May 16, 2006
CORPORATE UPDATE
Carson City, Nevada - May 16, 2006 - LINCOLN GOLD CORP. (OTCBB: LGCP)
Golden Odyssey Signs Letter of Intent to Joint Venture Lincoln Gold's JDS Property, Cortez Trend, Nevada
LINCOLN GOLD CORPORATION (OTCBB:LGCP) is pleased to announce that Golden Odyssey Exploration Inc. (Golden Odyssey) has signed a Letter of Intent to Joint Venture the Company's JDS gold property. The early-stage exploration property (1540 acres) is located in north central Nevada in one of the world's most active exploration areas - the Cortez Trend. The JDS claim block is approximately 17 miles southeast of Barrick Gold's Cortez Hills' discovery and 8 miles northeast of US Gold's Tonkin Springs Mine.
The JDS claim block is located in highly prospective terrain on the flank of the northern Simpson Park Range. Barrick Gold Corporation controls the adjacent ground to the west and north of the JDS claim block. The property is a pediment play where the gold target is covered by gravels. Regional and detail gravity data at JDS indicate a structural bench at depth which is believed to be favorable "lower plate" Devonian carbonate rocks with intersecting faults. Lower plate rocks are the preferred host for gold deposits within the Cortez Trend and broken ground caused by faulting offers permeable pathways for gold-bearing solutions. Lincoln has conducted a mercury soil gas survey over the most favorable portion of the claim block and has identified an encouraging mercury anomaly over the zone of intersecting faults. Significant gold mineralization is present in the adjacent Simpson Park Range. The concealed target offers potential similar to other Carlin-type deposits discovered within the Cortez Trend and warrants drilling.
Under the terms of the Letter of Intent to Joint Venture, Golden Odyssey may earn a 51% interest in the JDS property by performing 6,000 ft of reverse-circulation drilling within 18 months of signing the agreement. Initial plans are to drill during 2006. Golden Odyssey will have the option to increase its ownership by 14% by funding US$1.5 million in additional work and may increase its ownership by an additional 10% by funding an additional US$2.0 million in work for a total of US$3.5 million. Under these terms, Golden Odyssey may ultimately earn 75% and Lincoln hold 25% in the Joint Venture.
Golden Odyssey Exploration Inc. is a wholly-owned subsidiary of Golden Odyssey Mining Inc (TSE VENTURE:GOE) and is engaged in mineral exploration in the State of Nevada within the Walker Lane, Cortez Trend, and Carlin Trend.
Lincoln Gold Corporation is a US-based gold-silver exploration company located in Carson City, Nevada with five projects in various stages of exploration. Lincoln Gold presently owns or has options to acquire 100% interest in four projects in Nevada, all with potential for discovery of large gold-silver deposits, including Buffalo Valley, JDS, Jenny Hill and Hannah. The Company has also optioned the La Bufa gold-silver property in the Guadalupe y Calvo district in Chihuahua State, Mexico.
LINCOLN GOLD CORP.
"Jeffrey L. Wilson"
Vice President of Exploration and COO
For more information contact:
Investor Relations: 800-689-1659 or [email protected]
www.lincolngold.com
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