Toronto, Ontario � Linear Metals
Corporation (TSX: LRM) is pleased to report results from the first seven holes
of a 2,800 metre reverse circulation drill program at its Cobre Grande
Project located in Oaxaca, Mexico. All seven holes were located in the
Northwest Skarn Zone and five of the seven holes bottomed in
mineralization. The Northwest Skarn Zone is located approximately 500
metres west of the Main Zone Mineral Resource which is host to a 43-101
resource estimate of 49.8 tonnes at an average grade of 0.92% copper
equivalent and accordingly, these results represent a new discovery,
outside of the existing resource. Highlights from the most recent results
include:
�
CGRC-15
46.0 metres of 1.46% copper equivalent (1.14% copper and 21.8 grams per
tonne silver) in a copper-enriched partially oxidized zone, bottoming in
mineralization; and
�
CGRC-17
32.3 metres of 1.37% copper-equivalent
(0.87% copper and 68 grams per tonne silver) in a copper-enriched partially
oxidized zone, bottoming in mineralization, including:
2.3 metres of 7.59% copper equivalent (6.26% copper and 191 grams per tonne
of silver), at the bottom of the hole.
These seven holes are the first holes drilled in the
Northwest Skarn Zone following discovery hole CG-68, previously announced
on May 13, 2008, which returned 228 metres of 0.91% copper
equivalent. All results received from the Northwest Skarn
continue to validate Linear�s exploration model and confirm the exceptional
exploration potential of the Cobre Grande Project. A diamond drill rig
is expected to arrive at the project before month-end and aggressive
follow-up exploration of the Northwest Skarn Zone is a top priority.
Gobre Grande Exploration Model
At Cobre Grande, it appears that skarn mineralization
forms a carapace-like halo around the top of a swarm of west dipping
porphyry dykes. The east flank of this carapace has seen most of the
historic drilling at Cobre Grande and is now termed the Main Zone. The
porphyry dikes and the Main Zone are interpreted to have been cut by a
fault along their entire length with the top of both down-faulted and
displaced 400 to 600 metres to the west in the Nortwest Skarn
area. The top of this porphyry-skarn system presents the following two
prospective exploration targets:
-
The
thick top part of the porphyry-skarn system seen in the Main Zone, which
based on the results of CG-68 appears to extend at depth to at least 200
metres within the Northwest Skarn Zone; and
-
The
down-faulted west side of the porphyry-skarn system which previous to the
reverse circulation drill holes reported herein, had seen no drilling.
Results from the reverse circulation drilling program
have successfully confirmed mineralization within both of these targets:
-
CGRC-15,
a 60 metre step out to the east of discovery hole CG-68, intersected 46.0
metres of 1.46% copper equivalent before bottoming in mineralization and
has confirmed a minimum 60 metre width to the eastern flank of the
Northwest Skarn; and
-
CGRC-12, 16
and 17, all targeting the west side of the porphyry system, returned
significant mineralized intercepts and all holes bottomed in
mineralization, confirming that mineralization extends to the west side of
the porphyry system, representing a potentially large-scale
target. The results from the bottom of CGRC-17 are some of the highest
copper and silver grades seen on the property to date and are a priority
for follow-up. The mineralization identified in this zone remains open in
all directions.
Ongoing validation of the Exploration Model suggests
that considerably less than 50% of the Cobre Grande porphyry-skarn system
has been drill tested to date. A diagram depicting the Cobre Grande
Exploration Model and the significance of the Northwest Skarn is available
on the Company�s website at www.linearmetals.com.
East Flank to the Northwest Skarn
Results for the four holes drilled on the east flank of
the porphyry system, in the Northwest Skarn, are provided below. A
drill hole location map is available on the Company�s website at www.linearmetals.com.
Holes in East Flank to the Northwest Skarn
HOLE-ID
|
From
(metres)
|
To
(metres)
|
Interval1
(metres)
|
Copper
%
|
Zinc
%
|
Molybdenum
%
|
Silver
Grams/
Tonne
|
Copper
Equivalent
%
|
CGRC-11
|
22.0
|
194.0
|
172.0
|
0.40
|
0.05
|
0.013
|
8
|
0.54(2a)(3)
|
Including
|
164.0
|
194.0
|
30.0
|
0.64
|
0.09
|
0.031
|
11
|
0.91(2a)(3)
|
CGRC-13
|
182.0
|
196.0
|
14.0
|
0.65
|
0.08
|
0.006
|
17
|
|
|
168.0
|
214.0
|
46.0
|
1.14
|
0.16
|
0.040
|
22
|
1.46(2b)(3)
|
1.
Intervals
in the table are based on core lengths and do not represent true widths of
the zone, see text for comments on true widths.
2.
Copper
equivalent calculations were calculated 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 asmetallurgical
recoveries (zinc is not expected to be recovered in any of the
mineralization types encountered in these holes) which vary between
sub-zones, resulting in different copper equivalent formulas for each zone
as follows:
a)
Copper
sulphide skarn copper equivalent = Cu%+Mo%($233.01/$39.25) + Ag
g/t($0.31/$39.25);
b)
Partially
oxidized copper and molybdenum zones copper equivalent =
Cu%+Mo%($150.98/$37.84) + Ag g/t($0.27/$37.84).
3.
The
hole bottomed in mineralization.
Hole CGRC-11 is a twin of discovery hole CG-68 which
intersected 228 metres of 0.91% copper equivalent starting at 29
metres. CGRC-11 was drilled as a twin hole to evaluate the accuracy
and reliability of assays received from the reverse circulation drilling
samples. CGRC-11 was lost prematurely and failed to complete or twin
the bottom 63 metres of the CG-68 intercept. CGRC-11 returned
172 metres of 0.54% copper equivalent, approximately 31% lower than
the comparable CG-68 interval which returned 0.85% copper equivalent over
171.15 metres (0.66% copper, 0.08% zinc, 0.020% molybdenum and 11 grams per
tonne silver). Where core recoveries approach 100%, as in the case of
CG-68, and particularly below the water table, sampling of drill core would
generally be accepted as providing more accurate assays than reverse
circulation chip sampling. The lower average grade of CGRC-11 is
attributed to potential sampling problems from water in-flow, and potential
deviation of the rotary hole from the track of the diamond drill
hole. Based on these results, it appears that reverse circulation
drilling may result in an understatement of metal grades, however,
additional twin holes would be required to confirm this conclusion. The
reverse circulation drill will be released from the project, following
completion of CGRC-28, now in progress, and replaced with a diamond drill
rig with significantly greater depth capacity.
Hole CGRC-13 is a -70� east directed hole, located 100
metres south of hole CG-68. CGRC-13 had a short mineralized intercept,
14 metres grading 0.80% copper equivalent, which was cut off by a fault
with unaltered limestone in the footwall. More drilling is needed to
confirm the offset direction of the mineralized zone in this
hole. Hole CGRC-14, a 180 metre vertical hole drilled from the same
setup, encountered barren silicified porphyry from the core of the
alteration system, comparable to CG-65, to the south, which had a long
intercept of weakly mineralized silicified porphyry.
Hole CGRC-15 is a -70� east directed hole, located 60
metres east and parallel to CG-68, and bottomed in 46 metres of 1.46%
copper equivalent, before being lost to water in-flow. Assuming a
northerly trend to the mineralized zone, the 60 metre step-out indicates
the body has an easterly dip with an apparent width of at least 60
metres. A west directed diamond core hole is planned to scissor
CG-68 and CGRC-15, with the objective of providing a true width to this
mineralized skarn body.
West Flank to the Northwest Skarn
Results for the three holes drilled on the west flank of
the porphyry system, in the Northwest Skarn, are provided below. A
drill-hole location map is available on the Company�s website at www.linearmetals.com.
Holes in West Flank to the Northwest Skarn
HOLE-ID
|
From
(metres)
|
To
(metres)
|
Interval1
(metres)
|
Copper
%
|
Zinc
%
|
Molybdenum
%
|
Silver
Grams/
tonne
|
Copper
Equiv.
%
|
CGRC-12
|
56.0
|
88.0
|
32.0
|
0.70
|
0.02
|
0.014
|
11
|
0.84(2b)
|
|
88.0
|
136.0
|
48.0
|
0.06
|
0.01
|
0.056
|
1
|
0.50(2a)(3)
|
|
80.0
|
86.0
|
6.0
|
1.37
|
0.16
|
0.002
|
45
|
1.70(2b)
|
|
130.0
|
192.0
|
62.0
|
0.06
|
0.02
|
0.042
|
2
|
0.37(2a)(3)
|
|
114.0
|
146.3
|
32.3
|
0.87
|
0.35
|
0.001
|
67
|
1.37(2b)(3)
|
|
142.0
|
146.3
|
4.3
|
4.66
|
0.59
|
0.003
|
132
|
5.61(2b)(3)
|
|
144.0
|
146.3
|
2.3
|
6.26
|
0.72
|
0.002
|
191
|
7.59(2b)(3)
|
1.
Intervals
in the table are based on core lengths and do not represent true widths of
the zone, see text for comments on true widths.
2.
Copper
equivalent calculations were calculated 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 asmetallurgical
recoveries (zinc is not expected to be recovered in any of the
mineralization types encountered in these holes) which vary between
sub-zones, resulting in different copper equivalent formulas for each zone
as follows:
a.
Molybdenum
sulphide stockwork copper equivalent = Mo%($349.65 /$39.25) (pending
further metallurgical testing, copper and silver are assumed
non-recoverable in the Molybdenum Stockwork sub-zone).
b.
Partially
oxidized copper and molybdenum zones copper equivalent =
Cu%+Mo%($150.98/$37.84) + Ag g/t($0.27/$37.84).
3.
The
hole bottomed in mineralization.
Hole CGRC-12, an east directed hole drilled at -70�, is
located 160 metres to the northwest of hole CG-68 and was lost in well
mineralized molybdenum stockwork at 136 metres. This hole, the first
in the west flanking skarn, successfully demonstrated the presence of
copper bearing skarn on the west flank of the porphyry. Hole CGRC-12
intersected 32 metres of 0.84% copper equivalent immediately above the
molybdenum stockwork zone which returned 48 metres of 0.056% molybdenum and
bottomed in 0.069% molybdenum. The geometry of the two zones in this
hole appears to be a mirror image to what has been seen on most sections in
the Main Zone.
Holes CGRC-16 and CGRC-17 are east and west directed
holes respectively, drilled at -70� on the same section as CG-68, located
130 metres to the east. The east directed hole, CGRC-16, was lost at
192 metres, within a few metres from the trace of hole CG-65, which is
believed to have followed the �barren� core of the porphyry
system. Hole CGRC-16 had a 6.0 metre high-grade copper-silver
intercept, averaging 1.70% copper equivalent, followed by 44 metres of
anomalous copper skarn and then transitioned to the molybdenum stockwork
zone with 62 metres of 0.042% molybdenum.
Hole CGRC-17, also located 130 metres west of CG68 but
angled to the west, has intersected some of the richest copper and silver
mineralization encountered to date at Cobre Grande bottoming in a 2.3 metre
interval with 6.26% copper and 191 grams per tonne of silver, within a
larger intercept of 32.3 metres of 1.37% copper equivalent (includes 66.7
grams per tonne of silver). Following up the high-grade intercept in
the bottom of CGRC-17 will be a priority when the diamond drill returns to
the
Linear�s V.P. Exploration, Robert Page, commented
�Following completion of our initial 49.8 million tonne, 0.92% copper
equivalent resource estimate at Cobre Grande, we are continuing to build
momentum by consistently intersecting potential ore grade mineralization
while testing completely new targets. In addition to the established
resource, drilling has: confirmed the continuation of mineralization to the
north of our Main Zone resource; produced a significant new discovery in
the Northwest Skarn, where discovery hole CG-68 returned 228 metres of
0.91% copper equivalent; and most recently, resulted in a successful
initial test of the west flank of the porphyry system in the Northwest
Skarn with all three holes hitting strong skarn hosted mineralization,
including the high grade copper-silver intercept in hole CGRC-17. With
these excellent results, we are confident that we will continue to
significantly add to the Cobre Grande
resource.�
Based on the results of a 1,200 metre reverse
circulation drill program at the Ecatepec Project, the Company has
terminated its option agreements, on the two claims held at
Ecatepec. Drill results indicated that copper and zinc mineralization
at Ecatepec was restricted to narrow structures and broad induced
polarization geophysical anomalies are related to pyrite.
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 are assayed for silver, copper,
zinc, lead, and molybdenum using 4 acid digestion and ICP-AES
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
The TSX Exchange has not
reviewed and does not accept responsibility for the adequacy or accuracy of
this release.
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
|