Linux Gold Corp.
OTC Bulletin Board : LNXGF

Linux Gold Corp.

May 05, 2009 09:15 ET

Linux Gold Corp. Announces Geological Report Received on Dime Creek Gold/Platinum Property in Alaska

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 5, 2009) - Linux Gold Corp. (OTCBB:LNXGF) is pleased to announce that Tom Bundtzen has completed a summary report, on the Dime Creek property, dated April 25, 2009.

Tom Bundtzen reports that the Dime Creek area is a historic producer of gold and platinum located in the eastern portion of the Seward Peninsula, within the Koyuk Mining District of Alaska. Examination of U.S. Mint production records and other sources indicate that Dime Creek has produced an estimated 40,000-to-61,000 ounces of gold from 1915 to 1955 - most of which was produced prior to 1952.

The summary report estimates one million cubic yards of auriferous pay remain in several defined areas within the Dime Creek basin. In addition, lode targets for platinum and possibly gold have been outlined by an auger soil survey carried out by past investigators and from historical notations in published literature. Additional data on platinum lode targets can be acquired with follow-up drilling concurrent with placer gold exploration and is a recommended course of action for future exploration work.

Linux Gold controls 12 contiguous State of Alaska mining claims centered along Dime Creek, as well as a large claim block to the north in the Granite Mountain Area. The Dime Creek claims encompass 1,920 acres of land, including most of the historically mined areas and the most prospective ground for locating additional placer resources. All claims are currently in good standing.



Placer Gold Resource Potential Areas, Dime Creek
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Potential
Cubic Yards of
Estimated pay gravels
Exploration Areas to be Evaluated Placer Resource Size (rounded)
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Previous Area Mined by hand 7,000 ft x 200 ft 210,000
and dredged x 4 ft
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Previous Area mined by hand 2,500 ft x 150 ft x 2 ft 55,600
methods only
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Bench Deposit South of Haycock 10,000 ft x 250 ft x 4 ft 370,000
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Main Channel South of Haycock 10,000 ft x 250 ft x 4 ft 370,000
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Eldorado Creek 4,000 ft x 200 ft by 4 ft 120,000
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TOTAL NA 1,125,600
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Recommendations For Development of Placer Gold Resource

The placer resource areas should be drill tested prior to any decisions to develop them. Placer ground in the upper portion of the basin above Haycock is relatively shallow (less than 20 feet) and drill-testing could be accomplished with a track-mounted auger drill similar to that used to conduct soil sampling in 2001.

A 100 hole, 3,000 foot drill program is recommended to begin the due diligence on the placer resource north of Haycock. This data could initiate production planning for the placer resource and open the door for a second phase of drilling in the following year south of Haycock.

Recommendations for Lode Resource Exploration

Exploration by previous operators in 2000-2001 located elevated PGE values within the Linux Gold claim block. These anomalies already define potential PGE-bearing lode drill targets for Linux Gold Corp. and should be initially tested by 2 to 4 drill holes. These test holes could be completed in conjunction with the placer resource exploration program.

Qualified Person: Mr. Tom Bundtzen, Certified Professional Geologist (CPG) #10912 with the American Institute of Professional Geologists, Alaska Business License #279639 - Geological and Technical Services, is the Qualified Person as defined by National Instrument 43-101 responsible for the accuracy of this news release.

ABOUT LINUX GOLD CORP.:

Linux Gold Corp. is involved in exploration of mineral properties. Our current plans are to joint venture and explore our gold properties in Alaska. Linux Gold Corp. owns 247 State of Alaska mining claims at several locations near Granite Mountain on the eastern Seward Peninsula of Alaska. Linux Gold Corp. also owns a 50% interest in 30 mineral claims known as the Fish Creek Prospect, located in the Fairbanks Mining Division in Alaska. Linux Gold Corp. optioned a 50% interest in the Fish Creek claims to Teryl Resources Corp. (TRC-V), retaining a 5% net smelter return or may convert into a 25% working interest. Linux has also staked mineral exploration claims covering 6,400 acres in the Livengood-Tolovana Mining District, in the State of Alaska.

For more information please visit www.linuxgoldcorp.com.

ON BEHALF OF THE BOARD OF DIRECTORS

John Robertson, President

READER ADVISORY

This news release may contain certain forward-looking statements, including management's assessment of future plans and operations, and capital expenditures and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. There can be no assurance that such statements will prove accurate, and actual results and developments are likely to differ, in some cases materially, from those expressed or implied by the forward-looking statements contained in this press release. Readers of this press release are cautioned not to place undue reliance on any such forward-looking statements.

Forward-looking statements contained in this press release are based on a number of assumptions that may prove to be incorrect, including, but not limited to: timely implementation of anticipated drilling and exploration programs; the successful completion of new development projects, planned expansions or other projects within the timelines anticipated; the accuracy of reserve and resource estimates, if any, grades, mine life and cash cost estimates; whether mineral resources can be developed; title to mineral properties; financing requirements; changes in laws, rules and regulations applicable to Linux, and changes in how they are interpreted and enforced, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, and the United States, industry conditions, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange, stock market volatility and market valuations of companies with respect to announced transactions. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements, including those described in the Company's Financial Statements, Management Discussion and Analysis and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com, and the Company's 20-F annual report filed with the United States Securities and Exchange Commission at www.sec.gov. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that the Company will derive therefrom.

Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

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