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KM61, Ontario


Map 1. KM61 Location map showing other regional exploration. Click map to enlarge.


Map 2. KM61 Claim Location Map showing location of main grid, surrounding Stockport Exploration claims for KM61 and Seymour Lake. Click map to enlarge.


Map 3. Drill hole locations and mineralized zones at KM61. Click map to enlarge.


Map 4. Geologic cross section. Click map to enlarge.


Map 5. IP chargeability survey at KM61 main grid. Click map to enlarge.

Highlights

  • NI 43-101 compliant resource estimate: Indicated 66.6 million tonnes grading 0.053% Mo, 0.09% Cu and 2.6 g/t Ag (Mo eq. of 0.063%), Inferred 38.9 million tonnes grading 0.054% Mo, 0.09% Cu and 2.7 g/t Ag (Mo eq. of 0.065%);
  • Open pittable with very low strip ratio (0.9:1) and high-grade starter zones hosting >0.1% Mo at surface;
  • Strong metallurgy from initial bench-scale tests;
  • Resource is open along strike and depth with the potential for significant resource expansion;
  • Excellent infrastructure including all-weather road access, CN rail facilities and new hydro electric project in development (completion schedule for Q4-2013) within 10km).

Regional Setting


Stockport Exploration's KM61 molybdenum-copper project is well located approximately 60 kilometres east of Armstrong, Ontario. Access is by paved highway from Thunder Bay to Armstrong, and then by the "Jackfish" all weather logging road to the project site. However, the most important transportation link long term for the project, should it advance to development, will be its location 11 kilometres north of a siding on the main CN rail line. Lastly, Ontario Power Generation is completing feasibility studies on an 80 megawatt hydro project on the Jackfish river less than 10 kilometres from the KM 61 discovery.

The KM61 property is located in the Caribou Greenstone Belt, which trends ENE along the top of Lake Nipigon, near the northern margin of the Wabigoon Subprovince. A prominent SW-trending portion of the belt wraps around the NW end of a large composite felsic pluton in the property area. The Stockport claim group covers a large (1 km x 7 km) lensoid-shaped contact zone between the pluton to the south and metabasalts to the north. Although mineralization has not been dated by isotopic methods, the porphyry bodies and associated mineralization are assumed to be related to the large pluton, indicating a mid to Late Archean age.

History


At various times and in different phases beginning in the early 1950s, the Caribou belt has been prospected for magmatic Cu-Ni sulphide, lode gold, rare element pegmatites, such as at Stockport's adjoining Seymour Lake Project, and volcanogenic massive sulphides. Recent access to the area for prospecting has been greatly enhanced by logging activities.

The KM61 showing was discovered by Linear Gold in 2002 during regional prospecting on the Seymour Lake tantalum property. KM61 was initially evaluated by a limited trenching and sampling program which returned significant values of copper, molybdenum, silver and gold from grab and channel samples. The property was subsequently optioned to Noranda Inc. (later Falconbridge and now Xstrata PLC) which maintained the option from December 2003 to December 2006 when Xstrata returned the project to Linear Metals (Linear Metals had acquired the rights to KM61 from Linear Gold in April 2006).

Noranda conducted exploration programs at KM61 each summer during 2003, 2004, and 2005. In 2003, a grid with 400 metre line spacing was mapped, soil sampled, and an IP survey was conducted. Additionally, channel sampling was undertaken in the trenches. In 2004, Noranda completed a 1,178 metre drill program in the trenched area on the SW end of the porphyry system. In 2005 Falconbridge completed another 2,039 metre drill program stepping out to the NE to more extensively test the remaining IP and soil anomalies. The Noranda-Falconbridge program partially tested an area measuring approximately 1200 by 600 metres (Figure 1).

Linear initiated a Phase I drilling campaign in July, 2007 to verify continuity between the widely spaced Noranda drill holes. This program successfully indicated the continuity of part of the Main Zone, at approximately 100 m drill spacing, completing just over 4,000 m of drilling by the end of October.

Linear initiated a 25,000 metre Phase II drilling program (December, 2007) to delineate the deposit and this program of 100 metre spaced holes is now nearing completion with over 70 holes having been drilled. In an effort to extend mineralization to depth the program is slated to be extended to 27,000 metres to allow completion of 5 to 6 deep holes. This aggressive drill program will allow for the first 43-101 compliant resource estimate on the project to be completed before the end of 2008.

Geology


The disseminated and vein-type molybdenite-chalcopyrite mineralization at KM61 is hosted by two northeast-trending, quartz monzonite porphyry dyke swarms and their flanking mafic metavolcanics. These porphyries and their wall rocks are extensively stock-worked with quartz and quartz-sulphide veins, and host disseminated chalcopyrite and molybdenite over a drill-indicated total width of 350 metres, and over a drill-indicated strike length measuring 1,600 metres. At an arbitrary cut-off of 0.04% molybdenum, the mineralized zone is up to 350 metres wide, flanked by zones of lower grade mineralization (0.01 to 0.04% molybdenum).

Based on age and metal ratios, Moly Mines' Spinifex Ridge deposit is a potential model for KM61. Spinifex Ridge, located in Western Australia, and KM61 are both hosted by Archean porphyries and metavolcanic rocks and the bulk tonnage zones have similar metal ratios. Spinifex Ridge has a published measured plus indicated resource of 469 million tonnes at 0.058% molybdenum, 0.09% copper and 1.7 grams per tonne silver. The KM61 project does not have a resource estimate completed, but the grades experienced in drilling on the Main Zone thus far are comparable to those reported at Spinifex Ridge, with the KM61 zones carrying 0.04 to 0.08% molybdenum, 0.05 to 0.2% copper, and 2 to 7 grams per tonne silver. The low grade bulk tonnage model for KM61 is clearly an attractive one in the current molybdenum market.

Noranda-Falconbridge Drill Results


Noranda-Falconbridge's two drill programs intersected encouraging Mo-Cu mineralization in two large porphyry dominated bodies termed the North and South Zones (as these have now been shown to merge the combined mineralized body is called the Main Zone). In addition, two holes drilled into the metavolcanic rocks between the porphyries produced short but impressive intersections of plus 1% molybdenum highlighted by 3 metres of 1.78% molybdenum in K-05-08. The drill assays obtained by Noranda-Falconbridge were mostly partial results because the company's focus on copper left considerable core unsampled. This includes some zones which were logged as having disseminated or vein-controlled molybdenite.


The first stage of Stockport's 2007 exploration program consisted of splitting and assaying unsampled drill core that was generated by the Noranda and Falconbridge programs of 2004 and 2005. The historic core sampling program was successful and produced results that indicate that what was previously thought to be two distinct, and relatively narrow zones, may instead be one broad stockwork zone. Assay results on previously unsampled core from the Noranda - Falconbridge 2004-5 exploration program have increased the width of molybdenum minearlization to over 300 metres of similar grade. 2007 results for hole K-05-06 include 143.2 metres of 0.068% Mo, compared to the 2005 result of 61.2 metres of 0.076% Mo. New results for hole K-05-07 include 193.6 metres of 0.052% Mo, compared to the 2005 result of 128.8 metres of 0.058% Mo. High-grade vein mineralization was intercepted in the old core in K-05-08 and K-05-12 yielding grades of 1.78% Mo over 3.0 metres and 1.41% Mo over 2.9 metres, respectively.

Click here - KM61 Drill Hole Highlights

The historical sampling program increased total width of mineralization which has increased the size potential of KM61 at economic grades.

Stockport Exploration 2007-08 Drill Results


In 2007, Stockport Exploration also completed a 4,000 metre Phase I drill program at KM61 that returned significant Mo-Cu-Ag mineralization and confirmed the results coming out of the fully sampled Noranda-Falconbridge holes. That is the North and South Zones were shown to have merged into what is now termed the Main Zone. This zone is composed of primarily a northern flank of metavolcanic hosted mineralization transitioning to a southern flank of porphyry hosted mineralization. The 2007 drill program, as with earlier drill programs was comprised of shallow angle holes that tested the system to a depth of approximately 250 metres. However, the last hole of the program, K-07-29, was programmed to cross the full width to the Main Zone eventually testing below 500 metres vertical depth on the south side of the Main Zone. Based on results from current drilling it is clear that hole 29 was sited too far to the west to test the best part of the Main Zone but it was successful in showing that mineralization extends below 500 metres vertical depth.

Upon completion of the 4,000 metre program, the extent of mineralization remained open on strike and at depth, and significantly, all of the holes intersect significant Mo mineralization. Many of the drilled holes showed increasing molybdenum grade with depth. There was clear justification for returning with a more aggressive drill program to fully delineate the deposit and the 25,000 metre drill program to accomplish this was begun in December 2007.

Click here - KM61 Drill Hole Highlights

IP Survey


In 2007 Stockport completed a 26-line kilometre IP survey which offers further evidence of the large scale of the KM61 mineralized system, with IP chargeability highs on drilled sections coinciding with excellent Mo-Cu mineralization. The chargeability anomaly extends over 3 kilometres.. Trenching of the SW and NE extensions of the chargeability anomaly beyond the drilled area prior to 2008 was successful in revealing geology and mineralization similar to that of the known deposit although over narrower intervals.

43-101 Resource


On December 9, 2008, the Company reported an initial Mineral Resource estimate for the Main Zone at its KM61 Project located near Armstrong, Ontario. This resource consists of a single body of mineralization as detailed in the tables below. At a cut-off grade of 0.02% molybdenum, the 66.6 million tonne Indicated Resource includes in-situ metal quantities of 127.7 million pounds of copper, 78.2 million pounds of molybdenum, and 5.5 million ounces of silver. In addition, the 38.9 million tonne Inferred Resource includes in-situ metal quantities of 78.0 million pounds of copper, 46.5 million pounds of molybdenum, and 3.4 million ounces of silver.

The Mineral Resources encompass the 1.55 kilometre long and up to 275 metres wide Main Zone of the KM61 project where exploration has focused to date. Metallurgical recoveries, from a locked cycle test for KM61, had been reported previously (see press release dated November 24, 2008), and though subject to change as more test work is completed, show mineralization that responds well to conventional flotation.

Table 1. Indicated Mineral Resources -- December 3, 2008

Molybdenum
(%) cut-off
Tonnes Molybdenum (%) Copper (%) Silver (g/t) Molybdenum Equivalent (%)
0.10 2,700,000 0.119 0.12 3.3 0.133
0.08 7,800,000 0.099 0.11 3.2 0.111
0.06 21,100,000 0.080 0.10 3.0 0.091
0.04 45,500,000 0.064 0.09 2.8 0.074
0.03 57,900,000 0.057 0.09 2.7 0.068
0.02 66,600,000 0.053 0.09 2.6 0.063


Table 2. Inferred Mineral Resource Table -- December 3, 2008

Molybdenum
(%) cut-off
Tonnes Molybdenum (%) Copper (%) Silver (g/t) Molybdenum Equivalent (%)
0.10 1,600,000 0.125 0.09 2.5 0.135
0.08 5,300,000 0.100 0.11 3.5 0.112
0.06 13,500,000 0.081 0.11 3.5 0.094
0.04 25,900,000 0.066 0.10 3.0 0.077
0.03 33,600,000 0.059 0.09 2.8 0.070
0.02 38,900,000 0.054 0.09 2.7 0.065


Notes:

1. CIM definitions were followed for Mineral Resources.
2. The cut-off grade of 0.02% Molybdenum was calculated using long-term prices of US$2.50 per pound copper, US $20.00 per pound molybdenum, and US$13.50 per ounce silver.
3. Molybdenum equivalent values were calculated using the same long-term prices as above and take into account projected metallurgical recoveries, certain concentrate properties, smelter charges, and payable percentages.
4. High Molybdenum values were cut to 0.04% prior to compositing to three metres. Similarly, Silver was cut to 30 g/t.
5. Blocks are 10 metres by 10 metres by 10 metres. Inverse distance squared interpolation was used to estimate block grades.


Scott Wilson Roscoe Postle Associates Inc. (Scott Wilson RPA), independent geological and mining consultants, prepared the estimate as at December 3, 2008 in accordance with the guidelines set forth in National Instrument 43-101 ("NI 43-101"). The estimate was based on a geology model prepared by Geoff Chinn, P.Geo., Linear's Senior Resource Geologist, on data for drill holes completed through to September 25th, 2008. The resource was estimated through block modeling in Gemcom software. Volumes were constrained using 3D wireframes interpreted from geological logs and assay data, and a preliminary open pit shell modeled in Whittle software.

KM61 43-101 Technical Report


Click here for KM61 43-101 Technical Report.

Ownership


Stockport Exploration holds a 100% interest in the KM61 property subject to a 0.5% NSR over the area where the previous drilling was conducted. The neighbouring Seymour Lake property is subject to a 3% NSR. Stockport can repurchase 50% of the 0.5% NSR for $250,000, and/or 50% of the 3% NSR for $1,000,000.