22 June 2012 The Manager ASX Announcements NEW SURVEY DEFINES PRECIOUS & BASE METAL PROSPECTS ON SA s NORTHERN EYRE PENISULA A suite of new epithermal gold, silver and base metals prospects has been defined on South Australia s northern Eyre Peninsula from a soil and rock chip survey conducted by Eyre Peninsula focused explorer, Lincoln Minerals Limited (ASX:LML). The Company announced the results today after conducting a regional soil survey over its 100% owned Moseley Nobs, Eurilla and Uno tenements (Figure 1). The newly interpreted epithermal field results include a number of discrete and coherent silver (Ag), gold (Au), copper (Cu), lead (Pb), zinc (Zn), manganese (Mn) and uranium (U) geochemical anomalies. Of these, four anomalies (Skaro, Mondas, Gallifrey and Sonar prospects) have been identified as being high priority targets for Paris style high-sulphidation and Parkinson Dam style lowsulphidation epithermal mineralisation. BEST RESULTS Coherent soil Ag values in excess of 50 parts per billion (ppb) and peak values of 81 to 120 ppb, similar to soil geochemical anomalies around the Paris discovery and satellite prospects. Outcropping mineralisation (up to 2.44ppm Ag, 14ppb Au and 2.42% Pb) in crustiform, colloform epithermal quartz veins can be traced over 150m and can be extrapolated into the Skaro prospect. SUMMARY The recently completed geochemical soil sampling program northwest of Lake Gilles targeted high-sulphidation and low-sulphidation epithermal silver, gold and base metal mineralisation associated with sub-volcanic intrusions of the Gawler Range Volcanics and coeval granite intrusions of the Hiltaba Suite (Wilcherry Granite). The regional soil sampling program identified multiple areas of anomalous Ag, Au, Cu, Zn and U, with four prospects (Skaro, Mondas, Gallifrey and Sonar Prospects) identified as being prospective for epithermal Paris (Investigator Resources Limited) and Parkinson Dam (Tasman Resources Limited) style mineralisation (Figure 2).
Figure 2 Regional soil sampling program: Location of prospects with anomalous silver (Ag) in soil samples in relation to Investigator Resources (IVR) and Trafford Resources (TRF) poly-metallic prospects. RESULTS In total, 635 samples were collected at varying sample spacing and line orientation depending on the targeted mineralised structure. Results for each of the four main prospects are outlined below. SONAR PROSPECT The Sonar prospect is a 900m x 400m geochemical soil anomaly that contains peak assay values of 114ppb Ag, 1.9ppb Au, 5860ppb Cu, 341ppb U. It is interpreted as being a westnorthwest continuation of Investigator Resources Botenella Gate Prospect. GALLIFREY PROSPECT The Gallifrey prospect is a 2 km x 1.2 km geochemical Cu-Ag-Au soil anomaly that is open to the north, with peak assay values of 7040ppb Cu, 112ppb Ag and 1.7ppb Au. The Gallifrey prospect is coincidental to a previous coherent Au in calcrete anomaly (> 7ppb ) identified by Lincoln Minerals that has not yet been drill tested. Lincoln Minerals Limited Page 2 of 5
SKARO PROSPECT The Skaro prospect (Figures 2 and 4) is a 700m X 600m geochemical soil anomaly, located 1 km to the south of outcropping Lower Gawler Range Volcanics which are interpreted as being similar in geological setting albeit deeper than Investigator Resources Paris discovery. Peak assay values for the Skaro prospect are: 8780ppb Cu, 81ppb Ag, 0.74ppb Au, 5341ppb Zn and 5600ppb Mn. Skaro s interpreted geological setting makes the Skaro prospect prospective for Paris style bonanza-grade silver as well as Parkinson Dam high-grade gold-silver mineralisation. Regional soil sampling also identified the Skaro prospect as being prospective for hydrothermal/epithermal manganese. Recent field reconnaissance sampling and mapping discovered and traced an outcropping epithermal, crustiformcolloform quartz vein (Figure 3) over 150m on the Uno Range. The average strike of the 0.3-0.5m wide vein was west-northwest (290 ) and is projected to pass through the southern edge of the Skaro prospect. A grab sample (Table 1) of the outcropping crustiform-colloform quartz vein (containing visible cerussite) has a gold-silver-leadantimony metal association that is typical for low sulphidation epithermal mineralisation. Although the values of Au and Ag are low, it is not surprising as these quartz veins occur in a Figure 3. Complex crustiform-colloform banded quartzveining striking 80/290 into the Skaro prospect. relatively unreactive host rock (Corunna Conglomerate). However it does indicate that the epithermal fluids that passed through the area had potential for mineralisation. Table 1. Analytical results for epithermal quartz sample adjacent to the Skaro prospect. Sample Easting Northing Au Ag As Sb Se Te Zn Pb ID (GDA94) (GDA94) ppm ppm ppm ppm ppm ppm ppm % UR016 657,753 6,388,502 0.014 2.44 123.5 19.25 1.8 0.03 99 2.41 MONDAS PROSPECT The Mondas prospect (Fifures 2 and 4) is a 2.5km long northwest striking Cu-Ag soil anomaly with a zone of anomalous Au (Figure 4). Peak assay values for Ag, Cu and Au in the Mondas prospect are, respectively, 112ppb Ag, 6290ppb Cu and 0.73ppb Au. Similar to the Skaro prospect, the Mondas prospect is prospective for epithermal Ag-Au-Cu mineralisation, with northwest trending epithermal veins traced through the Mondas prospect from the Uno Range. Lincoln Minerals Limited Page 3 of 5
Figure 4: Skaro, Mondas, and Uno prospects Contoured silver soil geochemistry. FURTHER WORK Lincoln Minerals is currently planning regional (500 x 500m) and infill sampling (100 x 100m) around the various northern Eyre Peninsula precious and base metals prospects to further define and close them off prior to a proposed PACE co-funded drilling program. * Elements analysed using an aqua regia digest with AAS finish for Au and ICP-MS for Ag. Lincoln Minerals Limited Page 4 of 5
PACE GRANT Lincoln Minerals is pleased to be a successful applicant for a South Australian Government PACE grant of up to $50,000 to co-fund drilling on a dollar-for-dollar basis on the Uno and other regional manganese prospects. The Uno prospect (Figure 4) is a 650m long, medium to high-grade (up to 51% Mn) manganese-iron breccia system discovered by Lincoln Minerals in 2011. Soil sampling around the Uno prospect demonstrates the precious and base metals potential with samples returning anomalous Ag, Co, and Cu results. Further inquiries: Dr John Parker Managing Director, Lincoln Minerals Limited Tel: (08) 8274 0243 Information in this report that relates to exploration activity and results was compiled under the direction of Dr A J Parker who is a Member of the Australasian Institute of Geoscientists. Dr Parker is Managing Director of Lincoln Minerals Limited and has sufficient experience relevant to the styles of mineralisation and to the activities which are being reported to qualify as a Competent Person as defined by the JORC code, 2004. Dr Parker consents to the release of the information compiled in this report in the form and context in which it appears Lincoln Minerals Limited Page 5 of 5