Lincoln Gold Mining has recently acquired the Bell Mountain Project from Eros Resources, marking a significant milestone for the company. The project, located in Churchill County, Nevada, is poised to enter its next phase of development. Discussions with financial institutions are underway to secure the necessary capital for construction, which is expected to take eight to ten months once funding is secured. Following construction, the company plans to initiate gold and silver mineralization placement and leaching processes. Globex holds a royalty on all mineral products based on gold prices, along with receiving annual advance royalty payments. A preliminary economic assessment (PEA) has been filed, outlining heap leach operations for gold production, indicating robust cash flow potential.
Securing Funding and Moving Forward
The acquisition of the Bell Mountain Project by Lincoln Gold Mining represents a strategic move towards expanding their mining operations. With the property now under their control, the company is actively engaging with financial institutions to secure the required capital for construction. This phase involves detailed design work that has already been partially completed. Once the funds are in place, Lincoln anticipates an eight to ten-month construction period. During this time, they will also continue permitting activities at Pine Grove and exploration efforts on both properties, focusing especially on the four defined deposits at Bell Mountain.
Paul Saxton, president and CEO of Lincoln Gold Mining, expressed optimism about the future of the Bell Mountain Project. He highlighted that securing funding is crucial for completing the design details and starting construction. The company's strategy includes not only advancing the Bell Mountain site but also exploring additional opportunities within the region. The detailed design work already completed provides a solid foundation for moving forward efficiently. Furthermore, the company plans to leverage its existing infrastructure, including a water well with rights for mining purposes, to support operations.
Preliminary Economic Assessment and Future Prospects
A preliminary economic assessment (PEA) has been conducted for the Bell Mountain Project, adhering to National Instrument 43-101 standards. The PEA outlines a heap leach operation for gold production, using a base case with gold priced at $2,200 per ounce and silver at $24.00 per ounce. While the assessment indicates strong cash flow potential, it remains speculative and preliminary. The PEA includes inferred mineral resources, which are too uncertain geologically to be classified as mineral reserves. Despite these uncertainties, the assessment provides valuable insights into the project's economic viability.
To further evaluate the project's potential, a technical economic model has been developed. This model assesses the project's performance annually, offering a comprehensive view of its long-term prospects. The Bell Mountain Project covers 651 hectares on Bureau of Land Management (BLM) land, comprising 54 lode claims. Located approximately 82 kilometers southeast of Fallon and 102 kilometers southeast of Reno, the site is strategically positioned for efficient operations. The inclusion of a water well with mining rights adds to the project's attractiveness. Although there is no certainty that the PEA will materialize, the current information serves as a promising indicator of the project's potential for success.