Lincoln Gold Mining Advances Key Royalty Project Milestones

Overview of Lincoln Gold Mining's Progress

Lincoln Gold Mining Inc. is stepping into the spotlight as it embarks on the exciting journey of developing the Bell Mountain Project. This project has garnered attention due to its potential to yield gold and silver, as well as the company’s strategic financial planning to ensure successful advancement. This article unpacks the recent developments, insights, and future outlook for Lincoln Gold Mining and its associated royalty structure.

Acquisition and Financial Strategy

Recently, Lincoln has finalized the acquisition of the Bell Mountain Project from Eros Resources Corp. Discussions with various financial institutions are underway to secure the necessary capital for taking the project through construction. Recognizing the importance of a well-structured financial framework, Lincoln aims to streamline operations and minimize delays in bringing the project to fruition.

Royalty Structures Explained

Globex Mining Enterprises Inc. holds a critical scaling royalty on the project, directly relating to the fluctuating gold prices. The royalty rates structure is defined as follows:

• Gold Price from $0 to $500 results in a 1% gross metal royalty.
• Gold Price over $500 but below $1,200 leads to a 2% gross metal royalty.
• For gold prices exceeding $1,200, the royalty increases to 3%.

Additionally, Globex receives annual advance royalty payments of $20,000. This relationship not only provides a steady income stream for Globex but also enhances the financial stability of Lincoln as it advances the project.

Construction Timeline and Initial Steps

With funding arrangements in progress, Lincoln anticipates that construction at Bell Mountain could commence within 8 to 10 months. The initial phases will focus on mineralization placement and a leaching process that is crucial for extracting gold and silver efficiently. These early steps are vital for laying a solid groundwork for the operations.

Preliminary Economic Assessment (PEA) Insights

The company has filed an independent technical report per National Instrument 43-101, shedding light on the expected economic landscape of the project. This assessment reveals promising projections for both gold and silver production through heap leaching operations. The economic evaluation is based on projected gold prices of $2,200 per ounce and silver at $24.00 per ounce. It reflects thorough research conducted to ensure that these figures align with market trends and operational feasibilities.

Financial Viability and Expected Outcomes

The PEA outlines various financial metrics. Notably, the Internal Rate of Return (IRR) is positioned at an optimistic 63.2% before taxes and 59.6% afterward. Additionally, Lincoln expects to achieve a Net Present Value (NPV) of approximately $25.69 million, which underlines the robust cash flow anticipated from the project.

Furthermore, these assessments predict a net cash flow of about $29.71 million, showcasing a lucrative operational outlook. As Lincoln moves forward with construction and begins initial production, the focus will remain on ensuring maximized efficiency and profitability.

Commitment to Continuous Improvement

Lincoln’s management, led by President and CEO Paul Saxton, is dedicated to not just advancing the Bell Mountain Project but simultaneously enhancing operations at their other sites including Pine Grove. This dual approach will allow for a more robust portfolio and sustained growth in the company’s mining endeavors.

Saxton emphasizes the importance of thorough design and planning processes, ensuring that Lincoln is well-prepared for the challenges that may arise during construction and operational phases.

Frequently Asked Questions

What is the Bell Mountain Project?

The Bell Mountain Project is a gold and silver mining initiative acquired by Lincoln Gold Mining Inc. aimed at developing efficient extraction processes and securing a stable revenue stream.

What are the key financial metrics from the Preliminary Economic Assessment?

The PEA indicates a strong IRR of approximately 63.2% before taxes and an NPV of $25.69 million, highlighting the project's financial viability.

When is the construction of the Bell Mountain Project expected to begin?

Lincoln anticipates that construction will commence within 8 to 10 months as funding is secured and arrangements are made.

What advantages does the royalty structure provide Lincoln?

The royalty structure offers steady income streams for Globex Mining, thereby providing financial stability and support for Lincoln as they advance the project.

Who should I contact for more information about Lincoln Gold Mining?

For further inquiries, Jack Stoch, President and CEO of Globex Mining Enterprises Inc., is available at the company’s office in Quebec, to provide detailed insights about the company's operations and prospects.

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