LINCOLN MINERALS LIMITED - ASX: LML

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Description

Lincoln Minerals Limited is an Australian minerals explorer, primarily focused on multi-deposit iron ore exploration and project development across South Australia's Eyre Peninsula but whose portfolio also includes quality nickel-cobalt, uranium, lead-zinc-copper-silver and gold projects in the same province. The Company's Eyre Peninsula tenement holdings are secure and close to established rail and heavy haulage road networks, shipping ports, baseload electricity supply and water services.

The Company's primary Eyre Peninsula focus in 2011 includes preparation of a Mining Lease Application for Lincoln's flagship Gum Flat iron project, just 20 kilometres west of southern Eyre Peninsula's main hub, Port Lincoln (and for which a Heads of Agreement has been signed with China steel mill, Jiangyin Huaxi Steel Co. Ltd to take 50% of the project's hematite and magnetite production); ongoing evaluation and proving up of iron and uranium resources at Eurilla, and nickel-cobalt, gold and base metals exploration at Cockabidnie.

In addition, Lincoln has expanded overseas with manganese, iron and other mineral exploration interests in the Indonesian provinces of Timor, Flores and Kalimantan.

Gum Flat - Iron Ore

• Total iron ore Inferred Mineral Resource 103 million tonnes
• Total iron ore exploration targets 350-850 million tonnes
• Mining Lease Application in preparation
• Potential to start mining and exporting hematite iron ore in 2012
• Heads of Agreement with Chinese Steel Mill for at least 50% iron ore production

Cockabidnie - Campoona Nickel Discovery

Lincoln Minerals has discovered lateritic nickel mineralisation in the Campoona Syncline within the Company’s Cockabidnie Project. Mineralisation up to 0.7% Ni + 0.05% Co occurs at a depth of about 15-20m beneath shallow cover and overlies gabbroic amphibolite with up to 0.1% Ni in fresh bedrock. The aeromagnetic and calcrete anomalies associated with mineralisation extend over a strike length of 5km.

The Cockabidnie area has been the focus of base metal, gold and uranium exploration sporadically since the late 1960’s. It has potential for unconformity uranium mineralisation associated with the base of the Mesoproterozoic Blue Range Beds base metal, gold and iron ore mineralisation associated with the BIF-marble-calcsilicate sequence extending south and southwest from the Stanley Mine and nickel-cobalt mineralisation associated with mafic volcanics or intrusives in the BIF sequence.

Mount Hill Project

The Mount Hill project is located on the northern edge of the Lincoln Uplands and comprises mainly Hutchison Group metasediments under unconsolidated Cainozoic sediments. The Kalinjala Mylonite Zone runs along the eastern margin and separates Hutchison Group rocks of the Cleve Subdomain from Lincoln Complex gneiss and amphibolite of the Spencer Subdomain. Immediately north of Mount Hill railway siding, Mesoproterozoic sediments of the Blue Range Beds overlie deformed Hutchison Group. The Port Lincoln railway runs through the centre and the Lincoln Highway runs along the eastern edge of the project area.

The base of the Blue Range Beds is considered to be a high priority unconformity uranium target. Not only does the basal unconformity overlie probable graphitic schists associated with Hutchison Group BIFs but it also intersects and is locally offset by a major regional fault. There is potential for both East Alligator River and Athabasca Basin style mineralistion. At the Mount Hill prospect, Pancontinental located a ?faulted contact between prospective Hutchison Group carbonates and the Blue Range Beds with a coincident ground radiometric anomaly. Trenching, rock chip and soil sampling identified uranium anomalism up to 260ppm U (in silicified Katunga Dolomite/ironstone) with associated thorium, lead and nickel.

There are a series of long north- to northeast-trending aeromagnetic anomalies. The eastern Sunny Brae anomaly is the structurally most complex with evidence of tight folding and faulting and forms the eastern limb of a major antiformal structure that plunges north under the Mesoproterozoic sediments. The Salt Creek and Burrawing mines occur along strike to the south. The western Mount Hill aeromagnetic anomalies form the western limb of the antiformal structure and represent two parallel BIF units in the south. Both anomaly trends are considered high priority base metal targets. The Sunny Brae prospect is a stream sediment geochemical copper-zinc anomaly with 0.11% Cu, 0.56% Zn and associated lead.

There are a number of drainage systems within the project area that may have potential for palaeochannels uranium mineralisation. The Dutton River is considered the highest priority target since it drains an area immediately adjacent to the Mesoproterozoic Blue Range Beds unconformity. The mouth of the Dutton River near Port Neill has anomalous radioactivity.

Eurilla - Jungle Dam Uranium Discovery

Aircore and slimline RC drilling has outlined a new uranium discovery near Jungle Dam on Lincoln Minerals’ Eurilla Project, EL 3690, northeast of Kimba. The results include a 4m interval grading 0.05% U (16m @ 0.02% U) accompanied by 0.1% base metal (Zn+Pb+Ni+Cu+Co) in saprolitic clay associated with pyritic and graphitic units. A second zone of saprolitic uranium mineralisation approximately 1.5km east contains 20m @ >0.01% U. The results are adjacent to uraniferous calcrete-soil anomalies with up to 17ppm U and represent an exciting new uranium discovery on Eyre Peninsula.

The Eurilla Project is along strike from the Weednanna gold (copper-iron) and Menninnie Dam zinc-lead-silver deposits to the northwest and straddles the boundary between the Cleve and Coolanie subdomains within the Central Gawler Gold Province. There is considerable potential for gold and/or base metal mineralisation maybe with associated hydrothermal iron oxide and/or sericite alteration. In addition to Weednanna and Menninnie Dam, previous exploration discovered several gold and base metal occurrences in the region includingskarn-related iron metasomatism, high-grade zinc and lead intersections up to17.2% Pb, 8.9% Zn and 474 ppm Ag at Telephone Dam, androck chip samples at Lake Gilles South prospect ranging up to 50ppm U, 0.29% Pb, 0.27% Zn and 0.2% Bi.

Kimba Gap (Stony Hill)

The Stony Hill Project is located on the western side of the Middleback Ranges within the Middleback Subdomain and contains scattered BIF outcrops surrounded by Lincoln Complex granite gneiss. Exposure of Hutchison Group rocks is poor.

BIFs are associated with other Hutchison Group units including the Katunga Dolomite, calcsilicate gneisses similar to Menninnie Dam and a pyritic sulphide-rich iron formation at the base of the Lower Middleback BIF sequence in the Middleback Ranges. There is potential for gold and/or base metals within these units but, to date, there has been little recorded gold or base metal exploration within these tenements.

A detailed low-level combined aeromagnetic and radiometric survey was flown in early 2007 and identified significant radiometric uranium-only anomalies in the Kimba Gap area on the western edge of local salt pans. These anomalies will form the focus of early exploration in this project area.

Carinya (Koppio - Tumby Bay)

The Carinya-Koppio-Tumby Bay project has been previously explored for uranium, base metals and iron ore on a reconnaissance basis and contains sporadic outcrops of Hutchison Group quartzite, marble, calcsilicate gneiss, BIF, garnet gneiss and amphibolite. Outcrop is more extensive in the east but much of the region is capped by intense Tertiary weathering and ferricrete that mask basement lithologies.

Hutchison Group outcrop extends from Port Lincoln on the western side of the Kalinjala Mylonite Zone to north of Lipson and Koppio. To the east of the mylonite is undifferentiated Lincoln Complex granite gneiss (Donnington Granitoid Suite) and amphibolite. A 1400m x 600m gabbro (Coonta Gabbro) intrudes the Lincoln Complex just west of Tumby Bay.

There are several historic mines in the Koppio-Lipson area along with high-grade iron ore, anomalous uranium, gold and base metals. The Tumby Bay, Flinders and Port Lincoln mines are located mainly within outcropping marble and BIF of the lower Hutchison Group (Katunga Dolomite and Lower Middleback Jaspilite equivalents) immediately adjacent to and just within the Kalinjala Mylonite Zone. Each of these mines produced a few tonnes of mainly high-grade copper carbonate ore but copper sulphides have been recorded from deeper levels.

The uranium potential of the region is still largely untested. Several radiometric anomalies have been identified near Carinya, Koppio West, Pillaworta, Koppio East, White Flat and an area 5km northwest of Louth Bay. Widespread uranium anomalism has also been recorded in the lateritic regolith.

The area northwest of Louth Bay includes a spot sample with 0.15% U at 15.3m depth in drillhole TBD4. This area is along strike from Hospital, Frasers and other prospects in the Port Lincoln area and is in retrograde altered granite gneiss immediately adjacent to the Kalinjala Mylonite Zone. This 40km-long alteration zone is a high priority uranium target.

A detailed radiometric survey at Carinya defined a large (ca. 800m long) uranium-only anomaly that has been largely untested. A strong uranium radiometric anomaly also occurs at Koppio where drilling has identified trace gold up to 50ppb Au and anomalous uranium up to 0.026% U.

The Coonta Gabbro (or Tumby Bay Nickel Prospect) has been the target of nickel-chrome exploration based on elevated rock chip and stream sediment samples. Basic to ultrabasic diorites to peridotites crop out over an area of 0.7 km 2 with up to 0.2% Cr and 0.15% Ni.

Kalimantan - Iron Ore

* • High grade direct shipping iron ore (DSO) deposit
* • Trial mining produced run-of-mine (ROM) ore averaging 66% Fe
* • Full scale mining to commence July-August 2009, the first truckload of stockpiled ore left the mine 17 June 2009 to a jetty 70 km away
* • Planned production 250,000 tpa mine increasing if sufficient resources are defined
* • Existing 10,000 t ore stockpile sold under three month contract to Chinese buyer
* • Lincoln will earn a 45% interest in the mine and exploration concession
* • Proposed conditional initial JV commitment by Lincoln of US$2 million, to be taken mainly from LML’s share of mine profits
* • First overseas project expansion for Lincoln Minerals
* • Enables exciting near-term move from iron ore explorer to iron ore producer
* • Cash flow positive within 6 months of full scale mine start

Lincoln Minerals was invited to become a party to this JV because of its expertise in iron ore and geological aspects of this project.

Mine For

iron ore, nickel, cobalt, uranium, lead, zinc, silver, gold, manganese

Location of operation(s)

South Australia, Indonesia

Address

28 Greenhill Road
WAYWILLE, SA, AUSTRALIA

Phone

(08) 8274 0243

Email

Website

http://www.lincolnminerals.com.au

Last Updated

23/03/2011