Linux Gold Corp.
OTC Bulletin Board : LNXGF

Linux Gold Corp.

March 01, 2010 10:08 ET

Linux Gold Corp. Announces Completion of Mining Agreement

FAIRBANKS, ALASKA--(Marketwire - March 1, 2010) - Linux Gold Corp. (OTCBB:LNXGF) is pleased to announce that it has completed a mining agreement for certain unpatented mining claims recorded as the Coho Claims, located in the Fairbanks recording district, State of Alaska. A total of ten claims were optioned under the following terms and conditions:

  • Initial payment of $1,500 upon signing of a five year lease
  • Minimum expenditures of $10,000 per year
  • Payments - Year 1 - $5,000; Year 2 - $10,000; Year 3 - $15,000 plus 10,000 shares of Linux Gold Corp.; Year 4 - $15,000 plus 50,000 shares of Linux Gold Corp.; Year 5 - In consideration for a 100% interest in the claims, $500,000 and $500,000 worth of Linux Gold Corp. shares.
  • 4% of the net smelter return from future production.

The Coho Claims are located 30 miles northeast of the Pogo gold mine and 100 miles east of Fairbanks, Alaska. The Pogo gold mine, which is owned and operated by Sumitomo Corporation, produced 358,000 ounces gold in 2009, making it Alaska's largest gold producer. The Coho claims occur in an area explored by Sumitomo and their field operators prior to their discovery of the Pogo gold deposit in 1995. On the Coho claims, gold-bismuth-copper anomalies (maximum values of 1,024 ppb Au; 71 ppm Bi; 499 ppm Cu) have been detected in rocks collected near a geochemically reduced, Cretaceous-Tertiary intrusive complex that intrudes phyllite and schist equivalent to the Keevy Peak Formation. This geological-geochemical association is common within gold-bearing intrusions of the Tintina Gold province.

Qualified Person

The mineral data described above was prepared by Thomas K. Bundtzen, P. Geo., BS, MS, CPG-10912, ABSLN#279639, President of Pacific rim Geological Consulting, Inc., of Fairbanks, Alaska, who is independent of the Company as defined in NI43-101. Bundtzen is a Certified Professional Geologist (CPG) with the American Institute of Professional Geologists (AIPG). Bundtzen is a Qualified Person as defined in NI 43-101 and also qualifies under the rules stated by the U.S. Securities and Exchange Commission ("SEC"), and has verified the data contained in this news release for accuracy.


Linux Gold Corp. is involved in the exploration of mineral properties. Our current plans are to joint venture and explore our gold properties in Alaska. Linux Gold Corporation currently owns mining claims near Granite Mountain and on Dime Creek both located in the eastern Seward Peninsula of Alaska. The Dime Creek property is a historic producer of placer gold and platinum. Further exploration, including drilling, is recommended for 2010. Linux Gold Corp. also owns a 50% interest in 30 mineral claims known as the Fish Creek Prospect, located in the Fairbanks Mining Division in Alaska and has optioned a 50% interest in the Fish Creek claims to Teryl Resources Corp. (TRC-V). Linux is retaining a 5% net smelter return or may convert into a 25% working interest. Linux has also staked mineral exploration claims in the Livengood-Tolovana Mining District, in the State of Alaska near International Tower Hill's gold property (Symbol: ITH).

For more information please visit


John Robertson, President


This news release may contain certain forward-looking statements, including management's assessment of future plans and operations, and capital expenditures and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. There can be no assurance that such statements will prove accurate, and actual results and developments are likely to differ, in some case materially, from those expressed or implied by the forward-looking statements contained in this press release. Readers of this press release are cautioned not to place undue reliance on any such forward-looking statements.

Forward-looking statements contained in this press release are based on a number of assumptions that may prove to be incorrect, including, but not limited to: timely implementation of anticipated drilling and exploration programs; the successful completion of new development projects, planned expansions or other projects within the timelines anticipated; the accuracy of reserve and resource estimates, if any, grades, mine life and cash cost estimates; whether mineral resources can be developed; title to mineral properties; financing requirements; changes in laws, rules and regulations applicable to Linux, and changes in how they are interpreted and enforced, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, and the United States, industry conditions, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange, stock market volatility and market valuations of companies with respect to announced transactions. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements, including those described in the Company's Financial Statements, Management Discussion and Analysis and Material Change Reports filed with the Canadian Securities Administrators and available at, and the Company's 20-F annual report filed with the United States Securities and Exchange Commission at Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that the Company will derive therefrom.

Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Contact Information

  • Linux Gold Corp.
    John Robertson
    604-278-5996 or Toll Free: 800-665-4616
    604-278-3409 (FAX)