Magellan Minerals Ltd.

Magellan Minerals Ltd.

March 02, 2010 09:00 ET

Magellan Commences Drill Program at Coringa Gold Project, Brazil

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 2, 2010) - Magellan Minerals Ltd. (TSX VENTURE:MNM) ("Magellan") has commenced a 2500m diamond drill program on its Coringa project in northern Brazil. The objectives of this drill program are as follows:

  • Further delineate the southeast and northwest extension of the Meio high-grade gold zone which forms part of the combined indicated and measured high grade gold resource at Coringa (see press release of October 08, 2009).
  • Confirm gold mineralization at depth in the new discovery zone approximately 900m to the southeast of the Meio zone.
  • Test the northwest extension of a 2km gold-in-soil anomaly extending from the Meio zone that has numerous artisanal workings along its strike length.

Figures showing the location of the proposed drilling program are posted on the Magellan website at

In October 2009 a National Instrument (NI) 43-101 resource estimate was completed on Coringa by independent consultants, Global Resource Engineering (GRE) Ltd. The total resource estimate was 367 674 troy ounces of gold using a cutoff grade of 2 g/t and a minimum mining width of 1.5m (see press release of October 08, 2009). This resource included 269,500 oz (982,291 tonnes at an average grade of 8.53 g/t gold) in the measured and indicated category and 98,224 oz (327,054 tonnes at an average grade of 9.34 g/t ton gold) in the inferred category. Based on this resource, estimate a preliminary economic assessment (PEA) study is currently being undertaken by GRE and should be completed by the end of March (see press release of January 05, 2010).

The Coringa Project is a shear-vein system, hosted in mid-Proterozoic volcanic rocks and granites on the southern margin of the Tapajos Gold Province. The main shear structure is approximately 7km in length, trends 345 degrees and is open both to the north and south. Sub-parallel and parallel shear structures add at least another 3km to the total strike length. The mineralized shear and vein structures vary in width from 35 cm to 3 m.

In addition to the Coringa drill program, a larger program of diamond drilling will commence on the Cuiu-Cuiu gold project during mid-March 2010. The Cuiu-Cuiu drill program will continue to test the strike extension of a 1500m x 500m gold-in-soil anomaly at Moreira Gomes, as well as the northwest extension of the Central discovery and additional new target zones.

Ian Gendall (Pr. Sci. Nat.), Magellan's Chief Operating Officer and a "qualified person" within the definition of that term in NI 43-101, has reviewed the technical information contained in this news release.

This news release 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, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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