Linear Metals Corporation
TSX : LRM

Linear Metals Corporation

June 18, 2008 09:51 ET

Linear Metals Intersects High Grade Copper-Silver in Northwest Skarn at Cobre Grande Project, Oaxaca, Mexico

TORONTO, ONTARIO--(Marketwire - June 18, 2008) - Linear Metals Corporation (TSX:LRM) is pleased to report results from the first seven holes of a 2,800 metre reverse circulation drill program at its Cobre Grande Project located in Oaxaca, Mexico. All seven holes were located in the Northwest Skarn Zone and five of the seven holes bottomed in mineralization. The Northwest Skarn Zone is located approximately 500 metres west of the Main Zone Mineral Resource which is host to a 43-101 resource estimate of 49.8 tonnes at an average grade of 0.92% copper equivalent and accordingly, these results represent a new discovery, outside of the existing resource. Highlights from the most recent results include:

- CGRC-15 46.0 metres of 1.46% copper equivalent (1.14% copper and 21.8 grams per tonne silver) in a copper-enriched partially oxidized zone, bottoming in mineralization; and

- CGRC-17 32.3 metres of 1.37% copper-equivalent (0.87% copper and 68 grams per tonne silver) in a copper-enriched partially oxidized zone, bottoming in mineralization, including:

- 2.3 metres of 7.59% copper equivalent (6.26% copper and 191 grams per tonne of silver), at the bottom of the hole.

These seven holes are the first holes drilled in the Northwest Skarn Zone following discovery hole CG-68, previously announced on May 13, 2008, which returned 228 metres of 0.91% copper equivalent. All results received from the Northwest Skarn continue to validate Linear's exploration model and confirm the exceptional exploration potential of the Cobre Grande Project. A diamond drill rig is expected to arrive at the project before month-end and aggressive follow-up exploration of the Northwest Skarn Zone is a top priority.

Cobre Grande Exploration Model

At Cobre Grande, it appears that skarn mineralization forms a carapace-like halo around the top of a swarm of west dipping porphyry dykes. The east flank of this carapace has seen most of the historic drilling at Cobre Grande and is now termed the Main Zone. The porphyry dikes and the Main Zone are interpreted to have been cut by a fault along their entire length with the top of both down-faulted and displaced 400 to 600 metres to the west in the Northwest Skarn area. The top of this porphyry-skarn system presents the following two prospective exploration targets:

- The thick top part of the porphyry-skarn system seen in the Main Zone, which based on the results of CG-68 appears to extend at depth to at least 200 metres within the Northwest Skarn Zone; and

- The down-faulted west side of the porphyry-skarn system which previous to the reverse circulation drill holes reported herein, had seen no drilling.

Results from the reverse circulation drilling program have successfully confirmed mineralization within both of these targets:

- CGRC-15, a 60 metre step out to the east of discovery hole CG-68, intersected 46.0 metres of 1.46% copper equivalent before bottoming in mineralization and has confirmed a minimum 60 metre width to the eastern flank of the Northwest Skarn; and

- CGRC-12, 16 and 17, all targeting the west side of the porphyry system, returned significant mineralized intercepts and all holes bottomed in mineralization, confirming that mineralization extends to the west side of the porphyry system, representing a potentially large-scale target. The results from the bottom of CGRC-17 are some of the highest copper and silver grades seen on the property to date and are a priority for follow-up. The mineralization identified in this zone remains open in all directions.

Ongoing validation of the Exploration Model suggests that considerably less than 50% of the Cobre Grande porphyry-skarn system has been drill tested to date. A diagram depicting the Cobre Grande Exploration Model and the significance of the Northwest Skarn is available on the Company's website at www.linearmetals.com.

East Flank to the Northwest Skarn

Results for the four holes drilled on the east flank of the porphyry system, in the Northwest Skarn, are provided below. A drill hole location map is available on the Company's website at www.linearmetals.com.



Holes in East Flank to the Northwest Skarn
--------------------------------------------------------------------------
Copper
Inter- Molyb- Silver Equiv-
From To val(1) Copper Zinc denum Grams/ alent
HOLE-ID (metres) (metres) (metres) % % % Tonne %
--------------------------------------------------------------------------
CGRC-11 22.0 194.0 172.0 0.40 0.05 0.013 8 0.54
(2a)(3)
--------------------------------------------------------------------------
Including 164.0 194.0 30.0 0.64 0.09 0.031 11 0.91
(2a)(3)
--------------------------------------------------------------------------
CGRC-13 182.0 196.0 14.0 0.65 0.08 0.006 17 0.80
(2b)
--------------------------------------------------------------------------
CGRC-15 168.0 214.0 46.0 1.14 0.16 0.040 22 1.46
(2b)(3)
--------------------------------------------------------------------------
Notes:
1. 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.

2. 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 is not
expected to be recovered in any of the mineralization types encountered in
these holes) which vary between sub-zones, resulting in different copper
equivalent formulas for each zone as follows:

a) Copper sulphide skarn copper equivalent equals Cu%+Mo%($233.01/$39.25)
+ Ag g/t($0.31/$39.25);

b) Partially oxidized copper and molybdenum zones copper equivalent equals
Cu%+Mo%($150.98/$37.84) + Ag g/t($0.27/$37.84).

3. The hole bottomed in mineralization.


Hole CGRC-11 is a twin of discovery hole CG-68 which intersected 228 metres of 0.91% copper equivalent starting at 29 metres. CGRC-11 was drilled as a twin hole to evaluate the accuracy and reliability of assays received from the reverse circulation drilling samples. CGRC-11 was lost prematurely and failed to complete or twin the bottom 63 metres of the CG-68 intercept. CGRC-11 returned 172 metres of 0.54% copper equivalent, approximately 31% lower than the comparable CG-68 interval which returned 0.85% copper equivalent over 171.15 metres (0.66% copper, 0.08% zinc, 0.020% molybdenum and 11 grams per tonne silver). Where core recoveries approach 100%, as in the case of CG-68, and particularly below the water table, sampling of drill core would generally be accepted as providing more accurate assays than reverse circulation chip sampling. The lower average grade of CGRC-11 is attributed to potential sampling problems from water in-flow, and potential deviation of the rotary hole from the track of the diamond drill hole. Based on these results, it appears that reverse circulation drilling may result in an understatement of metal grades, however, additional twin holes would be required to confirm this conclusion. The reverse circulation drill will be released from the project, following completion of CGRC-28, now in progress, and replaced with a diamond drill rig with significantly greater depth capacity.

Hole CGRC-13 is a -70 degrees east directed hole, located 100 metres south of hole CG-68. CGRC-13 had a short mineralized intercept, 14 metres grading 0.80% copper equivalent, which was cut off by a fault with unaltered limestone in the footwall. More drilling is needed to confirm the offset direction of the mineralized zone in this hole. Hole CGRC-14, a 180 metre vertical hole drilled from the same setup, encountered barren silicified porphyry from the core of the alteration system, comparable to CG-65, to the south, which had a long intercept of weakly mineralized silicified porphyry.

Hole CGRC-15 is a -70 degrees east directed hole, located 60 metres east and parallel to CG-68, and bottomed in 46 metres of 1.46% copper equivalent, before being lost to water in-flow. Assuming a northerly trend to the mineralized zone, the 60 metre step-out indicates the body has an easterly dip with an apparent width of at least 60 metres. A west directed diamond core hole is planned to scissor CG-68 and CGRC-15, with the objective of providing a true width to this mineralized skarn body.

West Flank to the Northwest Skarn

Results for the three holes drilled on the west flank of the porphyry system, in the Northwest Skarn, are provided below. A drill-hole location map is available on the Company's website at www.linearmetals.com.



Holes in West Flank to the Northwest Skarn
--------------------------------------------------------------------------
Inter- Molyb- Silver Copper
From To val(1) Copper Zinc denum Grams/ Equiv.
HOLE-ID (metres) (metres) (metres) % % % tonne %
--------------------------------------------------------------------------
CGRC-12 56.0 88.0 32.0 0.70 0.02 0.014 11 0.84
(2b)
--------------------------------------------------------------------------
88.0 136.0 48.0 0.06 0.01 0.056 1 0.50
(2a)(3)
--------------------------------------------------------------------------
CGRC-16 80.0 86.0 6.0 1.37 0.16 0.002 45 1.70
(2b)
--------------------------------------------------------------------------
130.0 192.0 62.0 0.06 0.02 0.042 2 0.37
(2a)(3)
--------------------------------------------------------------------------
CGRC-17 114.0 146.3 32.3 0.87 0.35 0.001 67 1.37
(2b)(3)
--------------------------------------------------------------------------
including 142.0 146.3 4.3 4.66 0.59 0.003 132 5.61
(2b)(3)
--------------------------------------------------------------------------
including 144.0 146.3 2.3 6.26 0.72 0.002 191 7.59
(2b)(3)
--------------------------------------------------------------------------
Notes:
1. 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.

2. 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 is not
expected to be recovered in any of the mineralization types encountered in
these holes) which vary between sub-zones, resulting in different copper
equivalent formulas for each zone as follows:

a. Molybdenum sulphide stockwork copper equivalent equals Mo%($349.65
/$39.25) (pending further metallurgical testing, copper and silver are
assumed non-recoverable in the Molybdenum Stockwork sub-zone).

b. Partially oxidized copper and molybdenum zones copper equivalent equals
Cu%+Mo%($150.98/$37.84) + Ag g/t($0.27/$37.84).

3. The hole bottomed in mineralization.


Hole CGRC-12, an east directed hole drilled at -70 degrees, is located 160 metres to the northwest of hole CG-68 and was lost in well mineralized molybdenum stockwork at 136 metres. This hole, the first in the west flanking skarn, successfully demonstrated the presence of copper bearing skarn on the west flank of the porphyry. Hole CGRC-12 intersected 32 metres of 0.84% copper equivalent immediately above the molybdenum stockwork zone which returned 48 metres of 0.056% molybdenum and bottomed in 0.069% molybdenum. The geometry of the two zones in this hole appears to be a mirror image to what has been seen on most sections in the Main Zone.

Holes CGRC-16 and CGRC-17 are east and west directed holes respectively, drilled at -70 degrees on the same section as CG-68, located 130 metres to the east. The east directed hole, CGRC-16, was lost at 192 metres, within a few metres from the trace of hole CG-65, which is believed to have followed the "barren" core of the porphyry system. Hole CGRC-16 had a 6.0 metre high-grade copper-silver intercept, averaging 1.70% copper equivalent, followed by 44 metres of anomalous copper skarn and then transitioned to the molybdenum stockwork zone with 62 metres of 0.042% molybdenum.

Hole CGRC-17, also located 130 metres west of CG68 but angled to the west, has intersected some of the richest copper and silver mineralization encountered to date at Cobre Grande bottoming in a 2.3 metre interval with 6.26% copper and 191 grams per tonne of silver, within a larger intercept of 32.3 metres of 1.37% copper equivalent (includes 66.7 grams per tonne of silver). Following up the high-grade intercept in the bottom of CGRC-17 will be a priority when the diamond drill returns to the

Linear's V.P. Exploration, Robert Page, commented "Following completion of our initial 49.8 million tonne, 0.92% copper equivalent resource estimate at Cobre Grande, we are continuing to build momentum by consistently intersecting potential ore grade mineralization while testing completely new targets. In addition to the established resource, drilling has: confirmed the continuation of mineralization to the north of our Main Zone resource; produced a significant new discovery in the Northwest Skarn, where discovery hole CG-68 returned 228 metres of 0.91% copper equivalent; and most recently, resulted in a successful initial test of the west flank of the porphyry system in the Northwest Skarn with all three holes hitting strong skarn hosted mineralization, including the high grade copper-silver intercept in hole CGRC-17. With these excellent results, we are confident that we will continue to significantly add to the Cobre Grande resource."

Ecatepec Project

Based on the results of a 1,200 metre reverse circulation drill program at the Ecatepec Project, the Company has terminated its option agreements, on the two claims held at Ecatepec. Drill results indicated that copper and zinc mineralization at Ecatepec was restricted to narrow structures and broad induced polarization geophysical anomalies are related to pyrite.

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 1 to 3 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 4 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 or contact investor relations at (416) 216-4708 or within North America toll free at (1-866-376-7683).

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