THH – Timberline Resources (TBR.V): Underestimated
Some quick thoughts on why I think the market is asleep when it comes to Timberline and is currently underestimating some very positive and potentially positive “events”…
Timberline put out assay results not long ago which can be read HERE.
I cut out and summed up the highest grade intervals:
- 4.6 m at 4.72 gpt
- 4.0 m at 2.19 gpt
- 6.1 m at 5.55 gpt
- 7.7 m at 5.01 gpt
- 7.6 m at 4.49 gpt
- 4.6 m at 3.2 gpt
- 3.0 m at 2.22 gpt
High-grade but no “barn burners”. Yet decent grades and thicknesses. More importantly Quinton recently discussed his and the company’s suspicion that the RC-drilling resulted in gold being lost before assaying. In other words there is a possibility that the grades were understated since CORE holes that have been done around this area have shown grades of 5-10 gpt. This could be a big deal since a material increase in grade at those widths could be pretty great.
I would also like to point out that i-80 Gold Corp (C$700 M MCAP) recently acquired the Ruby Hill Mine which is immediately to the north of Timberline’s Eureka property. To have a larger, active company right next to Eureka is great since it also means there would be a natural buyer.
All in all I think there have been two positive developments:
- Gold confirmed at depth and true grades could be quite a lot higher
- A larger company has set up shop right next to Timberline
- Two rigs are now working the property as far as I understand
I think sub $0.20/share is quite cheap for >500,000 ounces in Nevada, right next to where a ~800 M company set up shop, and with three multi-kilometer Carlin style gold trends to explore…
Some TA
Looks like the stock might be forming a pretty big inverse Head & Shoulders pattern to me FWIW…
Note: This is not investment or trading advice. I own shares of Timberline Resources in my diversified mining portfolio and the company is a banner sponsor. Thus consider me biased and do your own due diligence.
Best regards,
The Hedgeless Horseman
