Linear Metals Extends Copper-Molybdenum Mineralization in El Oso Zone at Cobre Grande Project, Oaxaca, Mexico

2008-08-20 07:51:00

TORONTO, ONTARIO–(EMWNews – Aug. 20, 2008) – Linear Metals Corporation (TSX:LRM) is pleased to report results from the final two reverse circulation holes from the El Oso Zone (previously referred to as Northwest Skarn). Holes CGRC-18 and 19 have intersected +1.0% copper equivalent sulphide mineralization over substantial widths and have extended the mineralized strike of the El Oso Zone discovery to 300 metres. Highlights from the two holes include:

– CGRC-18: 132 metres of 0.84% copper, 0.031% molybdenum, and 13 grams per tonne silver for a copper equivalent of 1.12%; and

– CGRC-19: 52 metres of 0.57% copper, 0.063% molybdenum, and 16 grams per tonne silver for a copper equivalent of 1.08%.

“We have now reported on eleven holes in the El Oso Zone and nine of the holes have contained significant copper, copper-molybdenum, or molybdenum intercepts,” reports Vice President of Exploration, Dr. Robert Page. “The El Oso Zone”, adds Dr. Page, “represents a new discovery on the Cobre Grande property and offers high expectations for adding substantially to Cobre Grande’s NI 43-101 compliant 49.8 million tonne, 0.92% copper equivalent, inferred resource estimate, released in May of this year.”

El Oso Zone

The El Oso Zone is part of a large fault block which has been down dropped to the west from the top of the Main Zone. Porphyry and skarn mineralization outcrop in the El Oso Zone over a strike length of 300 metres and based on the geological model, mineralization is expected to continue to the south under unaltered limestone for an additional 1,000 metres, albeit at deeper levels. The mineralized skarn, based on geophysical data, may also continue to the north of CGRC-18 and 19 for an additional 200 metres.

The porphyry body in the El Oso Zone is elongate NE-SW and has copper skarn bodies mantling both flanks. The eastern flanking skarn to this porphyry is the faulted offset top of the Main Zone. This eastern flanking skarn was initially tested by previously reported diamond drill hole CG-68, which intersected 228 metres of 0.91% copper equivalent. The western flanking skarn also appears to be well mineralized based on previously released results of CGRC-12 which included 32 metres of 0.84% copper equivalent in copper skarn immediately above a 48 metre interval of 0.056% molybdenum in the stockworked core to the zone, and CGRC-17 which bottomed in 32 metres of copper skarn grading 1.37% copper equivalent. Holes CGRC-18 and 19 both intersected well mineralized skarn; however, until more drilling is completed, it is not clear whether these holes have intersected the western or eastern flanking skarn.

Results from the two new holes in the El Oso Zone are included in the table below. A drill hole location map is available on the Company’s website at www.linearmetals.com.



Holes in El Oso Zone
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Copper
Molyb- Silver Equiv-
From To Interval Copper Zinc denum Grams/ alent
HOLE-ID (metres) (metres) (metres) % % % Tonne %
--------------------------------------------------------------------------
CGRC-18 20.0 28.0 8.0 1.00 0.09 0.033 33 1.00(1)
--------------------------------------------------------------------------
28.0 160.0 132.0 0.84 0.23 0.031 13 1.05(2)
--------------------------------------------------------------------------
including 86.0 126.0 40.0 1.43 0.21 0.033 16 1.68(2)
--------------------------------------------------------------------------

--------------------------------------------------------------------------
CGRC-19 40.0 58.0 18.0 0.50 0.31 0.015 11 0.50(1)
--------------------------------------------------------------------------
80.0 132.0 52.0 0.57 0.93 0.063 16 1.08(3)
--------------------------------------------------------------------------
including 80.0 84.0 4.0 3.01 7.70 0.031 63 3.68(3)
--------------------------------------------------------------------------

Notes: Intervals in the table are based on core lengths and do not
represent true widths of the zone. Copper equivalent calculations are 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 this hole) which vary between
sub-zones, resulting in different copper equivalent formulas for each zone
as follows:

1. Oxide zone copper equivalent equals Cu% (until further testing carried
out there is no expectation of recovering copper or any other metals from
the oxide zone).

2. Supergene enriched, partially oxidized copper and molybdenum zones
copper equivalent equals Cu%+Mo%($150.98/$37.84) + Ag g/t($0.27/$37.84)

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

 

Hole CGRC-18 was a west directed -75 degrees reverse circulation hole which started in oxidized skarn transitioning to enriched and partially oxidized skarn at 28 metres and continued in this skarn to about 160 metres where it passed into the quartz vein flooded skarn with narrow porphyry dikes in which it was ultimately lost at 208 metres, including the final 48 metres which bottomed in 0.029% molybdenum.

Hole CGRC-19 was an east directed -60 degrees reverse circulation hole drilled, from the same setup as CGRC-18, into what was assumed to be the top of the east flanking skarn to the El Oso Zone. The hole was expected to start in copper skarn, pass through the Cobre Grande Fault and end in unaltered limestone. Instead, like CGRC-18, the hole passed from copper skarn into quartz flooded molybdenum-rich porphyry and skarn before passing through the Cobre Grande Fault and into unaltered limestone. The geometry of both the east and west directed angle holes hitting skarn and then porphyry indicates that either these two holes are drilled near the northern end of the porphyry or the porphyry has split into two bodies.

Anomaly Testing to the North and West of the El Oso Zone

The reverse circulation drill program also included 10 drill holes testing a number of geochemical and geophysical anomalies identified to the north and west of the El Oso Zone.

Drill holes CGRC-20 to 23 tested a zinc anomaly located 500 metres to the north of holes CGRC-18 and 19. All four holes encountered oxidized and leached skarn and hornfels to a maximum depth of 148 metres. Hole CGRC-20, on the south edge of the soil anomaly, cut weathered and unmineralized argillite to its total depth of 166 metres. CGRC-21 to 23, all well within the zinc anomaly, encountered long intervals of anomalous zinc including a 30 metre interval from CGRC-23 that returned 1.08% zinc. This northern zinc anomaly remains an area of interest for future drilling.

Drill holes CGRC-24 to 29 were drilled to test IP anomalies to the west and north of the El Oso Zone and all of the holes were lost prior to reaching the targeted anomalies. Hole CGRC-24 was lost at 92 metres in testing an IP anomaly 200 metres north of CGRC-19. The hole was lost prior to target but in failing to encounter near surface skarn does indicate that if present the El Oso Zone plunges to the north. Two holes, CGRC-25 and 26, attempted to test an IP anomaly interpreted to be the western extension of the El Oso Zone but were lost at 138 and 127 metres respectively. If the targeted IP anomaly can be shown to be related to skarn, the El Oso Zone would expand to a width of more than 500 metres. Holes CGRC-27 and 28 were attempts to test an IP anomaly to the west of holes CGRC-18 and 19. Again both holes were lost at shallow depths (106 and 94 metres respectively) and failed to test the IP anomaly. Despite failing to reach their target, both holes returned short low grade molybdenum intercepts from gossan and silicified limestone near surface before going back into limestone. The last of the drill holes, CGRC-29, was an attempt to test the western edge of an IP anomaly located a kilometre to the south. The hole was lost at 72 metres in weakly altered porphyry. Further tests of the modeled IP anomaly will be completed at a later date.

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 for holes CGRC-18 and 19 were assayed for silver, copper, zinc, lead, and molybdenum using four acid digestion and ICP-AES analysis. All samples from holes CGRC-20 to 29 were analyzed using aqua regia digestion and ICP-AES analysis. Over limits on these samples were analyzed using aqua regia digestion and atomic absorption 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.

For more information, please contact

Linear Metals Corporation
Investor Relations
(416) 216-4708 or North America Toll Free: 1-866-376-7683
Website: www.linearmetals.com

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