Linear Gold Corp.
TSX : LRR

Linear Gold Corp.

December 05, 2007 08:14 ET

Linear Gold Announces Brazilian Strategy and Additional Property Acquisitions

HALIFAX, NOVA SCOTIA--(Marketwire - Dec. 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 Apiacas, Trairao, and Serrinha projects in the Alta Floresta Gold Province of northern Mato Grosso state, Brazil. These acquisitions, together with the El Filao project announced on November 5th, 2007 mark the company's entry into a large prolific gold-bearing region which Linear believes has significant potential for large scale bulk tonnage and high grade vein gold deposits.

The Apiacas project is located 100 kilometres west-northwest of the city of Alta Floresta and is accessible by improved dirt roads from the city of Paranaita. The area was first recognized by local Garimpeiros during the 1990's from follow-up of alluvial gold occurrences in the region. A series of high grade gold vein structures have been recognized with variable strike trends and thicknesses cutting early Proterozoic felsic volcanic rocks. Sampling of exposed veins over thicknesses from one to three metres indicates values ranging from 3.2 to 171.2 grams per tonne gold. Sampling of the wallrocks to the veins, by Linear Gold, returned values of 4.1 and 6.7 grams per tonne gold, respectively, from two separate vein systems. The property consists of 6,851 hectares covering the main vein area and a number of other, yet un-sampled, Garimpeiro workings. Linear Gold can earn a 70% interest in the Apiacas project by completing a work commitment of US$1.6 million and by making cash payments of US$1.425 million 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 the Apiacas project by paying Geomin US$5.5 million or US$2.7 Million with a 1.25% NSR royalty retained by Geomin.

The Trairao project is located 45 kilometres east of the city of Alta Floresta and is accessible by improved dirt road from the city of Carlinda. The area was also first recognized by local Garimpeiros during the 1990's by follow-up of alluvial gold occurrences in the region. A strong zone of quartz veining is recognized cutting granitic rock of early Proterozoic age over an area of at least 800 metres by 500 metres from the main outcrop exposures. Quartz veining is in a well developed stockwork with a high density covering 50-70% of the main outcrop area. Several trenches and excavations have been left by the Garimpeiros which indicate values of gold from 0.5 to 1.7 grams per tonne gold. A detailed geochemical sampling program of soils and rocks from the area has just been completed, by Linear, pursuant to its property review, as well as mapping of the distribution of the stockwork zone and other Garimpeiro workings. Results from the detailed sampling program are expected shortly. The property package consists of 43,600 hectares covering the main stockwork area and other known Garimpeiro workings. Linear Gold can earn a 70% interest in the Trairao project by completing a work commitment of US$1.5 million and by making cash payments of US$1.325 million 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 the Trairao project by paying Geomin US$5.5 million or US$2.7 Million with a 1.25% NSR royalty retained by Geomin.

The Serrinha project is located seven kilometres north of the city of Alta Floresta and is accessible by improved dirt road easily from the city center. The area was also identified by Garimpeiros from follow-up of alluvial gold occurrences. Garimpeiro workings now expose a main zone of silicification approximately 15 metres wide extending for a strike length of 40 metres. A secondary zone of silicification is also recognized some 50 metres away which may be part of a parallel structure. Geochemical sampling of the area indicates values ranging from 2.0 to 4.5 grams per tonne gold, and visible gold has been recognized from the zone. The size of the altered area remains unknown due to limited outcrop exposures. The zone of silicification is cutting granites and mica schists considered to be early Proterozoic in age. The property position consists of 1,275 hectares covering the main known gold bearing area. Linear Gold can earn a 70% interest in the Serrinha project by completing a work commitment of US$1.0 million and by making cash payments of US$220,000 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 the Serrinha project by paying Geomin US$2.7 million or US$2.0 Million with a 1% NSR royalty retained by Geomin.

The portfolio of four projects in the Alta Floresta Gold province represents a strategic entry into Brazil for Linear Gold, focused on a large under-explored region of strong gold potential considered to be the southern extension of the prolific Tapajos gold belt. Linear plans to focus its resources on target generation and discovery utilizing its expertise in surface geochemical and geophysical targeting. A drilling program is already outlined for the El Filao project, scheduled to begin during late January 2008, and surface sampling programs have recently been completed at the Trairao project and initiated at the Apiacas project. Linear Gold is in the process of establishing a new Brazilian subsidiary and has located a central corporate office in Brasilia. Linear has hired a Brazilian administrative manager and is in the process of hiring a team of local geoscientists to carry out the exploration programs. Linear has formed a strategic partnership with Geomin, S.A to provide its technical expertise on the area and to provide for exclusive review of any new targets generated by Geomin within the state of Mato Grosso. Each of the initial four projects is centrally accessible from the city of Alta Floresta where a field office is being established. Linear Gold is continuing the process of reviewing a number of gold-focused acquisition opportunities in Brazil, and elsewhere in Latin America.

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 these projects 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 than 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 or implied. 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.
    Wade K. Dawe
    President & Chief Executive Officer
    (902) 422-1421
    Website: www.lineargoldcorp.com