Projects
Oro Cruz
Summary

Oro Cruz Property

Oro Cruz Factsheet

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Oro Cruz Facts
Location: Cargo Muchacho Mountains, Tumco Mining District, Imperial County, California
Commodities: Gold
Land: 2,160 hectares (5,338 acres, 8.5 square miles)
Ownership: Lincoln Mining Corp.
Target: Tabular mineralized zone dipping 17 to 25 degrees
Drilling: 491 drill holes; nearly 13,000 blast holes
Present Resources: 341,800 ozs gold "Inferred" resource in 4,835,000 tons with average grade of 0.070 opt gold (2.20 gpt) (compliant NI 43-101)
Status: Existing open pit and underground mine with exposed gold mineralization
NI 43-101 Technical Report: Filed in September 2010
Plan: Advance the property to a NI 43-101 compliant Preliminary Economic Assessment.

 

Summary
The Oro Cruz 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 past producing American Girl and Padre-Madre gold mines.   Large-scale mining at Oro Cruz (Golden Cross) occurred during 1890-1916 and 1932-1941, producing greater than 150,000 ozs gold.  In the mid 1990s, the property was mined by MK Gold Company.  MK Gold produced approximately 61,000 ozs gold between 1995-1996 from both open-pit and underground mining operations. 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.  There are multiple exploration targets on the property.

The Company believes that Oro Cruz 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, prepared by Tetra Tech Inc., and filed by Lincoln on September 21, 2010, announced an Inferred resource estimate of 341,800 ozs gold.



View of Oro Cruz highwall from highway

 


Mineralized zone in Oro Cruz pit

 


Oro Cruz claims map

 


Oro Cruz Pit & Underground Workings

Location
The Oro Cruz project is located northwest of Yuma, Arizona, in the Tumco mining district within in the Cargo Muchacho Mountains, Imperial County, California.  All-weather access is excellent and takes about 35 minutes from Yuma, Arizona, via Interstate highway 8 westward from Yuma, Arizona, approximately 13 miles to paved county road S34, then northeast approximately 8 miles to Tumco.  Dirt roads provide property access.  Some local access restrictions exist owing to historic mine ruins. The area has electrical power from the state grid.  Logistics are excellent for mining. 

Land
In May 2018, the Company, and it's 100% owned U.S. subsidiary, Lincoln Gold US Corp., finalized a purchase option agreement with ADGIS Inc. to acquire 20 lode claims that cover the Oro Cruz gold deposit in Imperial County, California. The Company had previously staked additional contiguous lode claims that covered approximately 3,000 acres. The Letter Agreement involves advance royalty payments beginning at US$100,000 the first year, then US$50,000 for the next two years, then increasing to US$100,000 per year for the remaining 3 years. The NSR royalty is 2% from production within the Hercules claim boundaries. A buy down provision exists on the royalty.

Lincoln US has recently staked additional claims around the Oro Cruz property. The expanded claim block now consists of 251 lode claims, 13 placer claims, plus 20 Hercules lode claims under the purchase agreement with ADGIS. The property has nearly doubled in size and is now comprised of approximately 5,420 acres or nearly 8.5 square miles. The new claim staking was conducted to cover favorable geology in the Cargo Muchacho Mountains in the immediate vicinity of past producers American Girl, American Boy, Padre y Madre, and Oro Cruz gold mines. This gold rich area falls within the northern U.S. portion of the Caborca Orogenic Gold Belt that extends southward into northern Mexico. Lincoln also staked the old leach pads at the American Girl and Padre y Madre mines. These pads are thought to still retain significant resources subject to possible reprocessing.

History
The Cargo Muchacho-Tumco district was discovered by the Spaniards and mined as early as 1780-81. The district is believed to have produced the first gold mine in California. Americans began mining the district at the end of the Mexican-American War in 1848. Mining was firmly established in 1877 with completion of the Southern Pacific Railroad to Yuma. Large-scale mining at Oro Cruz (Golden Cross) occurred during 1890-1916 and 1932-1941, producing greater than 150,000 ozs gold. Gold-bearing tailings from these operations remain on the Oro Cruz property. Texasgulf Minerals explored the property from 1985-1989 and conducted some column leach tests. In the early 1990's, the property was leased by the American Girl Mining Joint Venture and was mined under the JV from 1995-1996 by MK Gold. MK Gold produced approximately 61,000 ozs gold from open-pit and underground operations. Low-grade ore was hauled approximately 2.5 miles to the southeast and heap leached on the American Girl mine property and high-grade ore was hauled approximately 2 miles to the American Girl mine for milling. MK Gold ceased mining when the gold price dropped to $260 per ounce. There are approximately 400 drill holes on the property, which define the known in situ gold resources and drill targets. Underground conditions are said to be in excellent condition.

In December 2010, Lincoln announced that the Oro Cruz claims block had been expanded. An additional 63 lode claims that cover structural projections of the American Girl and Padre-Madre gold deposits were added. The new claims cover prospective pediment areas as well as various gold prospects in local bedrock. The Oro Cruz property now consists of a total of 151 lode claims held under mining lease and staked by Lincoln. Lincoln controls 100% of the property.

Geology & Mineralization
The local geology consists largely of metamorphic rocks of the Jurassic Tumco Formation which dip 25˚ to the south forming a homocline. Rock units consist of lower amphibolites facies gneiss and schist. Numerous pegmatite dikes cut the Tumco Formation and are thought to be late Cretacious to early Tertiary in age. Minor Tertiary latite dikes and sills are also present. The western portion of the project area is covered by alluvium and the eastern portion is intruded by Jurassic felsic intrusions. A geologic map of the district was completed by Texasgulf Minerals.

Texasgulf geologists believed that the gold mineralization originated in siliceous, stratabound exhalites which have since been metamorphosed and faulted.  Other geologists believe that the mineralization originated from mesothermal fluids and is structurally controlled. The primary host is the Jurassic Tumco Formation where the gold occurs in local tablular zones in siliceous schist with associated magnetite, banded iron, and minor chalcopyrite. There are no significant sulfides. Very fine native gold occurs as disseminations and in fractures associated by magnetite, hematite and hydrous iron oxides limonite and goethite. Lower grade gold zones often encompass higher grade gold zones. Tertiary north-south to northwest normal faults cut the dipping mineralized zones.

The main Oro Cruz gold deposit is an irregular, elongate, tabular zone that dips approximately 25° downward from the open pit floor for at least 1,650 ft.  Mineralized thicknesses are variable at multiple tens of feet. Lesser, parallel zones of mineralization are present. The deposit remains open down dip with the deepest vertical hole containing 60 ft grading 0.4 oz per ton gold (not true thickness). 

Previous Work
Texasgulf Minerals conducted exploration during the late 1980's, which included district-wide geologic mapping, airborne and ground magnetic, surface sampling and drilling. The previous owner of the property and the American Girl Mining Joint Venture also conducted exploration programs. There are over 400 drill holes in the Oro Cruz Property. Since 1881, 491 surface holes have been drilled for a total of 196,654 ft. Sixty underground holes have been drilled for a total of 1,350 ft. An additional 2,960 underground channel samples have also been collected and assayed. The total number of assays from this work is 41,007.

Ten exploration targets have been identified on the property and good potential exists for extension of known gold mineralization and discovery of new gold zones. Pan concentrates and gravel samples suggest potential for placer deposits. Magnetic anomalies are thought to be associated with elevated magnetite in the siliceous, gold-bearing zones.

Present Resources
On September 21, 2010, Lincoln filed a NI 43-101 technical report prepared by Tetra Tech detailing an Inferred gold resource of 341,800 ozs contained in 4,835,000 tons with an average grade of 0.070 opt (2.20 gpt) gold. The report recommends a work plan including a twin-hole drill program, bulk density and metallurgical testing to potentially upgrade the resource to Indicated and Measured category.

Recent Developments
On March 4, 2019, Lincoln, through its subsidiary Lincoln Gold US Corp., granted to Demerara Gold Corp., a non-reporting British Columbia company, and Bell Mountain Exploration Corp., a wholly-owned subsidiary of Eros Resources Corp., the right to enter into a formal Option and Joint Venture Agreement until June 30, 2019, for the exploration and development of the Oro Cruz property. If exercised, the JV Agreement will allow Demerara and Bell Mountain together to earn up to an undivided 75% interest in the Oro Cruz gold project by incurring costs of approximately US $2.1 million, which includes property payments to ADGIS, Inc. and funding ongoing exploration and development at the Oro Cruz property over the next five years (see news release dated March 4, 2019).

Project Scope & Plans
Lincoln plans to advance the property to a NI 43-101 compliant Preliminary Economic Assessment. As part of this program, the Company plans to conduct confirmation drilling in the immediate pit area in an effort to advance Inferred resources to Indicated and Measured resources.