Linear Gold rises on Cobre Grande (November 23, 2004)

Linear Gold Mexico, a unit of Linear Gold (LRR-T) has intersected significant copper, silver and molybdenum at its Cobre Grande project 60 km southeast of Oaxaca, Mexico.

A hole drilled about 125 metres north of the southern boundary of the property (CG-24) cut 132 metres grading 1% copper and 20.7 grams silver per tonne at a downhole depth of 122 metres. The same interval also graded .03% molybdenum sulphide and .3% zinc. Just over 600 metres north of this hole, hole CG-22 hit 66 metres grading 0.6% copper and 23 grams silver per tonne (with similar molybdenum and zinc grades as listed above).

About 350 metres north-northeast of this hole CG-18 intersected 22 metres grading 3.3% zinc. Sixteen metres of this intercept was included in a 46-metre intercept that graded 0.7% copper, 23.4 grams silver per tonne, and 1.4% zinc.

A molybdenum-enriched zone was intersected in a hole about 125 metres west of the aforementioned hole. It graded 0.15% molybdenum sulphide over 80 metres beginning at 118 metres downhole.

Drill results from eight core holes and six reverse circulation holes have been released. These are part of a planned 17-hole program.

The drilling was primarily located along a 1.25-km north-northeast trending section of skarn. The skarn is about 100-250 metres thick in this area. Seven holes cut a sulphide copper zone from 12-174 metres wide grading 0.1-1% copper. Five holes hit oxide copper grading from 0.3-1.3% copper over 8-32 metres; two of these also contained 1-2% zinc over 12-22 metres. Three holes bottomed in a moly zone grading .06-0.1% molybdenum sulphide over a width of at least 30-46 metres. Several holes cut multiple zones.

Skarn-style mineralization is associated with granodiorite that intruded Cretaceous-aged limestone. A central copper zone is bounded by a molybdenum-enriched zone to the west and zinc-enrichment to the east. The copper zone has been intersected over a 550-metre by 150-metre-area and is open to the south.

Sulphides include chalcopyrite, sphalerite (locally associated with silver and gold-mineralization), pyrrhotite, pyrite, molybdenite and galena.

The 63-sq.-km property comprises four exploration concessions under option from the community of San Baltazar Guelavila. After five years (during which Linear must make annual payments ranging from US$25,000 to US$80,000) the community will have the choice of a buyout, a 2% net smelter return, or a 15% participation in the project.