Linear Gold Corp.

Linear Gold Corp.

December 03, 2007 11:23 ET

Linear Gold Initiates Drilling of the Yolanda Project, Mexico

HALIFAX, NOVA SCOTIA--(Marketwire - Dec. 3, 2007) - Linear Gold Corp. (TSX:LRR) is pleased to announce that drilling has commenced at the company's Yolanda property in southeast Oaxaca State, Mexico.

The drilling program at the Yolanda property will test zones of gold, silver, and molybdenum mineralization that were originally identified through soil and rock sampling. Soil geochemistry has outlined a zone of gold and silver mineralization that is hosted by three isolated hills consisting of rhyolite composition flow domes surrounded by younger sedimentary overburden. Gold and silver soil values located on the three hills define an east-west trending anomaly greater than two kilometres in length with soil values ranging up to 0.5 grams per tonne gold and 4000 grams per tonne silver. Rock chip sampling of banded epithermal quartz veins and quartz stockwork exposed on the central hill has produced high-grade values ranging up to 22.2 grams per tonne gold and 1465 grams per tonne silver. The initial five to six hole drilling program will target the central hill at Yolanda.

Linear's Yolanda property consists of three concessions: the 100% owned Yolanda concession and two additional mining concessions which are subject to a purchase option agreement recently completed by the Company. Pursuant to the purchase option agreement, the Company made an initial payment of US$40,000 and will be required to make additional payments of US$40,000 and US$50,000 in November 2008 and 2009, respectively, in order to maintain the option. Linear can exercise its option to acquire a 100% interest in the two concessions by paying US$2.0 million at any time prior to November 2010. Together, the concessions cover an area of 4700 hectares.

This press release has been prepared under the supervision of Mr. David Rowe, Certified Professional Geologist, 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 analyzed by 50g charge digestion Fire Assay - AA finish with samples greater than 10 grams per tonne analyzed by Fire Assay - gravimetric finish. Other metals were analyzed by aqua regia digestion with ICP finish.

Linear Gold Corp. is actively exploring for gold and base metal deposits in Mexico and Brazil, and also through joint ventures with Kinross Gold in Mexico and Everton Resources 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.

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 & Chief Executive Officer
    (902) 422-1421