Lincoln Mining Announces Elgin Agreement Update
September 14, 2012
Vancouver, British Columbia – Lincoln Mining Corporation, TSX-V: LMG (“Lincoln” or the “Company”) announces that the Letter Agreement of March 31, 2011 (the “Agreement”) with Elgin Mining Inc. (“Elgin”) has been terminated by Lincoln as certain obligations under the Agreement have not been fulfilled by Elgin. Elgin has disputed the validity of Lincoln's termination of the Agreement and the parties are now proceeding to arbitration under the terms of the Agreement to address and resolve the dispute.
The Agreement required Elgin to fund certain exploration expenditures on the Oro Cruz and La Bufa properties by making payments on certain dates, so as to earn by March 31, 2013 the right to an option entitling Elgin to acquire an interest in the properties. Work on both the Oro Cruz and La Bufa properties has been delayed as a result of the dispute and arbitration process, and is not expected to proceed until the dispute has been resolved.
The Oro Cruz property is located in the Cargo Muchacho Mountains, southern California. The property is approximately 2 miles from the American Girl and Padre-Madre gold mines (past producers) and approximately 14 miles southeast of the Mesquite gold mine (in production). Oro Cruz was partially mined by open-pit and underground methods during the early 1990’s but was closed owing to low gold prices. The Oro Cruz data base includes 481 drill holes, 13,000 blast holes, and nearly 3,000 underground samples. A NI 43-101 Technical Report was completed on Oro Cruz by Tetra Tech Inc. and was filed on September 21, 2010 on SEDAR (www.sedar.com). The Technical Report estimates an inferred resource of 341,800 ozs gold grading 2.20 grams per tonne (0.064 oz per ton). Gold mineralization remains exposed in the Oro Cruz pit and underground. Lincoln plans to test the down-dip extension of the deposit by drilling. In addition, confirmation drilling of the known gold mineralization is planned in an effort to upgrade Inferred resources to Indicated and Measured categories. The U.S. Bureau of Land Management (BLM) has permitting jurisdiction on the property. To assist in permitting, Lincoln has retained Mr. Richard Grabowski, consultant and past Deputy State Director, Energy and Minerals for the BLM in California (1997-2010).
The La Bufa gold-silver property is located in the Sierra Madre Occidental in southwestern Chihuahua, Mexico. Lincoln controls concessions surrounding the Rosario mine with past production in the area estimated at 2 million ozs gold and 28 million ozs silver from an epithermal quartz-breccia vein system. During 2011, Lincoln, drilled targets developed by geophysics and surface sampling on the Company’s northern concessions. Twenty (20) core holes were completed for 5,091 meters. Drilling confirmed the existence of strong quartz-bearing structures and anomalous gold and silver. Continued exploration is planned.
Mr. Jeffrey Wilson, the Company’s Vice President Exploration and a "qualified person" under National Instrument 43-101, reviewed and approved the scientific and technical information contained in 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.
For further information, please contact Investor Relations at 604-688-7377 or visit the Company’s website at www.lincolnmining.com.
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 IN RELATION TO THE ELGIN AGREEMENT AND UNDERLYING EXPLORATION PROGRAMS 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 COMPANY'S PLANS OR EXPECTATIONS INCLUDE THE OUTCOME OF THE ARBITRATION PROCESS, THE RISK THAT ACTUAL RESULTS OF FUTURE EXPLORATION WORK, INCLUDING DRILL RESULTS AND RESULTS OF ENGINEERING AND METALLURGICAL STUDIES, WILL NOT SUPPORT THE COMPANY'S PLANS TO ADVANCE ITS PROJECTS; COST OVERRUNS AND PROJECT DELAYS; AVAILABILITY OF CAPITAL AND FINANCING, GENERAL ECONOMIC, MARKET OR BUSINESS CONDITIONS, FLUCTUATING METAL PRICES, 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 MAKES ALL REASONABLE EFFORTS TO UPDATE ITS CORPORATE MATERIAL, DOCUMENTATION AND FORWARD-LOOKING INFORMATION ON A TIMELY BASIS.
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