Linear Metals Corporation
TSX : LRM

Linear Metals Corporation

November 24, 2008 08:24 ET

Linear Metals Reports Positive Metallurgical Results and Significant Deep Molybdenum Intersections at KM61 Project

TORONTO, ONTARIO--(Marketwire - Nov. 24, 2008) - Linear Metals Corporation (TSX:LRM) is pleased to report favorable results from a locked cycle metallurgical test carried out on mineralized rock from its KM61 Project located near Armstrong, Ontario highlighted by the following recoveries:

- Molybdenum recovery projected at 88% to a 52% molybdenum concentrate; and

- Copper and silver recoveries projected at 80% and 47% respectively to a 20% copper concentrate.

Linear is also pleased to report the results of the last five drill holes of the initial resource delineation program, three of which were deep -45 degrees angle holes designed to cross the "keel" of the deposit at a vertical depth of up to 400 metres, highlighted by the following composite results:

- K-08-105: 91.6 metres at 0.060% molybdenum, 0.09% copper, and 2.5 grams per tonne silver, starting at 502.9 metres downhole, and,

- K-08-106: 164.0 metres of 0.076% molybdenum, 0.06% copper and 1.5 grams per tonne silver, starting at 320.0 metres downhole.

Metallurgical Tests

Tests were carried out by SGS Lakefield Research ("SGS") under the oversight of consulting metallurgist Klaus Konigsmann. Work was done on a single composite sample of 300 kilograms of core sample rejects collected from two diamond drill holes, K-07-28 and K-07-34, located in the eastern and western halves of the Main Zone respectively. The large sample size, used in this metallurgical test program, allowed SGS to conclude the testing program with a six cycle test using 10 kilogram charges per cycle.

Based on the results of these tests, the recoveries and concentrate grades are projected as follows:



Table 1: Test Results

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Silver,
grams
Molyb- per Molybdenum Copper Silver
Product denum % Copper % tonne Recovery % Recovery % Recovery %
---------------------------------------------------------------------------
Feed 0.068% 0.071% 2.7
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Mo Conc. 52% 0.41% 76 88% not payable not payable
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Cu Conc. 1.85% 20% 390 not payable 80% 47%
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SGS' geochemical scans of the two concentrates also indicated that some portion of the gold and rhenium are expected to be recovered with gold reporting to the copper concentrate and rhenium to the molybdenum concentrate. The copper concentrate reported a gold content of 5.38 grams per tonne which is expected to be high enough to result in a payment from the smelter. The molybdenum concentrate showed a rhenium content of 37 grams per tonne. To date, limited gold and rhenium assaying of KM61 core has returned relatively low values (approximately 0.025 grams per tonne gold and 0.1 grams per tonne rhenium on average, where analyzed) and accordingly, the majority of the core has not been assayed for these elements. Gold and rhenium head grade values of the metallurgical samples were not collected so recovery estimates cannot be calculated. As the KM61 project advances through scoping and beyond, gold and rhenium values and recoveries will be quantified.

In addition to the excellent recoveries for copper and silver, the KM61 mineralization demonstrates favorable grinding and flotation characteristics which are expected to result in low power and reagent consumption.

Grinding

The BM Work Index has been determined at 13.4 kWh/t, so grinding costs associated with processing of KM61 mineralization are expected to be low. Most significantly, the primary grind is projected at 80% passing 150 microns, a relatively coarse grind, which produces good liberation of sulphides from the rock matrix. Furthermore, regrinding of rougher stage concentrate, a small percentage of the original mass, to 30 to 50 microns is also expected to require low power consumption.

Flotation

KM61 processing is expected to consist of a conventional flotation circuit for copper and molybdenum with the exception that the number of cleaner flotation stages, required to produce saleable concentrate grades with no penalty items, will be lower than normal. This, combined with the very low forecasted reagent consumption, is anticipated to significantly lower operating costs for a concentrator at KM61.

Final Drill Results

Assay results of the final five drill holes of the 2008 delineation program have been received (see Table 2 for composite values) and Linear is proceeding with an initial resource calculation expected to be completed before year-end. Approximately 35,000 metres were drilled in the delineation program and will be incorporated into the resource estimate.

Three of the last five holes (K-08-105 to K-08-107), located between L5950E and L6200E, were deep tests supporting results of previously released deep holes K-07-29, K-08-98 to K-08-100, and K-08-104, which together test the keel of the deposit over a strike length of approximately 550 metres, at section spacings between 50 and 100 metres. Holes K-08-105 and K-08-106 both intersected significant molybdenum mineralization at depth, with K-08-105 intersecting a broad section with several subzones of greater than 0.05% molybdenum starting at 253.5 metres down hole, before the main interval of 91.6 metres of 0.06% molybdenum from 502.9 to 594.5 metres. This is similar to the intersections in previously reported holes K-08-99 and K-08-100, located 100 metres west and east of K-08-105 respectively. K-08-106 intersected a wider interval of 164 metres at 0.076% molybdenum, again similar to the mineralization reported in K-08-100, located 100 metres to the west. K-08-107 intersected several narrower zones of molybdenum mineralization, similar to previously reported hole K-08-98, located 500 metres to the west, indicating that the keel of the deposit appears to remain intact between these two holes.

Holes K-08-70A and K-08-113 were both drilled to fill gaps in previous drilling toward the western end of the Main Zone, and have confirmed continuity of the molybdenum mineralization on sections L5350E and L5250E respectively, where the Main Zone is narrowing toward the SW Zone.



Table 2: Final Drill Hole Results

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From To Interval Molybdenum Copper Silver
Hole No (metres) (metres) (metres) % % g/t
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K-08-70A 208.0 224.5 16.5 0.044 0.09 4.6
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269.0 282.5 13.5 0.082 0.13 4.4
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315.5 335.5 20.0 0.040 0.05 1.5
---------------------------------------------------------------------------

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K-08-105 253.5 278.5 25 0.054 0.10 2.2
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369.0 408.0 39 0.053 0.06 1.6
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incl 383.5 397.0 13.5 0.094 0.06 1.7
---------------------------------------------------------------------------
430.2 442.0 11.8 0.061 0.07 1.5
---------------------------------------------------------------------------
484 490.85 6.85 0.047 0.06 1.5
---------------------------------------------------------------------------
502.9 594.5 91.6 0.060 0.09 2.5
---------------------------------------------------------------------------
incl 536.5 594.5 58.0 0.076 0.10 2.9
---------------------------------------------------------------------------

---------------------------------------------------------------------------
K-08-106 320.0 484.0 164.0 0.076 0.06 1.5
---------------------------------------------------------------------------
incl 324.0 414.5 90.5 0.103 0.06 1.8
---------------------------------------------------------------------------
504.1 512.0 7.9 0.085 0.09 1.3
---------------------------------------------------------------------------

---------------------------------------------------------------------------
K-08-107 125.5 133.0 7.5 0.047 0.05 1.3
---------------------------------------------------------------------------
162.0 164.95 2.95 0.077 0.11 2.5
---------------------------------------------------------------------------
327.75 340.4 12.65 0.130 0.06 1.9
---------------------------------------------------------------------------
390.5 419.0 28.5 0.048 0.11 2.1
---------------------------------------------------------------------------
incl 390.5 401.0 10.5 0.068 0.07 1.5
---------------------------------------------------------------------------

---------------------------------------------------------------------------
K-08-113 49.0 101.0 52.0 0.050 0.08 2.9
---------------------------------------------------------------------------
incl 49.0 81.5 32.5 0.060 0.08 3.0
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Brian MacEachen, President states that "KM61 has produced positive results in all facets of Linear's aggressive 2008 program and this continues to be true with the metallurgical test program and the final results of delineation drilling. KM61's mineralization, which has been shown to very clean, easy and low cost to treat, and which provides strong copper and molybdenum recoveries, will be very advantageous to the project economics as it moves forward. We look forward to completion of the NI 43-101 compliant resource estimate, before year-end, which will incorporate the results of this metallurgical testing as well as the recently completed drill program at KM61."

This press release was prepared under the supervision of Linear Metals' Vice President of Exploration, Dr. Robert Page, P. Geo., who is a Qualified Person as defined under National Instrument 43-101. Dr. Page has reviewed the scientific and technical information in this press release.

For further details on Linear Metals Corporation and its Cobre Grande Project, please visit the Company's website at www.linearmetals.com or contact investor relations at (902) 482-1240 or within North America toll free at (1-866-376-7683).

Robert Page, Vice-President Exploration

Forward-Looking Information:

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, continuity of mineralization, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes that the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. The likelihood of future mining at KM61 is subject to a large number of risks and will require achievement of a number of technical, economic and legal objectives, including obtaining necessary mining and construction permits, completion of pre-feasibility and final feasibility studies, preparation of all necessary engineering for pits and processing facilities as well as receipt of significant additional financing to fund these objectives as well as funding mine construction. Such funding may not be available to the Company on acceptable terms or on any terms at all. There is no known ore at KM61 and there is no assurance that the mineralization at KM61 will ever be classified as ore. For more information on the Company and the risk factors inherent in its business, investors should review the Company's Annual Information Form at www.sedar.com.

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

Contact Information

  • Linear Metals Corporation
    Investor Relations
    (902) 482-1240 or Within North America: 1-866-376-7683
    Website: www.linearmetals.com