Linear Metals Corporation
TSX : LRM

Linear Metals Corporation

July 02, 2008 09:28 ET

Linear Metals Continues to Intersect Long Intervals of Molybdenum-Copper-Silver Mineralization at the KM61 Project, Ontario Canada

TORONTO, ONTARIO--(Marketwire - July 2, 2008) - Linear Metals Corporation (TSX:LRM) is pleased to announce assays expanding the scale of its KM61 discovery through expansion of the Main Zone at depth and along strike to the northeast with mineralization now confirmed over a strike length of 1.5 kilometres.

Highlights from the most recent drill results in the Main Zone include:

- K-08-48: 170.5 metres(i)(1) of 0.061% molybdenum, 0.09% copper, 2.0 grams per tonne silver;

- K-08-50: 110.1 metres(i)(1) of 0.069% molybdenum, 0.07% copper, 2.0 grams per tonne silver;

- K-08-54: 90.5 metres of 0.078% molybdenum, 0.05% copper, 1.5 grams per tonne silver;

- K-08-65: 91.7 metres(i)(1) of 0.069% molybdenum, 0.07% copper, 2.0 grams per tonne silver; and

- K-08-66: 206.3 metres(i)(2) of 0.079% molybdenum, 0.10% copper, 4.1 grams per tonne silver.

Notes: (i)(1): reported as Cumulative Thickness or "CT", see Note 3 in table below for explanation; (i)(2): 15.35 metres of hole previously reported and with values greater than 0.50% molybdenum cut to 0.5%.

At a cut-off of 0.04% molybdenum, the combined mineralized zones (Main and Southwest) now extend over 1,600 metres and are up to 350 metres wide, flanked by zones of lower grade mineralization (0.01 to 0.04% molybdenum) particularly along the north margin, extending the full width of mineralization to as much as 500 metres. Within the 1,600 metres, there is a 100 metre section, between the Main and Southwest Zones, where mineralization has yet to be confirmed. The deposit remains open along strike to the north-east and at depth, with many holes bottoming in mineralization. Mineralization has been confirmed from surface to a depth of approximately 300 metres and a series of three deep holes are planned to test the Main Zone of the deposit to a depth of approximately 600 metres.

Linear is nearing completion of a 25,000 metre delineation drill program with results provided herein from the next 23 diamond drill holes (K-08-47 to K-08-61, K-08-63 to K-08-69), representing approximately 8,551 metres of this Phase II drill program, initiated in December 2007, at its 100%-owned KM61 project. The results from approximately 13,700 metres through 39 drill holes have now been reported from this program.

Composite assay results for intervals of greater than 0.04% molybdenum are detailed in the tables below. Please refer to Linear Metals' website for prior drill results and a drill hole location map.



Table 1. Main Zone - North Flank and Northeast Extension Results

---------------------------------------------------------------------------
Molyb- Silver
denum Copper grams/
DDH# From To metres % % tonne Comments
---------------------------------------------------------------------------
K08-48 277.50 304.00 26.50 0.053 0.08 2.2 includes dilution
from 6.35 m of
dykes, 9.62 g/t Ag
and 0.32% Cu over
4.8 m
---------------------------------------------------------------------------
311.75 375.70 63.95 0.073 0.06 1.8 abundant 0.X% Mo
(see included
interval below)
---------------------------------------------------------------------------
Including 349.65 375.70 26.05 0.112 0.09 2.3
---------------------------------------------------------------------------
406.05 486.10 80.05 0.054 0.11 2.1 includes dilution
from 8.18 m
of dykes
---------------------------------------------------------------------------
Including 420.50 455.25 34.75 0.077 0.14 2.5
---------------------------------------------------------------------------
CT 277.50 486.10 170.5 0.061 0.09 2.0
---------------------------------------------------------------------------
K08-50 258.00 340.14 82.14 0.060 0.07 2.2 includes dilution
from 4.5 m of
dykes, uncut
equals 0.067% Mo
---------------------------------------------------------------------------
Including 289.50 316.50 27.00 0.098 0.07 2.6
---------------------------------------------------------------------------
and 334.50 340.14 5.64 0.132 0.04 1.2
---------------------------------------------------------------------------
369.00 397.00 28.00 0.096 0.06 1.5
---------------------------------------------------------------------------
Including 373.50 385.50 12.00 0.178 0.10 2.5
---------------------------------------------------------------------------
CT 258.00 397.00 110.14 0.069 0.07 2.0
---------------------------------------------------------------------------
K08-52 241.85 387.17 145.32 0.049 0.06 1.8
---------------------------------------------------------------------------
Including 256.50 284.50 28.00 0.071 0.08 3.0
---------------------------------------------------------------------------
and 304.00 325.00 21.00 0.089 0.08 3.0
---------------------------------------------------------------------------
K08-54 173.50 264.00 90.50 0.078 0.05 1.5 uncut equals
0.080% Mo
---------------------------------------------------------------------------
Including 173.50 211.00 37.50 0.148 0.07 2.1 uncut equals
0.154% Mo
---------------------------------------------------------------------------
K08-56 148.50 171.82 23.32 0.046 0.04 1.4
---------------------------------------------------------------------------
including 158.50 170.50 12.00 0.060 0.04 0.8
---------------------------------------------------------------------------
K08-58 153.50 218.38 64.88 0.047 0.04 2.0
---------------------------------------------------------------------------
including 153.50 185.00 31.50 0.057 0.03 1.8
---------------------------------------------------------------------------
K08-64 345.00 351.59 6.59 0.076 0.05 2.1
---------------------------------------------------------------------------

Note 1: Intersections in the table above are based on core length but with
all holes (except K-07-28 and K-08-66) drilled across the dip of
the mineralized zone so that intersection widths are thought to be
close to true widths. Average sample length is 1.5 metres. All high
grade values reported in composites are cut to 0.5% molybdenum.
Uncut values are noted for reference purposes only.
Note 2: Where two or more composites are shown for a hole, most gaps in the
composite values are occupied by lower grade mineralization of 0.01
to 0.04%, or by post-mineral dykes. Post-mineral dykes or low grade
zones of less than 5.0 metres width are included in the composite
calculations. Post-mineral dykes or low grade zones of greater than
5.0 metres width are deemed the end of a mineralized interval.
Note 3: "CT" equals cumulative total, the weighted average of all
composites with the width of post-mineralization, waste-rock dykes
or low grade zones greater than five metres in width removed.


Five even numbered holes, starting with hole K-08-48 and extending 400 metres to the east, to hole K-08-56, are now the northernmost fence of holes and tested the northeast flank of the Main Zone. These holes were spaced 100 metres apart and drilled at -45 degrees to the southeast, undercutting mineralized intercepts in the next fence of holes located 100 metres to the south and which appear to continue to surface based on trenching. These new holes successfully demonstrated the continuity of the mineralization at depth, and along strike, intersecting mineralization over significant widths, gradually narrowing toward K-08-56, as detailed below:

- K-08-48 intersected higher grade mineralization starting at a depth of 277.5 metres, returning a cumulative thickness ("CT") of mineralization of 170.5 metres at 0.061% molybdenum, 0.09% copper and 2.0 grams per tonne of silver;

- K-08-50 intersected 110.1 metres at 0.069% molybdenum, 0.07% copper and 2.0 grams per tonne of silver (CT) before bottoming in a late gabbro dyke at depth of 400 metres. This hole will be deepened to confirm that the mineralization continues beyond the gabbro dyke;

- K-08-52 intersected 145.3 metres of 0.049% molybdenum, 0.06% copper and 1.8 grams per tonne silver from 241.9 metres down hole, before bottoming in lower grade mineralization at 476 metres;

- K-08-54 returned a narrower but higher grade interval of 90.5 metres of 0.078% molybdenum, 0.05% copper and 1.5 grams per tonne silver starting at 173.5 metres down hole, including 37.5 metres of 0.148% molybdenum, and bottoming in lower grade mineralization at 475 metres;

- K-08-56 returned 23.3 metres of 0.046% molybdenum, 0.04% copper, and 1.4 grams per tonne silver indicating a possible pinching of the zone towards the northeast area of the Main Zone.

- K-08-58, located 100 metres east of K-08-56, returned a wider 64.9 metre intersection of 0.047% molybdenum, 0.04% copper and 2.0 grams per tonne silver re-opening the Main Zone towards the northeast or possibly heralding a new satellite body.

K-08-60 and 64 were also drilled in the northeast part of the Main Zone, extending the fence of holes located 100 metres grid south of the fence of holes discussed above. The holes appear to have overshot the plunge of the Main Zone with both holes encountering significant thicknesses (multiple intervals, up to 50 metres wide) of lower-grade mineralization (0.01% to 0.03% molybdenum) and hole K-08-64 also intersecting 6.6 metres of 0.076% molybdenum 0.05% copper and 2.1 grams per tonne silver. Along with the results for K-08-58, the chalcopyrite-dominated mineralization in these holes, especially above and on the flanks of the molybdenum, indicates the potential for additional molybdenum mineralization at depth and indicates that the northeast area of the Main Zone may be down-dropped by faulting relative to the bulk of the Main Zone (opposite to the apparent displacement of the Southwest Zone relative to the Main Zone). Trenching of the northeast extension to the Main Zone is in progress in order to better understand its geometry.



Table 2. Main Zone - North Flank to West End Results

---------------------------------------------------------------------------
Molyb- Silver
denum Copper grams/
DDH# From To metres % % tonne Comments
---------------------------------------------------------------------------
K08-59 190.50 205.00 14.50 0.050 0.04 1.6
---------------------------------------------------------------------------
279.50 301.50 22.00 0.071 0.04 1.2
---------------------------------------------------------------------------
Including 296.00 301.50 5.50 0.211 0.05 2.4
---------------------------------------------------------------------------
K08-61 293.42 356.00 62.58 0.048 0.08 3.6 uncut equals
0.049% Mo
---------------------------------------------------------------------------
Including 303.50 315.50 12.00 0.101 0.08 3.4 uncut equals
0.102% Mo
---------------------------------------------------------------------------
K08-63 504.70 539.00 34.30 0.045 0.09 2.9 long sections of
0.01 to 0.07% Mo,
few 0.X%
intervals,
includes dilution
from 16.8 m of
dykes
---------------------------------------------------------------------------


Holes K-08-59, 61, and 63 were drilled to delineate the north margin of the western end of the Main Zone and appear to have closed the zone off towards the northwest. All three holes encountered long sections of lower grade mineralization (0.01% to 0.04% molybdenum) with scattered higher grade intervals, and both hole K-08-59 and hole K-08-61 had high grade intervals of greater than 0.1% molybdenum over 5.5 and 12 metres, respectively, at a down hole depth of approximately 300 metres in each hole.



Table 3. Main Zone - South Flank Results

---------------------------------------------------------------------------
Molyb- Silver
denum Copper grams/
DDH# From To metres % % tonne Comments
---------------------------------------------------------------------------
K08-65 31.50 55.73 24.23 0.046 0.09 3.2
---------------------------------------------------------------------------
87.52 94.80 7.28 0.113 0.11 3.9
---------------------------------------------------------------------------
109.40 169.60 60.20 0.056 0.09 3.2
---------------------------------------------------------------------------
Including 152.09 163.00 10.91 0.068 0.10 3.1
---------------------------------------------------------------------------
CT 31.50 169.60 91.71 0.058 0.09 3.3
---------------------------------------------------------------------------
K08-66 29.73 236.00 206.27 0.079 0.10 4.1 uncut equals
0.246% Mo
---------------------------------------------------------------------------
Including 94.90 110.25 15.35 0.415 0.21 11.8 uncut equals
(1) 1.67% Mo
---------------------------------------------------------------------------
K08-67 312.00 323.05 11.05 0.080 0.05 2.0
---------------------------------------------------------------------------
K08-68 229.90 316.00 86.10 0.048 0.06 2.5 uncut Mo equals
0.51%, sparse 0.X
material above
this interval, but
mostly less than
0.04% Mo
---------------------------------------------------------------------------
Including 229.90 267.00 37.10 0.071 0.08 3.3 uncut Mo equals
0.077%
---------------------------------------------------------------------------
Including 229.90 237.50 7.60 0.182 0.03 2.2 uncut Mo equals
0.215%
---------------------------------------------------------------------------
Including 262.50 270.00 7.50 0.110 0.14 5.2
---------------------------------------------------------------------------
Including 308.39 316.00 7.61 0.121 0.11 3.2
---------------------------------------------------------------------------

Note 1: Previously reported.


K-08-65 tested part of the south margin of the Main Zone in a drill gap between previous reported holes K-05-04 and K-07-18. This hole intersected a CT of 91.7 metres of 0.058% molybdenum, 0.09% copper and 3.3 grams per tonne of silver before passing into the barren footwall tonalite (FWT). K-08-67, located 100 metres to the southwest, was located in the gap between the Main and Southwest Zones, and encountered primarily lower grade mineralization (0.025% molybdenum), except for an 11.1 metre interval of 0.080% molybdenum, 0.05% copper and 2.0 grams per tonne of silver starting at 312 metres down hole.

K-08-66 was drilled to the southwest along strike and intersected a previously reported zone of exceptionally high grade molybdenum (15.35 metres at 1.67% molybdenum uncut and 0.415% molybdenum cut). Assay results for the balance of the hole have resulted in a total mineralized interval of 206.3 metres at 0.079% molybdenum, 0.10% copper, and 4.1 grams per tonne of silver. K-08-68, drilled steeply to grid south from the same collar as K-08-66, intersected several seven to eight metre wide zones of greater than 0.1% molybdenum mineralization within an overall 86.1 metre wide zone of 0.048% molybdenum, 0.06% copper and 2.5 grams per tonne of silver. Additional holes (assay results pending) have been drilled into the zone to check the distribution and continuity of high grade mineralization returned in K08-66 and 68 and first intersected at depth in K-05-12.



Table 4. Southwest Zone Results

---------------------------------------------------------------------------
Molyb- Silver
denum Copper grams/
DDH# From To metres % % tonne Comments
---------------------------------------------------------------------------
K08-55 336.50 364.00 27.5 0.045 0.03 1.1
---------------------------------------------------------------------------
Including 356.50 364.00 7.50 0.071 0.02 1.4
---------------------------------------------------------------------------
K08-57 370.00 390.98 20.98 0.049 0.05 1.7
---------------------------------------------------------------------------
Including 381.67 390.98 9.31 0.067 0.03 1.1
---------------------------------------------------------------------------
K08-69 10.35 36.50 26.15 0.042 0.05 2.1 includes dilution
from 5.7 m of
dykes
---------------------------------------------------------------------------
62.50 104.50 42.00 0.047 0.06 2.4
---------------------------------------------------------------------------
Including 80.50 89.50 9.00 0.111 0.09 3.3
---------------------------------------------------------------------------
153.00 174.95 21.95 0.041 0.04 2.3 sparse 0.X
material
throughout hole,
but mostly 0.01 -
0.05% Mo
---------------------------------------------------------------------------

Note 1: Intersections in the table above are based on core length but are
believed to approximate true widths. Average sample length is 1.5
metres.
Note 2: Where two or more composites are shown for a hole, most gaps in the
composite values are occupied by lower grade mineralization of 0.01
to 0.04%, or by post-mineral dykes. Post-mineral dykes or low grade
zones of less than 5.0 metres width are included in the composite
calculations. Post-mineral dykes or low grade zones of greater than
5.0 metres width are deemed the end of a mineralized interval.


Results from the most recent seven holes drilled in the Southwest Zone (K-08-47, 49, 51, 53, 55, 57, and 69) have extended the strike length of the zone to approximately 200 metres and potentially joined the Southwest Zone mineralization with the Main Zone. K-08-69, drilled in the southern area between the Southwest Zone and the Main Zone, intersected mineralization (0.04% to 0.05% molybdenum) over a CT width of approximately 90 metres. Two additional holes are planned to test the remaining 100 metre gap between the zones.

The results also appear to establish the northern and western boundaries of mineralization within this zone where mineralization extends over a width of up to 115 metres and a depth of at least 250 metres. K-08-55, drilled along the northern boundary of the zone returned an interval of 27.5 metres of 0.045% molybdenum, 0.03% copper and 1.1 grams per tonne silver including a higher grade interval of 0.071% molybdenum while K-08-57, drilled 100 metres to the east, returned an interval of 21.0 metres of 0.049% molybdenum, 0.05% copper and 1.7 grams per tonne silver, including 9.3 metres of 0.067% molybdenum. K-07-47, 49, and 53 were all collared in the far west or north portions of the Southwest Zone, and all intersected weak mineralization of less than 0.01% molybdenum. K-08-51 was collared off the west end of the zone, and intersected only barren dacitic tuff.

The KM61 project benefits from excellent location and infrastructure. The project is located, east of Armstrong, Ontario, accessible by a 61 kilometre all-weather logging road, and only 12 kilometres by road from the main CN rail line at Ferland Station, where there are several rail sidings. Approximately six kilometres to the east of the project, Ontario Power Generation plans to complete an 85MW hydroelectric generating station by 2013, which will be connected to the Provincial power grid.

"Additional results from the Phase II program now in progress continue to be very encouraging and indicate that the Main Zone contains considerable widths of molybdenum mineralization over 1.5 kilometres of strike length, up to 350 metres in width, and down to a vertical depth of at least 300 metres, with appreciable copper and silver credits. The aggressive drill program will be completed on schedule, and allows Linear to complete a 43-101 resource estimate before year end", reports Robert Page, Vice President Exploration.

The technical information in this press release was prepared under the supervision of Matt Rees, P.Geo., Chief Geologist, a qualified person as defined by National Instrument 43-101. Assaying of samples during the 2007-2008 Phase I and Phase II programs is being performed by ALS Chemex in Vancouver, British Columbia. Linear has a detailed QA/QC program in place involving the regular submittal of blanks, duplicates and external reference standards with the core samples.

In April 2008, Linear Metals completed a 43-101 compliant resource estimate on its Cobre Grande project and will also complete a 43-101 compliant resource estimate on its KM61 project during 2008. For further details on Linear Metals Corporation and its projects please visit the Company's website at www.linearmetals.com or contact investor relations at (416) 216-4708, or within North America at 1-866-376-7683.

Brian MacEachen, President & CEO

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 KM61 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 KM61 and there is no assurance that the mineralization at KM61 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 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