Magellan Minerals Ltd.
TSX VENTURE : MNM

Magellan Minerals Ltd.

August 26, 2010 09:00 ET

Magellan Receives Drill Results From Eight Additional Holes and Expands Mae de Leite Zone, Coringa Project, Brazil

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 26, 2010) - Magellan Minerals Ltd. (TSX VENTURE:MNM) ("Magellan") is pleased to provide additional results from its drilling program at the Coringa project in northern Brazil. 

Results have been received on eight additional holes (99, 100, 101, 102, 103, 104, 105 and 106) bringing the total reported on as part of this program to 26 diamond drill holes totaling 3,067m. Two of the six holes were drilled in the recently discovered Mae de Leite zone where drilling by Magellan (see press release dated July 5, 2010) returned 1.3m at 7.89g/t gold and 1.0m of 13.86g/t gold. 

Holes 99, 101 and 103 were drilled 150m, 85m and 230m respectively north and along strike of hole 96 which cut 1.3m @ 7.89g/t gold. Hole 99 intersected 2.0m @ 2.57g/t gold and hole 101 cut 3.6m @ 0.85g/t gold and 0.6m @ 2.69g/t gold. Hole 103 failed to cut any significant values. These holes suggest that the Mae de Leite zone extends over approximately 250m of strike. The zone remains open at depth. (see Figures on website: www.magellanminerals.com). 

Hole 102 was drilled 60m south of hole 98 which intersected 1.0m @ 13.86g/t gold and failed to intersect any significant values suggesting that the mineralized zone does not extend for significant distances along strike south of hole 98.

Hole 106 was drilled between holes 96 and 98 and intersected 1.3m @ 1.02g/t gold. 

Holes 100, 104 and 105 were drilled to test a possible structure located approximately 110m west of the Mae de Leite zone (Mae de Leite West). Holes 104 and 105 were lost prematurely at 42m and 27m depth respectively due to poor ground conditions, but hole 100 cut a low grade mineralized zone averaging 0.14g/t gold over 30.7m from 84.3 – 115.0m including 0.5m @ 1.32g/t gold.

A table of the latest results is shown below.

Table of Results: Coringa
 
Hole ID From (m) To (m) Width (m) Gold (g/t)
(BR_COR)  
Mae de Leite Zone  
DDH99 75.5 77.5 2.0 2.57
DDH101 73.5 77.1 3.6 0.85
  and 81.7 82.3 0.6 2.69
DDH102 No Significant results   
DDH103 No Significant results   
DDH106 110.2 111.5 1.3 1.02
Mae de Leite West Zone  
DDH100 84.3 115.0 30.7 0.14
  Incl. 85.4 85.9 0.5 1.32
DDH104 Hole lost at 42m   
DDH105 Hole lost at 27m   

These drill results suggest that although the Mae de Leite zone appears to be of limited strike extent, its depth extent remains unknown. The mineralization discovered at the Mae de Leite zone will almost certainly add to the existing resource. Of the three holes drilled in the Mae de Leite West zone, two were lost due to poor ground conditions and as a result the zone remains largely untested.

During the past few months, Magellan has identified several large and as yet untested gold-in-soil anomalies at Coringa which suggest the presence of parallel mineralized structures (see press releases dated July 5, 2010 and August 12, 2010). In addition, Magellan believes that similar style mineralization at the adjacent Mato Velho property immediately to the north is part of a larger district. Magellan plans to initiate an additional drill campaign to test these targets during September 2010.

Drilling at the Cuiu Cuiu project is continuing with two drill rigs.

Holes were drilled at angles of 50 to 60 degrees. All core samples (HQ 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 to the Company's office in Novo Progresso before shipping via secure transport 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 30 g sample and atomic absorption finish. Silver and additional 35 elements using a 4 acid digestion were analyzed by Inductively Coupled Plasma Mass Spectrometry (ICP-MS). 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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