August 23, 2005
LINCOLN GOLD SIGNS LETTER OF INTENT TO JOINT VENTURE ON THE BUFA GOLD-SILVER PROPERTY, MEXICO
Lincoln Gold Corp ("Lincoln") is pleased to announce that is has signed a Letter of Intent with Almaden Minerals Ltd. ("Almaden") to Joint Venture their Bufa gold-silver property located in Chihuahua State, Mexico. The Bufa property, owned 100% by Almaden, surrounds the town and mining camp of Guadalupe y Calvo. Gold was discovered at Guadalupe y Calvo in 1835 with extended periods of production up to 1939. The district is one of the most prolific gold-silver areas in Chihuahua mining history. In 1900, the Del Rosario vein was considered by the U.S. Geological Survey as "one of the largest gold producing quartz veins of the world." A mint was constructed on site by the Mexican Government in 1844. In 1981 renowned geologist Larry Buchanan estimated historic production at 2 million ounces of gold and 28 million ounces of silver at average grades of 37 grams/tonne (g/t) gold and 870 g/t silver. Recent work by a third party has demonstrated that the vein system extends from the historic production area onto the Bufa property with an estimated strike length of approximately 1700 meters.
The optioning of the Bufa property is in keeping with Lincoln's mandate to acquire, explore and develop precious metal properties in the western U.S. and northern Mexico. Lincoln may acquire a 60% interest in the Bufa project by spending US$3 Million on the property and issuing 450,000 Lincoln shares to Almaden over a five year period. Lincoln is committed to spend US$100,000 in the first year and must issue 50,000 shares. Should the Bufa property enter production, Lincoln must issue an additional 100,000 shares to Almaden. In the first year Lincoln plans to carry out mapping, a soil survey and drilling on the property.
In 2004 it was reported by Caelles and King, qualified persons under the meaning of National Instrument 43-101, that the vein system consists of a series of NW-SE striking, banded and brecciated, low sulphidation epithermal quartz veins that vary in strike length from 200 to 700 meters, with an aggregate length for all veins of 3.9 kilometers. Widths of the veins vary from 1 to 7.8 meters in true thickness. A recent small core-drilling program on the Bufa property encountered multiple veins, some with ore-grade gold-silver intercepts with attending lead and zinc.
Lincoln Gold Corp. is a US based gold-silver exploration company located in Nevada with several projects in various stages of exploration. Lincoln Gold presently owns, or has options to acquire a 100% interest in five projects in Nevada, all with potential for discovery of large gold-silver deposits, including: Buffalo Valley, JDS, Jenny Hill, Hannah, and Lincoln Flat.
LINCOLN GOLD CORP.
/s/ "Jeffrey Wilson"
Jeffrey Wilson,
Vice President Exploration and COO
For more information contact:
Investor Relations: 800-689-1659 or [email protected]
www.lincolngold.com
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