Linear Metals Corporation
TSX : LRM

Linear Metals Corporation

March 04, 2008 09:29 ET

Linear Metals Reports Additional Molybdenum-Copper-Silver Mineralization and Memorandum of Understanding at KM61 Project

TORONTO, ONTARIO--(Marketwire - March 4, 2008) - Linear Metals Corporation (TSX:LRM) is pleased to announce assay results from the last diamond drill hole of a 4,000-metre Phase I drilling program, completed in October 2007, as well as results from the first hole of the current Phase II 25,000-metre drill program, initiated in December 2007, at its 100%-owned KM61 project. A total of 16 holes were completed in the Phase I program, the first fifteen of which (K-07-14 to K-07-28) were previously reported, and all of which returned significant molybdenum-copper-silver mineralization. K-07-34 is the first hole of the ongoing Phase II program for which complete assay results have been received, with results of holes K-07-30 to K-07-33 expected shortly.

Highlights from the most recent results include:

- Hole K-07-29: 10.5 metres of 0.091% molybdenum; and 11.3 metres of 0.106% molybdenum;

- Hole K-07-34: 114.7 metres of 0.061% (0.088% uncut) molybdenum.

The KM61 project benefits from excellent location and infrastructure. The project is located, approximately 60 kilometres east of Armstrong, Ontario, on an all-weather logging road, and only 12 kilometres by road from the main CN rail line. Linear has been active at KM61 since May 2007, completing trenching, soil sampling, IP surveying, claim staking, and sampling of old drill core. The Phase I and Phase II drill programs are designed to delineate an extensive bulk tonnage molybdenum-copper-silver resource at KM61.

Molybdenite-chalcopyrite mineralization at KM61 is hosted by two northeast-trending, quartz monzonite porphyry dyke swarms and their flanking mafic metavolcanics. These porphyries and their wall rocks are extensively stock-worked with quartz and quartz-molybdenite veins and also host significant disseminated chalcopyrite and molybdenite. At a cut-off of 0.04% molybdenum, the mineralized zone extends over the 1,250 metres and is up to 350 metres wide, flanked by zones of lower grade mineralization, at 0.01 to 0.04% molybdenum, particularly along the north margin of the zone which extends the full width to 500 metres.

The deposit remains open along strike and at depth with many holes bottoming in mineralization. Additionally, it should be noted that several significant zones of greater than 0.100% molybdenum have been outlined at or near surface including:

- Hole K-05-17: 56.9 metres of 0.113% molybdenum, and

- Hole K-07-23: 9.5 metres of 0.103% molybdenum (hole collared in mineralization), and

- Trench 6B: 18.3 metres of 0.112% (open to south).

These higher grade intercepts may form the basis for high grade starter pits should the project advance to development.

Main Zone - NW Portion

Holes K-07-29 and K-07-34 are both drilled into an area of the Main Zone, interpreted to be near the northwest limits of the higher grade mineralization found to the east and south, in the "heart" of the zone. Both holes intersected alternating sections of higher, moderate and lower grade mineralization supporting the interpretation of this area of the deposit marking the northern limit of the Main Zone.

K-07-29 was a deep angle hole, drilled to 761 metres, designed to cut across the entire width of the Main Zone and projected to end at twice the vertical depth of previously drilled holes, which generally stopped at a vertical depth of 200 metres and bottomed in mineralization. Prior to freeze-up, there was a limited area of dry ground available for siting holes north of the Main Zone and hole K-07-29 was drilled from a site further west than the Company's preferred location. Despite this less than ideal location, the hole returned two sections of excellent grade mineralization, including 10.5 metres of 0.091% molybdenum and 11.3 metres of 0.106% molybdenum, within a zone of veining, starting at 228.5 metres and continuing to the bottom of the hole, with highly anomalous molybdenum. This entire 532.5 metre interval averaged 0.025% molybdenum and the hole ended in 0.035% molybdenum. Although the grades are relatively low on this section, the results of hole K-07-29 do bode well for sections further to the east to host wide intervals of mineralization extending to 500 metres depth.

K-07-34 is very significant in that it is the first hole from a new fence of holes designed to confirm the continuity of mineralization in the altered mafic volcanics between the north and south porphyry trends. The hole returned a strongly mineralized section with 0.061% Mo over 114.7 metres (0.088% uncut), with the majority of the rest of the hole grading between 0.04% to 0.05% molybdenum, as shown in the table below.

As with K-07-29, the full mineralized section of K-07-34 at lower grade (averages 0.043% molybdenum over it's entire length) was much wider - the hole is quartz stockworked and mineralized from top to bottom and also as with K-07-29 this lower grade is attributed to a location outside the heart of the Main Zone. These two holes strongly indicate the overall width of the higher grade portion of the system, located further east, will have widths approaching 350 metres.

Composite assay results for these two holes are detailed in the table below. Please refer to Linear Metals' website for prior drill results and drill hole location maps from the 2004, 2005, and 2007-2008 programs.



---------------------------------------------------------------------------
Interval Molyb-
From To (metres denum Copper Silver
Hole # (metres) (metres) (1),(2)) % % g/t Comments
---------------------------------------------------------------------------
K-07-29 228.5 761.0 532.5 0.025 0.09 2.8 Bottomed in
Mineralization
---------------------------------------------------------------------------
Including 228.5 239.0 10.5 0.091 0.09 3.9
---------------------------------------------------------------------------
363.4 374.7 11.3 0.106 0.17 6.7
---------------------------------------------------------------------------

---------------------------------------------------------------------------
K-07-34(3) 42 54.7 12.7 0.042 0.08 2.7
---------------------------------------------------------------------------
71.8 186.5 114.7 0.061 0.10 3.4 Mo cut to
0.5%(3)
---------------------------------------------------------------------------
216.7 233.5 16.8 0.040 0.08 2.6
---------------------------------------------------------------------------
247.5 331.5 84 0.049 0.07 3.3 Bottomed in
mineralization
---------------------------------------------------------------------------

Note 1: Intersections in the table above are based on core length. Average
sample length is 1.5 metres.
Note 2: Where 2 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%. Post-mineral dykes of less than 5.0 metres width are
included in the composite calculations. Post-mineral dykes of
greater than 5.0 metres width are excluded in the composite
calculations. See text for further explanation.
Note 3: Two 1.5 metre samples exceeded 0.50% molybdenum and have been cut
to 0.50% for calculating the reported composite. The two uncut 1.5
metres samples from K-07-34 returned 1.4% and 1.8% molybdenum
respectively. The uncut molybdenum interval is 0.088% molybdenum
over 114.7 metres from hole K-07-34.


"Results, from the completed Phase I program and Phase II program now in progress, continue to be very encouraging and indicate that the Main and SW Zones combined extend for at least 1,250 metres. Additionally, recently received soil and IP data indicate the potential to increase the total strike of the deposit to 2,000 metres. The current drill program will allow Linear to fully test this 2,000 metre strike. The aggressive drill program also puts Linear on schedule to complete a 43-101 resource estimate before year end", reports Robert Page, Vice President Exploration.

Memorandum of Understanding

Linear Metals is also pleased to announce that it has entered into a Memorandum of Understanding ("MOU") with the Whitesand First Nation with respect to the KM61 property. The Whitesand First Nation is within the Robinson-Superior Treaty Area, and maintains traditional territories in the area north of Lake Nipigon which includes the area of the KM61 property.

The MOU formalizes the desire and commitment to develop a positive, mutually beneficial relationship amongst both parties and establishes the process by which this is to be accomplished while Linear is conducting exploration activities in the area. Linear recognizes and respects the Aboriginal and Treaty rights of the First Nation, while the community, represented by the Chief of the Whitesand First Nation, supports the exploration activities of Linear.

Two-thirds of the current onsite project workforce is composed of local employees, and the Whitesand First Nation also provides various other contract services such as employee payroll administration and road maintenance.

Included in the MOU is a provision to finalize an Impact and Benefits Agreement ("IBA") before commencement of any mine development, should exploration results lead to completion of a positive Feasibility Study.

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. The historical KM61 drill results for holes K-04-01 to K-05-13 were obtained from Noranda-Falconbridge (now Xstrata), who followed internal drill hole sampling protocols requiring insertion of blanks and standards. Assaying for copper, gold, and silver was completed by Accurassay in Thunder Bay, ON, and for Molybdenum by ALS Chemex in Vancouver, British Columbia. Assaying of samples during the 2007 program 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.

Linear Metals is working towards completion of 43-101 compliant resource estimates on its Cobre Grande and KM61 projects 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. Please visit us at our core shack display during this year's PDAC.

Brian MacEachen, President

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
    Within North America at 1-866-376-7683
    Website: www.linearmetals.com