Linear Metals Corporation
TSX : LRM

Linear Metals Corporation

May 05, 2008 08:38 ET

Linear Metals Reports Initial Mineral Resource Estimate of 49.8 Million Tonnes of 0.92% Copper Equivalent at Cobre Grande Project

TORONTO, ONTARIO--(Marketwire - May 5, 2008) - Linear Metals Corporation (TSX:LRM) is pleased to report an initial Inferred Mineral Resource Estimate for the Main Zone at its Cobre Grande Project in Oaxaca, Mexico. This resource consists of multiple adjoining but distinct zones of mineralization as detailed in the table below. The 49.8 million tonne Inferred Mineral Resource includes in-situ metal quantities of 545 million pounds of copper, 44 million pounds of molybdenum, 243 million pounds of zinc, and 21 million ounces of silver.

Brian MacEachen, Linear Metals President & CEO, states, "We are encouraged that the first 43-101 compliant resource estimate at Cobre Grande has identified a significant 49.8 million tonne Mineral Resource with excellent prospects of being mined by open pit methods. While this resource represents a significant milestone for the Company, we believe this is just the first chapter in the Cobre Grande story and look forward to continuing to advance this very prospective property. We have some excellent targets with the potential to expand this Mineral Resource before the commencement of a scoping study later in 2008."

The Mineral Resource encompasses the 1.6 kilometre long Main Zone of the Cobre Grande project where exploration has focused to date. Strong metal zonation and surface oxidization led to the definition of five metallurgically distinct sub-zones within the Main Zone. The Mineral Resource for each of the sub-zones is reported separately below. Metallurgical recoveries of each sub-zone have been reported previously (see press release dated April 29, 2008) and are subject to change as more test work is completed, and scenarios for processing are more fully developed.

In addition to this Mineral Resource, the Cobre Grande project offers excellent up-side potential. The Main Zone remains open to the north and the property has excellent potential for hosting parallel mineralized zones to the west of the Main Zone.



Inferred Mineral Resource Table - April 2008

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Copper
Copper Molybdenum Zinc Silver Equivalent
Sub Zone Tonnes (%) (%) (%) (g/t) (%)
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Copper
sulphide
skarn 22,000,000 0.85 0.025 Nil 20.1 1.16
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Molybdenum
sulphide
stockwork 20,200,000 0.11 0.065 Nil 3.0 0.58
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Zinc sulphide
Skarn 4,200,000 0.24 0.003 2.60 16.0 1.14
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Partially
oxidized
enriched
copper skarn 1,600,000 1.28 0.018 Nil 31.0 1.58
--------------------------------------------------------------------------
Partially
oxidized
molybdenum
skarn 1,700,000 0.39 0.063 Nil 12.2 0.73
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Total 49,800,000 0.50 0.040 0.22 12.9 0.92
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Notes:
1. CIM definitions were followed for Mineral Resources.
2. A preliminary open pit shell was used to constrain the open pit
resources.
3. Mineral Resources were estimated within the open pit shell, at a Net
Smelter Return (NSR) cut-off value of C$11 per tonne, representing the
pit discard cut-off value.
4. NSR values were calculated using long-term prices of US$2.50 per pound
copper, US$20 per pound molybdenum, US$0.90 per pound zinc, and US$13.50
per ounce silver; projected metallurgical recoveries by sub-zone; and
assumptions regarding concentrate properties, smelter charges, and
payable percentages.
5. Molybdenum, zinc and silver grades for each sub-zone were converted to
a copper equivalent grade using the same inputs to determine NSR values.
6. Blocks are 10 metres by 10 metres by 5 metres. Inverse distance squared
interpolation was used to estimate block grades.
7. Totals may not sum correctly due to rounding.
8. Mineral Resources that are not Mineral Reserves do not have demonstrated
economic viability.


Scott Wilson Roscoe Postle Associates Inc. (Scott Wilson RPA), independent geological and mining consultants, prepared the estimate as at April 29, 2008 in accordance with the guidelines set forth in National Instrument 43-101 ("NI 43-101"). The estimate was based on data for drill holes completed through to February 8, 2008. The resource was estimated through block modeling in Gemcom Software. Volumes were constrained using 3D wireframes interpreted from geological logs and assay data, and a preliminary open pit shell.

The Cobre Grande drill hole database include 71 vertical and inclined diamond holes totaling 22,392 metres of core and 10 reverse circulation holes totaling 1,654 metres of chips and one adit totaling 192 metres of continuous rock chips. Most holes within the Mineral Resource area are aligned along E-W oriented sections spaced 100 metres apart for an average drill hole spacing of approximately 50 to 100 metres. The Cobre Grande drill hole data base contains 9,043 copper, molybdenum, zinc and silver assays taken over sample lengths generally between one and three metres. Assays were composited into four metre equal lengths constrained within the wireframes. A total of 1,386 composite intervals were used to estimate block grades within the wireframes. The block tonnage was estimated from volume by selecting the lower of the mean or median statistic of core density measurements contained within each sub-zone, in all, the database contains 2,186 core density measurements.

The Mineral Resource was identified from a larger volume within the wireframes, through "floating cone analysis", whereby a preliminary open pit shell, constrained by economic inputs, is generated by Whittle software. The part of the wireframe volume that falls within the preliminary open pit shell is considered to have reasonable prospects of economic extraction; thereby, qualifying as a Mineral Resource.

An NSR value approach was used to assess sub-zones with different mineralogical and metallurgical properties located within a single open pit. NSR is a total value per tonne of ore, after metallurgical recovery and off-site deductions, including payable percentages and refining costs. Assumptions used for the NSR calculation include: metal prices of U.S. $2.50 per pound of copper, $0.90 per pound of zinc, $20.00 per pound of molybdenum and $13.50 per ounce of silver; recoveries by sub-zone, based on the preliminary metallurgical testing reported in Linear Metals press release of April 30, 2008, and typical values for payable percentages, treatment charges, concentrate transportation costs, and refining charges. These assumptions were used to calculate an NSR value ($ per tonne) for each block in the block model. NSR values were then used as input for the floating cone analysis and as an open pit discard cut-off value.

Within the preliminary open pit shell, all blocks with NSR values greater than $11 per tonne, estimated to be the open pit discard cut-off value, were designated as Mineral Resources. Given the drill hole spacing, all Mineral Resources were classified into Inferred category. The estimate is of Mineral Resources only and, because these do not constitute Mineral Reserves, they do not have any demonstrated economic viability.

A detailed description of the estimation and other pertinent geotechnical information related to the Cobre Grande project will be included in an NI-43-101 compliant technical report being prepared for the Company by Scott Wilson RPA, to be filed on SEDAR within 45 days of this press release.

A scoping study, to be initiated in 2008, will provide estimates of capital and operating costs in addition to improving other project parameters of the Cobre Grande project.

Qualified Persons

Dr. Robert Page, PhD, P.Geo., and Mr. Geoffrey Chinn MSc, P.Geo, have acted as Qualified Persons, as defined in NI 43-101, for this disclosure and have supervised the preparation of the technical information, which formed the basis of the new Mineral Resource disclosed in this press release.

Dr. Robert Page has a PhD in geology and more than 25 years of relevant experience focused on exploring copper and zinc systems in Mexico and internationally. He is a Professional Geologist registered in the Province of Ontario, Canada. Dr. Page is not independent of Linear Metals as he is an officer and holds common shares and share options.

Mr. Geoffrey Chinn has an Applied MSc in mineral exploration and more than 15 years of relevant experience focused on exploring copper and zinc systems in Canada. He is a Professional Geologist registered in the Province of Ontario, Canada. Mr. Chinn is not independent of Linear Metals as he holds common shares and share options.

Mr. David Ross, P. Geo., a Senior Geologist, employed by Scott Wilson RPA, acted as the Qualified Person, as defined by NI-43-101, for the Scott Wilson RPA Mineral Resource estimate. Mr. Ross is independent of Linear Metals.

Quality Assurance and Quality Control

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 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).

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