Cobre Grande

Cu-Mo-Zn-Ag Discovery

Cobre Grande Highlights

Cu-Mo-Zn-Ag skarn
Initial Mineral Resource Estimate of 49.8 Million Tonnes of 0.92% Copper Equivalent
New NW Skarn Discovery
Main Zone drilled over 1.6km strike
Mineralized zones open for extension
Drill program underway to delineate and expand the deposit
Metallurgical testing positive
Significant exploration upside with several identified targets currently being tested

Inferred Mineral Resource Table – April 2008

Sub Zone	Tonnes	Copper (%)	Molybdenum (%)	Zinc (%)	Silver (g/t)	Copper Equivalent (%)
Copper sulphide skarn	22,000,000	0.85	0.025	Nil	20.1	1.16
Molybdenum sulphide stockwork	20,200,000	0.11	0.065	Nil	3.0	0.58
Zinc sulphide Skarn	4,200,000	0.24	0.003	2.60	16.0	1.14
Partially oxidized enriched copper skarn	1,600,000	1.28	0.018	Nil	31.0	1.58
Partially oxidized molybdenum skarn	1,700,000	0.39	0.063	Nil	12.2	0.73
Total	49,800,000	0.50	0.040	0.22	12.9	0.92

Notes:

1. CIM definitions were followed for Mineral Resources.

2. A preliminary open pit shell was used to constrain the open pit resources.

3. Mineral Resources were estimated within the open pit shell, at a Net Smelter Return (NSR) cut-off value of C$11 per tonne, representing the pit discard cut-off value.

4. NSR values were calculated using long-term prices of US$2.50 per pound copper, US$20 per pound molybdenum, US$0.90 per pound zinc, and US$13.50 per ounce silver; projected metallurgical recoveries by sub-zone; and assumptions regarding concentrate properties, smelter charges, and payable percentages.

5. Molybdenum, zinc and silver grades for each sub-zone were converted to a copper equivalent grade using the same inputs to determine NSR values.

6. Blocks are 10 metres by 10 metres by 5 metres. Inverse distance squared interpolation was used to estimate block grades.

7. Totals may not sum correctly due to rounding.

8. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

Solid Model of Cobre Grande Main Zone

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The Mineral Resource encompasses the 1.6 kilometre long Main Zone of the Cobre Grande project where exploration has focused to date. Strong metal zonation and surface oxidization led to the definition of five metallurgically distinct sub-zones within the Main Zone. The Mineral Resource for each of the sub-zones is reported separately above. Metallurgical recoveries of each sub-zone have been reported previously (see press release dated April 29, 2008) and are subject to change as more test work is completed, and scenarios for processing are more fully developed.

In addition to this Mineral Resource, the Cobre Grande project offers excellent up-side potential. The Main Zone remains open to the north and the property has excellent potential for hosting parallel mineralized zones to the west of the Main Zone.

The Cobre Grande drill hole database include 71 vertical and inclined diamond holes totaling 22,392 metres of core and 10 reverse circulation holes totaling 1,654 metres of chips and one adit totaling 192 metres of continuous rock chips. Most holes within the Mineral Resource area are aligned along E-W oriented sections spaced 100 metres apart for an average drill hole spacing of approximately 50 to 100 metres. The Cobre Grande drill hole data base contains 9,043 copper, molybdenum, zinc and silver assays taken over sample lengths generally between one and three metres. Assays were composited into four metre equal lengths constrained within the wireframes. A total of 1,386 composite intervals were used to estimate block grades within the wireframes. The block tonnage was estimated from volume by selecting the lower of the mean or median statistic of core density measurements contained within each sub-zone, in all, the database contains 2,186 core density measurements.

Location

The Cobre Grande project is well located with excellent infrastructure 60 kilometres southeast of the city of Oaxaca, Mexico and 190 kilometres northeast of the Pacific port of Salina Cruz., The project is accessed from Oaxaca via the Panamerican Highway to the San Baltazar Guelavila turnoff at kilometer 56. From the junction it is 6 kilometres over gravel road, now being paved, to the town of San Baltazar Guelavila and another six kilometres of dirt roads to Cobre Grande.

Location Map - click here

History

The project is host to numerous small old adits and shafts which exploited oxidized copper-zinc zones in skarn. The number of small mines and mineral showings in the area lead Mount Isa Mines Mexico (now Linear Mexico) geologists to the project. An initial work program which included ground EM, MIMDAS IP, magnetics and surface geochemistry surveys was carried out between 2001 and 2003. This work was followed by a 16 hole drill program that successfully identified significant copper-silver-zinc mineralization below the largest of the old workings, the Kennedy mine and the Cobre Grande Mine, as well as near-surface mineralization beyond the area of the mine. Two drill programs have since been completed, which have successfully identified two significant mineralized skarn zones termed the North and South Zones. The first of these drill programs was carried-out by Linear Gold and the second and current program by Linear Metals. Linear Metals completed a 10,000 metre delineation program in 2007 and a further 5,000 metres since in the delineation campaign. Delineation drilling has now been completed over a strike length of 1600 metres with the work closing the gap between the North and South Zones forming what is now called the Main Zone. Drill hole spacing on this Zone is now down to 100 metres permitting the completion of the initial 43-101 compliant resource calculation released May 5, 2008.

A new discovery area hosting surface mineralization, called the Northwest Skarn, located 700 metres west of the north end of the Main Zone, has recently been identified and is currently being tested. The prospectiveness of the NW Skarn area is supported by the presence of historical workings, surface showings, soil geochemistry anomalies, and road cuts returning 1-6% Zn from rock chip samples. Map 1 locates the drill holes and mineralized zones on the property.

Map 1. Cobre Grande geology map showing mineralized skarn zones/skarn targets and completed and drill hole locations.

Click image to enlarge

Click here to view drill hole highlights for Cobre Grande.

Refer to Map 2 to view Cobre Grande cross sections and 3500N, 2800N, 2400N to view each cross section in detail

Geology

Mineral Emplacement and Zoning

The Cobre Grande deposit is believed to have been formed by a large evolving hydrothermal system related to quartz monzonite porphyry dikes. As is typical of the porphyry copper-molybdenum environment, the system produced zoned mineralization. In general, the core of the mineralizing system appears to be on the west side of the Main Zone and is characterized by high molybdenum values and a 1 to 1 copper to molybdenum ratio. This ratio increases to the east to 50 to 1 as copper concentrations increase and molybdenum concentrations decrease. Molybdenite then disappears entirely as the system zones eastward out of quartz stockworked skarn into unveined zinc dominated skarn. The Main Zone now has a 1600 metre strike length and is still open for extension to the north.

South

The Southern portion of the Main Zone (previously referred to as the South Zone) has multiple holes intersecting over 100 metres of molybdenum and copper mineralization with substantial intercepts exceeding 1% copper. Historically, hole CG-36 has the most impressive intercept in this zone with 130 metres grading 1.62% copper, 0.51% zinc, and 29 grams per tonne silver. CG-36 is located near the middle of the Main Zone drilled underneath the Kennedy mine.

The Main Zone is open to the south but the top of the zone is getting deeper and molybdenum grades appear to be dropping as well. No further drilling on this trend is anticipated. If mineralization is to be extended further south it will be in the hanging wall of the Cobre Grande Fault which has down faulted the top of the Main Zone skarn. The top of the deposit should be preserved beneath limestones to the west of the Main Zone. Mineralization in the near surface in the hanging wall of the Cobre Grande Fault is likely to be zinc dominated as evidenced by the southernmost intercept at Cobre Grande in reverse circulation hold CGRC-09 which intersected 20 metres of 3.15% zinc in what is now called the Southwest Skarn.

Recent drilling in the south on the Main Zone has produced significant copper and molybdenum mineralization in holes CG-41 and CG-47 and impressive zinc mineralization in hole CG-39. CG-41 returned 105.5 metres of mineralized skarn grading 1.00% copper, 0.032% molybdenum and 12 g/t silver. Beneath the copper zone, the hole intersected 58 metres of 0.091% molybdenum while CG-47 located 300 metres to the south intersected 115.5 metres of 0.092% molybdenum. These intercepts, along with high-grade molybdenum intercepts in holes CG-40B and CG-42B (discussed below) highlight Cobre Grande's potential to host a significant molybdenum resource.

Hole CG-39 has produced one of the best zinc intercepts to date at Cobre Grande with 28 metres grading 5.20% Zn. This intercept combined with previously reported zinc intercepts of 26 metres of 1.50% Zn and 36 metres of 2.09% Zn in CG-08 and 150 metres of 2.06% Zn in CG-09 are starting to define a significant zinc zone along the eastern edge of the South Zone skarn.

With the change in the most recent drilling program, starting with hole CG-40B, from drilling east directed angle holes to drilling west directed holes we have seen a dramatic improvement in apparent continuity of mineralization. The skarns along the entire length of the Main Zone dips steeply east and previous drilling resulted in holes drilled sub-parallel to the mineralized body resulting in inconsistent drill intercepts. We see similar zoning in CG-44 as in CG-42B which is located a 1200 metres to the north.

North

MIM’s first hole at Cobre Grande, CG-01, drilled in the north end of what is now the Main Zone, was the Cobre Grande discovery hole with multiple mineralized intervals highlighted by 106 metres of 0.86% copper starting at 6 metres. MIM drill offsets to the south and west had little success and attention shifted to the South. Thus the north end of the Main Zone received little attention until 2006 when Linear Metals offset CG-01 by 56 metres to the north with CG-28. Hole CG-28 then returned one of the longest intercepts yet on the project with 270.2 metres, from surface, averaging 0.97% copper, 26.2 grams per tonne silver, 0.46% zinc and 0.024% molybdenum. This zone was open to the north and potentially to the south prior to the current drill program which has now successfully extended the zone 400 metres north to 3800N. Step-out drilling to the south of CG-01 was also successful in extending mineralization into what was previously considered a barren gap between the northern and southern sections of the Main Zone.

Recent drilling at the north end of the Main Zone is highlighted by holes CG-40B and CG-42B. The former has arguably the best intercept to date a Cobre Grande with 96 metres of skarn averaging 1.76% copper, 0.070% molybdenum, 0.55% zinc and 60 g/t silver, including a 26 metre interval grading 3.37% copper, 0.128% molybdenum, 0.60% zinc and 120 g/t silver in a zone of supergene enrichment. CG-40B was lost in mineralization at the bottom of this intersection. CG-42B, located 130 metres to the north, on section 3500N, had a lesser but still significant copper intercept of 28 metres with 1.18% copper, 0.36% zinc, 0.024% molybdenum, and 30 gpt silver. More significantly it had a strong molybdenum intercept below the copper zone with 74 metres of 0.094% molybdenum.

Importance of Molybdenum

Previous drilling returned several molybdenum intercepts in the range of 0.07% to 0.1% and were assumed to be related to smaller higher grade zones of limited economic significance. The completed program of west directed holes, as highlight by some of the intercepts mentioned above, has changed this assessment and shows that the stockwork quartz veining at the base of the skarn is continuous along the strike of the skarn in its footwall and other than some diked out gaps consistently carries plus 0.04% molybdenum. More significantly, there appear to be core areas, in both the North and South Zones, where molybdenum in stockwork approaches or exceeds 0.1% molybdenum over 50 to 125 metre widths.

IP Survey

A 20 line kilometre IP survey was completed on E-W lines spaced 200 metres apart starting at 1300N and extending north to line 4700N. These complement 7 E-W MIMDAS IP lines surveyed by MIM in 2002 between 2700N and 3900N. Every line of both surveys has significant anomalies, in addition to those related to the North and South Zone skarns. The first of the new anomalies to be tested was that coincident with outcropping mineralization in the Northwest Skarn and produced discovery hole CG-68.

Airborne Survey

Aeroquest Surveys have completed a 1,100 line kilometre airborne magnetic and EM survey over the entire 6,200 hectare claim block under option to Linear Metals. The survey provides general data useful for structure and lithology mapping. The most striking feature in the entire survey is an elongate magnetic high that is coincident with the strike of the North and South Zones. Drilling has now extended to the southern limit of the anomaly but the high remains untested north of 3600N to the limit of the anomaly at 4500N.

The magnetic anomaly map shows lesser but possibly still significant anomalies 500 to 1000 metres to the west of the main anomaly discussed above. One of these is coincident with the Northwest Skarn target adding further support for that target area. There is a larger, but lower amplitude, anomaly extending to the southwest from the Northwest Skarn area. This broad anomaly coincides with a multi-line IP anomaly and which if shown to be mineralized with other than pyrite would be the largest untested target area on the project. There is no significant surface geochem anomaly with this target area with only unaltered limestone seen at surface.

Cobre Grande Discovery and Surrounding Targets

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Priority Targets

A - NW Skarn

B - North Extension Target

C - 1.6km Long Main Zone

Advanced Targets

D - Far North Target

E - West Target

F - SW Target

click image to enlarge

Metallurgical Testing

Initial metallurgical testing on both sulfide (samples of molybdenum stockwork, copper-molybdenum skarn, zinc-copper skarn and partially oxidized copper-zinc skarn mineralization types) and oxide mineralization types (20 samples) has been initiated. Results from are compiled in the table below and are viewed as being positive. In particular the estimated recoveries of copper and silver in the copper zone are higher than expected and the recovery of molybdenum from the molybdenum stockwork zone is as well.

Sample	Feed Grade Copper %	Copper Recovery %	Feed Grade Mo%	Mo Recovery %	Feed Grade Zn %	Zinc Recovery %	Feed Grade Silver Grams per tonne	Silver Recovery %
Copper sulphide skarn	1.36	95%	0.021	60%	0.22	nil	33.0	83%
Molybdenum sulphide stockwork	0.05	nil	0.120	90%	0.03	nil	1.4	nil
Partially oxidized enriched copper skarn	1.44	82%	0.050	35%	0.79	nil	44.0	60%
Zinc sulphide skarn	0.37	60%	0.013	30%	3.13	70%	18.0	45%

Note: “nil” indicates that no potentially saleable concentrate could be produced based on the material tested and projected recovery at this time is zero.

Overall Plan

Linear Metals expects to complete a scoping study prior to March 2009 when the decision must be taken to exercise the option on the claims at Cobre Grande. Work between now and then will be directed to providing information needed for that study, and to insure the largest possible resource is identified by that time.

Linear Metals Option to Purchase 100% of Cobre Grande

During March 2006, Linear Metals Mexico acquired an option from Linear Gold Mexico to earn an 80% interest in the Cobre Grande Property by making all remaining payments to the community.   Linear Metals Mexico also has an option to purchase the remaining 20% interest in the property from Linear Gold Mexico for US$1.2 million at any time prior to December 2008. If Linear Metals Mexico does not exercise its option with Linear Gold Mexico, an 80/20 joint venture will be formed between Linear Metals Mexico and Linear Gold Mexico with Linear Metals Mexico acting as operator.

A five-year option agreement to purchase the concessions was entered into by Linear Gold and the
local community of San Baltazar Guelavila (the "Community"), the concession title holder, in March 2004. Under the terms of the option, Linear is required to make the following payments to the Community:

Date               Option Payment      Community Education Fund
March 2004       US $25,000                   US $10,000
March 2005       US $40,000                   US $10,000
March 2006       US $55,000                   US $10,000
March 2007       US $80,000                   US $10,000
March 2008       US $80,000                   US $10,000
March 2009       US $80,000                   US $10,000

At the end of the five-year option period, if Linear Metals decides to exercise the Option, it is up to the Community to choose between a US$12 million buyout, a 2% Net Smelter Return Royalty, or a 15% carried joint venture interest in in the project in return for signing titles over to Linear Metals.

The technical information on this website was prepared under the supervision of Linear Metals’ Vice President of Exploration, Dr. Robert Page, P. Geo., a qualified person as defined by National Instrument 43-101.

Image 1 - NW Target (road cuts 1-6% Zn)