VANCOUVER, Feb. 24 /CNW/ - Lincoln Mining Corporation, TSX-V: LMG ("Lincoln" or the "Company") is pleased to announce that its 100% owned U.S. subsidiary, Lincoln Gold US Corp., has concluded a Lease Agreement ("Lease") to acquire 20 lode claims covering the Oro Cruz gold deposit in Imperial County, California ("the Property"). The Lease involves advance royalty payments beginning at US$50,000 per year and gradually increasing to $200,000 US per year in the 7th year. The NSR royalty has been set at 3% for the first 500,000 ounces of gold production and 4% thereafter. An aggregate of 2% of the royalty can be bought down at a rate of $500,000 per half point.
The Property is located in the Tumco mining district in the Cargo Muchacho Mountains, 14 miles southeast of the operating Mesquite gold mine (New Gold Inc.) and is also adjacent to the American Girl gold mine (past producer, 428,000 ozs gold). Access to the Property is via paved highway, approximately 35 minutes from Yuma, Arizona. Gold mining occurred in the area during 1890-1916 and 1932-1941, producing greater than 150,000 ozs gold. In the mid 1990's, the property was developed as the "Golden Cross" mine by MK Gold Company. MK Gold produced 61,000 ozs gold in one year from both open-pit and underground mining. Mining ceased in 1996 due to low gold prices, (average of $380.00 per ounce). Prior to cessation, MK Gold was conducting a significant pit wall push back to reach in-place "ore." Gold mineralization remains exposed in the open pit and in underground workings. The Company has staked an additional 1,800 acres surrounding the Property.
The main Oro Cruz gold deposit is an irregular, elongate, tabular zone that dips approximately 25 degrees from the pit floor for at least 1,650 ft. The deposit remains open down dip with the deepest vertical hole containing 60 ft grading 0.4 oz per ton gold (not true thickness). There are over 400 drill holes on the Property. Since 1981, there has been 196,324 ft of drilling of which 6,818 ft was core drilling. Multiple exploration targets are present.
Prior to Security Exchange requirements, historical non-compliant NI 43-101 gold resources were reported by Mine Development Associates of Reno, Nevada in 1999. Resources were estimated at 3,365,000 tons grading 0.058 oz gold per ton gold containing 196,000 ounces gold in the "indicated" category using a 0.01 oz gold per ton gold cutoff grade. In addition, 2,684,000 tons of "inferred" resources were estimated with no grade assignment.
Lincoln believes that the Property has near-term potential to be expanded and developed into a producing gold mine through renewed open-pit and underground mining. A NI 43-101 technical report is in progress by Tetra Tech of Golden, Colorado.
Lincoln Mining Corp. is a Canadian precious metals exploration and development company with several projects in various stages of exploration and development which include the Pine Grove gold property, the Oro Cruz gold property in California and the La Bufa gold-silver property in Mexico. In the United States, the Company operates under Lincoln Gold US Corp., a Nevada corporation.
On behalf of Lincoln Mining Corporation
Paul Saxton, President & CEO
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SOURCE LINCOLN MINING CORPORATION
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