Linear builds confidence at Campamento (February 24, 2005)

Ongoing wedge-drilling at the Ixhuatan project in Mexico is confirming the continuity of grades in the Campamento zone for owner Linear Gold (LRR-T).

Highlighting the latest round of five holes was hole 37, which cut 132 metres averaging 5.8 grams gold and 32.4 grams silver per tonne. The hole was angled 70 to the east from the same site as the vertically drilled hole 27, which previously returned 143.9 metres of 6.6 grams gold. Linear says the hole bottomed in mineralization around 45 metres east of its collar position.

From the same site, hole 39 (angled at 70 to the south) yielded 81.6 metres running 7.1 grams gold and 35 grams silver. The hole also ended while still in mineralization, some 28 metres south of the drill collar. Linear says the hole was lost at a shallow depth owing to mechanical problems with the drill.

The company says the intersection of significant mineralization in different directions form the same collar location indicates a "strong continuity of grade with no preferred structural orientation."

Meanwhile, hole 35 was sunk at a 70 to the south from the same site as previously drilled, vertical hole no. 32 (90 metres of 1.9 grams gold) and hole 34 (70 to the east — 54 metres averaging at 2.6 grams gold). The latest hole cut 12 metres grading 2.3 grams gold and 8.2 grams silver within a thicker lower-grade zone. Linear says the result represents a lower-grade shell identified in other holes along the southern margin of the deposit.

Hole 36, sunk at 70 to the east from the site of vertical hole 31 (three intervals of 1gram gold) yielded 76 metres of 0.5 gram gold, including three 2-to-4-metre sections of about 1 gram gold. The hole is also believed to have encountered the lower-grade shell.

Hole no. 38 was sunk at 70 to the east of hole 22 (formerly the most easterly drill hole), and returned 161 metres of 2 grams gold and 5.3 grams silver, including 94 metres of 3.1 grams gold and 7.4 grams silver. The hole bottomed in mineralization around 57 metres to the east of the collar, and suggests an increase in grade toward the untested southeast portion of Campamento. Hole 22 previously returned 108 metres containing 3.5 grams gold.

The deepest intersection in the latest round of holes was cut at around 167 metres of depth; Linear plans to bring in a bigger drill rig to test the zone to depths of 300-400 metres.

Assay results are pending for holes 40 to 44; drilling continues at an accelerated pace.

“We are encouraged that the angle holes completed in this phase of the program are indicating similar grades and thicknesses as the earlier vertical holes," said Linear’s vice president of exploration for Central America states Phil Pyle in a prepared statement.

"The mineralization is showing good continuity to the southeast and east as well as at depth. The zone of continuous mineralization in the Campamento zone is continuing to grow quickly as three of these five holes have indicated thick zones of strong grade continuity and have bottomed in mineralization.”

At surface, Campamento is characterized by a high gold-in-soils anomaly with values ranging from 100 to 9,700 parts per billion (ppb) over an area 500 metres long and up to 250 metres wide, which is part of a much larger, irregular-shaped, 100-plus parts-per-billion gold anomaly that extends for 1,400 metres in length.

The latest drill results sent shares in Linear as much as $1.45, or 17%, higher to $9.80 in early trading in Toronto on Feb. 24.