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TRANSCRIPT
March 2012
Forward Looking Statement
Certain statements contained herein regarding the Company and its operations constitute “forward-looking statements” or information. All statements other than statements of historical fact included in this presentation, including, without limitation, statements regarding future plans and objectives or expected results are forward-looking statements that are based on numerous assumptions that involve various risks and uncertainties inherent in the Company’s business, including risks related to mineral resource exploration and development. Actual results may very materially from those described in the forward-looking statements. 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. Important factors that could cause actual results to differ materially from the companies’ plans or expectations include availability of capital and financing, general economic, market or business conditions, regulatory changes, timelines of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. The Company makes all reasonable efforts to update its corporate materials, documentation and forward-looking information on a timely basis.
Lincoln Mining Corp., symbol LMG, listed on TSX Venture Exchange in August 2009 (Established in 2003, formerly called Lincoln Gold Corp.)
Three Major Properties:
o Pine Grove, Nevada – 141,500 Measured ozs gold & 62,400 Indicated ozs gold & 43,100 Inferred ozs gold w/ Preliminary Economic Assessment
o Oro Cruz, California – 341,800 Inferred ozs gold w/ Technical Report
o La Bufa, Mexico – Exploration-stage project in major mining district w/ Technical Report
Exploration partnership with Elgin Mining Inc. on the Oro Cruz and La Bufa projects
Overview
TSX-V symbol: LMG
Frankfurt Stock Exchange: ZMG
Issued & Outstanding: 97,384,203
Warrants: 16,946,759
Options: 8,175,000
Fully Diluted Total: 122,505,962 Source: TMX.com
As at March 2, 2012
Share Structure
TSX-V: LMG Feb 2011 – 2012
52 Week: Low $0.060; High $ 0.27
Board of Directors Robert Cruikshank – Mr. Cruikshank served as past President of the British Columbia Technology Industries Association and has served in many executive roles including over four years as the President of BCTEL Mobility. Mr. Cruikshank currently serves as a director of Vendtek Systems Inc. a TSXV listed technology company. Along with Chairing the Board of Carmanah Technologies, he also serves on the Advisory Board of both AfterCAD Software Inc. and Nutri-Loc, two early stage technology companies.
Robert Elton – Mr. Elton currently serves as Executive Chair of Powertech Labs and Advisor to the Board of Directors of BC Hydro. He was former President and CEO of BC Hydro for six years and prior to that, he had various senior executive positions including Chief Financial Officer of Eldorado Gold Corporation and a partner of PricewaterhouseCoopers. Mr. Elton is involved in various civic and community activities and is a Member of the Global Agenda Council, World Economic Forum.
Andrew Milligan – Chairman of the Board – Mr. Milligan is a business executive who has concentrated on mining ventures over the past 35 years. He was the founder of Skye Resources Inc. , now owned by Hudbay Minerals Inc. He also served as President & CEO of Glamis Gold Ltd., President & CEO of Cornucopia Resources Ltd. and President & CEO of TRV Minerals Corp. Since 2004 he has concentrated his efforts on Lincoln Mining Corporation.
Dr. Michael Price – Dr. Price is a mine finance consultant located in London. He holds a PhD in Mining Engineering and has more than 30 years resource banking experience. Dr. Price’s extensive experience in mining projects and financing will be a significant asset to Lincoln Mining as projects are advancing into the production stage.
Paul Saxton – Mr. Saxton has been active in the mining industry since 1969, holding various senior management positions, including mining engineer, mine superintendent, Vice President and President , with numerous Canadian mining companies including: Mascot Gold Mines Ltd., Cominco, Corona Corp., Viceroy Resource Corp., Standard Mining Corp. and Lincoln Gold Corporation. He is a mining engineer who also holds an MBA from the University of Western Ontario.
Philip Walsh – Mr. Walsh became a director of the Company when the business combination of LPT Capital Ltd. and Lincoln Gold Corporation became effective in August 2009. Prior to that Mr. Walsh was President & CEO of LPT Capital Ltd. since its incorporation in 2006. In addition, since 1996 he has been President of Taff Management Corp., a private company providing consulting, management and advisory services to public companies.
Management Team Paul Saxton – President and CEO Paul Saxton is the President, CEO and Director of Lincoln Mining Corporation and has been active in the mining industry since 1969. Cominco, Eastmaque, Viceroy, Pinnacle, Lincoln. Projects to Production.
Jeffrey Wilson – Executive Vice President Mr. Wilson brings to Lincoln Mining 34 years of professional exploration experience in the United States, Mexico and Central America with emphasis on gold. Tenneco, Echo Bay. Director of Exploration.
Micheal Attaway – Chief Operating Officer & Vice President Operations Mr. Attaway, a mining engineer with a Masters Degree in Business Administration, brings to Lincoln Mining over 30 years of professional experience in mine operations in the United States. Homestake, Bond International, Viceroy, Quadra. Taking projects to production and managing them.
Emmet McGrath – Chief Financial Officer Mr. McGrath, a Chartered Accountant, is a respected business advisor with over 30 years of experience in public accounting and private industry.
Sabrina Jones – Vice President Corporate Affairs & Corporate Secretary Ms. Jones has a Bachelor’s degree in Economics and has held various accounting and administrative management positions in both public and private companies.
Business Model & Objectives Business Model
Become a mid-tier gold and silver producer
Focus on North America – United States, Mexico & Canada
Grow the Company through cash flow from production
Objectives
Achieve gold production at Pine Grove
Achieve gold production at Oro Cruz
Advance the La Bufa gold-silver property
Expand property portfolio by acquiring additional advanced-stage gold-silver exploration properties
Recent Developments Pine Grove
– Positive Preliminary Economic Assessment (“PEA”) for the Pine Grove gold property announced on Dec. 8, 2011
– PEA reports the project is relatively sound with a free cash flow of US$32 million dollars at a gold price of US$1,425
La Bufa – Drill program at La Bufa was completed mid-December; results confirmed the
continuation of similar mineralized structures, quartz breccia zones and stockworks in the northern concession that exist on the southeastern La Bufa concession
– Some assays remain pending; results are being analyzed for the development of future drill programs that will offset anomalous gold-silver intercepts
Oro Cruz – Permitting for drilling (15,000 meters) at Oro Cruz is underway and a drill program is
planned for 2012
Agreement with Elgin Mining – Exploration of the Oro Cruz and La Bufa properties ($4 million initial investment)
Agreement with Elgin Mining Inc. Overview
Elgin Mining is Lincoln’s exploration partner at the Oro Cruz gold project in California and the La Bufa gold-silver project in Chihuahua State, Mexico
Elgin Mining’s management have extensive experience in mine finding, operations, financing, project management and mine technology
Elgin Mining has committed to spend $3MM on exploration work at the Oro Cruz and $1MM on exploration work at the La Bufa over a period of two years before making a further commitment to acquire an interest in either of the projects
Objectives
Expand the Oro Cruz mineral resource
Advance Oro Cruz project towards economic assessment, feasibility and then production
Establish a mineral resource at the La Bufa property
Pine Grove Gold Property
Development-stage project in Walker Lane Mineral Trend, Nevada
Positive preliminary economic assessment by Telesto Nevada Inc. filed in December 2011
Planned as an open-pit mine with heap-leach processing with 6 years of mine life operations
Updated resource study by Tetra Tech filed in March 2011
High-grade intercepts drilled in 2009–2010
Significant potential to grow the resource
Excellent infrastructure
Pine Grove – Project Highlights
Pine Grove – General Location Yerington
Pine Grove Project
Pine Grove – Location Map
Pine Grove Project Claims Boundary
Pine Grove – Mining History
Historical Production
Discovered in 1866; mined until 1887
Mined high-grade with average ≥ 1 opt gold
Lower grade gold material remains in place
Mined only to 160 ft – 180 ft
240,000 ozs gold produced
Modern Exploration
1989 to 1991 – Teck Resources – 190 holes
2009/2010 – Lincoln Gold US Corp. – 82 holes
Pine Grove – old stamp mill
Pine Grove – District History
Gold first discovered in 1866
Originally named the Wilson Mining District after ‘Uncle Billy Wilson’
Pine Grove population grew to over 1,000 people
Post office, 5 saloons, 3 hotels, dance hall and a school
Toll roads extended in all directions
Regional supply center with freight lines and stages
Photo of Pine Grove around 1870 from the book ‘Nevada Ghost Towns & Mining Camps’ by Stanley W. Paher
Pine Grove – Claims
Wheeler-Wilson Model
Wilson Deposit
Wheeler Deposit
Looking northward
Pine Grove – Mineral Resources
Total Measured + Indicated and Inferred Gold Resources
Resource Tons Cutoff Grade Average Grade Contained Category (000s) Gold (opt) Gold (opt) Ounces
Measured 4,043 0.007 0.035 141,500 Indicated 2,012 0.007 0.031 62,400 Total Measured & Indicated 6,055 0.007 0.034 203,900 Total Inferred 1,596 0.007 0.027 43,100
By Telesto Nevada Inc.
Pine Grove – Mineral Resources
Total Measured + Indicated and Inferred Gold Resources
Resource Tonnes Cutoff Grade Average Grade Contained Category (000s) Gold (g/t) Gold (g/t) Ounces
Measured 3,668 0.240 1.199 141,500 Indicated 1,825 0.240 1.062 62,400 Total Measured & Indicated 5,493 0.240 1.153 203,900 Total Inferred 1,448 0.240 0.925 43,100
By Telesto Nevada Inc.
Pine Grove – Production Scenario Preliminary Economic Assessment (“PEA”) by Telesto Nevada Inc.
PEA proposes open-pit and heap-leach processing operation; with mining commencing on Wheeler deposit then moving to Wilson deposit
Mine life of 6 years; first year pre-production, production of 26,200 to 28,200 ozs gold per year for four years, plus final year of pad rinsing
Based on gold price of $1425/oz, free cash flow of $32.2 MM
Operating costs per ounce are approximately $799/oz
Payback on capital is expected in 32 months
Total Direct Capital Costs are estimated at $22.9 MM plus $4.5 MM contingency
Internal Rate of Return of 31% after royalties, reclamation costs, and Nevada Net Proceeds Tax
Pine Grove – Site Layout
Pine Grove – Leach Pad Area
Pine Grove – Conceptual Operations
Base Case: 6 year mine life
o Year 1 – Preproduction
o Year 2 – 5 Production
o Year 6 – Rinse Pad
Gold production between 26,000–28,000 ounces gold per year
Plan to expand reserves and life of mine through exploration
Aerial view of a typical heap-leach operation
Pine Grove – Exploration Potential PEA states: Significant exploration potential exists beyond current resources
Oro Cruz Gold Property
The Mojave-Sonora Mineral Trend crosses California and Arizona into northern Mexico. The trend has a history of open pit gold mines.
Oro Cruz – Land LOCATION
Imperial County, southeastern California
Tumco Mining District in the Cargo Muchacho Mountains
Approximately 14 miles south of the operating Mesquite Mine
CLAIMS
20 claims under lease – February 2010
131 claims staked in name of Company
Land position approx. 3,000 acres
Oro Cruz – Recent History
RECENT PRODUCTION
1995/1996 – open pit and underground
MK Gold Operations (American Girl JV)
61,000 ozs gold produced in 12 months
Ore was processed 2 miles away at American Girl Mine
Ceased operations due to low gold price
Gold resource remains in place
Oro Cruz pit – looking southwest
Oro Cruz – Pit & Underground Workings
Oro Cruz – Underground Workings
Oro Cruz portal and main decline.
Oro Cruz – Underground Workings
Oro Cruz – Database
Computerized Data Base in Technical Report o 431 surface and 60 underground drill holes
o 13,628 blast holes
o 2,960 underground channel samples
o 17,586 assays in the data base
Surface Data - 1,684 surface samples
All mineralization similar in area
Good metallurgical recoveries recorded in the past
Environmental studies underway
Gold mineralization (reddish brown areas) exposed in the Oro Cruz pit.
Oro Cruz – Resources Estimate
Oro Cruz Inferred Gold Resources
Cutoff Grade Resource Tons Average Contained Gold Category Gold Grade * Gold
opt – 0.02 Inferred 4,835,000 opt – 0.070 341,800 ozs (gpt – 2.20) or opt – 0.01 Inferred 7,860,000 opt – 0.050 376,600 ozs (gpt – 1.60)
* By Tetra Tech Assays capped at 1.5 opt
Oro Cruz – Resource Development
An exploration partnership with Elgin Mining Inc., allows Lincoln to advance the Oro Cruz gold project
Environmental Assessment Report is planned for 2012
Tetra Tech Inc. in San Bernadino, CA assisting with permitting
Preliminary pit configurations in progress
New topographic base map completed for exploration and development
Development of water sources
Oro Cruz Exploration Potential
$3 million allocated by Elgin Mining Inc. for initial exploration
Numerous targets marked for future exploration
Structural zones are new opportunities
Aerial photography and structural analysis planned
Aerial magnetic and radiometric survey planned
Permitting is in process; a drill program is planned for 2012
Oro Cruz Exploration Potential
Section Two Mine - historic workings discovered by field crew
New exploration target located in northern portion of claims
High angle shear zone
Target has never been drilled
Section Two Mine - looking northwest
La Bufa Silver-Gold Property
Mines of the Sierra Madre Occidental
La Bufa Silver-Gold Property
Location o Guadalupe y Calvo mining district
in southeastern Chihuahua State
o Excellent infrastructure
Major Historical Producer – 1835 to 1939 o El Rosario underground mine
o Over 2 million plus ozs gold
o Over 28 million plus ozs silver
Minera Lincoln de Mexico S.A. de C.V.
o 100% interest
o 2,300 hectares (5,711 acres)
o Surrounds Gammon Gold’s “GyC project”
Multi-Million Ounces Potential
La Bufa Property – Guadalupe de Calvo Mining District
La Bufa – Exploration Progress I.P. /Resistivity Survey conducted o 20,000 line meters in 8 lines
Surface Sampling – 234 rock chip samples · 0.06 opt Au + 28.6 opt Ag · 0.63 opt Au + 5.6 opt Ag · 0.02 opt Au + 18.3 opt Ag · 0.58 opt Au
· 0.39 opt Au + 26.3 opt Ag · 1.08 opt Au
Geologic Mapping shows large areas of favorable Lower Volcanics with abundant vein and structural targets
Drill program in south concession confirmed presence of structures similar to those that hosted the El Rosario mine
Exploration partnership with Elgin Mining Inc. Elgin Mining has allocated $1 million for exploration at La Bufa
La Bufa Property – Target Areas
La Bufa – 2011 Drill Program Drill program in north concession began mid-July and was completed by early December 2011
Results have confirmed the presence of anomalous gold-silver mineralization in high-angle quartz breccia veins and stockworks in the NW-SE trending structures that extend for many hundreds of meters.
The drill program also confirmed the presence of structural zones, quartz breccia zones and stockworks as an extension of the main NW-SW district target zone
Similar structures occur about 8 km south on the southern portion of the La Bufa property
Results are being analyzed
La Bufa Property – 2011 Target Area
Looking Forward
Pine Grove Property – Nevada
o Advance project towards feasibility stage o Step-out drilling & expansion exploration programs o Path to production is in progress
Oro Cruz Property – California
o $3 MM allocated by Elgin Mining for initial exploration o Aerial photography o Environmental Assessment Report o Confirmation drilling & expansion exploration programs o Path to Production is in progress
La Bufa Property – Chihuahua, Mexico
o $1MM allocated by Elgin Mining for exploration
Wheeler deposit
Oro Cruz pit
La Bufa property
Summary
Outstanding projects in key mineral regions of Nevada, California and Chihuahua:
o Pine Grove offers near term production
o Oro Cruz offers future production opportunity
o La Bufa has large gold-silver exploration potential (advanced stage exploration)
Management team of senior mining executives, engineers and geologists have worldwide record of exploration, mine-finding and mine-building: Nickel Plate, American Girl, Castle Mtn, Brewery Creek, Borealis, Coliseum.
Lincoln Mining entered into an exploration financing agreement with Elgin Mining Inc. in 2011. This provides Lincoln with a strategic partnership and allows the Company to advance the Oro Cruz and La Bufa projects with minimum dilution to Lincoln Mining shareholders.
