Linear Gold Corp.

Linear Gold Corp.

January 27, 2010 14:28 ET

Linear Gold Commences Drilling at Goldfields Project

HALIFAX, NOVA SCOTIA--(Marketwire - Jan. 27, 2010) - Linear Gold Corp. (TSX:LRR) ("Linear") is pleased to announce that drilling has commenced at its Goldfields Mine Development Project, host to Linear's 100% owned Box and Athona Gold Deposits. The Goldfields Project includes over 25,000 hectares of contiguous property holdings located within a prolific gold-bearing region of Saskatchewan, Canada. The Box and Athona Gold Deposits are being developed as open pit operations with combined Proven and Probable gold reserves of 1,030,400 ounces.

Linear's planned 2010 drill program will focus on the following objectives:

  • Drilling will test for additional gold mineralization below the bottom of the proposed Box Mine open-pit. The planned 3000 metre Box Deposit drill program will consist of between 10 to 15 drill holes, initially focusing on areas where potential ore-grade results have been returned from limited drilling completed and reported by GLR Resources Inc. during 2007, including:
    • Hole B07-292, which returned 2.13 grams per tonne of gold over an estimated true width of 47.81 metres, including 8.35 grams per tonne of gold over 8.60 metres; and
    • Hole B07-294, which returned 6.32 grams per tonne of gold over an estimated true width of 16.72 metres, including 11.47 grams per tonne of gold over 8.80 metres.

Following the completion of the initial 3000 metre drill program and the return of positive results, a follow-up infill drill program will be designed to incorporate the additional mineralization in to an updated Box Deposit gold resource estimate.

  • Drilling will follow-up and test geophysical anomalies identified within a planned 840 hectare sector of the Goldfields Project which will be surveyed by the advanced Titan 24 geophysical system. The Induced Polarization (IP) and Resistivity (DCIP) survey, which will be completed in February 2010, has been designed to identify anomalies with the potential to host mineralized systems near the Box and Athona Gold Deposits including the two kilometre area between the deposits. The Titan geophysical system is designed to acquire high-resolution results to depths of approximately 700 metres, depths that are unachievable with conventional geophysics or airborne geophysics. Through processing, inversion and interpretation of results, information can be obtained on conductive mineralization, disseminated mineralization, alteration, structure and geology resulting in highly prospective drill targets.
  • Drilling will be completed to test the following highly prospective targets:
    • The down-dip and along strike gold mineralization outside of the proposed design of the Athona Deposit open-pit; and
    •  historic gold occurrences on the property including:
      • The Golden Pond occurrence, located approximately three kilometres northeast of the Box Deposit, where GLR Resources intersected 5.07 grams per tonne over 15 metres and 16.57 grams per tonne over 13.6 metres.

Howard Bird, Linear's Vice President of Exploration, stated: "I am pleased that the Goldfield's 2010 exploration program has commenced and look forward to the drill results which are expected to add additional ounces to the gold resource at the Box Deposit. Furthermore, the interpretation of three-dimensional model results from the IP geophysical program is expected to identify exciting target anomalies where drill testing may result in the discovery of large-scale bulk-tonnage gold occurrences similar to the Box and Athona Deposits, and/or high-grade gold vein occurrences. Exciting upside potential also exists in the Athona Deposit exploration drill program, as well as the testing of historic gold occurrences."

The Goldfields project area hosts a wide variety of mineralization and historical underground development, including the Box Mine, which produced as an underground gold mining operation from 1939 to 1942. Twelve additional gold occurrences have been documented on the property. All of the known gold deposits and occurrences are exposed at surface, most of which were discovered through surface prospecting during the 1930's. The Box and the Athona Deposits, the two known deposits on the property, are located two kilometres apart and will utilize a central processing mill facility. The Box and Athona Deposits are both large multi-million tonne open pit deposits, located on the western flank and near the nose of the Goldfields syncline. Both deposits have potential for increased open pit gold resources and there is good potential for higher grade gold mineralization, which may be suitable for underground mining methods below the proposed open pits.

The Goldfields project area is located 25 kilometres from Uranium City, Saskatchewan, and is serviced by excellent local infrastructure, including an airport, hydro-electric power, telecommunications, a good road system, a field office, a core shack and living quarters with kitchen facilities for the exploration team.

Michael Sylvestre, P.Eng., COO of Linear and a qualified person under National Instrument 43-101, has approved the technical information and has read this press release.

Cautionary Note Regarding Forward-Looking Information - This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the future financial or operating performance of Linear and the Goldfields Project, statements regarding exploration prospects, statements regarding synergies and financial impact of the proposed transaction, the terms and conditions of the transaction, the benefits of the proposed transaction, the identification of mineral reserves and resources, costs of and capital for exploration and development projects, exploration and development expenditures, timing of future exploration and development activities, expected production, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is based on various assumptions and on the best estimates of Linear, as the case may be, as of the date hereof, and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company (and the company resulting from the successful completion of the proposed transaction) to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; delay or failure to receive board or regulatory approvals; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of mineral prices; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; and, delays in obtaining governmental approvals or required financing or in the completion of activities, and as well as those risks identified under "Risk Factors" disclosure sections in the documents filed under the profile of SEDAR by Linear from time to time. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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

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