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

The Markets:

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

Oil rose as OPEC announced it will take another 500,000 barrels per day off of the market beginning February 1^st, 2007.  This announcement comes in objection to pleas from the U.S. Energy Department not to cut production as weekly inventories have been dropping recently.

The U.S. dollar index rose and treasuries fell as economic data came in better than expected and pushed interest rates higher.

The Dow, Nasdaq, and S&P rose nearly 1% on strong earnings from investment firms.  Despite higher interest rates and oil up nearly 2% on the day, the Dow climbed to new record highs and the S&P climbed to a new 6 year high.

Among the big names making news in the market today were Honeywell, P&G, Nestle and Novartis, Lehman, Bear Sterns, and Costco.

The Commentary:

“What galls me is that I have spent a good deal of time and effort over 8 years going to the US financial market media to bring attention to GATA’s findings … including 3 meetings with 3 different Wall Street reporters in 3 different cities; contact with Nell Henderson, business editor of the Washington Post; Forbes; Barron’s; and the New York Times. None of them will give GATA the time of day and even mention we exist (except for a few disparaging comments by the Wall Street Journal’s Peter McKay).

We are supposed to be THE free country with THE free press. Yet GATA, exposing how our gold market (and even our other financial markets) is anything but free, receives exposure from the Russians and Al-Jazeera (as well as the Germans), but not our own press. Something is VERY wrong here and we know it. Before GATA even existed, the Café was set up to get to the truth on various matters and be a forum for such. The doofus Duffs of the world leave me almost speechless. He is against those who allow the truth to be told, and for those who do not.” - From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com

“February Gold finished down 1.5 at 630.9, 2.5 off the high and 1.7 up from the low.

March Silver closed up 0.035 at 13.95. This was 0.07 up from the low and 0.08 off the high.

Initially it seemed like the gold market was simply going to stand up to the sharp upward extension in the Dollar but as the session progressed the strength of the Dollar seemed to undermine sentiment. The market mostly discounted the typically beneficial combination of rising oil and rising equity prices, perhaps because of the Dollar breakout. Apparently the market wasn't that interested in news that Peru's September gold output declined by 9.5% versus the prior year because the market didn't seem to attract any buyers in the wake of that development.

Like the gold market, the silver market was confronted with somewhat negative production news from Peru which managed to post a 5.6% increase in production from the prior year. However, the silver market seemed to spend significantly more time in positive ground than the gold market and perhaps that is the result of an improving macro economic condition. With the US claims and ongoing claims declining by more than expected and doing so in the wake of the better than expected US retail sales readings on Wednesday, it is possible that silver, platinum and copper markets were simply benefiting as physical commodities. It is also likely that a round of new highs in the stock market served to lift silver as it puts all investors in a better mood.” - The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

GATA's international press release to publicize Blanchard report on gold lending

U.S. mortgage delinquency rate rises sharply

No inflation? U.S. Mint would ban melting pennies, nickels

Secrecy of central bank gold lending condemned in new study

Jeffrey Saut: Our unnatural makets and the mysterious buyers from Mars

The Statistics:

As of close of business: 12/13/2006

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

 Note: Change in Total Tonnes from yesterday’s data: 2.77 tonnes were added to the trust.

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:

Agnico-Eagle’s (AEM) dividend and guidance, NovaGold’s (NG) drill results, Pacific Rim’s (PMU) clarification of their drill program, Exeter’s (XRA) drilling, Meridian’s (MDG) drill program, Banro’s (BAA) drill results, Kirkland Gold’s (KGI.TO) award and drilling, Yale’s (YLL.V) and IMPACT’s (IPT.V) new property, Sabina’s (SBB.V) drill results, and SilverCrest’s (SVL.V) test 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:

Agnico-Eagle quadruples annual cash dividend; Provides 2007 production and cost guidance - "Agnico-Eagle Mines Limited is pleased to announce today that its Board has approved the payment of a dividend of $0.12 per common share, quadruple the previous annual rate. Agnico-Eagle has now declared a dividend to its shareholders for 27 consecutive years. The dividend will be paid on January 29, 2007 to shareholders of record as of January 15, 2007." More
- December 14, 2006 | Item | E-mail

Skygold Ventures Ltd.: Drilling Intersects 50.5 m of 1.98 g/t Gold; Geophysics Outlines New Targets - More
- December 14, 2006 | Item | E-mail

Golden Odyssey Mining Reports Significant Drill Results on Mexican Hill, Carlin Trend, Nevada - More
- December 14, 2006 | Item | E-mail

Jinshan Closes C$30 Million Note Offering - More
- December 14, 2006 | Item | E-mail