Linear Gold Corp.

Linear Gold Corp.

January 10, 2005 09:00 ET

Linear Gold Intersects 143.9 Metres of 6.6 Grams per Tonne of Gold and 39.1 Grams per Tonne of Silver From Hole 27 at The Campamento Zone, Ixhuatan Project, Mexico


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: LINEAR GOLD CORP.

TSX SYMBOL: LRR

JANUARY 10, 2005 - 09:00 ET

Linear Gold Intersects 143.9 Metres of 6.6 Grams per
Tonne of Gold and 39.1 Grams per Tonne of Silver From
Hole 27 at The Campamento Zone, Ixhuatan Project,
Mexico

HALIFAX, NOVA SCOTIA--(CCNMatthews - Jan. 10, 2005) - Linear Gold Corp.
(TSX:LRR) is pleased to announce that it has identified greater
thicknesses of gold mineralization in the Campamento target zone of its
100% owned Ixhuatan project, located in Chiapas, Mexico. New results are
from Holes IX-27 through IX-34 and include highlights of 143.9 metres
containing 6.6 grams per tonne of gold and 39.1 grams per tonne of
silver, which bottomed in mineralization.



Hole From To Thickness Grams per Grams per Comment
tonne Gold tonne Silver
------------------------------------------------------------------------
IX-27 0 143.9 143.9 6.6 39.1 Bottomed in
mineralization
------------------------------------------------------------------------
Including 0 2 2 21.4 61.3
------------------------------------------------------------------------
Detailed 2 4 2 7.7 25.1
------------------------------------------------------------------------
Analysis 4 6 2 17.1 34.5
------------------------------------------------------------------------
6 8 2 17.0 24.7
------------------------------------------------------------------------
8 10 2 7.7 26.4
------------------------------------------------------------------------
10 12 2 3.3 14.2
------------------------------------------------------------------------
12 14 2 6.2 36.7
------------------------------------------------------------------------
14 16 2 7.3 55.0
------------------------------------------------------------------------
16 18 2 1.3 48.7
------------------------------------------------------------------------
18 20 2 2.0 46.6
------------------------------------------------------------------------
20 22 2 3.9 106.0
------------------------------------------------------------------------
22 24 2 14.0 78.2
------------------------------------------------------------------------
24 26 2 11.7 43.0
------------------------------------------------------------------------
26 27.5 1.5 9.3 118.0
------------------------------------------------------------------------
27.5 28 0.5 No Recovery
------------------------------------------------------------------------
28 30 2 4.9 23.4
------------------------------------------------------------------------
30 32 2 10.2 50.9
------------------------------------------------------------------------
32 34 2 3.8 16.6
------------------------------------------------------------------------
IX-27 34 36 2 5.6 17.3
------------------------------------------------------------------------
36 38 2 7.1 23.7
------------------------------------------------------------------------
38 40 2 8.3 17.0
------------------------------------------------------------------------
40 42 2 7.5 13.7
------------------------------------------------------------------------
42 44 2 7.6 25.5
------------------------------------------------------------------------
44 46 2 6.0 22.3
------------------------------------------------------------------------
46 48 2 8.4 21.8
------------------------------------------------------------------------
48 50 2 4.0 38.3
------------------------------------------------------------------------
50 52 2 7.4 67.9
------------------------------------------------------------------------
52 54 2 4.9 23.1
------------------------------------------------------------------------
54 56 2 6.0 16.5
------------------------------------------------------------------------
56 58 2 8.8 20.5
------------------------------------------------------------------------
58 60 2 48.0 91.5
------------------------------------------------------------------------
60 62 2 9.7 60.0
------------------------------------------------------------------------
62 64 2 16.8 60.9
------------------------------------------------------------------------
64 66 2 22.4 99.8
------------------------------------------------------------------------
66 68 2 8.0 85.1
------------------------------------------------------------------------
68 70 2 4.9 59.3
------------------------------------------------------------------------
70 72 2 6.3 88.8
------------------------------------------------------------------------
72 74 2 6.5 greater than Overlimit
100 pending
------------------------------------------------------------------------
74 76 2 9.0 126
------------------------------------------------------------------------
76 78 2 3.9 78.9
------------------------------------------------------------------------
78 80 2 3.7 84.5
------------------------------------------------------------------------
80 82 2 6.1 113
------------------------------------------------------------------------
82 84 2 8.1 111
------------------------------------------------------------------------
84 86 2 3.9 66.3
------------------------------------------------------------------------
86 88 2 7.1 57.2
------------------------------------------------------------------------
88 90 2 1.9 14.2
------------------------------------------------------------------------
90 92 2 8.3 56.1
------------------------------------------------------------------------
92 94 2 9.5 80.1
------------------------------------------------------------------------
94 96 2 8.9 62.8
------------------------------------------------------------------------
96 98 2 9.5 57.1
------------------------------------------------------------------------
98 100 2 4.7 10
------------------------------------------------------------------------
100 102 2 4.1 43.7
------------------------------------------------------------------------
IX-27 102 104 2 1.7 5.8
------------------------------------------------------------------------
104 106 2 0.9 2.9
------------------------------------------------------------------------
106 108 2 3.0 9.5
------------------------------------------------------------------------
108 110 2 4.9 16.2
------------------------------------------------------------------------
110 112 2 2.3 6.4
------------------------------------------------------------------------
112 114 2 1.3 2.7
------------------------------------------------------------------------
114 116 2 1.3 3.3
------------------------------------------------------------------------
116 118 2 0.7 1.2
------------------------------------------------------------------------
118 120 2 2.1 6.1
------------------------------------------------------------------------
120 122 2 1.1 2.9
------------------------------------------------------------------------
122 124 2 1.5 7.4
------------------------------------------------------------------------
124 126 2 1.8 3.7
------------------------------------------------------------------------
126 128 2 2.3 6.0
------------------------------------------------------------------------
128 130 2 0.6 1.4
------------------------------------------------------------------------
130 132 2 0.4 1.3
------------------------------------------------------------------------
132 134 2 0.1 0.3
------------------------------------------------------------------------
134 136 2 0.2 0
------------------------------------------------------------------------
136 138 2 0.2 0.3
------------------------------------------------------------------------
138 140 2 6.7 12.2
------------------------------------------------------------------------
140 142 2 1.1 0.3
------------------------------------------------------------------------
142 143.9 1.9 2.1 1.6 Bottom of Hole
------------------------------------------------------------------------
IX-28 28 120 92 1.2 7.9
------------------------------------------------------------------------
IX-29 124 132 8 0.6 1.5
------------------------------------------------------------------------
IX-30 2 50 48 0.7 3.3
------------------------------------------------------------------------
Including 12 30 18 1.0 2.9
------------------------------------------------------------------------
Including 40 44 4 1.0 4.8
------------------------------------------------------------------------
IX-30 72 74 2 1.0 4.8
------------------------------------------------------------------------
IX-30 80 84 4 1.0 9.2
------------------------------------------------------------------------
IX-30 124 126 2 1.1 4.6
------------------------------------------------------------------------
IX-31 22 24 2 1.0 8.4
------------------------------------------------------------------------
IX-31 60 62 2 1.0 1.0
------------------------------------------------------------------------
IX-31 98 100 2 1.0 2.8
------------------------------------------------------------------------
IX-31 114 127.1 13.1 0.3 27.8 Bottomed in
Silver
Mineralization
------------------------------------------------------------------------
IX-32 0 90 90 1.9 26.4
------------------------------------------------------------------------
Including 66 88 22 4.0 53.6 No recovery
74-78 metres
------------------------------------------------------------------------
IX-33 0 106 106 0.5 1.6 Bottomed in 0.8
gram per tonne
of Gold
------------------------------------------------------------------------
Including 6 14 8 1.0 3.0
------------------------------------------------------------------------
IX-34 0 54 54 2.6 18.7
------------------------------------------------------------------------
Including 28 52 24 4.4 35.7
------------------------------------------------------------------------
IX-34 64 66 2 1.5 25.8
------------------------------------------------------------------------


Hole IX-27, drilled vertically, located 27 metres to the northeast of
Hole IX-26, shows strong continuity of thickness and grade with
mineralization identified in Hole IX-26 (100.3 m @12.0 grams per tonne
of gold and 63.7 grams per tonne of silver) and Hole IX-20 (60m @9.5
grams per tonne of gold and 27.4 grams per tonne of silver). The core
from Hole IX-27 shows strong similarities with those of other high-grade
gold intersections including the presence of strong clay development and
calcite veining. Hole IX-27 bottomed in strong gold mineralization as
did hole IX-22, IX-25, and Hole IX-26. Hole IX-27 represents the
thickest zone of gold mineralization identified on the property to date.

Hole IX-28, drilled vertically, located 34 metres to the southwest of
Hole IX-26, also shows a strong thickness of mineralization, although of
lower overall grade. Hole IX-28 is the most western mineralized hole of
the present drill pattern and expands the known zone of gold
mineralization in the southwestern direction.

Hole IX-29, drilled vertically, located 96 metres due south of Hole
IX-26, did not encounter any zones in excess of one gram per tonne of
gold. The anomalous values of gold encountered from 88 metres to the
bottom of the hole at 172.5 metres (averaging 0.2 grams per tonne of
gold with the bottom 2 metre interval containing 0.4 grams per tonne of
gold) suggests proximity to the main zone of gold mineralization which
now appears to have more of a southeasterly trend than a southerly trend
as first predicted. Additional drilling to the east of Hole IX-29 will
be required to test for the continuity of mineralization trending
southeast from Hole IX-27 and IX-32.

Hole IX-30, drilled vertically, was located 32 metres to the
south-southwest of Hole IX-26. While Hole IX-30 only encountered thin
zones in excess of one gram per tonne of gold, it showed strongly
anomalous values throughout averaging 0.5 grams per tonne of gold over
the entire 134.7 metre drill hole depth.

Hole IX-31, drilled vertically, was located 46 metres due south of Hole
IX-26. Hole IX-31 only encountered thin zones in excess of one gram per
tonne of gold, but shows a strong increase in silver content at the
bottom of the hole which suggests close proximity to the main gold zone.
Additional deeper drilling will be required to test for the presence of
the main zone of mineralization in this area.

Hole IX-32, drilled vertically, was located 31 metres to the southeast
of Hole IX-26 and is the most southeasterly location thus far tested in
the Campamento target zone. The strong gold and silver mineralization
shows good continuity with the mineralization identified in Holes IX-26
and IX-27 and further indicates the southeasterly trend of the principal
axis of mineralization.

Hole IX-33 drilled vertically, was located 61 metres to the southwest of
Hole 26 and due south of Hole IX-28. Hole IX-33 contains a zone of 8
metre thickness of 1.0 gram per tonne of gold and averaged 0.5 grams per
tonne of gold over its entire length to 106 metres. Hole IX-33 further
expands the zone of mineralization to the southwest from the previous
pattern of drilling.

Hole IX-34 was drilled at an angle of -70 degrees to the east from the
site of Hole IX-32 and is the first angle hole of the drill program in
the Campamento Target zone. Hole IX-34 shows similar grades and
thicknesses as observed in Hole IX-32 and indicates continuity of the
mineralization further to the east. The geometry of the mineralization
encountered in Holes IX-32 and IX-34 indicate the general sub-horizontal
nature of the mineralization.

Consistent with drill holes previously reported, the zone of gold
mineralization in the Campamento Target zone is associated with fine
(1-2mm) stockwork veinlets and disseminations hosted in tuffaceous
andesite breccias and sandstone units of late Tertiary age within the
Ixhuatan porphyry-volcanic complex. The host breccias and sandstones are
interpreted to be tuffaceous units with both airfall and epiclastic
components associated with the Ixhuatan volcanic center. Strong clay
alteration and pyrite are closely associated with the zone of
mineralization. The gold mineralization is hosted in both the oxide and
sulfide portions of the system and remains open in three directions. A
sub-horizontal geometry with a small north-northwesterly dip is
suggested by the intersections which would indicate that the thicknesses
of the mineralized zone is very close to true thickness. A detailed map
of drill hole locations is available on the company's website at
www.lineargoldcorp.com.

Drilling is set to resume with both drilling rigs to continue to offset
the zone of mineralization along the axis to the southeast. Two
additional drilling rigs are being mobilized to the property.

Phil Pyle, Linear's Vice President of Exploration for Central America
states, "We continue to see the zone of gold mineralization increasing
in thickness as we move to the southeast and move uphill from the
original discovery holes. With every new round of drilling, we are
expanding the zone of continuous mineralization which remains open in
three directions."

This press release has been prepared under the supervision of Michael
Druecker, Ph.D., P.Geo. who serves as the qualified person for this
project under National Instrument 43-101. A map of the project showing
the location of all drill holes is available at the company's website
www.lineargoldcorp.com.

All samples were submitted to ALS Chemex Labs in Guadalajara Mexico with
gold by 30g digestion Fire Assay - AA finish with samples greater than
10 g/tonne analyzed by Fire Assay - gravimetric finish and other metals
by ICP.

Linear Gold Corp. is actively exploring for gold and base metals in
Mexico, and through joint ventures in Canada and the Dominican Republic.

Wade K. Dawe, President

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Linear Gold Corp.
    Wade K. Dawe
    President
    (902) 422-1421
    Website: www.lineargoldcorp.com
    or
    Fuller Fletcher & Associates Ltd
    Nick Fuller or Samantha Fletcher
    European Investor Relations
    +44 207 256 5204
    +44 207 256 5678 (FAX)
    The TSX has not reviewed and does not accept responsibility for the
    adequacy or accuracy of this release.