HALIFAX, NOVA SCOTIA, Feb 22, 2010 (MARKETWIRE via COMTEX) — Linear Gold Corp. (“Linear”) is pleased to announce the results for the first three drill holes of the 2010 Box Deposit drill program at Linear’s 100% owned Goldfields Mine Development Project, located in Saskatchewan, Canada. The gold zone was intercepted immediately below the established Proven and Probable gold reserves of 1,030,400 ounces contained within the combined Box and Athona Gold Deposits. The initial results confirm the excellent potential for additional gold mineralization within the Goldfields Project which could extend the planned mine life beyond 14.3 years and/or increase planned annual production rates beyond 70,000 to 90,000 ounces of gold per year.
Highlights from the first three drill holes of the 2010 Box Deposit drilling program include:
– Hole B10-303, which returned 2.28 grams gold per tonne over an estimated true width of 29.1 metres, including 3.87 grams gold over 14.1 metres; and
– Hole B10-304, which returned 2.52 grams gold per tonne over an estimated true width of 41.7 metres, including 6.84 grams gold per tonne over 13.9 metres.
The initial objective of the 2010 drilling program is to test for mineralization immediately below the bottom of the proposed Box Deposit open pit. Drill holes, B10-303, 304 and 305, were targeted to intersect the projected down-dip extension of the Box Deposit, where encouraging gold results were returned from limited drilling, as reported by GLR Resources Inc. (“GLR”) during 2007, including:
– Hole B07-292, which returned 2.13 grams per tonne of gold over an estimated true width of 47.81 metres, including 8.35 grams per tonne of gold over 8.60 metres;
– Hole B07-294, which returned 6.32 grams per tonne of gold over an estimated true width of 16.72 metres, including 11.47 grams per tonne of gold over 8.80 metres; and
– Hole B07-296, which returned 2.54 grams per tonne of gold over an estimated true width of 23.76 metres, including 5.57 grams per tonne of gold over 7.90 metres.
Results from Linear’s First Three Drill Holes of 2010 Drill Program.
Drill From To Core Length True Width Gold
(grams per Hole (metres) (metres) (metres) (metres) tonne)
B10-303 192.5 223.5 31.0 29.1 2.28
including 201.5 216.5 15.0 14.1 3.87
including 201.5 206.5 5.0 4.7 7.50
B10-304 192.0 233.7 41.7 41.7 2.52
including 192.0 205.9 13.9 13.9 6.84
B10-305 217.7 223.7 6.0 6.0 1.68
and 242.7 248.7 6.0 6.0 0.51
Howard Bird, Linear’s Vice President of Exploration, stated: “I am very pleased with the excellent results that were returned over significant widths from Linear’s first three drill holes targeting mineralization below the planned Box Deposit pit bottom. These drill holes, together with the historical GLR 2007 drill holes, have intersected the projected down-dip extension of the Box Deposit over an area approximately 30 to 150 metres from the bottom level of the proposed open pit. The results confirm that there is excellent potential to add additional ounces to the Box Deposit gold reserve which could potentially be mined by deepening the current design of the open pit. The Box Deposit remains open at depth and higher grade gold results are known to occur at or near the hanging wall contact, representing excellent potential for the discovery of deeper underground zones below the Box Deposit. Linear is looking forward to receiving further results from the 2010 Box Deposit drill program as well as initial drill testing of several high-priority geophysical anomalies identified from the recently completed Titan 24 Deep IP geophysical program that may be indicative of new mineralized systems.”
An Induced Polarization (IP) and Resistivity (DCIP) survey using the advanced Quantec Geoscience Titan 24 geophysical system was completed on February 19, 2010. The Titan 24 geophysical system acquires high-resolution results to depths of approximately 700 metres. Linear’s program was designed to identify new gold mineralized systems near the Box and Athona Gold Deposits. Through processing, inversion and interpretation of results, information can be obtained on conductive mineralization, disseminated mineralization, alteration, structure and geology. The survey covered an area of 13 square kilometres and final data processing and modeling is expected to take two to three weeks. Early processed results show the Box and Athona Gold Deposits as chargeability and resistivity anomalies. Linear’s 2010 drill programs will test several look-alike geophysical anomalies.
The Goldfields Project includes Linear’s extensive contiguous property holdings of over 25,000 hectares, located within a prolific gold-bearing region of Saskatchewan. The project area hosts a wide variety of mineralization and historical underground development, including the Box Mine, which produced as an underground gold mining operation from 1939 to 1942. Twelve additional gold occurrences have been documented on the property. All of the known gold deposits and occurrences are exposed at surface, most of which were discovered through surface prospecting during the 1930’s. The Box and Athona Deposits, the two known deposits on the property, are located two kilometres apart and will utilize a central processing mill facility. The Box and Athona Deposits are both large multi-million tonne open pit deposits, located on the western flank and near the nose of the Goldfields syncline. Both deposits have potential for increased open pit gold resources and there is good potential for higher grade gold mineralization, which may be suitable for underground mining methods below the proposed open pits.
The project area is located 25 kilometres from Uranium City, Saskatchewan, and is serviced by excellent local infrastructure, including an airport, hydro-electric power, telecommunications, a good road system, a field office, a core shack and living quarters with kitchen facilities for the exploration team.
Assaying was by the total metallic method to eliminate any loss of the coarse gold fraction during sample processing in the assay laboratory. Sample processing and gold assaying was done by TSL Laboratories Inc. of Saskatoon, Saskatchewan.
Please refer to Linear’s website at www.lineargoldcorp.com for drill hole locations.
Mr. John Dixon, P.Geo., Senior Project Geologist of Linear and a qualified person under National Instrument 43-101, has approved the technical information and has read this press release.
Cautionary Note Regarding Forward-Looking Information This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the future financial or operating performance of Linear and the Goldfields Project, statements regarding exploration prospects, statements regarding synergies and financial impact of the proposed transaction, the terms and conditions of the transaction, the benefits of the proposed transaction, the identification of mineral reserves and resources, costs of and capital for exploration and development projects, exploration and development expenditures, timing of future exploration and development activities, expected production, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”.
Forward-looking information is based on various assumptions and on the best estimates of Linear, as the case may be, as of the date hereof, and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company(and the company resulting from the successful completion of the proposed transaction) to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; delay or failure to receive board or regulatory approvals; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of mineral prices; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; and, delays in obtaining governmental approvals or required financing or in the completion of activities, and as well as those risks identified under “Risk Factors” disclosure sections in the documents filed under the profile of SEDAR by Linear from time to time. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
The TSX Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Linear Gold Corp.
Director of Investor Relations