Magellan Minerals Ltd.

Magellan Minerals Ltd.

March 30, 2010 09:15 ET

Magellan Commences Drilling at Cuiu Cuiu Project, Brazil

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 30, 2010) - Magellan Minerals Ltd. (TSX VENTURE:MNM) ("Magellan") is pleased to announce the commencement of drilling at its Cuiu Cuiu project in northern Brazil. Two diamond drill rigs are currently on site and an initial 5,500m program is planned which will likely be expanded owing to the fact that multiple targets are present on the property.

The primary objectives of this drill program are as follows:-

  • Define the limits to the mineralized zone at the Central zone, particularly to the north of the recently drilled hole CC-54-09 which returned 82.5m @ 1.02 g/t gold (see press release dated January 28, 2010).
  • Infill drilling at the recently discovered Moreira Gomes zone (see press release dated January 19, 2010) where drilling over 700m of strike returned values up to 17.3m @ 13.69 g/t gold. The most easterly hole (CC 50-09) returned 35.0m @ 2.02 g/t and the zone currently remains open to the east.
  • Drilling is also planned on previously untested targets including areas north of Moreira Gomes, north-east of Central and at the Pau de Merenda target where reconnaissance drilling by Magellan previously returned values of 47.1m @ 1.76 g/t gold.

Cuiu Cuiu is located 180km SW of the town of Itaituba in northern Brazil and previously produced an estimated 1.5 - 2.0Moz of alluvial gold. Magellan has identified five major gold-in-soil anomalies at Cuiu Cuiu as well as numerous other gold showings resulting from prospecting. Previous drilling has returned values up to 220m @ 2.02g/t Au at the Central zone, and 39m @ 5.13 g/t at the Jerimum de Cima zone. 

Magellan has also granted stock options to directors, officers, employees and consultants of the Company. The options entitle the holders to purchase 1,014,149 common shares in the capital stock of the Company, at a price of $0.65 per share and are exercisable until March 29, 2015. The Company provides management incentive stock options to directors, officers, employees and consultants as part of the Company's overall compensation package. The Board acknowledges and appreciates their individual and collective commitment to the Company.

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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