Linear heads south on Mexican results

Unimpressed by the latest batch of drill results form the Ixhuatan project in, Mexico, investors sent shares in Linear Gold (LRR-T) 91, or more than 12%, lower to $6.50 in afternoon trading in Toronto on May 6.

Hole no. 58, the first hole to test the Western anomaly target, 1 km northwest of the main Campamento zone, yielded 12 metres (from 4 metres below surface) grading 1.6 grams gold and 0.7 gram silver per tonne, and 2 metres (from 28 metres) of 1.4 grams gold and 0.4 gram silver. Assay results from depths below 38 metres are pending.

The mineralization is associated with a zone of recrystallized limestones rather than volcaniclastic rocks like at Campamento. Analytical results from depths below 38 metres in Hole IX-58 remain pending.

Meanwhile, hole 53 on the Campamento zone is highlighted by a 2-metre interval (from 136 metres) running 1.3 grams gold and 19 grams silver. Another 28.1-metre section at the bottom of the hole (302 metres) contained 0.9 gram gold and 5.5 grams silver. Four other intervals measuring 2-4 metres generally grade around 1 gram gold and 2-6 grams silver.

The hole was collared 88 metres east of 29, which previously yielded 84 metres (from 88 metres) of 0.2 gram gold. That hole was a 100 step-out from hole 26, which intersecting 100.3 metres averaging 12 grams gold and 63.7 grams silver.

Linear says that while hole 53 did identify several shallow and thin gold-bearing zones, and a deeper zone to the southeast, it failed to reach its target depth of 450 metres.

Hole 54, drilled adjacent to previously sunk hole 46 (79.6 metres of 7.5 grams gold and 51 grams silver), encountered 2 metes of 1.2 grams gold and 4.4 grams silver, and a lower 54-metre stretch running 0.7 gram gold and 2.4 grams silver.

Holes 51 and 52 were sunk from the same site, 58 metres to the northwest of discovery hole 9 (30 metres at 11.5 grams gold), and cut 18 metres of 0.5 gram gold and 3.6 grams silver, and 10 metres of 0.5 gram gold and 3.9 grams silver.

Hole 55 performed better yielding a 22-metre interval of 3.6 grams gold and 5.6 grams silver; the hole was collared 44 metres northwest of hole no. 9.

Meanwhile, soil sampling has expanded the Western anomaly to the northeast, with one sample returning up to 1.6 grams gold. Nearly 40% of 59 samples collected east of the Cerro La Mina anomaly exceeded 0.1 gram gold, with a high value of 1 gram. The anomaly has been extended some 300 metres to the east.