Linear Metals Corporation
TSX : LRM

Linear Metals Corporation

May 13, 2008 09:03 ET

Linear Metals Announces New Discovery at Cobre Grande Copper-Molybdenum Silver Project

TORONTO, ONTARIO--(Marketwire - May 13, 2008) - Linear Metals Corporation (TSX:LRM) is pleased to report a new discovery on the Northwest Skarn target, located 600 metres west of the Main Zone, at its Cobre Grande Project, in Oaxaca, Mexico. The recently announced 49.8 million tonne resource estimate from the Cobre Grande Project did not include any mineralization from the Northwest Skarn, which now represents a priority target for significant expansion of the Cobre Grande Project's initial resource. The second hole, in this previously undrilled target, has produced the following discovery intercept and highlights the excellent exploration potential remaining to be tested at Cobre Grande:

- CG-68: 228 metres of 0.91% copper equivalent starting at 29 metres.

Linear is also pleased to announce that it has received assays from the bottom of hole CG-60 which include:

- CG-60: 72 metres of 0.073% molybdenum

Added to the previously reported intercept of the hole the new assays document the longest molybdenum-rich intercept to date on the property of 332 metres of 0.058% molybdenum starting at 4 metres depth.

Details of the drill-hole CG-68 discovery intercept are provided in the table below. A drill hole location map is available on the Company's website at www.linearmetals.com.



Discovery Hole at Northwest Skarn
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Inter- Molyb- Silver Copper-
From To val Copper Zinc denum Grams/ equivalent
HOLE-ID (metres) (metres) (metres) % % % Tonne %
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CG-68 29.00 257.00 228.00 0.62 0.07 0.034 10.0 0.91(1)
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Incl. 29.00 167.55 138.55 0.62 0.04 0.016 10.3 0.79(2)
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and 167.55 200.15 32.60 0.85 0.24 0.039 12.4 1.09(4)
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and 200.15 228.80 28.65 0.87 0.09 0.042 10.0 1.20(2)
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and 228.80 257.00 28.20 0.15 0.03 0.113 6.3 1.00(3)
--------------------------------------------------------------------------
Notes: Intervals in the table are based on core lengths and do not
represent true widths of the zone, see text for comments on true widths.
Copper equivalent calculations were calculated based on estimated NSR's
with copper at $2.50 per pound, molybdenum at $20.00 per pound, and silver
at $13.50 per ounce. The copper equivalent calculations also take into
account assumptions regarding concentrate properties, smelter charges, and
payable percentages as well as metallurgical recoveries (zinc will not be
recovered in any of the mineralization types encountered in this hole)
which vary between sub-zones, resulting in different copper equivalent
formulas for each zone as follows:
1. Composite weighted average copper equivalent from intervals below.
2. Copper sulphide skarn copper equivalent equals Cu%+Mo%($233.01/$39.25)
+ Ag g/t($0.31/$39.25);
3. Molybdenum sulphide stockwork equals Mo%($349.65 /$39.25); Pending
further metallurgical testing, copper and silver are assumed non-
recoverable in the Molybdenum Stockwork sub-zone.
4. Partially oxidized copper and molybdenum zones copper equivalent
equals Cu%+Mo%($150.98/$37.84) + Ag g/t($0.27/$37.84).


Hole CG-68 is one of the longest continuously mineralized intercepts to date at Cobre Grande. This hole, a -70 degrees east directed angle hole, started in an oxide zone of mineralized garnet skarn and entered the sulphide zone beginning at 29 metres. It then continued through increasingly altered and quartz veined skarn until passing through a major fault at 257 metres and into weakly altered footwall rocks. This intercept appears to be in a skarn that is, in terms of sulphide mineralogy and skarn alteration, similar to the copper bearing skarn of the Main Zone, 600 metres to the east. Based on this interpretation, hole CG-68 may have drilled down-dip a steeply east dipping body with a true thickness, by analogy to the Main Zone, of approximately 20 to 100 metres. Additional drilling will be required to better understand the orientation of the geology in this new discovery zone and confirm the true thickness.



Hole CG-65 Results
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Inter- Molyb- Silver Copper-
From To val Copper Zinc denum Grams/ equivalent
HOLE-ID (metres) (metres) (metres) % % % Tonne %
--------------------------------------------------------------------------
CG-65 407.45 407.90 0.45 12.50 0.22 0.011 865.0 19.40(2)
--------------------------------------------------------------------------
and 419.00 471.00 51.00 0.01 0.00 0.052 1.2 0.46(3)
--------------------------------------------------------------------------
Notes: Intervals in the table are based on core lengths and do not
represent true widths of the zone, see text for comments on true widths.
The copper equivalent values are based on the same notes as given for the
first table.


Hole CG-65 was drilled at -70 degrees to the west, from the same setup as hole CG-68, and starting from surface, cut the longest continuously stockwork veined and altered section of porphyry seen to date at Cobre Grande. At 526 metres, hole CG-65 passed through a major fault exiting the zone of intense alteration and terminating in weakly altered sediments. While the majority of assays in this hole are relatively low grade, the 526 metre section above the fault averages a strongly anomalous 0.023% molybdenum. In addition, the hole intersected a high grade copper-silver vein that returned 12.5% copper and 865.0 grams per tonne of silver over 0.45 metres and a deep molybdenum bearing stockwork that returned 51 metres of 0.052% molybdenum. Despite the relatively low overall grade of CG-65, the results are interpreted to be very significant with respect to the potential of this new discovery.

These results include a 350 metre long column of intensely stockworked porphyry diking which is interpreted as the "core" to the Cobre Grande system, and from which mineralization should have developed to both the east and west from the north-south elongate intrusive centre. Under this model, the eastern flank skarn appears to have been found with hole CG-68, but the modeled west side skarn remains to be explored.

Equally important, the post mineral fault, cut at 526 metres in Hole CG65, appears to be the same fault as cut at 257 metres in hole CG-68 and projects up the mountain to the top of the Main Zone. The entire altered and mineralized body, cut by these two new holes, appears to have been down-faulted off the top of the Main Zone. Under this model, the skarn in hole CG-68 was once the upward continuation of the copper skarn of the Main Zone and the combined column height, if reconstructed, approached 500 metres. Excellent potential exists for similar mineralization to exist on the western flank of the stockworked molybdenum porphyry which has seen no exploration to date.

Robert Page, Linear's V.P. Exploration, states, "prior to this new discovery in the Northwest Skarn, the best potential for expansion of the Main Zone appeared to be along strike, to the north of the mineralized zone. Now, with this new discovery in the Northwest Skarn, we have a second area with excellent potential for expansion of the resource at Cobre Grande. Furthermore, the strength of the alteration associated with the molybdenum bearing porphyries, identified throughout hole CG-65, point to the significant potential for a mirror image of mineralization on the west side of the porphyry. Given the results of this initial drilling in the Northwest Skarn, we are confident in our ability to expand the already significant 49.8 million tonne resource at Cobre Grande."

Hole CG-60 returns the longest molybdenum intercept to date at Cobre Grande

Linear previously released the top 264 metres of hole CG-60, a west directed angle hole across the northern part of the Main Zone. The 260 metre intercept starting at 4 metres averaged 0.054% molybdenum. Recently received results, from the bottom of the hole, have resulted in an increase in the length of the total intercept by 72 metres of 0.073% molybdenum bringing the total intercept to 332 metres of 0.058% molybdenum. This is the longest molybdenum-rich intercept to date at Cobre Grande and points to the expanding molybdenum potential on the project as more drilling is completed.

The Quality Control program at Cobre Grande is supervised by Linear Metals' Senior Resource Geologist, Geoff Chinn, P.Geo., who is a Qualified Person as defined under National Instrument 43-101. Drill core is sawn in half on site and samples collected over one to three metre intervals based on geology. Prior to shipping sealed sample bags are stored in a locked facility on site at the project. Samples are shipped via air to the ALS Chemex sample preparation facility in Guadalajara, Mexico. The Guadalajara prep facility then sends pulps to the ALS Chemex Vancouver, B.C. laboratory - ISO 9001-2000 registered. All samples are assayed for silver, copper, zinc, lead, and molybdenum using four acid digestion and ICP-AES analysis. In addition, samples from oxide zones are further analyzed for copper and zinc solubility. For copper, there is sequential analysis first with sulfuric acid leach and sequentially for cyanide leach. For zinc there is a single solubility analysis using acetic acid. The project uses a protocol that includes blanks, standards, and duplicates which make up 12% of each sample shipment.

This press release was prepared under the supervision of Linear Metals' Vice President of Exploration, Dr. Robert Page, P. Geo., who is a Qualified Person as defined under National Instrument 43-101. Dr. Page has reviewed the scientific and technical information in this press release.

For further details on Linear Metals Corporation and its Cobre Grande Project, please visit the Company's website at www.linearmetals.com.

Robert Page, Vice-President Exploration

Forward-Looking Information:

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, continuity of mineralization, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes that the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. The likelihood of future mining at Cobre Grande is subject to a large number of risks and will require achievement of a number of technical, economic and legal objectives, including obtaining necessary mining and construction permits, completion of pre-feasibility and final feasibility studies, preparation of all necessary engineering for pits and processing facilities as well as receipt of significant additional financing to fund these objectives, as well as funding mine construction. Such funding may not be available to the Company on acceptable terms or on any terms at all. There is no known ore at Cobre Grande and there is no assurance that the mineralization at Cobre Grande will ever be classified as ore. For more information on the Company and the risk factors inherent in its business, investors should review the Company's Annual Information Form at www.sedar.com.

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

Contact Information

  • Linear Metals Corporation
    Investor Relations
    (416) 216-4708 or North America Toll Free: 1-866-376-7683
    Website: www.linearmetals.com