Magellan Minerals Ltd.

Magellan Minerals Ltd.

June 23, 2010 09:00 ET

Magellan Drills 32.1m @ 1.05g/t Gold at Moreira Gomes, Cuiu Cuiu Project, Brazil

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 23, 2010) - Magellan Minerals Ltd. (TSX VENTURE:MNM) ("Magellan") announces results on the initial four holes completed at the Moreira Gomes zone, 5km SE of the Central zone at the Cuiu Cuiu project. 

Moreira Gomes Zone

Of the four holes reported here, three holes (58, 59 and 62) were drilled within the main Moreira Gomes structure. Hole 64 was drilled 160m to the north of the main structure within a parallel geophysical and geochemical anomaly (see map on website). Drill holes 60, 61 and 63 were all drilled at Central and results on these holes are pending.

Hole 58 was drilled beneath hole 53 which previously intersected 17.3m @ 13.69g/t gold. Hole 58 intersected a broader low grade zone of 0.52g/t gold over 88m from 102 to 190m depth including 39.1m @ 0.85g/t or 32.1m @ 1.05g/t gold. Mineralization clearly continues with depth and also appears to become wider with depth.

Hole 59 was drilled 100m east of hole 58 and 125m west of previous hole 47. Hole 59 similarly intersected 80.6m @ 0.57g/t gold from 87.5 to 168.1m including 26.9m @ 0.82 g/t gold and a further 12m @ 1.26g/t gold. The hole confirms the presence of two parallel-mineralized zones intersected in holes 47 and 48, which continue for another 420m to the east through holes 46 and 51.

Hole 62 was drilled 140m west of previously drilled hole 49 (4.9m @ 0.97g/t) to test the western limit to the Moreira Gomes zone and intersected 13.3m @ 0.50g/t from 83.5 to 96.8m suggesting that the zone narrows and is more weakly mineralized to the west.

Hole 64 was drilled approximately 160m north of hole 49 and was designed to partially test the western edge of a geochemical and geophysical anomaly. The hole returned no significant values.

A complete set of drill results for holes 58, 59, 62 and 64 are as follows:

Hole ID From (m) To (m) Width (m) Gold (g/t)
CC_58_10 102.0 190.0 88.0 0.52
includes 136.9 176.0 39.1 0.85
includes 157.9 190.0 32.1 1.05
CC_59_10 87.5 168.1 80.6 0.57
includes 100.3 127.2 26.9 0.82
and 155.1 167.1 12.0 1.26
CC_62_10 83.5 96.8 13.3 0.50
CC_64_10 No significant results

Commenting on the results, Alan Carter, President and CEO of Magellan said, "Moreira Gomes is a narrower mineralized structure than the Central zone 5km to the north-west, and generally varies from 15m to 35m in width but is now known to extend over at least 850m of strike. Two parallel zones are evident over a significant portion of that strike length and drilling is continuing to the east."

Drilling at Moreira Gomes is continuing with results currently pending on an additional 6 holes including holes 66, 69, 70, 71, 73 and 74.

Central zone

Additional drill results are expected shortly on 5 holes recently completed within the Central zone. Drilling is currently in progress in the Pau de Merenda area which is located 3km NW of Central and where previous reconnaissance drilling by Magellan intersected up to 47m @ 1.76g/t gold.

Holes were drilled at angles of 50 degrees. All core samples (NTW and BTW diameter) were cut with a diamond saw and one-half of the core placed in bags, numbered and sealed then sent via a secure transport agency directly to ACME preparation laboratory in Itaituba for sample preparation. Core samples were crushed down to 2 mm and a 1 kg split taken and pulverized to better than 85% minus 200 mesh. From Itaituba, ACME sent the pulp samples to Santiago, Chile for assaying. Gold analysis was by fire assay of a 50 g sample and atomic absorption finish. ACME is an ISO 9001 registered laboratory and has a quality control program in place which includes standards, blanks, repeats, and duplicates.

Magellan's QA/QC program also includes the insertion of standards, field duplicates and blank material in the sample sequence with the normal core samples to monitor sampling variances, laboratory precision and accuracy, and to identify problems caused by poor sampling, preparation, assaying errors and possible sample contamination.

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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