Vancouver, British Columbia - Lincoln Mining Corporation (TSX-V: LMG) and its wholly owned subsidiary Lincoln Gold US Corp. (together referred to as "Lincoln" or the "Company") are pleased to announce that they have entered into a Purchase Option Letter Agreement (the “Purchase Option”) to re-acquire a 100% interest in the Hercules claims from ADGIS, Inc. (“ADGIS”) of Reno, Nevada.
The Hercules claims consist of 20 lode claims covering the Oro Cruz pit and gold deposit in Imperial County, California. The Oro Cruz property now consists of the 20 lode claims optioned to Lincoln under the Purchase Option, plus the 131 lode claims currently held by the Company, for a total of 151 claims comprising over 3,000 acres. These claims include the Oro Cruz gold deposit zone, and cover structural projections of the American Girl and Madre-Padre gold deposits (2 miles to the south and mined in the late 1980’s to the mid-1990’s), in addition to prospective pediment areas and various gold prospects in local bedrock. As a result of the Purchase Option, Lincoln now controls 100% of the Oro Cruz property.
In order to earn a 100% interest in the Hercules claims, pursuant to the Purchase Option, Lincoln must make scheduled payments to ADGIS totalling US$500,000 over five years and Lincoln must pay to ADGIS the following royalties:
- a 2% net smelter return royalty from production within the Hercules claim boundaries (“Hercules Royalty”);
- a 1% net smelter return royalty from production generated by Lincoln outside the Hercules claim boundaries and within a 1-mile radius of the Hercules claims (the “Buffer Royalty”);
- 0.5% of the Hercules Royalty and the Buffer Royalty together can be repurchased by Lincoln for US$500,000, which would reduce the Hercules Royalty to 1.5% and the Buffer Royalty to 0.5%.
Lincoln must also maintain Bureau of Land Management and Imperial County payments to keep the Oro Cruz property in good standing.
Recently Lincoln Gold US Corp. terminated the option it had previously granted to Ausgold Resources Pty. Ltd. as a consequence of Ausgold not satisfying its obligations under their option agreement (news release March 26, 2018). Lincoln has kept the Oro Cruz property in good standing.
Lincoln Mining Corp. filed a NI 43-101 technical report for the Oro Cruz property on May 6, 2011 titled "Amended and Restated Oro Cruz Gold Project Resource Estimate, Imperial County, California, USA", dated April 29, 2011, prepared by Tetra Tech Inc. (now Welsh Hagan Associates). A summary of the mineral resource estimate contained in the technical report is described below.
|Oro Cruz Gold Project – Resource Summary Table
| Contained **
* Tonnages, grades, and contained ounces are rounded for significant figures.
** Note that mineral resources that are not mineral reserves do not have demonstrated economic viability.
With a high grade gold zone identified within the pit and the deposit remaining open down dip, numerous targets marked for future exploration, and satellite gold zones that have been marked for future exploration, Lincoln believes the Oro Cruz gold project offers excellent exploration potential.
It is the Company’s goal to advance the Oro Cruz project towards a NI 43-101 Preliminary Economic Assessment. However, as Lincoln is currently focusing its efforts on permitting the Pine Grove gold project in Nevada for production, Lincoln will seek a joint venture partner in order to advance the Oro Cruz project.
Lincoln Mining Corp. is a Canadian precious metals exploration and development company with two projects in various stages of exploration and development, namely the Pine Grove gold property in Nevada and the Oro Cruz gold property in California. In the United States, the Company operates under Lincoln Gold US Corp. and Lincoln Resource Group Corp., both Nevada corporations.
Mr. Paul Saxton, P.Eng., the Company’s President and Chief Executive Officer and a “qualified person” under National Instrument 43-101, reviewed and approved the scientific and technical information in this news release.
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
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 THE ORO CRUZ PROPERTY (INCLUDING THE 2010 MINERAL RESOURCE ESTIMATE, EXPLORATION POTENTIAL AND PLANS TO SEEK A JOINT VENTURE PARTNER), 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 RISK THAT ACTUAL RESULTS OF FUTURE EXPLORATION WORK, INCLUDING DRILL RESULTS AND RESULTS OF ENGINEERING, METALLURGICAL AND ECONOMIC STUDIES, WILL NOT SUPPORT THE COMPANY'S PLANS TO ADVANCE THE ORO CRUZ PROPERTY; THE UNCERTAINTY OF THE GEOLOGY, GRADE AND CONTINUITY OF MINERAL DEPOSITS ON THE ORO CRUZ PROPERTY AND THE RISK OF UNEXPECTED VARIATIONS IN MINERAL RESOURCES, GRADE AND/OR RECOVERY RATES; AVAILABILITY OF CAPITAL AND FINANCING TO MAINTAIN THE COMPANY’S PROJECTS; CHANGES IN PLANNED WORK RESULTING FROM LOGISTICAL, TECHNICAL OR OTHER FACTORS; GENERAL ECONOMIC, MARKET OR BUSINESS CONDITIONS; FLUCTUATING METAL PRICES; THE POSSIBILITY OF COST OVERRUNS OR UNANTICIPATED EXPENSES IN WORK PROGRAMS; REGULATORY CHANGES; TIMELINESS 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.