Magellan Minerals Ltd.
TSX VENTURE : MNM

Magellan Minerals Ltd.

January 19, 2010 09:15 ET

Magellan Drills 17.3m @ 13.69 g/t Gold and Discovers New Mineralized Zone at Cuiu Cuiu Project, Brazil

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 19, 2010) - Magellan Minerals Ltd. (TSX VENTURE:MNM) ("Magellan") is pleased to announce drill results for seven diamond drill holes which were recently completed at the Moreira Gomes prospect, located within the Company's Cuiu Cuiu project in northern Brazil.

The Moreira Gomes anomaly has never been previously drill tested and consists of a 1500m x 500m gold-in-soil anomaly located approximately 5km south-east of the Central discovery at Cuiu Cuiu. Moreira Gomes is centered on an east-west trending shear zone with a coincident magnetic low geophysical anomaly which extends for at least 1.5km. A total of seven diamond drill holes (see Magellan website for drill plan) were completed at Moreira Gomes in October and November of 2009 and results are tabulated below:

Drill hole From
(meters)
To
(meters)
Interval
(meters)
Au Grade
(g/t)
         
CC46-09 0 38.0 38.0 1.19
  94.6 125.7 31.1 1.23
         
CC47-09 0 10.7 10.7 0.39
  25.7 45.7 20.0 0.47
  111.2 120.4 9.2 0.46
  137.5 166.2 28.7 0.44
         
CC48-09 9.1 15.2 6.1 0.72
  148.4 151.0 2.6 0.70
         
CC49-09 78.3 83.2 4.9 0.97
         
CC50-09 139.0 141.0 2.0 0.80
  155.0 190.0 35.0 2.02
         
CC51-09 0 35.0 35.0 0.46
  144.1 171.8 27.7 0.66
Incl. 162.1 171.8 9.7 1.45
         
CC53-09 74.4 91.7 17.3 13.69
  89.7 90.7 1.0 216.4

Dennis Moore, VP Exploration stated, "Each of these holes intersected 25m to 35m (drilled width) of shear-hosted, quartz-sulfide stockwork, over a strike length of 700m. The 100% hit rate and significant mineralized intercepts demonstrates that we have discovered a new mineralized shear zone which was not previously known at Cuiu Cuiu. The mineralization is open along strike in both directions, particularly to the east where the most easterly drill hole returned 35m @ 2.02 g/t gold. In light of these results, a parallel magnetic low geophysical anomaly which is located just to the north of the Moreira Gomes shear zone, has also become a priority target, and will be subject to mechanized auger drilling prior to the next drill campaign."

Alan Carter, Magellan's President & CEO added, "We are thrilled with these initial drill results from Moreira Gomes which reveal the presence of ore grade drill intercepts at a fourth zone at Cuiu Cuiu. Previous results from Cuiu Cuiu include 220m @ 2.02g/t gold at the Central zone, 47.1m @ 1.76g/t gold at Pau de Merenda and 39m @ 5.13g/t gold at Jerimum Cima The fact that the Moreira Gomes zone is open along strike and at depth suggests that we have made another significant discovery at Cuiu Cuiu. These results are perhaps even more striking when one considers there is virtually no rock exposed on surface at Cuiu Cuiu and thus far Magellan has drilled only 53 holes in a major soil anomaly which is 13km in length."

Magellan is planning an aggressive drill program starting during the first quarter of 2010 to further test both the Central and Moreira Gomes zones at Cuiu Cuiu as well as other targets identified thus far at the project which display a similar signature. Drill results are pending on an additional two holes drilled during 2009 at Cuiu Cuiu, one hole at Central and one hole at the previously untested Machiche zone.

This press release was prepared by Dennis Moore, B.Sc., M.Eng., member of AusIMM & SEG., a qualified person in compliance with National Instrument 43-101.

Magellan is a well financed mineral exploration company with a principal focus on exploring for gold in the Tapajos Mineral Province of northern Brazil.

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

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