January 22, 2008 - Halifax,
Nova Scotia – Linear Gold Corp. (TSX:
LRR) enters 2008 with a solid balance sheet, strategic joint venture
interests providing for $18 million of carried expenditures on the
Company’s properties in Mexico and the Dominican Republic, and
aggressive plans for the Company’s strategic entrance into Brazil,
with agreements in place to acquire up to a 100% interest in four promising
gold properties.
Highlights of 2007’s accomplishments:
-
Raised
CDN$25 million in equity financing;
-
Secured
a strategic joint venture agreement with Kinross Gold Corporation to
aggressively advance Linear’s Ixhuat�n Gold Project in Mexico;
-
Completed
a fully funded joint venture agreement with Everton Resources Inc. to
advance all three of Linear’s gold projects in the Dominican
Republic;
-
Acquired
four gold properties in the Alta Floresta gold province of northern Mato
Grosso state, Brazil as part of the Company’s strategic entrance into
Brazil;
-
Hired
industry veteran Howard Bird as Linear’s Vice President of
Exploration.
Linear’s accomplishments in 2007 make way for the
Company to embark on an aggressive 2008 plan, which includes a strategic
operational focus on Brazil. “With our partners Kinross Gold
and Everton Resources advancing exploration programs in Mexico and the
Dominican Republic through fully funded joint ventures, we can focus our
resources in Brazil, with exploration programs now underway” said
Wade Dawe, President and CEO of Linear Gold.
Highlights of Linear’s 2008 Strategy:
-
Systematically
explore each of Linear’s properties in Brazil with a goal of rapid
advancement to the drilling phase;
-
Commence
drilling on the El Fil�o property during
February 2008, followed by the initiation of drilling at the Apiacas
property;
-
Continue
to build Linear’s exploration team and expertise on the ground in
Brazil;
-
Carry
out rigorous and thorough due diligence in the pursuit of new acquisition
opportunities on a select basis;
-
Build
and maintain a pipeline of quality early stage and advanced gold properties
while disposing of, on a timely basis, those properties that do not meet
our criteria;
-
Collaborate
with Linear’s joint venture partners, Kinross Gold and Everton
Resources, as they advance their respective exploration programs on
Linear’s properties in Mexico and the Dominican Republic;
-
Maintain
a strong balance sheet and attractive corporate and share structure to
maximize leverage to exploration success.
All four of Linear’s recently acquired Brazilian gold
projects host extensive artisan gold workings, with gold mineralization at
or near surface. Pictures of the properties and workings may be viewed on
Linear’s website at www.lineargoldcorp.com.
To date, these properties have not been subject to
systematic exploration using modern scientific methods. The agreements
for these properties mark the Company's entry into a large prolific
gold-bearing region, which Linear believes has significant potential for
large-scale bulk-tonnage and high-grade vein gold deposits.
The El Fil�o property, one of
Linear’s four Brazilian properties, is host to a high-grade gold vein
system. Trenching along the vein indicates values of 11.8 grams per tonne
gold over 80 metres of strike, with the drilling of six holes by a
Brazilian operator in the mid-1990s reportedly indicating values from 9.6
grams per tonne gold up to 104 grams per tonne gold over widths of 0.7 to
1.7 metres in drill core, in addition to impressive silver values.
Drilling is scheduled to start at the El Filao project in
February 2008.
Soil and rock sampling is underway at the Trairao, Apiacas
and Serrinha properties. Drilling will occur at the Apiacas project
during the second quarter of this calendar year, followed by anticipated
drill programs at the Trairao and Serrinha projects. In addition to these
properties, Linear is continuing the process of reviewing a number of other
gold-focused acquisition opportunities in Brazil.
Kinross Gold is continuing to work at the Ixhuat�n property and is
committed to completing a US$15 million exploration program at the Ixhuat�n project over a
24-month period ending in October 2009. To ultimately acquire a 70%
interest in the Ixhuatan project, Kinross
Gold will be required to pay Linear a total of US$100 million plus
production decision fees of up to US$15 million.
In the Dominican Republic, Linear owns three properties
located near the world class Pueblo Viejo gold deposit, with a reported
reserve in excess of 18 million ounces. Linear has granted Everton
Resources options to earn an initial 50% interest in the Ampliacion
Pueblo Viejo concession and the Loma Hueca concession by making cash
payments totaling $0.8 million, incurring total expenditures of $US3.1
million and issuing to Linear 1.4 million Everton Resources common shares
over a three year period. Everton Resources can increase its interest
in either of the concessions, or in the Loma El Mate concession, currently
held 50-50 between Linear and Everton Resources, to 65% by incurring all
additional expenditures to the completion of a bankable feasibility study,
making additional cash payments to Linear and issuing to Linear additional
Everton Resources common shares.
Linear Gold Corp is led by a capable and skilled management
team with extensive corporate and technical experience. Howard Bird
recently joined the Linear team as the Company’s Vice President of
Exploration and will lead the Company’s exploration efforts going
forward. Mr. Bird is a veteran of the mineral sector with
international expertise in all aspects of growing a mining company. He has
extensive experience as a geologist in a broad range of commodities
including gold, base metals, platinum and diamonds. Phil Pyle has been
a senior executive with Linear Gold since 2003 and serves as Linear’s
Vice President of Business and Corporate Development. With 30 years of
industry experience in numerous countries worldwide, Mr. Pyle has been
instrumental in planning and implementing Linear’s strategy in Brazil
and will continue to actively seek strategic acquisitions and
opportunities.
“I am proud of the accomplishments of our team during
2007 and am excited and very enthusiastic about our plan and the
opportunities before us this year. With gold bullion recently hitting
all time highs, the Linear Gold team is focused and committed to building
shareholder value through select acquisitions and exploration
success.” added Mr. Dawe.
This press release has been prepared under the supervision
of Mr. Philip Pyle, Certified Professional Geologist and Linear’s Vice President of Business
and Corporate Development, who serves as the qualified
person for these projects under National Instrument 43-101.
Linear Gold Corp. is actively exploring for gold and base
metal deposits in Mexico and Brazil, and also through joint ventures with
Kinross Gold in Mexico and Everton Resources in the Dominican Republic.
Wade K. Dawe, President & CEO
This news release contains “forward-looking
statements”. Such forward-looking statements, especially those
that address resource quantities, grades, and contained metals, are
generally made on the basis of estimation and extrapolation from a limited
number of drill holes and metallurgical studies. Where the company
expresses or implies an expectation as to future events or results, such
expectation or belief is expressed in good faith and is believed to have a
reasonable basis for the statement. However, forward-looking
statements are subject to risks and uncertainties which could cause actual
results to differ significantly from future results expressed or
implied. These risks include, but are not limited to, metal
price volatility, political and operational risks in the countries where we
operate, and a degree of uncertainty in connection with evaluating a
deposit until the deposit has been extensively drilled on closely spaced
centres.
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