Lincoln in talks to cut Pine Grove royalties
VANCOUVER, BC / ACCESSWIRE / January 20, 2021 / Lincoln Gold Mining Inc. (“Lincoln” or the “Company”) (TSXV: LMG) announces that it has entered into discussions with two of its partners who own patent concessions in the company’s Pine Grove gold project located in Nevada. Discussions focus on reducing the net smelter royalties (NSR) that currently exist on production. Currently, NSRs range from 2.5% to 7% on planned open pit areas. Discussions focused on the repurchase of these royalties from 0% to 2% maximum.
As the company moves closer to production, management felt it was imperative to reduce or eliminate NSRs in order to attract third-party seed funding for the plant and equipment. In this regard, Lincoln has been in talks with several companies who have indicated their interest in financing the Pine Grove gold project if the NSRs can be reduced. The Company will keep shareholders informed of the progress of negotiations.
In February 2020, the company announced that it had engaged Stantec Consulting Services Inc. of Reno, NV as a senior consultant to oversee and complete the Environmental Impact Assessment (EIA) for the Pine Grove gold project. Stantec works closely with the United States Forest Service (USFS), the lead agency for the Pine Grove project. The USFS has authorized and is leading the various studies that will be carried out by Stantec and which will lead to an EIA. The EIA will be submitted for review under the National Environmental Policy Act (NEPA). Final NEPA approval is required for the Company to move on to the construction phase of a surface mine, heap leach operation and commercial production.
Although Lincoln was able to advance permits at Pine Grove in 2020, permits have not progressed to the degree expected by the Company. This was mainly due to the Covid-19 pandemic and the restrictions on field work that had been scheduled for the spring, summer and fall 2020 seasons. Lincoln is now hoping that an early start of field work can be done. in 2021 so that the water is well drilling, archaeological studies, social impact studies and other studies can be launched.
In October 2020, the Company announced the retirement of Jeffrey Wilson, Executive Vice President and Vice President Exploration, who has been with the Company since its inception. Mr. Wilson has agreed to join the Lincoln Advisory Board in the future and Mr. Joseph Sawyer has replaced Mr. Wilson as President of the company’s two US subsidiaries, Lincoln Resource Group Corp. and Lincoln Gold US Corp. mining experience to the team in both mine management and administrative capacity. Mr. Sawyer is a professional mining engineer in Nevada and his previous mine management experience with the Lundin Group and his former position as office manager at the Nevada Bureau of Mining Regulations and Reclamation will be essential in guiding the Company through the process of ‘authorisation.
Lincoln is an advanced stage gold exploration and development company with a 100% interest in the Pine Grove gold project in the Walker Lane structural area in western Nevada. The Company has a preliminary economic assessment of the Pine Grove gold project in accordance with National Instrument 43-101 – Disclosure standards for mining projects, which was filed with SEDAR on February 16, 2015. An updated mineral resource estimate was published in a press release dated September 16, 2019, which can be viewed on the Company’s website at www.lincolnmining.com. Lincoln is working with the USFS to secure the permits necessary to develop the Pine Grove Gold Project into a low cost heap leach operation with a high grade gravity circuit.
Lincoln also owns a joint venture interest in the Oro Cruz gold property in California. Lincoln’s joint venture partner is advancing the Oro Cruz gold property towards further exploration, development and production.
On behalf of Lincoln Gold Mining Inc.
President and CEO, Lincoln Gold Mining Inc.
Phone. : (604) 688-7377
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
All statements, trend analyzes and other information contained in this market-related press release concerning anticipated future events or results constitute forward-looking statements. All statements, other than statements of historical fact, included herein, including, without limitation, statements relating to the licensing process, future production of the Pine Grove Gold Project, budget and schedule estimates , the Company’s working capital and financing opportunities and statements regarding the exploration and mineralization potential of the Company’s properties are forward-looking statements. Forward-looking statements are subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in forward-looking statements. Significant factors that could cause actual results to differ materially from Lincoln’s expectations include fluctuations in commodity prices and currency exchange rates; uncertainties relating to the interpretation of drilling results and the geology, continuity and grade of mineral deposits; the need for cooperation from government agencies and Aboriginal groups in the exploration and development of properties and the issuance of required permits; the need to secure additional financing to develop properties and the uncertainty over the availability and terms of future financing; the possibility of delays in exploration or development programs and uncertainty about meeting planned program milestones; and uncertainty about the timely availability of permits and other government approvals. Forward-looking statements are based on estimates and opinions of management as of the date the statements are made. Lincoln assumes no obligation to update forward-looking statements, except as required by applicable securities laws. Investors should not place undue reliance on forward-looking statements.
THE SOURCE: Lincoln Gold Mine Inc.
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