Updates on Lincoln's C. Kalimantan iron ore project

The following is an excerpt from Australian firm Lincoln Minerals Limited on Central Kalimantan iron ore project updated report released on Wednesday.

Desa Mirah Mine is being developed jointly by Lincoln Minerals and Samusa Corporation through an Indonesian mining company, PT. Samusa Bintang Mandiri, jointly owned by Lincoln Minerals (45%) and Samusa Corp (55%).

The initial shipment of stockpiled ore at the Desa Mirah mine site and commencement of mining have been further delayed due to ongoing negotiations with the palm oil plantation owner on whose land the mine is located.

A drilling program and further trenching were undertaken within the mining exploitation concession during August 2009 to define the extent, depth, thickness and Fe grade of the resource. The exploration target for high grade lump iron ore within the immediate vicinity of the trial mine has subsequently been downgraded to 27,000-47,000 metric tonnes at 60-66% Fe. Mineralisation covers an area ca. 1 hectare at an average thickness of 0.6-1.2m.

In addition to the above resources, it is estimated that there is an additional 50,000 to 150,000 metric tonnes of iron ore (60-66% Fe) defined as an exploration target in the exploration concession west of the mining concession.

It is planned to commence Stage 1 mining as soon as negotiations are completed with the landowners and equipment can be mobilised on site. This will be a much smaller operation than previously envisaged.

Drilling and trenching failed to substantiate the exploration targets previously identified from interpretation of ground magnetic data. This is mainly due to identification of a deeper, lower grade magnetic source rock. Below the surface gravel, iron-rich caprock and weathered bedrock, drilling intersected magnetite and pyrite/pyrrhotite-bearing diorite with up to 30-40% Fe associated with minor copper (up to 0.3% Cu) and trace gold based on field XRF analyses. This mineralisation is of iron-oxide-copper-gold (IOCG) style and the JV is now seeking to extend its mining rights to include all minerals. Detailed sampling and laboratory assays are pending.

In conjunction with JV partner Samusa Corp, Lincoln Minerals is evaluating several other promising iron ore, manganese and copper-gold projects in Indonesia. (end of excerpt)