Linear Gold Corp.
TSX : LRR

Linear Gold Corp.

October 18, 2006 09:38 ET

Linear Gold Receives Positive Results From Drilling of the Cerro La Mina Zone, Ixhuatan Project, Mexico

HALIFAX, NOVA SCOTIA--(CCNMatthews - Oct. 18, 2006) - Linear Gold Corp. (TSX:LRR) is pleased to announce that it has cut significant gold, copper, and molybdenum mineralization from drilling at its 100% owned Ixhuatan project in Chiapas, Mexico. The new results are from two recently completed holes drilled at the Cerro la Mina zone, located 1400 metres northeast of the Campamento gold deposit, within the same mineral concession. Highlights from the drilling are as follows:

- Hole IXCM06-06 cut 117.9 metres grading 1.6 grams per tonne gold, 0.45% copper, and 0.18% molybdenite (MoS2) from 8 metres depth including:

- 44.0 metres in oxides grading 1.9 grams per tonne gold and 0.17% molybdenite (MoS2) from 8.0 metres depth.

- 73.9 metres in sulfides grading 1.4 grams per tonne gold, 0.69% copper, and 0.18% molybdenite (MoS2) from 52 metres depth, bottoming in mineralization.

- Hole IXCM06-05 cut 52 metres in oxides grading 0.8 grams per tonne gold from 14 metres depth including:

- 26.0 metres grading 1.0 grams per tonne gold from 20.0 metres depth

- Hole IXCM06-05 also cut an additional 52.5 metres in sulfides grading 1.2 grams per tonne gold, 0.82% copper, and 0.10% molybdenite (MoS2) from 78.0 metres depth and bottoming in mineralization. Within this interval, 38.5 metres contain 1.4 grams per tonne gold and 1.08% copper from 92 metres depth.

The results from drilling are summarized below:



------------------------------------------------------------------------
Gold Silver
Interval (Grams (Grams
Drill (Metres) per per Copper MoS2
Hole From To (i) tonne) tonne) % % Comment
------------------------------------------------------------------------
IXCM06-05 14 66.0 52.0 0.8 5.1 0.02 0.05 Oxide
------------------------------------------------------------------------
Including 16 42.0 26.0 1.0 7.5 0.01 0.06 Oxide
------------------------------------------------------------------------
Including 52 56.0 4.0 1.0 1.4 0.03 0.09 Oxide
------------------------------------------------------------------------
IXCM06-05 78 130.5 52.5 1.2 19.0 0.82 0.10 Sulfide
------------------------------------------------------------------------
Including 92 130.5 38.5 1.4 19.5 1.08 0.10 Sulfide
------------------------------------------------------------------------
------------------------------------------------------------------------
IXCM06-06 8 125.9 117.9 1.6 7.9 0.45 0.18 Oxide+
Sulfide
------------------------------------------------------------------------
Including 8 52.0 44.0 1.9 6.71 0.05 0.17 Oxide
------------------------------------------------------------------------
Including 52 125.9 73.9 1.4 8.7 0.69 0.18 Sulfide
------------------------------------------------------------------------
Including 70 90.0 20.0 1.7 7.8 0.96 0.21 Sulfide
------------------------------------------------------------------------
(i) Note: the true thicknesses of the intersections have not yet been
determined; intervals in table are based on core lengths.


A drill hole map illustrating the drill holes discussed in this press release is available on Linear's website at http://www.lineargoldcorp.com.

Cerro La Mina Zone

Cerro la Mina is a prominent hill on the Ixhuatan property located approximately 1400 metres northeast of the Campamento Gold Resource. The Cerro La Mina zone is outlined by a broad gold in soil anomaly that is approximately 750 metres in length by 450 metres in width, and is located on the western flank of the hill facing towards Campamento. The area is marked by silicification with local vuggy silica and strong clay alteration that locally includes dickite and alunite. Preliminary interpretation of these characteristics suggests that mineralization at Cerro la Mina may have developed within a system of high-sulfidation acid leaching.

Previous drilling completed and reported in July of 2005 includes a 72 metre intercept from hole IXCM05-02 that contains 0.92 grams per tonne gold in oxides starting from the surface. Higher grade oxide intervals reported from this intercept include 32 metres grading 1.0 grams per tonne gold from 0 to 32 metres and 26 metres grading 1.2 grams per tonne gold from 46 to 72 metres.

Hole IXCM06-05 was drilled 40 metres southeast of Hole IXCM05-02 at an azimuth of 220 degrees and an inclination of -55 degrees. The hole cut 52 metres of disseminated gold mineralization hosted in oxides from 14 to 66 metres grading 0.8 grams per tonne gold. Within this zone are two higher grade zones including 16 to 42 metres containing 26 metres of 1.0 grams per tonne gold and from 52 to 56 metres containing four metres grading 1.0 grams per tonne gold. The oxide zone is marked by low copper content presumably due to mobility during supergene leaching. Deeper in the hole below the base of oxidation, a 52.5 metre zone of strong gold mineralization with associated copper and molybdenum was identified from 78 to 130.5 metres and contains 1.2 grams per tonne gold, 0.82 % copper, and 0.10% molybdenite (MoS2). Within this 52.5 metre interval, a 38.5 metre interval contains 1.4 grams per tonne gold and 1.08 % copper. The hole bottomed in mineralization at 130.5 metres.

Hole IXCM06-06 was drilled 70 metres SSW of Hole IXCM05-02 at an azimuth of 180 degrees and an inclination of -60 degrees. This hole cut 117.9 metres of strong precious and base metal mineralization grading 1.6 grams per tonne gold, 0.45% copper, and 0.18% molybdenite (MoS2). The gold mineralization intersected by this hole is very uniform in nature with the highest gold value contained within this 117.9 metre interval grading 3.9 grams per tonne. Significant gold mineralization hosted in a 44 metre oxide interval was cut from 8 to 52 metres and grades 1.9 grams per tonne gold and 0.17% molybdenite (MoS2). Similar to hole IXCM06-05, the zone of oxide gold mineralization is marked by low copper content due to leaching. Immediately below the oxide interval, the hole intersected 73.9 metres of strong gold mineralization with associated copper and molybdenum. This 73.9 metre interval from 52 to 125.9 metres grades 1.4 grams per tonne gold, 0.69% copper, and 0.18% molybdenite (MoS2). The hole bottomed in mineralization at 125.9 metres.

Additional drilling is underway in the Cerro La Mina zone to offset the near surface oxide gold mineralization while also targeting the deeper sulfide zones of gold, copper, and molybdenum mineralization within the area. The short term goal is both to locate oxide gold tonnage which could serve as a complement to the oxide gold resource identified in the Campamento gold deposit as well as test for continuity and size of the deeper sulphide gold-copper-molybdenum zone. At this time, the potential for oxide gold mineralization around these two recent holes is open in four directions, and the associated sulfide zone of gold, copper, and molybdenum mineralization remains open laterally and at depth. The geometry of the mineralized zones is not yet known at this early stage in the exploration at Cerro la Mina.

Phil Pyle, Linear's Vice President of Exploration states: "We are pleased with the additional near surface oxide gold mineralization at Cerro La Mina which we believe could add significant value to proposed early stage production from the nearby Campamento gold resource. We are also pleased with the recognition of the strong disseminated sulfide mineralization below the oxide zones which warrants additional deeper exploration in the area. The combined precious and base metal content from hole IXCM06-06 compares favorably with some of the higher value drilling intercepts on the property to date".

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. A map of the project showing the location of all drill holes is available at the company's website www.lineargoldcorp.com.

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 that 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

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

Contact Information

  • Linear Gold Corp.
    Terry Christopher
    Manager Investor Relations
    (902) 422-1421
    (902) 491-4281 (FAX)
    Website: www.lineargoldcorp.com
    or
    Fuller Fletcher & Associates Ltd
    Nick Fuller or Samantha Fletcher
    European Investor Relations
    +44 207 256 5204
    +44 207 256 5678 (FAX)