Kinross Gold Signs Letter of Intent to Joint Venture Lincoln Gold's Jenny Hill Gold Property in Nevada
Wednesday December 14, 1:14 pm ET
CARSON CITY, Nev.--(BUSINESS WIRE)--Dec. 14, 2005--LINCOLN GOLD CORPORATION (OTCBB:LGCP - News) is pleased to announce that it has signed a Letter of Intent to Joint Venture its Jenny Hill gold property with Kinross Gold Corporation ("Kinross"). The early-stage exploration property (3,640 acres) is located in the Walker Lane in western Nevada and is situated almost exactly between two past gold-silver mines, Paradise Peak (1.5 MM ounces Gold + 50 MM ounces Silver) and Denton-Rawhide (1.7 MM ounces Gold + 17.5 MM ounces Silver). Surface exploration at Jenny Hill indicates potential for scarn and Carlin-type gold mineralization hosted in Mesozoic sedimentary rocks. The property has never been drilled.
Under the terms of the Letter of Intent, Kinross may earn a 60% interest in the Jenny Hill property by spending US$3 million over five years and is committed to spending a minimum of US$200,000 in the first year. Once Kinross has earned 60%, it may earn an additional 10% by preparing a feasibility study for the development of a mine on the property. If the Joint Venture elects to commence mine development, Kinross may help arrange financing on behalf of Lincoln for an additional 5% interest. Under these terms, Kinross may ultimately earn 75% and Lincoln hold 25% in the Joint Venture.
Kinross is the fourth largest primary gold producer in North America, and the eighth largest in the world. Kinross currently has interests in 10 producing mines with particular focus on North and South America. Annual equivalent gold production is expected to be approximately 1.6 million ounces in 2005. Kinross shares are listed on the New York Stock Exchange (NYSE:KGC - News) and the Toronto Stock Exchange (TSX:K - News). Lincoln Gold Corporation is pleased to have Kinross as a partner on the Jenny Hill gold property.
LINCOLN GOLD CORPORATION
Jeffrey Wilson, Vice President and COO
This Press Release may contain, in addition, to historical information, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on management's expectations and beliefs, and involve risks and uncertainties. This news release may contain information about adjacent properties on which we have no right to explore or mine These statements may involve known and unknown risks and uncertainties and other factors that may cause the actual results to be materially different from the results implied herein. Key factors that could cause actual results to differ materially from those described in forward-looking statements are:
(i) the inability of the Company to complete the acquisition of any interest in any new mineral exploration properties;
(ii) the inability of the Company to achieve the financing required to pursue the acquisition of exploration of any new mineral properties;
(iii) the inability of the Company to complete the acquisition of Lincoln Gold;
(iv) the inability of the Company to raise the financing necessary to conduct exploration of the Lincoln Gold properties; and
(v) the presence of commercial mineralization on the Lincoln Gold properties.
Readers are cautioned not to place undue reliance on the forward-looking statements made in this Press Release.
Lincoln Gold Corp. (OTC Bulletin Board:LGCP - News)
Contact:
Lincoln Gold Corp.
Investor Relations
1-800-689-1659
www.lincolngold.com
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Source: Lincoln Gold Corp.
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