Linear Metals Corporation
TSX VENTURE : LRM

Linear Metals Corporation

November 08, 2006 09:19 ET

Linear Metals Commences Drilling at the Cobre Grande Project

HALIFAX, NOVA SCOTIA--(CCNMatthews - Nov. 8, 2006) - Linear Metals Corporation (TSX VENTURE:LRM) is pleased to announce that it has commenced a diamond drilling program on the Cobre Grande project in the state of Oaxaca, Mexico. The drilling program calls for a minimum of three holes to test for offsets of mineralization identified during previous drilling by Linear Gold Mexico.

Drilling will explore for extensions to the mineralized zones in both the northern and southern portions of the project. In the northern zone, one hole is planned to offset hole CG-1 by 60 metres to the north. Hole CG-1 encountered a zone of mineralization over an apparent thickness of 134 metres containing 0.9% copper and 21.6 grams per tonne silver.

In the southern portion of the system, a hole is planned 60 metres to the east of hole CG-24 to be drilled in a parallel orientation. Hole CG-24 encountered a zone of mineralization over an apparent thickness of 148 metres containing 0.9% copper and 19.1 grams per tonne silver.

Also in the southern portion of the system, a hole is planned 70 metres to the west of hole CG-22. The Hole CG-22 encountered a zone of mineralization over an apparent thickness of 66 metres containing 0.6% copper and 23.0 grams per tonne silver.

The Cobre Grande system contains a large-scale zoned base metal skarn system with strong affinities to porphyry style mineralization. Mineralization is associated with a complex granodiorite intrusion of probable early Tertiary age emplaced into a Cretaceous aged limestone package. Drilling indicates zoning with more molybdenum rich zones to the west, and more zinc rich zones to the east of a central copper zone, which is shown to be pervasive at depth.

Linear Metals holds an option, from Linear Gold, to acquire an 80% interest in the Cobre Grande Property, comprised of four contiguous exploration concessions covering an area of 6,238 hectares, subject to making annual payments of US$90,000 during March of 2007 to 2009 and incurring additional expenditures of approximately US$900,000 by March 2009. The payments are required to be made to the Community of San Baltazar Guelavila (the "Community"), the underlying owner of the concessions. If the option to purchase the Cobre Grande Property, held by Linear Metals (80%) and Linear Gold (20%), is exercised in March 2009, the Community can choose among a US$12 million buyout, a 2% Net Smelter Return Royalty, or a 15% carried joint venture interest in any future mining projects from the concession. Linear Metals can also directly acquire Linear Gold's 20% purchase option in the property by paying Linear Gold US$1.2 million at any time prior to March 2009.

Sample analyses were completed by ALS Chemex Laboratory of Vancouver B.C. Samples were assayed for gold by 30g digestion Fire Assay - AA finish and other metals by ICP.

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.linearmetals.com.

Linear Metals Corporation is actively exploring for silver and base metals in Mexico, and through joint venture in Canada.

Wade K. Dawe, President

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

Contact Information

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