Cobre Grande Results Boost Linear Metals

Vancouver — The latest results from the Cobre Grande copper-zinc-silver-molybdenum project in Mexico pushed Linear Metals’ (LRM-V, LMTCF-O) share price up 30% in one day.

Recent drilling at the Southern Skarn target returned significant copper and molybdenum mineralization in hole 41, which cut 105.5 metres grading 1% copper, 0.032% molybdenum and 12 grams silver from 96 metres depth, followed by 58 metres grading 0.091% molybdenum at 201 metres depth.

Nearby, hole 39 returned strong zinc mineralization: 28 metres grading 5.2% zinc. Combined with previous zinc intercepts in the area, Linear is starting to define a higher-grade zinc zone along the eastern edge of the Southern Skarn.

The Northern Skarn, which after a few unsuccessful drill holes was ignored until recently, produced one attention-grabbing result. Hole 40B, drilled to twin lost hole 40, cut 96 metres averaging 1.76% copper, 0.7% molybdenum, 0.55% zinc and 60 grams silver from 234 metres depth.

Across the Northern and Southern Skarns, the core of the mineralizing system appears to be on the west side, where the molybdenum-to-copper ratio is high. The ratio decreases moving east; molybdenite disappears entirely at the east side, where zinc dominates the mineralization.

Located 60 km southeast of the city of Oaxaca in southern Mexico, Cobre Grande saw its first drill program in 2004. That drilling identified mineralization below the old Kennedy mine, the largest of the old workings on the property, as well as near-surface mineralization outside the area of the old mine.

Two drill programs since then outlined the two skarn-hosted mineralized zones. The Southern Skarn is roughly 700 metres long and still open, while the Northern Skarn is some 400 metres long and remains open to the north.

The Southern Skarn is the better tested of the two targets, with multiple drill holes intersecting over 100 metres at grades of around 1% copper. The strongest results to date came from hole 36, which intersected 130 metres grading 1.62% copper, 0.51% zinc, and 29 grams silver per tonne from the north end of the zone, underneath the Kennedy mine.

Linear is in the midst of a 10,000-metre drill program designed to test extension of mineralization north and south of the Northern and Southern Skarns, as well as testing the newly identified Northwestern Skarn target. The drill program also includes infill holes.

Linear is working towards a resource estimate in the near future, and looks to complete a scoping study by March 2009, when the company must decide whether to complete its earn-in on the project.

In March 2006, Linear acquired an option from Linear Gold (LRR-T, LGCFF-O) to earn an 80% interest in Cobre Grande by making all remaining payments to the community that owns the land.

By March 2009, the community will have received US$350,000 in total, of which US$285,000 will have come from Linear Metals. At that time, the community can decide between a US$12-million buyout, a 2% net smelter return, or a 15% carried joint-venture interest in any future mining of the concession.

Linear also has an option to purchase the remaining 20% for US$1.2 million at any time prior to December 2008.

News of the latest drill results prompted a 34 rise in Linear Metals stock, to close at $1.45. The company has a 52-week trading range of 50-$2.15 and 33.8 million shares issued.