Magellan Minerals Ltd.
TSX VENTURE : MNM

Magellan Minerals Ltd.

August 18, 2010 09:00 ET

Magellan Drills 84m @ 1.24 g/t Gold and Extends Mineralized Zone by 600m at Moreira Gomes, Cuiu Cuiu Project, Brazil

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 18, 2010) - Magellan Minerals Ltd. (TSX VENTURE:MNM) ("Magellan") announces results for five diamond drill holes recently completed at the Moreira Gomes zone, 5km SE of the Central zone at the Cuiu Cuiu project in Brazil.

Results for five additional drill holes, which extend gold mineralization a further 600m to the east of previously reported hole 70, have been received. Hole 79, drilled 280m east of hole 69 (112.0m at 1.70g/t gold from 72.0 to 184.0m) returned 84.0m at 1.24g/t gold from 184.2m to 268.2m. Included within this interval is 48.7m at 2.01g/t from 184.2m to 232.9m. The table of results for the five holes is shown below and the plan of the drill holes is posted on the Magellan website (www.magellanminerals.com).

The five additional holes all intersected mineralized and hydrothermally altered granite. Gold mineralization occurs within quartz-carbonate veinlets hosted in an E-W trending shear zone, associated with moderate to strong sericite alteration. This latest drilling extends the mineralized strike length at Moreira Gomes by another 60% resulting in a total current strike length of 1,640m, and demonstrates that the ore is hosted in anastomozing shears that vary from 10m to 112m width (drilled widths). The mineralized zone remains open to the east in the direction of alluvial workings which extend for an additional 300m. Further drilling to the east of hole 81 (7.0m at 0.74g/t gold) is now being planned.

Table of results for holes 74, 76, 77, 79 and 81 are as follows:-

Hole ID From (m) To (m) Width (m)* Gold (g/t)
CC_74_10 184.9 194.7 9.8 0.26
 
CC_76_10 0 19.8 19.8 0.83
  147.8 195.7 47.9 0.35
Includes 147.8 152.8 5.0 1.31
 
CC_77_10 125.4 168.3 42.9 0.50
Includes 151.0 168.3 17.3 0.88
         
CC_79_10 184.2 268.2 84.0 1.24
Includes 184.2 232.9 48.7 2.01
 
CC_81_10 223.6 230.6 7.0 0.74
   

Note: * Widths reported here are down hole widths and the true widths are estimated to be between 70 and 90%.

Commenting on the results, Alan Carter, President and CEO of Magellan said, "these latest drill results from Moreira Gomes are all from significant step-out holes as we continue to define the eastern extent of the mineralizing system. In the last month, we have drilled some wider intercepts suggesting that the mineralized zone widens significantly in some areas. We have also doubled the strike extent of this zone and still not yet defined its eastern limit."

Drilling at Cuiu Cuiu is currently in progress at the Central zone where recent drilling (see press releases dated June 8th 2010, July 8th 2010) has extended the mineralized zone by 390m along strike. Results are also pending on 6 holes (72, 75, 78, 80, 82 and 85) recently completed at the Pau de Merenda zone 3km NW of Central. Drilling is also currently in progress at the previously untested Babi zone located approximately 600m NE of Central.

In addition to the current drilling at Cuiu Cuiu, a detailed, 8128 line kilometer airborne magnetic and radiometric survey is being conducted to better define targets for further drilling beyond the currently planned program. The detailed geophysical survey is expected to be completed by September.

Holes were drilled at angles of between 50 to 60 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 prepared and 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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