VANCOUVER, Nov. 20 /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 executed in principle a Letter Agreement with ADGIS, Inc. to acquire 20 lode mineralization claims that cover the Oro Cruz gold deposit in Imperial County, California ("the Property"). The Company has staked an additional 68 contiguous lode claims covering a total of approximately 1,800 acres. The proposed Letter Agreement involves advance royalty payments beginning at US$50,000 per year, upon signing of a formal agreement, 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 and 4% thereafter. A buydown provision exists on the royalty. Access to the property is via paved highway, approximately 35 minutes from Yuma, Arizona.
The Property is located in the Tumco mining district in the Cargo Muchacho Mountains, approximately 14 miles southeast of the operating Mesquite gold mine (New Gold Inc.) and is adjacent to the American Girl gold mine (past producer). Large-scale 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. 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 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.
Pre NI 43-101 and therefore 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 planned.
In other news, Lincoln has recently terminated its Hannah gold-silver exploration property in Churchill County, Nevada so it can focus on its advanced-stage Pine Grove gold property in Lyon County, Nevada and on the Oro Cruz gold property as well as La Bufa in Chihuahua State, Mexico. Mr. Jeffrey Wilson, the Company's Vice President Exploration and a Qualified Person under National Instrument 43-101, supervised the preparation of this news release. A Qualified Person has not done sufficient work to classify the historical estimate as current mineral resources, Lincoln is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon.
On behalf of Lincoln Mining Corporation
Paul Saxton, President & CEO
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
THIS PRESS RELEASE INCLUDES FORWARD-LOOKING STATEMENTS OR INFORMATION. ALL STATEMENTS OTHER THAN STATEMENTS OF HISTORICAL FACT INCLUDED IN THIS RELEASE, INCLUDING WITHOUT LIMITATION, STATEMENTS REGARDING FUTURE PLANS AND OBJECTIVES OF LINCOLN MINING ARE FORWARD-LOOKING STATEMENTS THAT INVOLVE VARIOUS RISKS AND UNCERTAINTIES. THERE CAN BE NO ASSURANCE THAT SUCH STATEMENTS WILL PROVE TO BE ACCURATE AND ACTUAL RESULTS AND FUTURE EVENTS COULD DIFFER MATERIALLY FROM THOSE ANTICIPATED IN SUCH STATEMENTS. IMPORTANT FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THE COMPANIES' PLANS OR EXPECTATIONS INCLUDE AVAILABILITY OF CAPITAL AND FINANCING, GENERAL ECONOMIC, MARKET OR BUSINESS CONDITIONS, REGULATORY CHANGES, TIMELINES OF GOVERNMENT OR REGULATORY APPROVALS AND OTHER RISKS DETAILED HEREIN AND FROM TIME TO TIME IN THE FILINGS MADE BY THE COMPANY. THE COMPANY EXPRESSLY DISCLAIMS ANY INTENTION OR OBLIGATION TO UPDATE OR REVISE ANY FORWARD-LOOKING STATEMENTS WHETHER AS A RESULT OF ANY NEW INFORMATION, FUTURE EVENTS OR OTHERWISE REQUIRED BY APPLICABLE SECURITIES LEGISLATION.
SOURCE LINCOLN MINING CORPORATION
For further information: For further information: Investor Relations at (604) 688-7377 or visit the Company's website at www.lincolnmining.com