Projects - Summary
In March 2011, Lincoln and Elgin Mining Inc. entered into an exploration financing agreement, granting Elgin the exclusive right and option to acquire up to a 60% undivided interest in the Oro Cruz property by funding exploration expenditures. Over a period of two years, Elgin committed to fund exploration at Oro Cruz totaling $3MM and La Bufa $1MM, prior to earning any interest in the project. In September 2012, Lincoln announced that it had terminated the letter agreement with Elgin Mining, due to unfulfilled obligations by Elgin. Further work programs at Oro Cruz and La Bufa are deferred pending arbitration. Lincoln's management considers the Oro Cruz and La Bufa projects to have significant potential.
On June 4, 2013, Lincoln announced that a Settlement Agreement has been signed. Under the Settlement, the Parties have decided to terminate the Agreement in relation to the La Bufa and Oro Cruz properties for the following consideration:
Pine Grove Property - One of the Company's immediate objectives is to achieve gold production at the advanced-stage Pine Grove Property in Lyon County, Nevada. On December 8, 2011, Lincoln announced that it had received a NI 43-101 compliant Preliminary Economic Assessment (PEA) on the Pine Grove Property completed by Telesto Nevada Inc. in Reno, Nevada. The report envisions an open-pit mine and heap-leach processing. Combined Measured and Indicated resources for the Wilson and Wheeler deposits are 203,900 ozs gold contained in 6,055,000 tons of mineralized material at an average grade of 0.034 opt gold with a cutoff grade of 0.007 opt gold. Combined Inferred resources are 43,100 ozs gold contained in 1,596,000 tons of mineralized material at an average gold grade of 0.027 opt gold with a cutoff grade of 0.007 opt gold. Please refer to the Pine Grove section for the full PEA report. Lincoln plans to continued advancement of the Pine Grove project with a goal to move the project towards production.
Bell Mountain Property – Lincoln is currently in the process of acquiring the Bell Mountain gold-silver property from Laurion Mineral Exploration, Inc. (Laurion). The Company has signed a letter agreement with Laurion for the purchase and assignment of an option to earn a 100% interest in the property. Bell Mountain is located in the Fairview mining district in Churchill County, Nevada, approximately 95 miles southeast of Reno, Nevada. As disclosed in Laurion’s news release dated May 4, 2011, Laurion filed a NI 43-101 Technical Report on Bell Mountain dated May 3, 2011 which was prepared by Telesto Nevada Inc. The Technical Report is available under Laurion’s profile on the SEDAR website (www.sedar.com). The report envisions open-pit mining and heap-leach processing. Combined Measured and Indicated resources reported for the Spurr, Varga, and Sphinx deposits are 165,018 ozs gold and 5,533,907 ozs silver contained in 9,761,000 metric tons of mineralized material at an average grade of 0.526 gpt gold and 17.63 gpt silver with a cutoff grade of 0.192 gpt equivalent gold (55:1 Au:Ag ratio). Combined Inferred resources are 29,550 ozs gold and 827,411 ozs silver contained in 2,046,000 metric tons of mineralized material at an average grade of 0.449 gpt gold and 13.26 gpt silver with a cutoff grade of 0.192 gpt equivalent gold (55:1 Au:Ag ratio). Please refer to Laurion’s report for complete details. In April 2013, Lincoln initiated a 35-hole drill program consisting of reverse circulation and core drilling. The drill program should be completed by mid-June. Lincoln plans to file an updated NI 43-101 compliant Technical Report on the Bell Mountain Property and advance the project to production.
Oro Cruz Property - The Oro Cruz project in Imperial County, California, was leased in February 2010 from ADGIS, Inc. to acquire a core of 20 lode claims that cover the Oro Cruz gold deposit. Subsequently, the Company staked additional claims and the Oro Cruz project now consists of 171 lode claims covering approximately 3,000 acres. On September 21, 2010, Lincoln Mining filed a NI 43-101 Technical Report prepared by Tetra Tech in Denver, Colorado. The report envisions open-pit mining and heap leach processing. Inferred resources are estimated at 376,600 ozs gold contained in 7,860,000 tons of mineralized material at an average grade of 0.050 opt gold with a cutoff grade of 0.010 opt gold. Please refer to the Oro Cruz section for the full Technical Report. In September 2012, Lincoln terminated its Letter Agreement with Elgin Mining Inc. On June 4, 2013, Lincoln announced that a Settlement Agreement has been signed. Under the Settlement, the Parties have decided to terminate the Agreement in relation to the Oro Cruz property. Lincoln paid $350,000 cash to Elgin upon execution of Elgin's quitclaim deed in relation to the Oro Cruz property, at which time control of the Oro Cruz property reverted back to Lincoln Mining. Lincoln plans to advance the property to a NI 43-101 compliant Preliminary Economic Assessment. As part of this program, Lincoln plans to conduct confirmation drilling in the immediate pit area in an effort to advance Inferred resources to Indicated and Measured resources.
La Bufa Property - The project is an early to mid-stage gold-silver exploration project located in the historical Guadalupe y Calvo mining district within the Sierra Madre mineral belt in southwestern Chihuahua State. Lincoln controls over 5,700 acres that cover most of an 11 km long mineral trend. Past drilling by Lincoln and other operators has produced encouraging results. On February 10, 2009, Lincoln filed an amended and restated NI 43-101 Technical Report on La Bufa. Please refer to the La Bufa section for the full Technical Report. In 2010, an induced polarization program and surface sampling program were completed which identified a number of target areas in the northern part of the property. A drill program began in July 2011 and was completed in December 2011 for a total of 20 core holes (5,091.8 meters). The drill program confirmed the presence of gold-silver mineralized structures, quartz breccias zones and stockworks, as a possible extension of similar NW-SE-trending structures that occur about 8 km south on Lincoln’s property. As some significant intercepts were encountered, further offset drilling is warranted. Lincoln plans to advance exploration at La Bufa pending arbitration with Elgin Mining.
As part of the Settlement Agreement between Lincoln and Elgin Mining, Lincoln shall take all commercially reasonable steps to market and sell the La Bufa property; the net proceeds of such sale (after allowable expenses) to be split equally between Lincoln and Elgin. Currently, a sale of the La Bufa property is not imminent.
Mr. Jeffrey L. Wilson, Vice President Exploration and Chief Operations Officer, supervises the Company's exploration programs and is the Company's "Qualified Person" for the purpose of NI 43-101 "Standards of Disclosure for Mineral Projects". Mr. Wilson has reviewed and is responsible for the technical disclosure contained in this section of the Company's website.
©2009 Lincoln Mining Corp