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Timberline Resources (TBLC) Expands Gold Mining Operations

With gold prices breaking 28 year highs it's time to take a serious look at junior resource companies.

Our team has been watching Timberline Resources (OTCBB: TBLC) of Coeur d'Alene, Idaho and their recent application for listing on AMEX.

Timberline appears to combine the best of both worlds in mining stocks.  Their contract drilling companies  provide revenue building cash flow into quality exploration properties.  In 2006 Timberline
acquired Kettle Drilling Inc.  Expected revenues from Kettle Drilling and their wholly owned Subsidiary World Wide Exploration, S.A. de C.V. are over $30 million for 2008.  In addition, on Dec. 5th 2007 Timberline signed a non binding Letter of Intent to acquire Small Mines Development (SMD).  SMD is one of the largest underground mine contractors in the U.S. and expects to reach nearly $100 million in revenues this year.  SMD serves world class clients including Barrick Gold and Newmont Mining.  Ron Guill, the founder, owner and general Manager of SMD joined the Timberline Board of Directors in November of 2007.


Timberlines exploration division is led by Paul Dircksen.  Mr. Dircksen has 35 years of experience in the mining and exploration industry and has contributed to several major discoveries, many of which later became producing mines.  The exploration division, involved in Idaho, Nevada, California and Montana, plans to reactivate The Snowstorm Project, located in North Idaho's famous Silver Valley this year.  At one time the Snowstorm Mine produced 800,000 tons of ore averaging 4% copper and 6oz/t silver.  The Conglomerate Mesa Project located in Inyo County, California includes 325 unpatented lode claims containing several mineralized gold zones identified by prior operators Newmont (NYSE: NEM) and BHP Billitin (NYSE: BHP).  Timberline management believes this project represents excellent potential for a multi-million oz. gold discovery.

Timberline boasts an impressive contract drilling business, seasoned veteran leadership and a quality driven exploration division.  Timberline stock currently trades around $4.00 a share, and with so many positives for the company we feel it could be headed higher in this strong environment for gold stocks.

 

Beacon Equity Research Disclosure

 

The companies that are discussed have not always approved the statements made in this opinion. These reports are for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell any securities mentioned. We are not a licensed or registered broker dealer, investment advisor, analyst or underwriter. Please consult a registered broker before purchasing or selling any securities viewed or mentioned here. Beacon Equity Research has not been compensated in anyway for this article or services pertaining to Timberline Resources.
Comments (1)
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written by NoName, January 09, 2008
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