Linear Metals Plans Aggressive 2008 Work Programs
Thu Jan 10, 9:22 AM
ca.news.finance.yahoo.com
TORONTO, ONTARIO--(Marketwire - Jan. 10, 2008) - Linear Metals Corporation (TSX VENTURE: LRM.V) enters 2008 with great anticipation and confidence following exploration success at two significant copper-molybdenum discoveries in 2007. Linear believes that the Cobre Grande and KM61 Discoveries each have an excellent chance of being developed into significant copper and molybdenum deposits and has planned aggressive work programs to advance the properties during 2008. Highlights of the properties and overall 2008 plans and objectives to be accomplished within a $10 million exploration budget include:
Cobre Grande Discovery - Oaxaca, Mexico
Property Highlights:
- copper-molybdenum-zinc-silver mineralization confirmed over a strike length of 1.1 kilometres
- open for expansion along strike
- 2007 drill results included:
-- Hole CG40B returned 96.3 metres of 1.76% copper, 0.070% molybdenum, 0.55% zinc and 59.8 grams per tonne silver; and
-- Hole CG41 returned 105.5 metres of 1.01% copper, 0.033% molybdenum and 12.1 grams per tonne silver
- Favorable location and infrastructure
- Excellent additional exploration potential
2008 Plans and Objectives:
- completion of 43-101 compliant resource estimate by April 2008
- initiation of scoping study with expected completion in Q4
- metallurgical and environmental baseline studies
- 6,000 metre exploration program to test highly prospective targets
KM61 Discovery - Ontario, Canada
Property Highlights:
- molybdenum-copper-silver mineralization confirmed over a strike length of 1.1 kilometres
- open for expansion along strike, width and depth
- 2007 drill results included:
-- Hole K-07-16 returned 86.3 metres of 0.075% molybdenum, 0.13% copper, and 3.3 grams per tonne silver; and
-- Hole K-07-17 returned 56.9 metres of 0.148% molybdenum, 0.08% copper and 1.8 grams per tonne silver
- Favorable location and infrastructure
- Excellent additional exploration potential
2008 Plans and Objectives:
- completion of 43-101 compliant resource estimate in Q3/Q4
- initiation of scoping study
- metallurgical and environmental baseline studies
- 25,000 metre delineation and exploration program
- test highly prospective SW Zone with potential to double the size of the discovery.
Linear Metals' President, Brian MacEachen, comments "2008 will be a break-out year for Linear Metals with the completion of multiple milestones for each of the Cobre Grande and KM61 projects. We have the resources and the team in place to deliver on our aggressive but achievable objectives for both projects during 2008 and we have designed drill and work programs that will see both properties systematically advanced. We look forward to reporting on the results of these drill programs and our overall progress throughout 2008."
A summary of the Cobre Grande and KM61 projects and additional details on Linear's 2008 programs and plans are included below. Detailed descriptions of both properties are available on the Company's website www.linearmetals.com.
Cobre Grande - Mexico
The Cobre Grande Project, located 60 kilometres east of Oaxaca City, Mexico, is Linear's most advanced project. The project hosts a skarn system with copper-moly-zinc-silver mineralization confirmed by drill results over a strike length of 1,100 metres, at widths varying between 50 to 200 metres, along the combined strike of the North and South Zones. The mineralized elongate skarn follows the eastern flank of a porphyry dike swarm and shows consistent zoning in all sections across the skarn. Given the outstanding results of 2007, Linear has decided to fast track Cobre Grande towards scoping and feasibility and has set the following plans and objectives for 2008:
Completion of a 43-101 Resource Estimate:
Delineation drilling over the 1,100 metres of combined strike along the trend of the North and South Zones is complete along with an additional 300 metres for which results are pending (on 17 drill holes) and work on a 43-101 compliant resource estimate will begin as soon as all assays are received. The report, to be prepared by Scott Wilson Roscoe Postle Associates Inc., is expected to be completed by the end of April.
Detailed Metallurgical Testing:
Metallurgical testing on 5 sulfide samples and 20 oxide samples has been initiated with results expected by the end of the first quarter. These will determine the extent and nature of a second round of more detailed tests to be completed by year end.
Initiation of Baseline Environmental Studies:
Fauna, flora, water quality, and air quality baseline data will be collected by Mexican environmental consults over the course of 2008. The data will provide the foundation for anticipated detailed environmental assessment work in 2009.
Completion of a Positive Scoping Study:
Data from the 43-101 resource estimate and initial metallurgical tests will be incorporated into a scoping study to be completed as rapidly as practical, but no later than the end of 2008.
Exploration Success Leading to a New Discovery:
Cobre Grande has excellent untested exploration potential and Linear is confident the current 6,000 metre drill program will result in one or more new discoveries in the first half of 2008. Prime targets include:
- the North Zone extension beyond the currently identified area of mineralization;
- the Northwest Skarn Zone which has produced a strong geochemical anomaly and ore grade assays such as one road cut which returned 16 metres of 0.35% copper, 2.41% zinc, and 19 grams per tonne silver;
- IP targets from the 2007 IP program where all 18 E-W IP lines, spaced 200 metres apart, encountered strong IP anomalies, most of which have never been drill tested.
KM61 - Ontario
The KM61 Project, attractively located along an all weather gravel road 60 kilometres east of Armstrong, Ontario and only 11 kilometres north of the main CN rail line, hosts a molybdenum-copper-silver porphyry. As a result of the excellent project location and infrastructure, few challenges are anticipated for any future development of KM61. Drilling during 2007 increased the strike of molybdenum-copper mineralization to 1,100 metres over a width of up to 350 metres and extending to at least 250 metres depth. The mineralization at KM61 appears to be similar in age and grade to Moly Mines' Spinifex Ridge deposit which is reported to host a measured and indicated resource of 469.8 million tonnes grading 0.058% molybdenum, 0.09% copper and 1.7 grams per tonne silver. The 2008 objectives for the KM61 program include:
Delineate Deposit and Complete a 43-101 Resource Study:
Two drills have recently began work on a 25,000 metre program with one drill dedicated to delineation of the Main Zone of molybdenum-copper mineralization, currently extending over 1,100 metres in strike length. At the conclusion of the drill program, or earlier if justified by results, Linear will contract out a 43-101 compliant resource estimate. The most probable timing for completion of the resource study is the end of the third quarter.
Exploration Success Leading to a New Discovery in SW Zone:
A recently completed IP survey, and follow-up trenching, has identified a second stockwork zone, now termed the SW Zone. This zone starts just 100 metres to the southwest of the Main Zone, and based on the IP data appears to continue for at least 900 metres along strike widths comparable to the Main Zone. If confirmed by drilling, the SW Zone could double the potential size of KM61.
Initiate Metallurgical Testing:
Initial samples of characteristic mineralization will be collected for metallurgical testing during the first quarter. Results will be available for consideration in the resource study.
Property-wide Exploration:
The KM61 property covers the drainage basins of several lakes with strongly anomalous molybdenum in lake-bottom silt samples. Some of the anomalies cannot be linked back to either the Main or SW Zones indicating additional alteration-mineralization zones are present on the claim block. As soon as possible an airborne survey will be commissioned, to be followed by prospecting, mapping, soil sampling, ground geophysics, and drilling of any identified targets.
Initiation of Baseline Environmental Studies:
Flora, fauna and water quality baseline data will be collected by an environmental consulting firm commencing in the spring/summer of 2008. The data will provide the foundation for anticipated detailed environmental assessment work in 2009.
Other Exploration
Linear also has a pipeline of earlier stage base metal projects in Mexico and Canada. While the Company's primary focus will be on advancing the Cobre Grande and KM61 projects, the Company will continue to manage its pipeline of projects by systematically advancing properties to determine their relative merit and where appropriate, drill testing selected targets. At present, only the Ecatepec Project in Oaxaca is scheduled for drilling in 2008. This copper-zinc-silver skarn prospect was optioned from the community of Santa Maria de Ecatepec during 2007 and will see a 1,000 metre reverse circulation drill program in the first half of 2008. The Company will consider additional drilling, subject to favorable results from the initial program.
TSX Listing
Linear has filed a listing application with the TSX and anticipates graduation to the Toronto Stock Exchange early in 2008.
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).
Brian MacEachen, President
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 form those in the forward-looking statements. The likelihood of future mining at Cobre Grande and KM61 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 KM61 and there is no assurance that the mineralization at Cobre Grande and KM61 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.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contacts
Investor Relations
Linear Metals Corporation
(416) 216-4708 or
Within North America Toll Free at 1-866-376-7683
Website: www.linearmetals.com |
