Linear Gold Corp.
TSX : LRR

Linear Gold Corp.

August 13, 2007 17:03 ET

Expansion of Linear Gold's Cerro la Mina Deposit Continues, Ixhuatan Project, Mexico

HALIFAX, NOVA SCOTIA--(Marketwire - Aug. 13, 2007) - Linear Gold Corp. (TSX:LRR) is pleased to provide new exploration and drilling results from the Cerro la Mina gold, copper, molybdenum project located on its 100% owned Ixhuatan property in Chiapas, Mexico.

Final results from two recently completed drill holes continue to expand the porphyry related mineralization at Cerro la Mina. Holes IXCM07-25 and IXCM07-26 intersected long intervals of gold, copper, and molybdenum mineralization in new areas to the northwest and southeast of previously drilled areas. These holes also demonstrate the deposit remains open at depth.

Highlights from recent work at Cerro la Mina include:

- Final assay results from the deeper levels of hole IXCM07-25 have identified additional zones of mineralization including 108 metres from 470 to 578 metres depth that grade 0.54 grams per tonne gold, 0.28% copper, and 0.02% molybdenite. The combined gold and copper content, from the 108 metre interval, yield a gold equivalent of 1.1 grams per tonne (AuEq(2)) or a 0.55% copper equivalent (CuEq(2)). A previously reported 52 metre interval, from 226 to 278 metres depth, graded 0.73 grams per tonne gold, 0.62% copper, and 0.03% molybdenite (2.0 grams per tonne AuEq or 0.98% CuEq).

- Hole IXCM07-26 expands the known mineralization by nearly 140 metres to the northwest. This hole intersected 184 metres from 412 to 596 metres depth grading 0.77 grams per tonne gold and 0.17% copper. The combined gold and copper content, from the 184 metre interval, yield a gold equivalent of 1.1 grams per tonne (AuEq(2)) or a 0.55% copper equivalent (CuEq(2)).



Table of Assay Results from Drilling at Cerro la Mina

Inter- Moly- AuEq
cept Gold bde- (2)
From To (3) (grams nite (grams CuEq
(met- (met- (met- per Copper (MoS2- per (2)
Hole ID res) res) res) tonne) (%) (1)%) tonne) (%) Comment

IXCM07-25 226 278 52 0.73 0.62 0.03 2.0 0.98 Previously
Reported
IXCM07-25 288 310 22 0.45 0.20 0.06 0.8 0.42 sulfide
IXCM07-25 470 578 108 0.54 0.28 0.02 1.1 0.55 sulfide
including 470 520 50 0.72 0.32 0.02 1.4 0.68 sulfide

IXCM07-26 304 352 48 0.48 0.18 0.02 0.8 0.42 sulfide
IXCM07-26 412 596 184 0.77 0.17 0.01 1.1 0.55 sulfide
including 444 456 12 1.66 0.50 0.02 2.7 1.33 sulfide
including 556 582 26 2.28 0.26 0.00 2.8 1.39 sulfide

1. Molybdenite (MoS2%) equals Mo% x 1.6681.
2. Gold and copper equivalents are calculated using metal prices of
US$425/oz for gold and US$1.25/lb for copper. AuEq gpt equals Au gpt +
(Cu % x 27.56/13.66). CuEq % equals Cu % + (Au g/t x 13.66/27.56). Gold
and copper equivalents have not been adjusted for metallurgical
recoveries. MoS2 is not used in the calculation of gold and copper
equivalents.
3. Note: the true thicknesses of the intersections have not yet been
determined; intervals in table are based on core lengths.


Drilling increases tonnage for the Gold, Copper, and Molybdenum porphyry deposit at Cerro la Mina

Holes IXCM07-25 and IXCM07-26 have intersected significant gold, copper, and molybdenum mineralization that substantially increases the known tonnage of the porphyry deposit.

Results for the final 523 metres of hole IXCM07-25, from 296 to 819 metres depth, have been received. This hole was drilled to extend mineralization to the southeast side of the Cerro la Mina drilling pattern. A previously reported 52 metre interval, from hole IXCM07-25, graded 0.73 grams per tonne gold, 0.62% copper, and 0.03% molybdenite (2.0 grams per tonne AuEq or 0.98% CuEq) from 226 to 278 metres depth. From 470 to 578 metres depth, the hole cut a 108 metre interval grading 0.54 grams per tonne gold, 0.28% copper, and 0.02% molybdenite (1.1 grams per tonne AuEq or 0.55% CuEq). This intersection includes a 50 metre zone grading 0.72 grams per tonne gold, 0.32% copper, and 0.02% molybdenite. Higher in the hole from 288 to 310 metres depth, a 22 metre interval averaged 0.45 grams per tonne gold, 0.2% copper, and 0.06% molybdenite.

Hole IXCM07-26 was collared 300 metres to the northwest of hole IXCM07-09, and was drilled with an azimuth of 55 degrees and an inclination of -65 degrees. This hole successfully offset the gold, copper, and molybdenum mineralization cut by hole IXCM07-24 to the northwest and north by 80 to 150 metres. Important mineralization cut by this hole includes a 184 metre interval from 412 to 596 metres depth that grades 0.77 grams per tonne gold and 0.17% copper, and 0.01% molybdenite (1.1 grams per tonne AuEq 0.55% CuEq). This intersection includes higher grade intervals including 12 metres containing 1.66 grams per tonne gold, 0.5% copper, and 0.02% molybdenite, and a second 26 metre interval grading 2.28 grams per tonne gold and 0.26% copper. A second 48 metre interval cut higher in the hole from 304 to 352 metres depth grades 0.48 grams per tonne gold, 0.18% copper, and 0.02% molybdenite.

Maps of all hole locations can be reviewed at www.lineargoldcorp.com.

The precious and base metal mineralization at Cerro la Mina remains open in several directions and at depth. Two additional holes have been completed to offset mineralization to the northwest and the southeast, and a third hole was completed to offset mineralization in hole IXCM06-08 (3.3 grams per tonne gold over 9.4 metres) and hole IXCM07-21 (40.3 grams per tonne gold over 8 metres). Final results are pending for these holes.

Ongoing Exploration at Cerro la Mina

A new phase of drilling commenced this week to explore for additional gold oxide resources at Cerro la Mina. Extensive road construction, rock channel sampling, and geologic evaluation over the porphyry deposit has identified at least three potential areas for expansion of the known oxide gold mineralization. These areas will be tested by a 1200 metre drilling program that will consist of 10 shallow holes, and two drill rigs will be dedicated to this program.

Following the completion of the oxide gold exploration program, Linear Gold intends to begin work on a 43-101 compliant resource calculation for the Cerro la Mina gold, copper, and molybdenum deposit. The oxide gold deposit defined by the new drilling phase will add to an already extensive zone of sulfide mineralization.

This press release has been prepared under the supervision of Mr. David Rowe, Certified Professional Geologist and Linear's Vice President of Exploration, who serves as the qualified person for this project under National Instrument 43-101. All samples were submitted to ALS-Chemex Labs in Guadalajara, Mexico with gold analysed by 50g 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 metals in Mexico, and through a joint venture 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.

Regarding the use of gold and copper equivalents (AuEq and CuEq):

Gold and Copper equivalency or "AuEq" and "CuEq" is a method of expressing poly-metallic deposits by the grade of the primary mineralization in value. As used here, gold and copper have been stated as part of the copper and gold equivalent grades. AuEq and CuEq as used here are based on assumed metal prices of US$425/oz for gold and US$1.25/lb for copper. MoS2 has not been included in the equivalent calculation. Gold and copper equivalents have not been adjusted for metallurgical recoveries, and adjustments in the relative value of these metals can significantly change the AuEq and the CuEq. AuEq and CuEq are provided for descriptive purposes only.

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
    (902) 422-1421 or Toll Free: 1-866-546-3272
    (902) 491-4281 (FAX)
    Website: www.lineargoldcorp.com