| With Reprint Permission of The Bull & Bear|
Linux Gold Stakes Large Polymetallic and
Uranium Area On Alaska's Seward Peninsula
In Vicinity of Teck Cominco, NovaGold and Northern Dynasty
Significant mineral potential for: uranium, copper,
zinc, lead, tin, molybdenum, gold, silver and platinum
In a stealth winter flight over western Alaska’s remote Seward Peninsula, Linux Gold Corp. (OTC BB: LNXGF) -- www.linuxgoldcorp.com -- jumped ahead of its rivals to stake a vast swath of prime land with studies dating back to the 1940s. The area has favorable discovery leverage to uranium, as well as base and precious metals, which have grown greatly in demand.
LINUX GOLD CORP.
OTC BB: LNXGF
Investor Relations Office:
Suite 1070 - 777 Hornby Street
Vancouver, BC, Canada
Toll Free: 877-549-GOLD
John Robertson, President
#1103 - 11871 Horseshoe Way
Richmond, BC, Canada
Toll Free: 800-665-4616
Corporate Web Site:
Estimated Float: 30 million
Number of Shareholders:
52 Week Trading Range:
Hi: $0.33 Low: $0.10
“Our new Alaska property is an excellent parcel of land with quality historical data to give us a head start on exploration. We strongly believe that exploration success is one of the best ways to create new shareholder value," says Linux President John Robertson. “It’s a mineralized area that warrants investigation to find the source of uranium placer in one zone, and base metal (polymetallic) in the other zone. The third zone contains gold and platinum values in the placer. We’re quite excited.”
"Linux Gold’s Granite Mountain project will broaden the company’s focus from purely gold exploration to a more balanced polymetallic mix that will enable the company to benefit from growing worldwide demand for uranium and base metals. We went out last winter to stake the core of the mineralized areas because we didn’t want anyone else to jump on it”, says Robertson.
Linux Gold decided to enter this new mining sector upon the urging of it’s astute geologist who knew of reliable historical geologic studies that strongly indicated the presence of uranium, precious and base metal mineralization.
What the company now controls is 37 square-miles of prime ground in the heart of the historic Koyuk Mining District an area long known for productive placer deposits of gold and platinum group metals, as well as igneous-hosted base metals.
Granite Mountain Claim Blocks
Show Strong Mineralization
Granite Mountain is located on the Alaska Seward Peninsula about 130 miles east of the town of Nome and 12 miles north of Dime Landing. The topography, situated high along the continental divide, is devoid of large vegetation. Several small creeks have their source at Granite Mountain in the form of natural seeps and surface drainage. The remote location does have a landing strip but no road system. The nearest town, Haycock, is about 15 miles by air. The area does have excellent accessibility via water on both the northern and southern tips.
Linux Gold’s three claim blocks, totaling 148 separate state mining 160-acre claims, encompass the best areas identified in a series of exploration and sampling programs conducted by the U.S. Geologic Survey in the 1940s, 1950s and 1960s.
Kiwalik Claim Block located west of Granite Mountain at the head of the Kiwalik River and believed to contain significant deposits of lead, zinc, silver, copper, gold and tin. A large altered and mineralized area found in 1968 showed large concentrations of base and precious metals the company believes may continue at depth as part of a large intrusive system.
Peace River Claim Block located on the east flank of Granite Mountain at the headwaters of the Peace River. Soil samples collected in the early 1950s and again in the late 1960s included concentrations of base metals that are highly indicative of a high-grade uranium lode deposit.
Dime Creek Claim Block located south of Granite Mountain where unusually pure placer gold-platinum deposits on Dime Creek were first discovered in 1910. Data indicates that at least 25,000 ounces of gold and platinum were recovered from the deposits. The previous results lead Linux to believe these placer deposits are “highly indicative” of both significant placer reserves and lode sources with significant odds for discovery.
Alaska Holds Potential for World Class Deposits
Alaska’s vast and largely unexplored wilderness represents a continuing opportunity for mining companies. Alaska has more land open to mineral exploration and development than any other western state 49.6 million acres of federal land and 44 million acres of private land owned by native corporations and has a greater potential for the discovery of world class deposits that many other areas of the world.
The state already has a reputation for mining elephants. The original Kennecott copper deposit contained ore grading as high as 70%. The Greens Creek Mine produced 7.6 million oz. of silver, 37,000 oz. of gold, and 58,700 tons of lead-zinc concentrate each year. The Teck Cominco Red Dog Mine located 180 miles north of Linux produces over 500,000 tons of zinc, lead and combined concentrates per year and has a mine life of approximately 50 years. Northern Dynasty is Alaska’s Pebble copper deposit, discovered in 1989, contains at least 500 million tons of 0.35% copper gold, molybdenum, porphyry and 0.012 oz. of gold per ton. NovaGold has 4 properties in the vicinity with one containing over 25 million ounces of gold reserve (Donlin Creek) with substantial upside upon further exploration. The other properties contain large reserves of copper and gold. The state is also believed to hold as much coal as in all of the other states combined. And, according to the Alaska Miners Association, within the next 18 months, operators of six mining projects are expected to begin construction of major mines.
Seward Peninsula Has “High Mineral Potential”
Linux Gold’s claim blocks are all within a virtually unpopulated area within the historic Koyuk Mining District. The area has seen only limited development mostly small placer mining operations. The tiny native town of Koyuk originally a supply town for nearby gold and coalmines is located at the mouth of the Koyuk River at the southeastern-most part of the Seward Peninsula.
Platinum group metals have been recovered during placer gold mining operations of streams draining the Granite Mountain alkaline complex. Unpublished aeromagnetic data indicates that an intrusive ultramafic complex, much larger than the exposed 37 square mile Granite Mountain complex, lies beneath the surface.
According to the Alaska Office of Project Management and Permitting, there are areas “of high mineral potential” along the watersheds of the Koyuk and nearby rivers. The headwaters of the Peace River, a tributary of the Koyuk, rise in the Granite Mountain area.
The U.S. Geological Survey has trenched the Peace River and Granite Mountain area with a bulldozer and dug test pits by hand. A report issued in 1968 concluded that the Seward Peninsula was one of the “most favorable regions for prospecting for vein-type (uranium) deposits.”
Fish Creek and China Projects Advance
Recent drill results (2004) at the Linux Gold’s Fish Creek Gold Target in Alaska’s Fairbanks Mining District indicated economic placer gold values according to a leading placer geologist. Several lode targets were discovered during the placer program. The joint venture partners, Linux Gold and Teryl Resources, plan to elevate the upper part of the pay streak to reserve status this year through further drilling and locate lode deposits similar to the nearby 4 million ounce Fort Knox gold mine.
Linux Gold is working to retain a reputable independent geologist to evaluate and complete a (43-101) report on its gold properties in Fengning, Hebei Province, People’s Republic of China, with the goal of identifying drill targets that will prove sufficient economic gold to feed a 50-ton per day pilot mill that is on the property. Preliminary testing and samples are excellent with some results as high as 2 oz. per ton AU.
Linux Gold recently raised US$500,000 and is well financed to pursue the first stage of exploration at Granite Mountain. The company faces minimal property acquisition costs for the new Seward Peninsula claims since all are
on State of Alaska public lands and are open to mineral entry.
During the coming year, Linux Gold plans a geophysical survey to map the structure, rock contacts, and potential mineralized zones below the extensive tundra cover of the Granite Mountain area. Detailed geochemical and ridgeline mapping of the Kiwalik and Peace River claims will identify potential metal-rich drill targets. The company also plans an examination of Dime Creek’s previous placer workings, as well as sampling of virgin gravel and bedrock outcrops.
Jeff Keener, Linux geologist, believes areas of Granite Mountain are similar geologically to Northern Dynasty’s Pebble porphyry gold-copper-molybdenum project, the largest deposit of contained gold and the second largest deposit of contained copper resources in North America.
-- DISCLAIMER --
ADVERTORIAL DISCLAIMER-- Teryl Resources Corp. has paid a fee to The Bull & Bear Financial Report for the advertorial and for the promotional services provided by The Bull & Bear Financial Report. The directors, employees of The Bull & Bear Financial Report do not own any of the stock of the above-mentioned company.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS -- Certain statements in this document constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: risks inherent in restrictions of foreign ownership; uncertainties relating to carrying on business in foreign countries; the Company's history of operating losses and uncertainty of future profitability, uncertainty of access to additional capital environmental liability claims and insurance; and dependence on joint venture partners. Certain forward-looking statements will be identified by a cross-reference to the Special Note. Forward-looking statements are typically identified by the words: believe, expect, anticipate, intend, estimate and similar expressions, or which by their nature refer to future events. The Company cautions investors that any forward-looking statements made by the company are not guarantees of future performance, and that the actual results may differ materially from those in the forward-looking statements as a result of various factors, including but not limited to, the Company's ability to be able to continue its substantial projected growth, or be able to fully implement its business strategies, or that management will be able to successfully integrate the operations of its various acquisitions.
Email this Article to a Friend