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Involved in the oil and gas industry, active investor and realistic about the market. Avid follower of oil, natural gas, gold, and silver. I don't exactly always follow others' ideas and firmly believe you should be able to make your own decisions, but if I can help you or if you have some solid... More
  • Timberline Resources (TLR) A Golden Opportunity? 0 comments
    Jan 14, 2011 11:44 PM | about stocks: TLR, GSS
    Top Picks 2011: Timberline Resources (NYSEMKT:TLR)

    Posted Jan 1st 2011 11:30AM by Steven HalpernSteven Halpern RSS Feed
    Filed under: Newsletters, Canada, Commodities, Stocks to Buy, Best Stocks for 2011


    This post is one in a series in which more than 60 newsletter advisors share their Top Stock Picks for 2011. This special report is courtesy of TheStockAdvisors.com.

    "Timberline Resources (TLR) is a soon-to-be gold producer that we believe has been overlooked by the market. However, we doubt it will remain overlooked for much longer," says Gene Arensberg. Incidentally, Gene's top pick last year was iShares Silver, which rose 73%.

    The editor of Got Gold Report explains, "Not exactly a household name, Timberline's management teamed up with the premier underground mining and development company in North America, Small Mine Development (SMD), to develop the Butte Highlands gold deposit just south of Butte, Montana.

    "Timberline provided the project; SMD provides the development funding and know-how to bring the gold ore out from under Nevin Hill.

    "When we visited the future mine in June of 2010 the 16-foot tall and 14-foot wide development ramp had already been excavated nearly 1,000 feet down.

    "Timberline shareholders benefit from the SMD partnership because the company did not have to heavily dilute the share structure in order to raise the development capital to get the gold ore out of the ground.

    "In addition, the company will spare investors the cost of building an expensive processing mill because the ore can be hauled to nearby existing third-party processing facilities already permitted and operational in Montana.

    "Once the development capital has been recovered through production, the partners will share the net proceeds of the gold mined at Butte on a 50/50 basis.

    "Timberline estimated in 2010 that the cost of production for the gold would be less than U.S. $500 the ounce given the richness (high grade) of the deposit.

    "With gold above $1,300 the ounce that means that the Butte Highlands project should enjoy significant positive cash flow once production, estimated to be about 50,000 to 70,000 ounces per year, begins.

    "The mine could be operational for approximately ten years at that production level, perhaps longer if there are additional resources discovered just ahead."

    Steven Halpern's TheStockAdvisors.com offers a free daily review of the favorite stock ideas of the nation's top financial newsletter advisors.

    Stocks: TLR, GSS
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