Linear Metals is focused on exploring a district-scale land package in Kenya that shows potential for multiple gold deposits. Drilling at the Kamwango prospect within the land package has returned high-grade intercepts including 10.68 g/t gold over 4.8 meters. The company's land holdings cover approximately 2,000 square kilometers of underexplored greenstone belt with a long history of artisanal gold mining. Linear also owns the KM61 molybdenum project in Nunavut, Canada that has a large molybdenum-copper-silver resource defined. Ongoing exploration aims to deliver multiple discoveries to create shareholder value from Linear's gold and base metal
1. A Golden Investment Opportunity
High Grade Gold Within District-Scale Land Package
February 2012
2. Cautionary Notes and Disclaimers
This presentation may contain forward-looking statements including,
but not limited to, comments regarding the timing and content of
upcoming work programs, geological interpretations, receipt of
property titles, potential mineral recovery processes, and other related
matters. Forward-looking statements address future events
conditions and therefore involve inherent risk and uncertainties.
Linear Metals’ projects in Kenya, Canada and Mexico are at an early
stage and all estimates and projections are based on limited, and
possibly incomplete, data. More work is required before the
mineralization and the economic aspects of the projects can be
confidently modeled. Actual results may differ materially from those
currently anticipated in this presentation. No representation or
prediction is intended as to the results of future work, nor can there be
any promise that the estimates and projections herein will be
sustained in future work or that the projects will otherwise prove to be
economic.
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3. Linear Metals
Linear is focused on the exploration of a
district-scale land package along a prolific
gold-hosting greenstone belt in southwestern
Kenya. Highlights of Linear’s strategic land
package include:
► Approximately 2,000 square kilometres
(200,00 hectares) of prospective mineral
belt under license and/or application;
► Long history of near-surface gold
extraction by local artisanal miners that
continues today;
► High-grade gold mineralization
confirmed by early drill results and
sampling;
► Demonstrated mineralization throughout
Linear’s project area with the potential
for several mineral deposits
Linear’s ongoing exploration program has
the potential to deliver multiple large-scale
discoveries for Linear’s shareholders.
Artisanal activity at Linear License
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4. Management Team
Brian MacEachen, CA – President & CEO
▶ Industry experience spans 25 years with small, mid and large cap mining companies
▶ Experience includes operations, project development, exploration discoveries, company
start-ups including roles with Brigus Gold Corp., Franco-Nevada Mining Limited, Aur
Resources Inc., and Avalon Rare Metals Inc.
Wade K Dawe – Chairman
▶ Mining and venture capital entrepreneur since 1994
▶ Chairman, CEO & President of Brigus Gold Corp. (founder of Linear Gold Corp. in 2003)
Matt Rees – Vice President Exploration
▶ Over 25 years of exploration experience with18 years at Noranda/Falconbridge including
Mexico, Mongolia, Turkey, Spain, Ireland & USA
▶ Involved in multiple discoveries – KM61, Esker Lake & JG (Pb-Zn-Ag) in the high Arctic and
Rod Au Zone which became part of the Jolu Mine
Keith Abriel, CA, CFA – Vice President & CFO
▶ Senior finance professional
▶ Former CFO of Linear Gold Corp
Jim Megann – Director of Investor Relations and Marketing
▶ Senior marketing and communications consultant
▶ Over 25 years IR and marketing experience
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5. Capital Structure
Toronto Stock Exchange LRM
Shares issued 63.4 million
Fully diluted shares 72.4 million
Recent market cap ~$15 million
Inside ownership >20%
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6. Key Asset - Kenya
2000 km2* Along Under-Explored Greenstone Belt
▶ District-scale Opportunity
▶ Greenstone belt extends into Tanzania and is host to several large
gold producers notably African Barrick and AngloGold’s projects
with combined resources of over 40 million ounces of gold
▶ Multiple prospects throughout Linear’s property area with
demonstrated high grade gold mineralization
▶ Linear’s 100% focus
*Includes applications pending
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7. Kenya
Mineral Opportunities
Attractive geologic environment - Archean
Greenstone Belt
Long history of colonial and artisanal
mining
Underexplored with limited modern
exploration
Early participant advantage
Country advantages
English speaking country with the highest
number of college/university educated
professionals in East Africa
Supportive government
New constitution approved in 2010
New mining legislation in progress
Kenya Vision 2030, provides an
emphasis on investment
Communication and financial center of
East Africa
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8. Archean Greenstone Belt
Lake Victoria Archean
Greenstone Belt
Host to numerous gold and base
metal deposits, including:
Tanzania - Large Scale Start
Ups Since 2000:
Anglo’s Geita: 16.3 M oz Au
Barrick’s Bulyanhulu: 17.0 M oz Au
Barrick’s North Mara: +10 M oz Au
Barrick’s Buzwagi: 4.4 M oz Au
Kenya – Projects:
Bumbo/Aviva : 1.7 Mt at 4% Cu - Eq
Kakamega/Aviva: 250K oz Au @ 13
g/t +++ resource update in 2012
Macalder/Falconbridge: 0.84 Mt at
2.29% Cu, 5.1% Zn, 3.26 g/t Au and
1.8 oz/t Ag
Migori/Red Rock: 33 MT at 1.1 g/t Au
Largely underexplored opportunities
in Kenya
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10. Nyanza Project Earning 70-95% Interest
Option Agreement with B&M Mining and East African Pure
Gold (“EAPG”):
Phase 1 Linear acquires an initial 70% interest by:
▶ Making Cash Payments of US$300,000 over 4 years
▶ Incurring exploration expenditures of US$600,000 (completed)
Phase 2 Linear can increase its interest to 80% by:
▶ Spending an additional US$3.4 million
IF B&M/EAPG decline to fund their pro-rata exploration &
development expenditures beyond the first US$4 million, Linear can
increase its interest based on the following expenditures
Phase 3 Linear can increase its interest to 90% by:
▶ +1% per $1 million of expenditure to a maximum 90% with EAPG
& B&M then carried to completion of a feasibility study
Phase 4 Linear can increase its interest to 95% by:
▶ + 1% per $2.0 million of development expenditure to a maximum
of 95%
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11. Kamwango – Priority Target
Significant artisanal mining activity that Kamwango
includes 12 large-scale workings along a four
kilometre northwest strike length trend
intersecting a two kilometre northeast strike
length trend of mineralization
Grab and chip samples from artisanal
workings up to 96.6 g/t Au
Linear commenced drilling in December 2011
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12. Kamwango Drill Highlights
KG-11-02: 10.68 g/t gold over 4.8 m;
Including: 51.6 g/t gold over 0.81m
DDH-1: 34.5 g/t gold over 2.96 m (lost in vein)
DDH-4: 81.4 g/t gold over 2.55 m (collared in vein)
Significant gold mineralization in 8 of the first 10 drill
holes
Kamwango: KG-11-02 Kamwango: KG-11-03 Kamwango: KG-11-02
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16. Kamwango Magnetics
DDH-1: 2.96 m @ 34.5 g/t Au
DDH-2: NSR
DDH-3: 5.5 m @ 2.13 g/t Au
DDH-4: 2.55 m @ 81.4 g/t Au
DDH-5: NSR
DDH-6: 11.7 m @ 0.4 g/t Au
DDH-7: 7.6 m @ 2.8 g/t Au
KG-11-01: 5.96 m @ 3.34 g/t Au
KG-11-02: 4.8 m @ 10.68 g/t Au
KG-11-03: 3.13 m @ 5.0 g/t Au
General Area
of Quartz Lag
Deposits
Areas of Quartz Lag
Deposits @ Surface
KG-11-01:
4.55 g/t Au
over 4.15 m
500 m
Note: mapping of quartz vein pebble lag deposits is ongoing and subject to change. Lags are mined ar sanaly especially at Farm 2 and
Kasihdo, among other areas. Not all workings are shown. Dashed white lines are prominent mag breaks associated with Au mineraliza on.
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17. Kamwango - Summary
High grade gold over a four kilometre northwest strike
length trend intersecting a two kilometre northeast strike
length trend of mineralization
Geophysical grid in progress over Kamwango and
Garissa areas
Detailed soil sample coverage planned
Expanded drill program planned
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18. Awuoro-Kanga-Kwoyo
Awuoro, Kanga, Kwoya
Awuoro-Kanga - Approximate seven by one
kilometre gold-in-soil anomalies with values
running up to 2.53 g/t Au, and grab samples up
to 37.5 g/t Au;
Kwoyo - Approximate four by one kilometre
area of gold-in-soil anomalies and grab
samples up to 5.7 g/t Au;
Geophysics & geochemistry surveys
completed;
Results from initial drill holes include:
17.2 g/t Au over 0.7 m; (KE-11-04)
3.77 g/t Au over 4.4 m (KE-11-06 - Ruga); and
2.50 g/t Au over 11.5 m (KE-11-11 -Ruga trend) Artisanal activity at Linear License
Including 50.3 g/t Au over 0.45 m
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19. Awuoro-Kanga Gold in soils and Drill Hole Locations
Awuoro
Koyola Anomaly Anomaly
1
Nyahera Anomaly
14
Nyabola Anomaly
15
KE-11-04
17.2 g/t Au
13 over 0.7 m Ruga Anomaly
12
7 9, 10
5
8
KE-11-6
3.77 g/t Au
over 4.4 m
KE-11-11
2.50 g/t Au
over 11.5 m
1000 m
All holes are prefixed KW-11- or KE-11- Significant gold mineraliza on intersected in 4, 6, & 11. NSR
returned from 12 to 15 (15 was abandoned).
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20. Nyanza – Additional Opportunities
Linear’s extensive property package
has already identified a number of other
potential targets:
Bouye Hill – High grade hematite with
samples up to 65% iron oxide Iron oxide samples running up to
65%
Wire Hill – a 2.2 km long magnetic– Bouye Hill
high anomaly hosting multiple copper
and iron showings
Ombassa – Attractive gold-in-soil and
VMS targets identified by 8 AEM
conductors
Soil and rock samples – gold
Ambassa
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21. Building Value Through Exploration A Case Study
Canaco Resources: CAN:TSV Key Asset: Handeni Gold
Project
Location: Tanzania
Initial Drilling: Sept 2009
Market cap Sep-09: ~$9 million
Market cap Dec-11: ~$300
million (~2 mm ozs)
Canaco Handeni Linear Nyanza
Project Project
Initial Soil Anomaly 1.3 km >11 km
Peak soil value .77g/t Au 2.5 g/t Au
Project size 200 km² 2000 km²
Linear’s Nyanza project can deliver similar returns!
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22. Investing in Gold
Forms of Gold Investment Factors Impacting Return
Physical gold Spot gold
Gold producing companies Spot gold and operating
success
Gold exploration companies Spot gold, exploration and
development success
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23. Summary
Key Asset:
Kenya – Nyanza & Sotik Projects:
Strategic land package in underexplored
Greenstone Belt (~2,000 km2*)
Extensive colonial & recent artisanal workings
Demonstrated high grade gold mineralization
Federal and local support
Drilling in progress
District scale
Linear’s primary focus and value driver
* Includes applications pending
Visible gold from Kamwango
2003-2004 drill program
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24. Linear OtherAssets
KM61: +100mt Molybdenum-Copper-Silver Resource
• 43-101 – Resource: significant size & grade, 100 Million
tonne @ 0.065 Mo Eq. with open-pit, high grade starter
zone potential
• Location & infrastructure advantages – road, rail, power, etc.
• Long-term asset – 100% owned – minimal cost - JV
potential
Seymour Lake: Tantalum-Lithium-Beryllium Project
• Significant mineral grades confirmed in two drill programs
• March 2011 JV with Super Metals Mining Inc. to advance
project to BFS
La Morena: Large CRD Silver System With Follow-up Targets
• Untested deep geophysical anomalies correlate with
previous drilling intersecting 218 g/t Ag over 23 m incl @
Quartz stock-worked and altered mafic
1245g/t Ag over 3m (LM-04) and 21.2 m @ 1.4% Cu, 140.4 volcanic, hosting disseminated
Molybdenum
g/t Ag (LM-10)
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Contact Address
Brian MacEachen 1969 Upper Water Street
President and CEO Purdy’s Wharf II, Suite 2001
bmaceachen@linearmetals.com Halifax, NS
(902) 442-7180 B3J 3R7
Jim Megann
Director of Investor Relations and Marketing
jmegann@linearmetals.com
(902) 482-1240
www. linearmetals.com
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