Linear Gold Corp.

Linear Gold Corp.

November 05, 2007 10:57 ET

Linear Gold Acquires Initial Gold Project in Brazil

HALIFAX, NOVA SCOTIA--(Marketwire - Nov. 5, 2007) - Linear Gold Corp. (TSX:LRR) is pleased to announce that it has entered into an agreement with Geomin, S.A, a private Brazilian company for the exploration and acquisition of the El Filao project in the Alta Floresta Gold Province of northern Mato Grosso state. Exploration on the property during the 1990's, by Curua Mineracao and Brazilan Resources Inc., recognized a high grade gold vein structure associated with old Garimpeiro workings. Trenching along the vein exposed a strike length of 80 metres averaging 11.8 grams per tonne gold. A drilling program carried out during 1995 completed six holes from three platforms spaced 50 metres apart and confirmed the continuity of the vein structure over a strike length of 100 metres and a down dip extent of 80 metres. Five of the six holes intersected high grade gold values ranging from 9.6 to 104.0 grams per tonne gold over apparent thicknesses of 0.7 to 1.7 metres. The results of the historical drilling are tabulated below:

Interval Length Au Ag
# Hole (m) (m) (g/ton) (g/ton) Comments
F-01 Vein not recovered
F-02 94.20 95.50 1.70 12.47 40.5
F-03 70.00 71.40 1.40 15.65 25.9
F-04 117.80 119.50 1.35 9.57 n/a
F-05 64.40 66.05 1.65 74.90 12.9
F-06 89.95 90.65 0.70 104.00 49.7
94.45 98.20 0.75 78.20 68.9

Linear Gold recently sampled a new exposure of the main vein system located 75 metres west of the historical drilling that returned values of 84.9 grams per tonne gold within the principal vein and 17.9 grams per tonne gold from the altered wallrock next to the vein. Of additional interest is the recognition of an adjacent vein system exposed by new workings some 50 metres to the north of the principal vein. Rock chip sampling of the wallrock in these new workings, completed by Linear Gold, returned values of 0.5 grams per tonne gold which suggests that a larger disseminated gold halo may exist around the high grade gold veins.

The main target area exposed along the Filao trench is a pronounced continuous vein structure excavated for more than 400 metres along strike with excavations up to 30 metres in width. References from the previous drilling as well as exposures in the main Filao trench indicate that the mineralization is hosted by a complex sequence of andesitic lavas, rhyolite flows and tuffs, and thin intervals metasedimentary rocks of Proterozoic age. Linear Gold can earn a 70% interest in the El Filao project by completing a work commitment of US$1.2 million and by making cash payments of US$260,000 to Geomin over a three year period. Upon completion of a feasibility study, Linear Gold also has the option to purchase the remaining 30% of El Filao by paying Geomin US$2.1 million or US$1.7 Million with a 1% NSR royalty retained by Geomin.

In addition, Geomin S.A. has granted Linear Gold the exclusive right to explore the Trairao project, located 225 kilometres to the east of El Filao, also within the Alta Floresta Gold Province. Linear Gold shall have the exclusive right to explore the Trairao project for a period of 45 days from the completion of a definitive agreement by completing a surface sampling program. This sampling program is underway and results are expected shortly.

Linear Gold is in the process of reviewing a number of gold-focused acquisition opportunities in Brazil, and elsewhere in Latin America. Linear will incorporate a Brazilian subsidiary and plans to establish a regional office and recruit a Brazilian exploration team as part of its strategic entry into Brazil. Linear will provide additional details on its Brazilian strategy over the coming weeks.

This press release has been prepared under the supervision of Mr. Philip Pyle, Certified Professional Geologist and Linear's Vice-President of Business and Corporate Development, who serves as the qualified person for this project under National Instrument 43-101. All samples of Linear Gold were submitted to ALS-Chemex Labs in Reno, Nevada with gold analysed by 50 gram charge digestion Fire Assay - AA finish with samples greater that 10 grams per tonne analysed by Fire Assay - gravimetric finish. Other metals were analysed by aqua regia digestion with ICP finish.

Linear Gold Corp. is actively exploring for gold and base metal deposits in Mexico and Brazil, and also through joint ventures with Kinross Gold in Mexico and Everton Resources in the Dominican Republic.

Wade K. Dawe, President

This news release contains "forward-looking statements". Such forward-looking statements, especially those that address resource quantities, grades, and contained metals, are generally made on the basis of estimation and extrapolation from a limited number of drill holes and metallurgical studies. Where the company expresses or implies an expectation as to future events or results, such expectation or belief is expressed in good faith and is believed to have a reasonable basis for the statement. However, forward-looking statements are subject to risks and uncertainties which could cause actual results to differ significantly from future results expressed, These risks include, but are not limited to, metal price volatility, political and operational risks in the countries where we operate, and a degree of uncertainty in connection with evaluating a deposit until the deposit has been extensively drilled on closely spaced centres.

The TSX Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Linear Gold Corp.
    Terry Christopher
    Manager Investor Relations
    (902) 422-1421or Toll Free: 1-866-546-3272
    (902) 491-4281 (FAX)