gold-mining-company-lincoln-mining-corporationLincoln Gold U.S. Corp., a subsidiary of Lincoln Mining Corp. has signed a Letter of Intent with ADGIS. Letter of Intent regarding acquisition of mining assets in the Imperial County, California. Mining assets include Cruz Oro gold mine. Payment of royalties from gold mining exploration worth U.S. $ 50,000 per year and will increase to U.S. $ 200,000 per year in the 7th year.

The 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 American Girl gold mine (past producer). Large-scale mining occurred in the area during 1890-1916 and 1932-1941, producing greater than 150,000 ozs gold. In the mid 1990’s, the property was developed as the “Golden Cross” mine by MK Gold Company. MK Gold produced 61,000 ozs gold in one year from both open-pit and underground mining. 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.

The main Oro Cruz gold deposit is an irregular, elongate, tabular zone that dips approximately 25 degrees from the pit floor for at least 1,650 ft. The deposit remains open down dip with the deepest vertical hole containing 60 ft grading 0.4 oz per ton gold (not true thickness). There are over 400 drill holes on the property. Since 1981, there has been 196,324 ft of drilling of which 6,818 ft was core drilling. Multiple exploration targets are present.

Pre NI 43-101 and therefore non-compliant NI 43-101 gold resources were reported by Mine Development Associates of Reno, Nevada in 1999. Resources were estimated at 3,365,000 tons grading 0.058 oz gold per ton gold containing 196,000 ounces gold in the “indicated” category using a 0.01 oz gold per ton gold cutoff grade. In addition, 2,684,000 tons of “inferred” resources were estimated with no grade assignment.

Lincoln believes that the Property 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 is planned.

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