Linux Gold Corp.
OTC Bulletin Board : LNXGF

Linux Gold Corp.

November 23, 2010 09:02 ET

Linux Gold Corporation Verifies Gold Potential at the Trout Claim Group in Rampart Mining District, Alaska

FAIRBANKS, ALASKA--(Marketwire - Nov. 23, 2010) - Linux Gold Corp. (OTCBB:LNXGF) has confirmed significant gold values in soils and rock chip samples collected on their Trout Claims, located about 70 miles northwest of Fairbanks, Alaska in the Rampart Mining District. The claim block consists of thirty-four (34) 160 acre State of Alaska claims totaling 5,440 acres. 

The Trout Claims are underlain by two, geochemically-reduced, magnetically subdued, igneous intrusions. These igneous rocks have yielded radiometric ages of 89-90 million years (Ma), the same age as Fort Knox, Livengood, and other gold-bearing intrusions exposed throughout the Tintina Gold Province. International Tower Hill Mines Ltd. (ITH) has calculated a recent Ni 43-101 compliant resource estimate of 12.5 million ounces gold at a 0.5 g/t gold cutoff at their Livengood deposit, which is approximately 30 miles east of the Trout Claims. Past productive placer gold deposits also occur immediately downstream from the Trout Claims, suggesting a lode source within the claim group.

During 1993-1994, previous explorers identified a 3,000 feet long by 1,000 feet wide, northeast-trending, gold-in-soil anomaly which overlies one of the igneous intrusions. Thirty-nine (39) soil samples contained 65 to 680 ppb gold (.065 to .68 g/t gold), and thirteen rock chip samples contained 130 to 9,640 ppb gold (.130 to 9.64 g/t gold). Elevated silver, lead, zinc, arsenic and antimony values were also identified. 

During 2010, Linux contractors attempted to verify this anomaly by collecting nine (9) soil and forty-six (46) rock chip samples that were run at ALS Chemex Labs, Inc., using the Au-AA24 analytical method. The nine soil samples, which contained 10 to 967 ppb gold (.01 g/t to .967 g/t gold) and an average of 156 ppb gold (.156 g/t gold), successfully confirmed the northeast trend of the mineralization and widened it by approximately 150 feet to the northwest. The thirty-four rock chip samples contained up to 411 ppb gold (.441 g/t gold), with elevated gold values obtained from quartz veins within the intrusive. The rock sample program closed off the mineralized zone to the northwest at an elevation of about 3,000 feet. The gold anomaly remains open to the northeast, southwest, and southeast. Future work planned by Linux will include sample programs that test these possible extensions as well as evaluating other gold-polymetallic anomalies that are known within the Trout Claim Group.

Qualified Person

The mineral data described above was prepared by Thomas K. Bundtzen, P. Geo., BS, MS, CPG-10912, ABSLN#279639, President of Pacific Rim Geological Consulting, Inc., of Fairbanks, Alaska, who is independent of the Company as defined in NI 43-101. Bundtzen is a Certified Professional Geologist (CPG) with the American Institute of Professional Geologists (AIPG). Bundtzen is a Qualified Person as defined in NI 43-101 and also qualifies under the rules stated by the U.S. Securities and Exchange Commission ("SEC"), and has verified the data contained in this news release for accuracy.

ABOUT LINUX GOLD CORP.

Linux Gold Corp. is involved in the exploration of mineral properties. Our current plans are to joint venture and explore our gold properties in Alaska. In addition to the Trout claims, Linux Gold Corporation currently controls mining claims east of the Pogo Mine in the Goodpasture Mining District, in the Livengood-Tolovana Mining District, near International Tower Hill's gold property (Symbol: ITH) and near Granite Mountain and on Dime Creek, the latter two properties located in 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 and has optioned a 50% interest in the Fish Creek claims to Teryl Resources Corp. (TRC-V). Linux is retaining a 5% net smelter return or may convert into a 25% working interest.

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 case 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 there from.

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.

Contact Information

  • Linux Gold Corp.
    John Robertson
    President
    800-665-4616 or 604-278-5996
    604-278-3409 (FAX)
    www.linuxgoldcorp.com