venture Terms N 583 Un-patented Mining Claims: ~15 sq. miles Adjacent to Timberline s Paiute Project ~12 km northwest of Battle Mountain 1 km to Interstate 80, transcontinental railroad, and high voltage power Elder Creek Project Paiute Project 1 mile 2 km 6
Exploration History Exploration and Mining Companies: Bear Creek (1964-1965) Valmy Copper (1967) Battle Mountain Gold (1985) Western Mining Gold Exploration (1994-1995) Uranerz Gold AUR Resources (1997-1998) Battle Mountain Gold (1999-2000) Nevada Pacific Gold (2003) Placer Dome (2005) US Gold Corp (McEwen Mining) (2005) Historic Exploration Focused almost exclusively on Gold-potential; (LIMITED Attention paid to porphyry copper (gold) targets) Researchers and Consultants Calib King (2011) Steve Garwin* Ph.D. (2014) Greg McKelvey (2014) * The geologic discussions on following pages is based extensively on geologic data from King (2011), and consulting review and analysis by Garwin (2014), and McKelvey (2014) 7
Battle Mountain District Geology and Major Gold and Copper systems Elder Creek Project Paiute Project 8
Airborne Magnetics Elder Creek: Classic porphyry magnetic doughnut signature with 1-mile diameter non-magnetic center Multiple porphyritic granodiorite intrusion phases similar to Copper Canyon-Phoenix N 1 Mile Outcropping copper-oxide mineralization Favorable size comparison to major porphyry hosting mineral deposits Butte, Bingham, Refugio, Batu Hijau, Yerington, Resolution Elder Creek Porphyry Claim Block (diagonals) Neotocite (Cu-bearing MnO 2 ) and chrysocolla along fracture surfaces in quartz-eye hornblende-biotite granodiorite porphyry at Elder Creek. 9
General Geology and Targets* Morning Star Hill Cu-Mo-Au Hills Valmy Cu-Pit Cu-Mo Hill Geologic Setting Separate, potentially stacked Cu-(Mo-Au-Ag) porphyry systems with secondary discovery targets, and separate Cu-Au targets Outcropping Cu-oxide leach, subsurface Cu- Au sulphide, and near-surface oxide Au Resource Targets * Cu-Au (Mo-Ag) porphyry: 500MT to 1.0BT of resources @ 0.5% - 0.8% Cu, 0.003-0.03 opt Au Structural oxide Au (Lone Tree-type): 750,000-1,000,000 oz. @ 0.025 0.04 oz./ton (opt) Exploration Program Surface geology, geophysics, geochemistry Drilling and geologic modeling Estimate of NI 43-101 resource Elder Creek Project N 2 mile Paiute * Resource target estimate based on intrusive size, magnetic signature, rock sample assays, and comparison to known mines of this deposit type (see page 6). 10
Geology and Historic Drilling Approximately 100 historic drill-holes were completed at Elder Creek from 1964 to 2012. Morning Star Mine Drilling was focused on the gold-bearing vein systems that flank the intrusive center. The majority of the holes are less than 150 m deep with the deepest holes reaching down-hole depths of 244 m and 457 m in the vicinity of the Morning Star and Ridge Mine. The center of the porphyry system was tested by only two shallow holes, for which no details are available. Gracie Mine Big Pay Mine Ridge Mine Drill-hole: trace shown, where known 11
Geology (King, 2011): Felsic Intrusives and Mineralization 1 2 Morning Star Mine King (2011) recognizes three major phases of felsic intrusions, including early-stage, fine- to mediumgrained sub-porphyritic hornblende-biotite granodiorite; and intermediate-stage and late-stage quartz eyehornblende-biotite granodiorite porphyries. The intermediate- and late-stage intrusions have been dated by K-Ar to be 37.3 + 0.7 Ma and 35.4 + 1.1 Ma, respectively (Theodore et al., 1973 and McKee, 1992). 3 4 The major styles of mineralization recognized in the area include calc-alkaline, porphyry copper and related peripheral gold-silver-bearing base-metal vein systems (e.g. Morning Star and others). Gracie Mine 5 Big Pay Mine Ridge Mine Property Boundary 1 Photograph location 12
Geology (King, 2011): Structure 3 1 2 Morning Star Mine In the western part of the area, the Dewitt Thrust fault places Ordovician Valmy Formation cherts and shales on top of Cambrian Harmony Formation quartz- and feldspathic-sandstones and shales, which are locally calcareous. The mapped faults dip steeply, strike north-northwest to north-northeast and show normal and oblique-slip offset. The Elder Creek Fault indicates normal, down-to-the-west movement that is inferred to offset mineralization but the amount of offset is not constrained. 4 Gracie Mine 5 Big Pay Mine Ridge Mine Property Boundary 1 Photograph location 13
Geology: Faults, Dikes, Quartz Veining, and Hornfels Morning Star Mine The overlays show the outer limits of biotite-pyritepyrrhotite hornfels (Theodore, 1996), moderate to strong abundance of granular, porphyry-style quartz veins (Amoco, 1967) and zones of strong quartz veins and silicification mapped by McEwen Mining (2011-2012). Quartz Veins / Silicification (strong) Quartz Veins (mod to strong) Limit of Biotite Hornfels Felsic Dike 14
Geology: Distribution of Hydrothermal Alteration The zoning of hydrothermal alteration indicates the presence of a large and strong magmatic-hydrothermal center to the Elder Creek porphyry system. The quartz vein-bearing core of the system exceeds 3.0 km by 1.5 km, which compares favorably to other global porphyry systems. Sources: King, 2011; Theodore, 1996; Amoco, 1967 Porphyry-style Quartz Veins (mod to strong) Potassic: Hydrothermal Biotite (mod to strong) Limit of Biotite Hornfels Phyllic: Quartz-Sericite-Pyrite Propylitic: Actinolite-Epidote-Chlorite-Albite Felsic Dike 15
Comparison to Global Porphyry Copper Systems Elder Creek 1.5 km (after Seedorff et al., 2005) 16
Geochemistry: Soil and Rock Chip Sampling Morning Star Mine Location of geochemical soil and rock-chip samples collected by McEwen Mining (circa 2011-2012) and phyllic alteration mapped by King (2011). Samples were analyzed for 52 elements. Porphyry-style Quartz Veins (mod to strong) Hydrothermal Biotite (mod to strong) Limit of Biotite Hornfels Quartz-Sericite-Pyrite Geochemical Sample (Rock and Soil) Felsic Dike Gracie Mine Big Pay Mine Ridge Mine 17
Geochemistry: Gold in Rock Chips Morning Star Mine Gold (> 1 ppm) is common in the base-metal-bearing vein systems (e.g., Morning Star and other historic mines). The gold results for the intrusive center are typically less than 50 ppb Au Porphyry-style Quartz Veins (mod to strong) Hydrothermal Biotite (mod to strong) Limit of Biotite Hornfels Quartz-Sericite-Pyrite Actinolite-Epidote-Chlorite-Albite Felsic Dike Gracie Mine Big Pay Mine Ridge Mine Au (ppb) in rock 1000 (max 139.5 ppm) 100-1000 50-100 20-50 < 20 18
Geochemistry: Gold in Rock Chips and Soils The central part of the porphyry system, characterized by moderate to strong quartz veins, coincides with a zone of Ag/Au > 50. The flanks of the system, which contain zones of goldbearing, late-stage phyllic alteration, typically indicate lower Ag/Au values with coherent zones of Ag/Au < 10. Ag/Au < 10 (rock / soil) Ag/Au > 50 (rock / soil) Porphyry-style Quartz Veins (mod to strong) Quartz-Sericite-Pyrite Actinolite-Epidote-Chlorite-Albite Felsic Dike Au (ppb) in rock 1000 (max 139.5 ppm) 100-1000 50-100 20-50 < 20 19
Geochemistry: Copper in Rock Chips and Soils The overlays show the outer limit of porphyry-style quartz veins and zones of copper > 300 ppm and Cu/Zn > 0.5 and 1.0. Copper > 300 ppm in soil / rock occurs in the center and eastern side of the zone of porphyry-style quartz veins. The jarosite-goethite ratios in these anomalies range from about 40:60 to 80:20, which indicates up to 80% leaching of the copper from the rock. Potential also exists for a secondary chalcocite blanket beneath the zone of surface oxidation, which is inferred to exceed 60 m thick. Drill-hole: trace shown, where known Cu/Zn > 1.0 Cu/Zn > 0.5 Cu > 300 ppm Porphyry-style Quartz Veins (mod to strong) Quartz-Sericite-Pyrite Actinolite-Epidote-Chlorite-Albite Felsic Dike Cu (ppm) in rock / soil > 1000 (max. of 14.3 %) 500-1000 300-500 100-300 < 100 20
Geochemistry: Copper in Rock Chips and Soils with Tungsten and Molybdenum 1 2 Morning Star Mine The overlays show the outer limit of porphyry-style quartz veins and zones of molybdenum > 10 ppm and tungsten > 5 ppm. The distribution of Cu, Mo and W suggest that there could be two centers to mineralization in the Elder Creek porphyry system: 1) pyramidal hill forming the central part of the area and 2) the northerly elongate zone that extends from the Big Pay mine to the Morning Star mine. W > 5 ppm Mo > 10 ppm Por-style Qtz Veins (mod to strong) Quartz-Sericite-Pyrite Actinolite-Epidote-Chlorite-Albite Felsic Dike Big Pay Mine Cu (ppm) in rock / soil > 1000 (max. of 14.3 %) 500-1000 300-500 100-300 < 100 21
Geochemistry: Bismuth, Arsenic, and Lithium in Rock Chips and Soils 1 2 Morning Star Mine Map showing the outer limit of porphyry-style quartz veins and zones of bismuth > 5 ppm, arsenic > 100 ppm and lithium > 30 ppm. The distribution of Bi and As support the concept of two centers to mineralization in the Elder Creek porphyry system. The increased abundance of Li and relative lack of Bi in the western center suggests that this area is probably less eroded than the eastern center, when compared to the elemental zoning patterns expressed at Yerington, Nevada and well-studied porphyry systems elsewhere (refer to pages 20 and 21). Big Pay Mine Li > 30 ppm As > 100 ppm Bi > 5 ppm Porphyry-style Quartz Veins (mod to strong) Quartz-Sericite-Pyrite Actinolite-Epidote-Chlorite-Albite 22
Schematic Summary of Zoned Alteration at Ann-Mason Deposit, Yerington, NV Prop Feldspar-destructive alteration Ore Prop Schematic cross-section showing zoned hydrothermal alteration types and their position relative to the copper ore body at the Ann-Mason porphyry deposit, Yerington, Nevada. The ore zone is outlined in red and the arrows show the general paths of magmatic and non-magmatic fluid-flow. Bi-Kf (from Dilles et al., 2000 and Cohen, 2011). 23
Schematic Summary of Zoned Trace-element Distribution at the Ann-Mason Deposit, Yerington, NV Increasing Cu/Zn Li Bi As Mo W Cu Ore Trace-element distribution and their position relative to the copper ore body in a schematic cross-section through the Ann-Mason porphyry deposit. Arrows show the general paths of magmatic and non-magmatic fluid-flow. Note that Mo and W form proximal to the Cu-rich core, with As and Li forming more distal anomalies. Bismuth forms a plume to Cu-Mo-W mineralization at depth. Zinc and other trace-elements are depleted in the central part of the system and from a distal halo to Cu-Mo mineralization. The Cu/Zn values increase from the peripheral to central parts of the system. (from Cohen, 2011) 24
Summary of Trace Element Zoning and Porphyry Centers Two major centers of mineralization OTCQB: are TLRS inferred ǀ TSX.V: on TBR the basis of trace-element distribution. Morning Star Mine The presence of Li > 30 ppm and the relative lack of Bi in the western ( Early ) center, which is cored by early-stage intrusions, may indicate that this center is early and has been overprinted by a later porphyry event. The near-surface expression of this later event could be the eastern, Bi-rich and Li-deficient zone that contains intermediate-stage quartz-eye porphyry intrusions. The Bi-rich plume has the potential to be the high-level signature of a northerly-elongate mineralized cupola at depth. Early Center Potential also exists for a reactive host rock at depth in the eastern mineralized center (see next figure). Porphyry Centers Property Boundary Big Pay Mine Li > 30 ppm Bi > 5 ppm + As > 100 ppm W > 5 ppm Cu > 300 ppm + Mo > 10 ppm Porphyry-style Quartz Veins (mod to strong) Hydrothermal Biotite (mod to strong) Quartz-Sericite-Pyrite Actinolite-Epidote-Chlorite-Albite Felsic Dike 25
Summary of Oxide-Element Ratios in Rock and Soil Morning Star Mine Al 2 O 3 / Na 2 O in rock and soil as an indication of the abundance of feldspar-destructive, phyllic and intermediate argillic alteration. The higher the Al 2 O 3 / Na 2 O value, the greater the extent of feldspar-destruction, or potentially the greater the oxidation of feldspar due to the break-down of pyrite. The geochemical results suggest that there could be more quartz-sericite+chlorite-pyrite alteration over the western porphyry center than mapped by King (2011).. Al 2 O 3 / Na 2 O in rock and soil > 200 100-200 60-100 25-60 < 25 Al 2 O 3 / Na 2 O > 100 Porphyry-style Quartz Veins (mod to strong) Hydrothermal Biotite (mod to strong) Quartz-Sericite-Pyrite Actinolite-Epidote-Chlorite-Albite Felsic Dike 26
Schematic Comparison of Elder Creek Structure and Lone Tree Mine Schematic west-east cross-section through the Elder Creek Fault at Elder Creek. (from Radu Conelea, 2003). Wayne Zone Lone Tree Reactive host Elder Creek Project West-east cross-section through the Wayne Zone (5 million ounces gold at 2.4 g/t Au) at the Lone Tree mine (Theodore, 2000). The interpretive section of Conelea indicates the potential for a reactive, calcaerous host-rock at depth in the Harmony Formation within the northerly-elongate, eastern center of mineralization. 100 m Reactive host 27
Fluid Inclusion Temperatures relative to Cu-Li-Bi & Porphyry Centers Map showing maximum homogenization temperatures for fluid inclusions analyzed by the USGS (Theodore, 1996 and Gostyayeva et al., 1996). The fluid inclusions show increased temperatures in the Morning Star mine area, which supports the concept of a concealed late-stage cupola beneath the northerly-elongate Cu-Mo-W-Bi-As anomaly. Early Center The salinities of the highest temperature fluid inclusions exceed 40 weight-percent NaCl. There is also potential for late-stage mineralization beneath the early-stage center that is located to the west. Porphyry Centers Li > 30 ppm Bi > 5 ppm Cu > 300 ppm Porphyry-style Quartz Veins (mod to strong) Fluid Inclusion Maximum Temperatures of Homogenization ( o C) USGS (1996) 28
Total Field Airborne Magnetic Image with Alteration and Arsenic Geochemistry Map overlays show the spatial relationships of magnetic anomaly and intrusions, dikes, faults, limit of biotite hornfels, phyllic alteration and the outer limit of quartz veins and distribution of arsenic in rocks and soils. QEP The outer limit of biotite-hornfels, which contains pyrite and pyrrhotite, approximately coincides with outer extents of the magnetic high. The cause of the central magnetic low could be non-magnetic intrusions that lack pyrrhotite, or pyrrhotite-destructive alteration. EP LQEP Property Boundary 7 15 16 30 31 43 44 73 74 155 0 100 1000 1000 1000 10000 > 10000 1000 m No magnetite has been documented in the Elder Creek area; the causal intrusions are inferred to be weakly oxidized to slightly reduced. Porphyry-style Quartz Veins Limit of Biotite Hornfels Quartz-Sericite-Pyrite Felsic Dike Normal Fault 29
Bouguer Gravity Image with Alteration and Arsenic Geochemistry Map overlays show the spatial relationships of gravity data and intrusions, dikes, faults, limit of biotite hornfels, phyllic alteration and the outer limit of quartz veins and distribution of arsenic in rocks and soils. QEP The outer limit of biotite-hornfels, which contains pyrite and pyrrhotite, approximately coincides with outer extents of the gravity high. The cause of the central gravity low could be intrusions less dense than hornfels. EP LQEP 7 15 16 30 31 43 44 73 74 155 No magnetite has been documented in the Elder Creek area; the causal intrusions are inferred to be weakly oxidized to slightly reduced. Porphyry-style Quartz Veins Limit of Biotite Hornfels Quartz-Sericite-Pyrite 1 St Vertical Derivative 0 100 1000 1000 1000 10000 > 10000 1000 m Felsic Dike Normal Fault 30
Field Photographs Photograph of hydrothermal breccia in Cambrian Harmony sandstone in the Valmy Cu-Ag pit area (location Page 5). The breccia is clast-supported with a matrix of sandstone-derived fragments, hydrothermal quartz and iron-oxide minerals after pyrite-chalcopyritepyrrhotite(?). Diffuse, granular porphyry-style quartz veins are cut by fine-grained comb quartz veinlets that are truncated by the breccia matrix. Comb quartz veinlets locally cut across the breccia matrix, suggesting that there are at least three stages of vein deposition. Rounded fragments of quartz-eye granodiorite porphyry occur locally. There is an early stage of brecciation characterized by a porphyritic igneous matrix, that pre-dates the hydro-thermal breccia event. The outcrop is also characterized by secondary copper minerals, neotocite, pitch limonite (after chalcopyrite) and goethite / jarosite (60/40). Dominant fracture set is oriented N08 o E / 76 o NW (photo taken looking north from 492689 m E, 4504416 m N; NAD27, zone 11N). 31
Field Photographs Photograph of granular, porphyry-style quartz vein sets in quartz-eye-bearing biotite granodiorite porphyry at the portal to the Morning Star mine tunnel (location 2 on Page 5). The porphyry contains about 1% resorbed quartz eyes with elongate books of magmatic biotite that show aspect ratios of about 1:2 to 1:1 (height vs. diameter). Late-stage, north-northwesterly-trending zones of quartz-sericite-pyrite (jarosite > goethite) cut across the granodiorite locally and are inferred to be associated with elevated sulfide mineral abundances. Photo taken looking southeast from 493300 m E, 4504052 m N (NAD 27, zone 11N). 32 32
Field Photographs Photograph looking north-northwest at the pyramidal-shaped hill in the central part of the Elder Creek project area (location 3 Page 5). The rock type near the top of the hill consists of medium- to coarse-grained subporphyritic biotite granodiorite that is cut by > 5% granular quartz veins. Early-stage, diffuse and sigmoidal veins are cut by later-stage, planar and through-going veins. Magmatic biotite books are weakly replaced by sericite-chlorite (intermediate argillic) alteration. Secondary copper minerals (neotocite, azurite and chrysocolla) and jarosite / goethite (70 / 30) occur along fracture-controlled zones, some of which strike northeasterly and dip moderately towards the northwest. This photo was taken from the top of Hill 6010 (495150 m E, 4498467 m N) in the Paiute porphyry project that lies about 5 km to the south-southeast of Elder Creek. 33
Field Photographs Photograph of neotocite and chrysocolla along fracture surfaces in quartz-eye-bearing hornblende-biotite granodiorite porphyry that is cut by granular, white quartz veins (location 4 on Page 5). The weakly sericite-altered feldspar phenocrysts in the intrusive rock have been stained green by secondary copper minerals. The goethite / jarosite ratio in this area is about 60/40, which indicates that the leaching of copper is not extensive. Nearby rock-chip samples return up to 3.7 ppm Au, 1.6 ppm Ag, 17 ppm Bi and 0.17% Cu. Photo taken from 493545 m E, 4502517 m N (NAD 27, zone 11N). 34
Field Photographs Photograph of hydrothermal breccia hosted by quartz-sericite-(pyrite) altered Harmony feldspathic-sandstone at the Ridge Mine. The matrix of the breccia consists of black silica / quartz-pyrite with angular fragments of altered sandstone and finegrained granodiorite. Nearby rock-chip samples return up to 5.6 ppm Au, 76 ppm Ag and 0.13% Cu. Photo taken from rock fragment on mine dump (493180 m E, 4501670 m N; NAD 27, zone 11N). 35
Field Photographs * 1.30% Cu, 5 ppm Ag Valmy Copper Pit Target *Assays noted here and on subsequent photographs have been completed by ALS Minerals, Reno NV. Final certified laboratory reports which identify the laboratory, assay dates, and certificate numbers, and sample preparation and analytical procedures are available. 36
Field Photographs 2.77% Cu, 8 ppm Ag 1.53% Cu, 20 ppm Ag Cu-Au Hills Target S36 Hill Target 37
Field Photographs 0.82% Cu, 465 ppb Au 150 ppm Ag Copper Hills Target 38
Conclusions Large porphyry system with a footprint that exceeds 3 km by 2 km At least three phases of porphyritic granodiorite intrusions of late Eocene age (similar age to Copper Canyon Phoenix) Central zone of quartz veins that is flanked by proximal potassic alteration, hydrothermal biotite, and distal biotite-pyrite-pyrrhotite hornfels; quartz-sericite-pyrite (phyllic), and local propyllitic alteration Late-stage phyllic alteration associated with Au-Ag-bearing base-metal veins that flank the porphyry Copper in soil / rock anomaly exceeds 300 ppm over a 2 km by 1.5 km zone with evidence of Cu-leaching (abundant jarosite); potential exists for 50 m to 100 m thick zone of leachable low-grade Cu-oxide and a secondary Cuenrichment blanket 39
Conclusions (Continued) Strong metal zoning characterized by Cu, Mo, W, As, Bi and Li suggest that there are two centers of porphyry-style mineralization; the western center (Cu-Mo-W-Ag-As-Li) is inferred to be older and exposed at a higher level than the eastern center (Cu-Mo-W-Au-As-Bi), which may contain a mineralized cupola at depth USGS fluid-inclusion study confirms higher temperatures (> 450 o C) and salinities (> 40% NaCl) from veins in eastern center Potential exists for a reactive host-rock and Au-Cu skarn target at depth along the Elder Fault zone in the eastern center An airborne-magnetic high has the appearance of a doughnut, which may be related to magnetic biotite-pyrite-pyrrhotite hornfels intruded by a non-magnetic granodiorite intrusive core Gravity data shows a similar doughnut pattern, the significance of which requires further explanation but may relate to the differences in density between the hornfelsed sandstones and the granodiorite intrusions 40