January 24, 2005
CORPORATE UPDATE
Carson City, Nevada – January 24, 2005 - LINCOLN GOLD CORP. (OTCBB: LGCP) Lincoln Gold is pleased to announce that it has closed its private placement. The Company issued 2,300,000 units at a price of US$0.30 per unit to raise US$690,000. Each unit consists of one common share and one share purchase warrant; each warrant entitling the holder to purchase one additional common share of the Company at a price of $0.40 per share in the first year and $0.50 in the second year. Placees of this private placement include institutional investors and a large gold fund. The proceeds from the placement will be used for exploration work in Nevada and for general working capital.
Lincoln Gold Corp. is a gold exploration company focused in Nevada with several gold exploration 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 deposits, including: Buffalo Valley , JDS, Jenny Hill, Hannah, and Lincoln Flat.
The Buffalo Valley project is located 22 miles west of Battle Mountain in the northern portion of the Battle Mountain-Eureka gold trend. Lincoln retains a large land position consisting of 7.5 alternating sections (square miles) interspersed with property controlled by Newmont and Barrick. Several companies have explored for gold on various parts of the Buffalo Valley property over the past 20 years. Homestake Mining identified three targets on the property that were never drilled. Potential exists for structurally controlled distal disseminated gold deposits and gold skarns. Metallic Ventures recently announced discovery of 4.4 million ounces gold and 17.1 million ounces silver, approximately 5 miles to the northwest of Lincoln ’s claims. Major mining companies are reviewing Lincoln ’s Buffalo Valley project for possible joint venture.
The JDS property is located in Denay Valley in Eureka County , Nevada in the southern portion of the Battle Mountian-Eureka gold trend (Cortez trend). The recent Cortez Hills (7.5 million ounces) and Pediment gold discoveries by the Cortez Joint Venture (Placer Dome/Kennecott) validates the importance and potential of this area. The JDS project adjoins Placer Dome’s Red Hill project and is adjacent to the JD window that exposes favorable lower plate carbonate rocks. A gravity high with intersecting faults is present on the JDS claim block and offers an excellent exploration opportunity in the pediment-covered area. Major mining companies are also reviewing Lincoln ’s JDS project for possible joint venture.
Lincoln ’s newly acquired Jenny Hill project is located 18 miles west of Gabbs in Mineral County , Nevada . The property lies on trend between the Paradise Peak and Rawhide mines in a remote area of Gabbs Valley . Two styles of gold mineralization are present on the property; Carlin-type and gold skarn. Numerous samples have been collected from the property that indicate the potential for significant ore-grade gold mineralization. A partial ground magnetic survey reveals major concealed structures which possibly control gold mineralization. The Jenny Hill project has potential for bulk mineable gold mineralization and is considered one of Lincoln ’s best properties.
The Hannah project is located 55 miles northeast of Reno in Churchill County , Nevada . The immediate area has received some exploration in the past by Chevron and Cordex. The exploration target is exposed at the surface and consists of a highly oxidized ductile-brittle shear zone in Permo-Triassic greenstone. The shear zone is at least 2500 feet in length and greater than 100 feet in width and locally contains ore-grade gold mineralization. Potential exists for a bulk mineable deposit subject to heap leach processing. The gold zone has never been drilled.
The Lincoln Flat project is located 8 miles west of the town of Yerington in Lyon County , Nevada . The property adjoins the Ambassador Placer mine (1930s vintage) and is near the Yerington porphyry copper-gold mine. Two types of targets are present on the property; gold-hematite breccia and a gold porphyry. The hematite breccia is exposed in widths up to 70 feet at the surface and locally carries ore-grade gold mineralization (multiple grams Au). The gold porphyry target contains anomalous gold and requires further definition. Both targets offer potential for open-pit mining.
Lincoln plans to aggressively explore its gold projects this next year, including completion of detailed surface work, geophysical programs, rock chip sampling and drilling.
LINCOLN GOLD CORP.
/s/ "Paul Saxton"
Paul Saxton,
President
For more information contact:
Investor Relations: 800-689-1659
www.lincolngold.com
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