Projects
Pine Grove
Summary

Pine Grove Property

(Pine Grove fact sheet – 4 pages)
(Click to enlarge)

Pine Grove Facts
Location
Pine Grove Hills, Lyon County, Nevada
Commodities
Gold
Land
7.2 square miles (18.1 square kilometers)
Ownership/Control
100% Lincoln Mining
(Wheeler deposit & unpatented claims)
100% Goldcliff Resource Corp.
(Wilson deposit)
Deposits
Gold deposits in Pine Grove fault zone
Status
Development-stage w/ near term production potential
Drilling
273 holes for 88,367 ft
NI 43-101 Technical Report*
NI 43-101 Preliminary Economic Assessment (“PEA”) filed on SEDAR February 16, 2015  
Plan
Open-pit mine w/ heap leach processing
Exploration Potential
Significant exploration potential exists beyond current resources
Measured & Indicated Gold Resources *
3,373,000 tons grading 0.040 opt (1.37 g/t) gold at 0.007 opt gold cutoff grade *
Inferred Gold Resources *
160,000 tons grading 0.041 opt (1.41 g/t) gold at 0.007 opt gold cutoff grade *
Strip Ratio
4:1
Gold Recovery
75%

 

Summary
The Pine Grove gold property is a development-stage project with near term potential for gold production. Current Measured and Indicated resources are present in the Wheeler and nearby Wilson deposits, which have immediate potential for open-pit mining and heap-leach processing. Both deposits were mined in the past by underground methods for high-grade gold. Remaining lower grade material comprises the known resources and offers substantial exploration potential. A Preliminary Economic Assessment ("PEA") was announced on December 8, 2011 and filed on SEDAR on December 14, 2011 The PEA was prepared by Telesto Nevada Inc. On February 16, 2015, Lincoln filed an Amended and Restated NI 43-101 Preliminary Economic Assessment for the Pine Grove Project, Lyon County, Nevada, dated February 4, 2011 prepared by Welsh Hagan Associates (formerly Telesto Nevada, Inc.).

Summary tables of gold resources are presented in the following sections. As funding becomes available additional environmental baseline work and permitting are planned. Also planned is a Pre-Feasibility study.

On June 7, 2016, Lincoln announced that Goldcliff Resources (US) Inc., a subsidiary of Goldcliff Resource Corporation, has acquired the Wilson mining lease, eight patented claims within the Pine Grove gold property boundary that hosts the Wilson deposit. It is the intent of both Lincoln and Goldcliff to work together to develop the Pine Grove project and the two companies are in discussions about jointly advancing the project.  

Technical Disclosure
Mr. Jeffrey L. Wilson, EVP & Vice President Exploration and Mr. Micheal Attaway, COO and Vice President Operations, supervise the Company's exploration programs and operations in the United States and are also the Company's "Qualified Person" for the purpose of NI 43-101 "Standards of Disclosure for Mineral Projects". Mr. Wilson and Mr. Attaway have reviewed and are responsible for the technical disclosure contained in this section of the Company's website.



Pine Grove - RC Drilling

 


Pine Grove District Geology

Location
The property is located approximately 21 miles south of the farming and mining town of Yerington in the Pine Grove Hills, Humboldt-Toiyabe National Forest, Lyon County, western Nevada. Access is excellent via paved Nevada State Highway 208 to the East Walker Road (gravel) southward to the Pine Grove drainage and then 4 miles by dirt road onto the center of the property. The property encompasses nearly all of the Pine Grove (Wilson) mining district.

Land
Lincoln controls 100% mineral interest in claims covering nearly 7.2 square miles (18.1 square kilometers). The Company holds a mining lease on the Wheeler mine (4 patented claims) and 243 unpatented claims (lode, placer and millsite) that surround the Wilson patented claims. The Company's land position covers significant gold mineralization in the district, exploration targets, and adequate land for mine and processing facilities. The patented claims (private property) are under the jurisdiction of the State of Nevada. Unpatented claims are under the jurisdiction of the U.S. Forest Service. On June 7, 2016, Lincoln announced that Goldcliff Resources (US) Inc., has acquired the Wilson lease. The Wilson lease consists of eight patented claims that hosts the Wilson deposit. The Wilson lease consists of eight patented claims located on the north side of Pine Grove Canyon, approximately 3,500 ft from the Wheeler deposit on the south side.  

History
The mining district was discovered in 1866 and was originally called the Wilson mining district. The name changed over time to the Pine Grove mining district which reflects the name of the mountains in which the district is located. Gold was produced largely from two underground mines, the Wilson and the nearby Wheeler, which are separated by about 3,500 ft on either side of Pine Grove Creek. At one time the district hosted three stamp mills and reached a population of 1,000 people. Most underground mining was completed by 1887 with sporadic production to 1915. It is estimated that approximately 240,000 oz gold were produced with an average grade of 1.36 oz per ton gold from the district. Most of the old workings are shallow and are no deeper than 140 ft.

Geology & Mineralization
The Pine Gove district is dominated by Jurassic granodiorite and its variations. The granodiorite has undergone potassium alteration and locally displays abundant secondary biotite. Dikes and sills of various compositions (andestie, dacite, rhyolite) have intruded the granodiorite within the Pine Grove fault zone. These dikes and sills are thought to be the source of the gold mineralization. Native gold is associated with small quartz veinlets, stockworks, and disseminations hosted primarily in the granodiorite. Where unoxidized, mineralized quartz veinlets contain minor pyrite, minor chalcopyrite, pyrrhotite, and native gold. Elevated copper is present. The style of mineralization appears to be of the "Shear Zone" sub-type of Plutonic-Related Gold Quartz Veins and Veinlets." The shallow-dipping, Pine Grove fault zone is approximately 600 ft wide and at least 1 mile long and appears to be the primary structural control on gold mineralization. The fault zone is an excellent exploration target. Significant gold mineralization occurs as stacked, sub-horizontal zones and pods ranging from 5 to 70 ft in thickness. Most of the mineralization drilled to date is shallow, less than 200 ft in depth. Although high-grade gold (>0.5 oz per ton) was the target in the historic past, the enclosing, lower grade gold mineralization ranging from 0.01 to >0.1 oz per gold is the present material of economic interest.

Measured and Indicated Gold Resources at Pine Grove
Resources reported in the Amended and Restated NI 43-101 Preliminary Economic Assessment for the Pine Grove Project, Lyon County, Nevada, dated February 4, 2015 prepared by Welsh Hagan Associates and filed on SEDAR on February 16, 2015 are reported below. The resources were classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) definitions and are reported as measured, indicated (Table 1) and inferred (Table 2). In order to comply with the CIM definition of "reasonable prospects for economic extraction", the following tables report only those blocks contained within a designed pit shell as Mineral Resources. A link to the technical report is provided at the end of this section.

Table 1: Total Measured and Indicated Gold Resources at Pine Grove (as at February 4, 2015):

At 0.007 opt Au cutoff
Tons
(000S)
Tonnes
(000S)
Gold
Cutoff
Grade
(opt)
Cutoff
Grade
(g/t)
Average Grade
Ounces
Grams
Gold
(opt)
Gold
(g/t)
Measured 
2,356
2,137
0.007
0.240
0.041
1.42
97,300
3,026,300
Indicated
1,017
923
0.007
0.240
0.037
1.25
37,200
1,155,600
Measured & Indicated
3,373
3,060
0.007
0.240
0.040
1.37
134,500
4,182,000

Table 2: Total Inferred Gold Resources at Pine Grove (as at February 4, 2015):

At 0.007 opt Au cutoff
Tons
(000S)
Tonnes
(000S)
Gold
Cutoff
Grade
(opt)
Cutoff
Grade
(g/t)
Average Grade
Ounces
Grams
Gold
(opt)
Gold
(g/t)
Inferred
160
145
0.007
0.240
0.041
1.41
6,600
204,100

Notes to Tables 1 & 2:

  • Mineral Resources are reported using a long term gold price of $1425/oz.
  • Rounding of tons and contained gold results in apparent differences in totals and are in accordance with reporting guidelines.
  • Contained metal estimates remain subject to factors such as mining dilution and process recovery losses.
  • Mineral Resources that are not mineral reserves do not have demonstrated economic viability.

Previous Work
Several companies have pursued the district in recent times including Teck Resources in the early 1990s. Teck spent US$2.2 million dollars conducting geologic mapping and sampling and also drilled 188 reverse-circulation holes (67,488 ft) and two core holes (614 ft). Much of the drilling was on 100 ft centers. Although much of the district remains unexplored, Teck dropped the property. Lincoln is in possession of all of Teck's technical data, including drill hole logs and certificates of assay from ALS Chemex.

Lincoln Work
In 2008, Lincoln drilled four large-diameter PQ core holes (799 ft) for metallurgical testing. Five column leach tests were conducted in 2010 by McClelland Laboratories in Sparks, Nevada. Results from the tests conducted on 3/8-inch crushed material were excellent to include 85% and 87.5% gold recovery. Additional large-diameter core for metallurgical texting was acquired in November 2010. Also, results from 39 bottle-roll leach tests were received in 2011 with encouraging results.

In 2009, the Company acquired new aerial photography and generated new topographic base maps suitable for mine planning and engineering. The Wilson and Wheeler patented claims were professionally surveyed to insure that appropriate State of Nevada and US Forest Service jurisdictions are determined. JBR Environmental Consultants (now Stantec) in Reno, Nevada has been contracted to expedite all stages of permitting.

In November 2009, Lincoln initiated a reverse-circulation (RC) drilling program designed to reaffirm and potentially upgrade the Inferred resources reported in NI 43-101 technical report dated December 19, 2008. Drilling ceased in February 2010 and was renewed in July through August 2010. All new RC drilling data was provided to Tetra Tech in Golden, CO for incorporation in an updated technical report (filed on March 21, 2011). In July and August 2010, 843 soil samples were collected from the western portion of the Wilson patented claims onto lode claims staked by Lincoln. Several strong gold-copper soil anomalies were identified which warrant drilling. Lincoln has completed various biological and cultural surveys and maintains a weather station on site.

In 2010, the Company contracted NVEnergy to identify an electrical power source. The closest power source is approximately 13 miles northwest of the property. Ten key lode claims (Cavanaugh group) were purchased in 2010 and the Wilson deposit production royalty was bought down to a fixed 2.5% NSR.

In March 2011, a new technical report was compiled by Tetra Tech, Inc. of Golden, Colorado, under the provisions of Canadian National Instrument 43-101 and filed on SEDAR on was filed on SEDAR on March 18, 2011.

On December 8, 2011, Lincoln announced that it has received a positive preliminary economic assessment ("PEA") on the proposed open-pit mining and heap leach operation at its Pine Grove Gold Project. The PEA was completed by Telesto Nevada Inc. ("Telesto") in Reno, Nevada.

Due to regulatory issues, all work on the project was suspended in June 2013 and no further work was conducted until May 2014. In September 2014, Stantec Consulting Services was engaged to assist with biological surveys at its projects in Nevada.

In October 2014, the Company received comments from the British Columbia Securities Commission (BCSC) who had reviewed the Company's PEA technical report and advised there were disclosure deficiencies. As a result of the BCSC review, the Company filed a revised and amended report, addressing BCSC comments and National Instrument 43-101 disclosure requirements.

On February 16, 2015, Lincoln filed an amended and restated NI 43-101 technical report dated February 4, 2015 prepared by Welsh Hagan Associates (formerly Telesto Nevada, Inc.) The report is available under the Company's profile on SEDAR (www.sedar.com) and a link to the technical report is provided at the end of this section.


Pine Grove Exploration Targets



Drilling Map With Claims



Summary of Drill Hole Intercepts

 

Project Plans
On June 7, 2016, Lincoln announced that Goldcliff Resources (US) Inc., a wholly owned subsidiary of Goldcliff Resource Corporation, has acquired the lease on the eight patented claims that were previously controlled by Lincoln, and known as the Wilson claims, from Lyon Grove LLP of Reno, Nevada. Goldcliff will make an upfront payment to Lyon Grove and will assume the yearly payments under the lease. Lincoln was not able to make the yearly annual payments to Lyon Grove on the property. Lincoln retains its interest in the remaining claims including the four Wheeler patented mining claims, and 243 unpatented mining claims (lode, placer and millsite) that surround the Wilson patented claims. 

It is the intent of both Lincoln and Goldcliff to work together to develop the Pine Grove project. In that regard the two companies are in discussions about jointly advancing the project towards production.

The PEA reports that significant exploration potential exists beyond current resources and recommends that infill and offset drilling be performed around the Wilson deposit, deep drilling in the Wheeler deposit, and expansion exploration drilling in known outlying anomalous intercepts.

As funding becomes available, additional exploration drilling programs will be developed to potentially increase the size of the resource base. These programs will test numerous prospective areas of the Pine Grove property. District exploration may include additional soil geochemical surveys, continued geologic mapping, and drilling on new and existing targets. Immediate work will focus on completing environmental baseline reports and permitting. A Pre-Feasibility report is also planned.

(Click here to view the NI 43-101 Preliminary Economic Assessment for the Pine Grove Project, Lyon County, Nevada dated February 4, 2015).