COEUR D'ALENE, Idaho, Aug. 10, 2010 (GLOBE NEWSWIRE) -- Timberline Resources Corporation (NYSE Amex:TLR) (TSX-V:TBR) ("Timberline") today announced consolidated financial results for its third fiscal quarter ended June 30, 2010. A summary of the results is presented in the following table:
|($US 000's, except earnings per share and gross margin %)||3 Months Ending June 30||9 Months Ending June 30|
|Consolidated net income (loss)||(815)||241||(2,656)||(5,706)|
|Consolidated net income (loss) per share, basic and diluted||(0.02)||0.01||(0.06)||(0.17)|
|Net income (loss) from drilling subsidiaries||264||332||638||(1,780)|
|Mineral exploration expenses||250||62||536||374|
|Gross margin %||16%||18%||17%||3%|
For the third fiscal quarter of 2010, Timberline reported a consolidated net loss of $0.81 million compared to consolidated net income of 0.24 million in the same fiscal quarter of 2009. The net loss for the third fiscal quarter of 2010 includes expenses of $0.21 million related to the acquisition of Staccato Gold Resources during the quarter. The net income for the third fiscal quarter of 2009 included a one-time recovery of previously expensed professional fees of $0.53 million.Timberline CEO Randal Hardy commented, "In June we successfully closed on our acquisition of Staccato Gold Resources. As a result, we gained control of the 23-square mile South Eureka property in Nevada's Battle Mountain-Eureka gold trend with a previously-reported resource in excess of 800,000 ounces of gold and significant exploration potential. We are currently drilling on the Lookout Mountain project at South Eureka in order to better understand the geologic setting and better define and expand the existing gold resource. After several quarters of reduced exploration activity, we anticipate that our mineral exploration expenditures will accelerate as we advance this exploration stage project towards pre-feasibility." Mr. Hardy added, "We continue to make good progress at our Butte Highlands Gold Project joint venture in western Montana. In addition to the underground mine development that is advancing toward our anticipated underground drill stations and expected ore body, we are also engaged in exploration drilling from the surface. All of our core drilling is being performed by our contract core drilling subsidiary, Timberline Drilling (TDI). TDI generated strong operating and financial results in this latest quarter with 14 drills operating by quarter end, and several additional drills being deployed in July and August. While difficult operating conditions and poor results at our Mexican operations have diminished our overall drilling profitability and gross margins, we continue to see increased demand for drilling services in the U.S. and expect that our future financial results will reflect our efforts to capitalize on that demand."
Timberline's Quarterly Report on Form 10-Q is expected to be filed with the SEC this week. Once filed, it can be viewed in its entirety on the SEC website which can be accessed from the "Investors" page of the Timberline website at www.timberline-resources.com.About Timberline Resources Corporation Timberline is a diversified gold company with three complementary business units:
- Butte Highlands Joint Venture - currently in development with anticipated gold production in 2011;
- An active exploration division with a large, drill-tested, highly prospective project portfolio in Nevada's Battle Mountain - Eureka gold trend;
- Two contract core drilling subsidiaries in the U.S. and Mexico providing revenues and cash flow to the company.
CONTACT: Timberline Resources Corporation Randal Hardy, CEO 208.664.4859