Timberline Resources Corp. [OTC-BB: TBLC] Upside Through Discovery • Record Revenues - Drilling Services

The Markets:

Charts Courtesy of http://finance.yahoo.com/

Oil continued to fall as traders continued to doubt OPEC’s pledge to cut production.

The U.S. dollar index rose and treasuries fell as yields rose to over 2 month highs on speculation the fed will raise inflation concerns at their next meeting and perhaps hint towards an interest rate hike at a future meeting.

The Dow, Nasdaq, and S&P opened lower, but they then rose throughout the rest of morning trade and remained near their highs into the close.  Lower oil and mostly positive earnings led the Dow to a new record closing high.

Among the big names making news in the market today were Kraft, Amgen, Developers Diversified and Inland, IBM, Halliburton, Kimberly-Clark, Xerox, Ford, Goldman Sachs, and AT&T.

The Commentary:

“While yesterday was a superb one for our camp, gold was clearly capped right below $600 for most of the Comex trading session … this time it was after the early run up. This morning gold was at $602 when The Gold Cartel took it straight down beginning at 3 Eastern US time, as they do so often. So, while they have begun their retreat to higher ground, they are still fighting battles along the way. Paulson’s mantra going into the US elections is to keep excitement over gold to a minimum.

Gold and the shares will be allowed to rise, but never in a manner that might enhance inflation talk, or in a way that might affect US financial markets. In a few weeks that will be behind us, until the price reaches greater heights.

Everything about today was vintage Gold Cartel. All rallies to challenge $600 were stopped cold and the real damage was done after the physical market pricing concluded for the day. The AM Fix was $598, the PM $596.60. After the PM Fix, gold was pummeled to $592.40. With the elections only two weeks off, the Orwellians did not want a $600 plus gold close to compete with the week the DOW had. Meanwhile, lousy earnings (outside of Google) sent the DOW down 70 early, but you knew that would not last.” - From Friday’s Midas report by Bill Murphy of LemetropoleCafe.com

“December Gold finished down 13.5 at 582.9, 6.6 off the high and 0.4 up from the low.

December Silver closed down 0.295 at 11.67. This was 0.02 up from the low and 0.17 off the high.

Despite Treasury market fear of a hawkish Fed and ongoing inflation fears, the gold market had very little in the way of inflationary evidence during the session Monday. In fact, with oil prices falling deeply into new low ground and the stock market rising sharply it was clear that a number of gold investors and hedgers were being forced from position. In fact, with the big range down extension in December gold the market probably saw a large amount of small spec and fund stop loss selling. Even though there was some evidence of lower physical gold production released during the session the gold market simply wasn't interested in factoring any of the positives. Some might even suggest that such impressive gains in the equity market was negative to gold, as gold investors might have been pulled out of gold in an effort to capture some of the stellar gains being posted in the stock market. Just to add insult to injury the gold bull camp was also forced to suffer through an upside extension in the US Dollar. In short, a number of outside markets simply avalanched on the gold trade at the start of the new week and with the prospects already questionable into the coming FOMC meeting, the bear camp might not be easily pushed from their position of control.

Like the gold market, the silver market was simply unable to get out from under the outside market pressure. In fact, one might have expected silver to be cushioned against the liquidation by the strength of the equity market, but the fear of hedge fund liquidation in gold was apparently reverberating in all of the metals markets. Some traders are suggesting that December silver has extremely thin support on the charts at $11.63 but that consolidation support really isn't seen until the $11.50 level. With the latest positioning report still showing a moderately long spec and fund long position, and the violation of close-in chart support, the odds of additional stop loss selling in silver could be high in the coming sessions. In fact, with the silver market giving little or no credence to sharp gains in the stock market, it is pretty clear that the market is giving little credence to physical demand issues and is really focused on the financial or flight to quality themes.” - The Hightower Report, Futures Analysis and Forecasting

The Statistics:

As of close of business: 10/20/2006

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

Note: Change in Total Tonnes from yesterday’s data:  The LSE added 1.33 tonnes.

COMEX Gold Trust (IAU)

Note: No change in Total Tonnes from yesterday’s data.

Silver Trust (SLV)

Note: No change in Total Tonnes from yesterday’s data.

The Stocks:

Great Basin’s (GBN) prospecting rights, Kimber’s (KBX) shareholder agitation, Full Metal Minerals’ (FMM.V) and Metallica’s (MRB) drill results, Canyon Resources’ (CAU) drill results, Newmont’s (NEM) Barron’s tout, Gold Fields’ (GFI) Dubai listing, Great Panther’s (GPR.V) drill results, Pinnacle’s (PNL.V) drill results, Arian Silver’s (AGQ.V) new ramp, and Silver Eagle’s (SEG.TO) drill results were among the big stories in the gold and silver mining industry making headlines today.

WINNERS

LOSERS

Winners & Losers tracks NYSE and AMEX listed gold and silver mining stocks that trade over $1.

All of today's gold and silver stock news:

International PBX Ventures Ltd.: Progress Report-Copper, Molybdenum, Gold Projects in Chile - More
- October 23, 2006 | Item | E-mail

RBC Dominion boosts forecasts for silver - "He points to Hecla Mining Co. (HL-NYSE) as the value play among the silver stocks. He also upgraded his rating on Pan American Silver Corp. (PAA-TSX) to "outperform" from "sector perform" on the basis of the producer's above-average growth prospects." More
- October 23, 2006 | Item | E-mail

Great Panther Defines New Silver-Gold Zone at Guanajuato - "GREAT PANTHER RESOURCES LIMITED is pleased to announce that surface diamond drilling has provided further definition of a new zone of silver-gold mineralization at the Company's wholly-owned Guanajuato Mine in Guanajuato, Mexico. This portion of the 2006 drill program comprised 1,374 metres in eight holes and was focused on testing a gap in historical production, known as the Animas area, between the Cata Mine and San Vicente North Ramp." More
- October 23, 2006 | Item | E-mail

Cameco Unable to Contain Water Inflow at Cigar Lake - More
- October 23, 2006 | Item | E-mail

Freegold Commences Mining Activities at Golden Summit - More
- October 23, 2006 | Item | E-mail

Pinnacle Mines Ltd.: New Massive Sulphide Discovery on the Barbara Project Yields High-Grade Intersections of Silver, Lead and Zinc - "Pinnacle Mines Ltd. and Mountain Boy Minerals Ltd. announce that the drilling exploration program continues to expand the area of silver-lead-zinc mineralization on the Barbara Project (BA Claims) located 30 km east of Stewart in the Skeena Mining Division." More
- October 23, 2006 | Item | E-mail

La Mancha intersects 8 metres grading 28.0 g/t gold at Frog's Leg Mine - More
- October 23, 2006 | Item | E-mail

Inter-Citic Receives Results From 21 New Drill Holes at Dachang Gold Project - More
- October 23, 2006 | Item | E-mail

Eaglecrest Appoints Hans J. Rasmussen as Chief Operating Officer - More
- October 23, 2006 | Item | E-mail

Sirios Resources Inc.: Follow-Up Exploration Program Started on Pontax - More
- October 23, 2006 | Item | E-mail

AntOro Signs Option Agreement for Property in Opinaca, Quebec - More
- October 23, 2006 | Item | E-mail

Carpathian Gold Inc. Receives Conditional Approval to be Listed on the Toronto Stock Exchange - More
- October 23, 2006 | Item | E-mail

Sirios Resources Inc.: $550,000 Financing With Mavrix and Sodemex II - More
- October 23, 2006 | Item