Market News Lincoln Mining Announces Positive Preliminary Economic Assessment at its Pine Grove Project, Lyon County, Nevada |
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VANCOUVER, BRITISH COLUMBIA--(Marketwire -12/08/11)- Lincoln Mining Corporation (TSX-V: Base Case Highlights: -- The project has two potentially mineable gold deposits, the Wheeler and Base Case Economics: -- Mine life of 6 years of operations; first year preproduction, production The proposed mining operation would commence with the Wheeler deposit which contains the higher grades and lower stripping ratios and then mining would shift to the Wilson deposit. Other Case Considerations: A sensitivity analysis was also carried out in the PEA. This involved assessing the change in the IRR and the NPV by applying varying parameters such as the operating and capital costs as well as gold price. Examples of various parameters are listed below: -- At $1700 gold price the NPV at 5% discount rate is $41 mm and the IRR is Summary tables of Pine Grove Total Resources and Resources Within A Designed Pit Shell are presented below: Total Measured and Indicated Gold Resources at Pine Grove at 0.007 opt Au cutoff (as at December 8, 2011) ---------------------------------------------------------------------------- Measured and Indicated Resources Within Pit Shell (included in Total Resources above) at 0.007 opt Au cutoff (as at December 8, 2011) ---------------------------------------------------------------------------- Note: Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability Capital Cost Parameters Permitting, Engineering and Bonding $3.7 million Condemnation Drilling $1.0 million Leach Pad Construction $2.8 million Crushing, Conveying Equipment $2.7 million Process Plant $1.7 million Earthwork and prestripping $9.4 million Site layout $1.6 million Contingency $4.5 million Operating Cost Parameters Average Mining Cost per ton material $2.33 Crushing, Leaching and Processing Cost per ton ore $14.26 G&A Cost at $2.95 per ton ore Total average cost per ton ore $25.07 Economic Analysis The economic viability of Pine Grove was assessed using a pre-tax cash flow model, various production parameters including operating and capital costs, estimated gold production and revenues by year, and various other inputs. Parameters for the Base Case Conventional open pit mining up to 1,000,000 tons per year Ordinary heap leaching process with agglomeration Average head grade of 0.042 ounces per ton Average heap leach recovery of 75% Gold price of $1425 per ounce Total gold recovered of 108,575 ounces Gold royalty of 2.5% on part of the ore body and 7% on another Gross revenue from gold sales of $154.7 million Net production Revenue of $68 million Capital costs of $27.4 million Sustaining capital for first four years of operations $5.5 million Environmental and Social Lincoln is in the early stages of community engagement and is reviewing environmental permitting requirements with the applicable regulatory authorities. Future permitting will require ore and waste samples to be tested for acid rock drainage and the release of other potentially harmful constituents into the environment. It is possible that future updates to the PEA may extend the operating life and value of the open pit operation. Recommendations The PEA also recommended, among other things, the following actions: -- Infill and offset drilling around the Wilson deposit should be pursued The authors of the PEA are as follows: Patricia A. Maloney, P.E., John D. Welsh, P.E., Douglas W. Willis, C.P.G., Thom Seal, Ph.D., P.E. Patricia A. Maloney, the principal author of the PEA and a Qualified Person under National Instrument 43-101, has reviewed and approved the scientific and technical information in this news release and consented to the inclusion of extracts and summaries from the PEA contained herein. The PEA for the proposed open pit mining operation on the Pine Grove property will be posted on SEDAR within 45 days of the date of this news release as required under NI 43-101. About Lincoln Lincoln Mining Corp. is a Canadian precious metals exploration and development company with several projects in various stages of exploration and development which include the Pine Grove gold property, the Oro Cruz gold property in California and the La Bufa gold-silver property in Mexico. In the United States, the Company operates under Lincoln Gold US Corp., a Nevada corporation. On behalf of Lincoln Mining Corporation Paul Saxton, President & CEO THIS PRESS RELEASE INCLUDES FORWARD-LOOKING STATEMENTS OR INFORMATION. ALL STATEMENTS OTHER THAN STATEMENTS OF HISTORICAL FACT INCLUDED IN THIS RELEASE, INCLUDING WITHOUT LIMITATION, STATEMENTS REGARDING FUTURE PLANS AND OBJECTIVES OF LINCOLN MINING AS OUTLINED IN THE PEA ON THE PINE GROVE PROPERTY ARE FORWARD-LOOKING STATEMENTS THAT INVOLVE VARIOUS RISKS AND UNCERTAINTIES. THERE CAN BE NO ASSURANCE THAT SUCH STATEMENTS WILL PROVE TO BE ACCURATE AND ACTUAL RESULTS AND FUTURE EVENTS COULD DIFFER MATERIALLY FROM THOSE ANTICIPATED IN SUCH STATEMENTS. INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELAINCE ON SUCH FORWARD-LOOKING STATEMENTS. MINERAL RESOURCES ARE NOT MINERAL RESERVES THAT DO NOT HAVE DEMONSTARTED ECONOMIC VIABILITY. IMPORTANT FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THE COMPANIES' PLANS OR EXPECTATIONS INCLUDE IMPRECISION OF MINERAL RESOURCE ESTIMATES, PROJECT DELAYS, AVAILABILITY OF LABOUR, CAPITAL AND FINANCING, CURRENCY AND GOLD PRICE FLUCTUATIONS, GENERAL ECONOMIC, MARKET OR BUSINESS CONDITIONS, REGULATORY CHANGES, TIMELINES OF GOVERNMENT OR REGULATORY APPROVALS, ENVIRONMENTAL AND PERMITTING RISKS AND OTHER RISKS DETAILED HEREIN AND FROM TIME TO TIME IN THE FILINGS MADE BY THE COMPANY. THE PEA IS PRELIMINARY IN NATURE AND IS BASED ON A NUMBER OF ASSUMPTIONS THAT ARE SUBJECT TO CHANGE IF ADDITIONAL INFORMATION BECOMES AVAILABLE. THERE IS NO CERTAINTY THE PROPOSED OPERATIONS WILL BE ECONOMICALLY VIABLE. THE COMPANY MAKES ALL REASONABLE EFFORTS TO UPDATE ITS CORPORATE MATERIAL, DOCUMENTATION AND FORWARD-LOOKING INFORMATION ON A TIMELY BASIS. Neither 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. Authors: mining - Yahoo! News Search Results Read more... http://finance.yahoo.com/news/Lincoln-Mining-Announces-iw-2180771512.html |