COEUR D'ALENE, Idaho ( TheStreet) -- Timberline Resources ( TLR) shares rallied sharply higher Tuesday on heavy volume after the company increased its gold mineralization estimate on a joint venture project. Timberline Resources said it has completed an updated calculation of the estimated gold mineralization at its Butte Highlands Gold Project joint venture, increasing its total anticipated mineralization to over 750,000 ounces of gold at an overall grade of 0.26 ounces per ton. "This additional mineralization is expected to significantly increase our mine life, and there is still the possibility of increasing the mineralization and the mine life as we get into production," said Timberline's Executive Chairman and Vice-President of Exploration Paul Dircksen. The increased calculations came on a day when gold touched a new record high of $1069.70 an ounce. Shares of the mining company were jumping by 33 cents, or 29%, to $1.47. Earlier in the session, the stock touched an intraday and new 52-week high of $1.58. More than 1.1 million shares changed hands after two hours of trading Tuesday, compared to the stock's three-month average daily volume of 289,000, according to the Yahoo! Finance. Timberline Resources has a 29 million-share float with a short interest float of 2.1% as of Sept. 10, according to Yahoo! Finance. More than 19% of the company's shares are held by insiders with only 0.7% owned by institutions. Read more about today's high-volume stocks like 21st Century Holdings in earlier "Pump Up the Volume" posts. -- Written by Robert Holmes in New York.