VANCOUVER, Nov. 25 /CNW/ - Lincoln Mining Corporation, TSX-V: LMG ("Lincoln" or the "Company") is pleased to announce that it has reached an agreement with Almaden Minerals Inc. ("Almaden") to purchase 100% of the La Bufa gold and silver property in Chihuahua, Mexico, subject to TSX-V approval. This new agreement will supersede the joint venture agreement already in place that allowed Lincoln to earn a 60% interest in the La Bufa over a four year period by spending $3.5 million and issuing certain Lincoln shares to Almaden. Lincoln has already spent approximately $1.75 million on the property and under the terms of the old agreement Lincoln was required to spend a similar amount by April 2011 to earn its 60% interest. Under the new agreement Lincoln will purchase the 100% interest by issuing 6 million Lincoln shares to Almaden and granting a 2% NSR on production from La Bufa. Lincoln will have the option to buy down the NSR by 1% within one year following a decision to place the property into production for a fair market price to be determined by an independent consultant.
The La Bufa property is a mid stage gold-silver exploration project surrounding the town of Guadalupe y Calvo in the far southwest corner of Chihuahua State, Mexico. The project lies within a north-south mineral trend in the Sierra Madre Occidental encompassing numerous gold-silver mines and deposits. The project covers four contiguous claim groups totaling 2,311.3 hectares. The area has a long history of mining and historical records from the area indicate that mining was most active between 1834 and 1939 when over 2 million ounces of gold and 28 million ounces of silver were mined from veins at recorded grades of 1.08 opt gold and 28 opt silver, mainly from the Rosario mine which is now owned by Gammon Gold Inc. The La Bufa property surrounds the mineral concessions held by Gammon Gold where the Rosario vein was discovered.
The Company is extremely pleased with this new agreement. It will allow Lincoln to proceed at a more controlled pace of expenditures and it will also allow Lincoln to deal independently on the property. Management of Lincoln considers La Bufa to hold significant potential for a high-grade resource. Very limited drilling by Lincoln and others in the southeast part of the property (see map at www.lincolnmining.com) during the last 6 years has produced vein intersections of up to 2.5 meters grading from 0.12 to 0.31 ounces per tonne gold and 8.2 to 15.1 ounces per tonne silver. There has been limited work in the northwest section of the property. A geophysical I.P. program is planned for the next month as well as geological mapping and a land survey.
Mr. Jeffrey Wilson, the Company's Vice President and Chief Operating Officer and a Qualified Person under National Instrument 43-101, supervised the preparation of this news release.
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
For further information: For further information: please contact Investor Relations at (604) 688-7377 or (604) 202-6596, or visit the Company's website at www.lincolnmining.com