Linear Gold rises on Cobre Grande (December 13, 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.

Hole 24, drilled 125 metres north of the southern boundary of the property, cut 132 metres grading 1% copper and 20.7 grams silver per tonne at a down-hole depth of 122 metres. The same interval also graded 0.03% molybdenum sulphide and 0.3% zinc. Just over 600 metres north of this hole, hole 22 hit 66 metres grading 0.6% copper and 23 grams silver per tonne, with moly and zinc grades similar to encountered in hole 24.

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

A molybdenum-enriched zone was intersected in a hole about 125 metres west of hole 18; it graded 0.15% molybdenum sulphide over 80 metres beginning at 118 metres down-hole.

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

Most of the drilling occurred 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 12-174 metres wide grading 0.1-1% copper. Five holes hit oxide copper grading 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 0.06-0.1% 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-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.