Agnico-Eagle Signs Letter of Intent to Joint Venture Lincoln Gold's Buffalo Valley Property in Nevada
Thursday August 4, 6:00 am ET
CARSON CITY, Nev.--(BUSINESS WIRE)--Aug. 4, 2005--LINCOLN GOLD CORP. (OTCBB:LGCP - News) is pleased to announce that it has signed a Letter of Intent to Joint Venture its Buffalo Valley gold property with Agnico-Eagle (USA) Ltd. ("Agnico"). The large exploration property is located in the northern portion of the Battle Mountain-Eureka Trend and consists of 7 1/2 alternating sections (square miles) with potential for Carlin-type gold deposits and gold-silver skarns. The district includes the Lone Tree (Newmont), Marigold (Glamis/Barrick), Trenton Canyon (Newmont), Trout Creek, Buffalo Valley, and the Phoenix-Fortitude (Newmont) gold deposits. Last year, Metallic Ventures announced their Converse discovery (4.4 MM ozs Au + 17.1 MM ozs Ag) within 5 miles of the Buffalo Valley property.
Under the terms of the Letter of Intent, Agnico may earn a 60% interest in the Buffalo Valley gold property by spending US$3 million over five years. Expenditures include satisfying annual underlying lease payments to Nevada North Resources (USA), Inc. Once Agnico has earned 60%, it may earn an additional 10% by preparing a feasibility study for the development of a mine on the Property. Agnico may elect to accelerate work to obtain its ownership over a shorter time period. If the Joint Venture elects to commence mine development, Agnico may loan or help arrange financing on behalf of Lincoln Gold in consideration of an additional 5% interest to Agnico in the joint venture. Under these terms, Agnico may ultimately earn 75% interest and Lincoln hold 25% of the Joint Venture.
Agnico-Eagle is a leading intermediate-sized gold producer with a 30-year history of gold production; gold production in 2004 was 271,000 ozs. Agnico shares are listed on The New York Stock Exchange (symbol: AEM) and the Toronto Stock Exchange (symbol: AGE). Agnico is actively pursuing exploration opportunities in the major gold trends of Nevada and Lincoln Gold is pleased to have Agnico as a partner on the Buffalo Valley property.
LINCOLN GOLD CORP.
"Paul Saxton"
Paul Saxton, President and CEO |
