Magma Metals Limited
TSX : MMW
ASX : MMW

Magma Metals Limited

April 06, 2010 09:01 ET

Magma Metals Limited: Exploration Update-Thunder Bay North

WEST PERTH, WESTERN AUSTRALIA--(Marketwire - April 6, 2010) -

KEY POINTS

  • Strong zones of mineralization confirmed and enlarged by infill drilling in the Bridge Zone – recent results included: 

        BL10-207: 19.00m @ 3.64g/t Pt+Pd, 0.43% Cu & 0.19% Ni,
        including 9.00m @ 6.68g/t Pt+Pd, 0.76% Cu & 0.23% Ni;

        BL10-236: 25.85m @ 3.22g/t Pt+Pd, 0.40% Cu & 0.21% Ni,
        including 11.85m @ 5.29g/t Pt+Pd, 0.67% Cu & 0.27% Ni;

        BL10-238: 35.00m @ 3.34g/t Pt+Pd, 0.36% Cu & 0.23% Ni,
        including 18.00m @ 4.24g/t Pt+Pd, 0.45% Cu & 0.26% Ni.

  • 50,000m infill diamond drilling program in progress with five drill-rigs in the mineral resource area – expected completion within two months.
  • Resource estimate update to be undertaken based on 100,000m of diamond drilling – expected completion in September Quarter, 2010.
  • Geophysical surveys in progress in the Bridge Zone to map the extent of previously intersected zones of high-grade massive sulphide mineralization. Identified geophysical targets to be drill tested on completion of the infill drilling program.
  • Regional exploration program in progress to identify additional resources – 30,000m of diamond drilling and extensive geophysical surveys budgeted for 2010

Magma Metals Limited (TSX:MMW)(ASX:MMW) ("Magma" or the "Company") is pleased to provide an update of its exploration activities at the Thunder Bay North project in northwest Ontario. 

Mineral Resource Area – Infill Drilling

The infill drilling program of approximately 50,000m is making good progress with five drill-rigs operating in the Bridge and Beaver Lake Zones in the mineral resource area (Figures 1 and 2). Approximately 35,000m of drilling has been completed since the program commenced in June 2009. It is anticipated that this program will be completed within the next two months. Recent results included the following drill intercepts (detailed in Tables 1 and 3):

BL10-206: 14.00m @ 2.41g/t Pt, 2.18g/t Pd, (4.59g/t Pt+Pd), 0.58% Cu & 0.28% Ni from 155m,
including 3.00m @ 4.43g/t Pt, 3.89g/t Pd, (8.32g/t Pt+Pd), 0.95% Cu & 0.29% Ni from 159m,
and 2.00m @ 3.26g/t Pt, 3.03g/t Pd, (6.29g/t Pt+Pd), 0.87% Cu & 0.47% Ni from 165m;

BL10-207: 19.00m @ 1.98g/t Pt, 1.66g/t Pd, (3.64g/t Pt+Pd), 0.43% Cu & 0.19% Ni from 160m,
including 9.00m @ 3.67g/t Pt, 3.01g/t Pd, (6.68g/t Pt+Pd), 0.76% Cu & 0.23% Ni from 162m;

BL10-233: 44.00m @ 1.09g/t Pt, 0.95g/t Pd, (2.04g/t Pt+Pd), 0.25% Cu & 0.17% Ni from 115m,
including 8.00m @ 2.97g/t Pt, 2.45g/t Pd, (5.42g/t Pt+Pd), 0.64% Cu & 0.24% Ni from 142m,
and 3.00m @ 3.77g/t Pt, 3.30g/t Pd, (7.07g/t Pt+Pd), 0.99% Cu & 0.62% Ni from 154m;

BL10-236: 25.85m @ 1.69g/t Pt, 1.53g/t Pd, (3.22g/t Pt+Pd), 0.40% Cu & 0.21% Ni from 119m,
including 11.85m @ 2.80g/t Pt, 2.49g/t Pd, (5.29g/t Pt+Pd), 0.67% Cu & 0.27% Ni from 133m,
including 6.00m @ 3.87g/t Pt, 3.41g/t Pd, (7.28g/t Pt+Pd), 0.90% Cu & 0.31% Ni from 135m;

BL10-238: 35.00m @ 1.71g/t Pt, 1.63g/t Pd, (3.34g/t Pt+Pd), 0.36% Cu & 0.23% Ni from 104m,
including 18.00m @ 2.15g/t Pt, 2.09g/t Pd, (4.24g/t Pt+Pd), 0.45% Cu & 0.26% Ni from 108m,
and 6.00m @ 2.09g/t Pt, 1.87g/t Pd, (3.96g/t Pt+Pd), 0.43% Cu & 0.27% Ni from 132m.

The recent drilling results have confirmed and enlarged high-grade zones within the Bridge Zone defined by previous wide-spaced drilling.

It is anticipated that the infill drilling program will be completed within the next two months. A resource estimate update will then be conducted. This will be based on all the drilling within the resource area, which will then total approximately 100,000m. It is currently anticipated that this resource estimate update will be completed in the September Quarter, 2010.

Bridge Zone Geophysical Surveys

Down-hole electro-magnetic (DHEM) and magnetometric resistivity (DHMMR) surveys, a surface moving-loop EM survey and a high-resolution surface magnetic survey are being undertaken to map high-sulphide zones within the Bridge Zone and in particular focus on the areas around previous intersections of massive sulphide mineralization. There have been three significant intersections of massive sulphide in the Bridge Zone (previously reported in ASX announcements dated 15th May 2009, 1st July 2009 and 15th February 2010, which are available on the Company's website at www.magmametals.com.au):

BL09-89: 0.81m @ 22.10g/t Pt, 20.50g/t Pd, (42.60g/t Pt+Pd), 0.35g/t Au, 18.0g/t Ag,
6.60% Cu & 3.18% Ni from 162.42m;

BL09-116: 0.50m @ 14.85g/t Pt, 15.80g/t Pd, (30.65g/t Pt+Pd), 0.63g/t Au, 23.0g/t Ag,
4.03% Cu & 2.61% Ni from 167.37m;

BL10-197: 2.60m @ 52.77g/t Pt, 41.54g/t Pd, (94.31g/t Pt+Pd), 3.87g/t Au, 61.0g/t Ag,
11.60% Cu & 3.29% Ni from 187.40m.

The locations of these drill holes are shown in Figure 2. Once the results from these geophysical surveys have been interpreted and the infill drilling program has been completed, identified targets will be drill tested.

Regional Exploration

A significant regional exploration program has been planned for 2010 with approximately 30,000m of diamond drilling and extensive geophysical surveys budgeted. The objective of the program is to identify new areas of mineralization within the Thunder Bay North intrusive complexes which have potential to contain additional mineral resources (Figure 1). 

The first part of this program focused on the Steepledge Lake Intrusive Complex and followed up encouraging drilling results reported in 2009 (Figure 3). Fourteen drill-holes were completed for 2,242m, mainly from the ice on Steepledge Lake; significant results received so far are shown in Table 2 and included:

SL10-50: 4.00m @ 1.06g/t Pt, 1.26g/t Pd, (2.32g/t Pt+Pd), 0.41% Cu & 0.21% Ni from 40m,
7.00m @ 1.06g/t Pt, 1.24g/t Pd, (2.30g/t Pt+Pd), 0.44% Cu & 0.23% Ni from 47m,

including 3.00m @ 1.54g/t Pt, 1.81g/t Pd, (3.35g/t Pt+Pd), 0.64% Cu & 0.30% Ni from 52m,
19.75m @ 0.90g/t Pt, 1.01g/t Pd, (2.00g/t Pt+Pd), 0.42% Cu & 0.24% Ni from 60m,

including 2.00m @ 1.68g/t Pt, 1.98g/t Pd, (3.66g/t Pt+Pd), 0.82% Cu & 0.36% Ni from 63m.

The 2009 and 2010 drilling has defined a 500m-long zone of mineralization (>1g/t Pt+Pd) in the northern part of the complex. In addition, the previously reported southernmost drill hole intersected a significant interval of mineralization (Figure 3). Further drilling is planned in this complex, particularly around the southern drill-hole.

Other drilling programs and geophysical surveys are planned for the southeastern part of the Current Lake Intrusive Complex, the Lone Island Lake Intrusive Complex and the east-west magnetic feature which appears to connect the three intrusive complexes in this area (Figure 1).

To view Figure 1 please visit the following link:

http://media3.marketwire.com/docs/figure1_mmw.pdf

To view Figure 2 please visit the following link:

http://media3.marketwire.com/docs/figure2_mmw.pdf

To view Figure 3 please visit the following link:

http://media3.marketwire.com/docs/figure3_mmw.pdf

Table 1. Significant Infill Drilling Results from the Bridge Zone & Beaver Lake Zone

Drill Hole From (m) To (m) Length (m) Pt (g/t) Pd (g/t) Pt+Pd (g/t) Cu (%) Ni (%) Pt+Pd Cut-Off (g/t)
Bridge Zone Drill Intercepts
BL09-189 167.00 169.30 2.30 0.70 0.64 1.34 0.17 0.13 1.0
BL10-196 148.50 153.50 5.00 0.64 0.65 1.29 0.21 0.12 1.0
BL10-202 144.00 154.00 10.00 0.58 0.56 1.14 0.14 0.11 0.5
BL10-206 155.00 169.00 14.00 2.41 2.18 4.59 0.58 0.28 1.0
  including 159.00 162.00 3.00 4.43 3.89 8.32 0.95 0.29 5.0
and 165.00 167.00 2.00 3.26 3.03 6.29 0.87 0.47 5.0
BL10-207 160.00 179.00 19.00 1.98 1.66 3.64 0.43 0.19 1.0
including 162.00 171.00 9.00 3.67 3.01 6.68 0.76 0.23 3.0
BL10-230 143.00 149.00 6.00 0.60 0.57 1.17 0.16 0.12 1.0
BL10-233 115.00 159.00 44.00 1.09 0.95 2.04 0.25 0.17 0.5
including 142.00 150.00 8.00 2.97 2.45 5.42 0.64 0.24 1.0
and 154.00 157.00 3.00 3.77 3.30 7.07 0.99 0.62 1.0
including 155.28 156.00 0.72 7.43 6.89 14.32 1.97 1.77 5.0
BL10-234 113.20 150.00 36.80 0.84 0.81 1.65 0.19 0.16 1.0
including 126.00 141.30 15.30 1.16 1.11 2.27 0.25 0.19 1.0
and 146.20 150.00 3.80 1.36 1.28 2.64 0.38 0.20 1.0
BL10-236 119.00 144.85 25.85 1.69 1.53 3.22 0.40 0.21 1.0
including 133.00 144.85 11.85 2.80 2.49 5.29 0.67 0.27 3.0
including 135.00 141.00 6.00 3.87 3.41 7.28 0.90 0.31 5.0
BL10-238 104.00 139.00 35.00 1.71 1.63 3.34 0.36 0.23 1.0
including 108.00 126.00 18.00 2.15 2.09 4.24 0.45 0.26 3.0
and 132.00 138.00 6.00 2.09 1.87 3.96 0.43 0.27 3.0
Beaver Lake Zone Drill Intercepts
BL10-212 167.30 171.30 4.00 0.57 0.55 1.12 0.11 0.14 1.0
BL10-220 148.00 153.00 5.00 0.70 0.63 1.33 0.16 0.14 1.0
  159.50 162.50 3.00 1.06 1.03 2.09 0.37 0.19 1.0
BL10-221 154.00 169.50 15.50 0.67 0.63 1.30 0.20 0.18 1.0
BL10-241 216.00 218.00 2.00 1.17 1.04 2.21 0.24 0.21 1.0
  244.00 246.00 2.00 0.93 0.85 1.78 0.19 0.21 1.0
  252.00 266.00 14.00 0.68 0.63 1.31 0.17 0.18 1.0
  272.00 275.10 3.10 1.49 1.08 2.57 0.38 0.11 1.0
including 272.00 273.00 1.00 3.67 2.38 6.05 0.94 0.14 3.0

Results are reported for intercepts >1.0g/t Pt+Pd at the lower cut-off grades shown in the right hand column;
these may include internal intervals up to 2m below the cut-off grade. 

Table 2. Significant Exploration Drilling Results from Steepledge Lake

Drill Hole From (m) To (m) Length (m) Pt (g/t) Pd (g/t) Pt+Pd (g/t) Cu (%) Ni (%) Pt+Pd Cut-Off (g/t)
Steepledge Lake Drill Intercepts
SL10-44 120.00 122.00 2.00 0.64 0.70 1.34 0.29 0.10 1.0
SL10-45 38.00 40.00 2.00 0.97 1.17 2.14 0.25 0.14 1.0
SL10-49 60.00 63.70 3.70 0.75 0.91 1.66 0.30 0.20 1.0
including 60.00 61.00 1.00 1.48 1.94 3.42 0.64 0.35 3.0
  82.00 86.00 4.00 0.74 0.83 1.57 0.32 0.26 1.0
SL10-50 31.00 32.00 1.00 1.49 1.80 3.29 0.58 0.30 1.0
  35.00 37.00 2.00 0.58 0.69 1.27 0.24 0.17 1.0
  40.00 44.00 4.00 1.06 1.26 2.32 0.41 0.21 1.0
including 41.00 42.00 1.00 1.71 2.07 3.78 0.64 0.27 3.0
  47.00 56.00 7.00 1.06 1.24 2.30 0.44 0.23 1.0
including 52.00 55.00 3.00 1.54 1.81 3.35 0.64 0.30 3.0
  60.00 79.75 19.75 0.90 1.01 2.00 0.42 0.24 1.0
including 63.00 65.00 2.00 1.68 1.98 3.66 0.82 0.36 3.0

Results are reported for intercepts >1.0g/t Pt+Pd at the lower cut-off grades shown in the right hand column;
these may include internal intervals up to 2m below the cut-off grade. 

Table 3. Drill Hole Collar and Depth Information

Drill Hole Easting (m) Northing (m) Azimuth (Deg) Dip (Deg) Depth (m)
Bridge Zone Drill Holes
BL10-189 357900 5402410 0 -90 201
BL10-196 357950 5402340 0 -90 186
BL10-202 357809 5402380 0 -90 192
BL10-206 357870 5402496 0 -90 196
BL10-207 357879 5402513 0 -90 213
BL10-230 357814 5402495 0 -90 192
BL10-233 357796 5402569 0 -90 195
BL10-234 357743 5402574 0 -90 186
BL10-236 357701 5402596 0 -90 180
BL10-238 357646 5402608 0 -90 156
Beaver Lake Zone Drill Holes
BL10-212 358250 5402500 0 -90 270
BL10-220 357951 5402461 0 -90 198
BL10-221 357951 5402480 0 -90 204
BL10-241 358350 5402280 0 -90 297
Steepledge Lake Drill Holes
SL10-44 354035 5403810 0 -90 201
SL10-45 354050 5404000 0 -90 159
SL10-49 354050 5404100 0 -90 159
SL10-50 354030 5404100 0 -90 135

Additional information on Magma and its projects, including descriptions of its quality control and assurance procedures is available on its website at www.magmametals.com.au and in technical reports filed under the Company's profile on SEDAR at www.sedar.com.

The information in this report that relates to Exploration Results or Mineral Resources is based on information compiled, reviewed or prepared by Dr Keith Watkins, the Executive Chairman of Magma Metals Limited, who is a Member of the Australasian Institute of Mining and Metallurgy, and a "qualified person" as such term is defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Dr Watkins has sufficient experience, which is relevant to the style of mineralization and type of deposit under consideration and to the activities undertaken to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (the JORC Code). Dr Watkins consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Certain information contained in this report constitutes "forward-looking information" under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" , "is expected", "estimates", "intends", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Although management believes that the expectations expressed in such forward-looking information disclosed herein are based on reasonable assumptions, these statements are not guarantees of future performance. A number of factors could cause actual results, performance or achievements to differ materially from those in the forward-looking information. Such factors include future metal prices, exploration and evaluation results, future availability of capital and general economic, market or business conditions, government regulation of mining operations, failure of equipment or processes to operate as anticipated, risks inherent in mineral exploration and development including unusual or unexpected geological formations. Descriptions of these risks can be found in the Company's various statutory reports, including its Annual Information Form available on its website at www.magmametals.com.au and on the SEDAR website at www.sedar.com.

ABN 72 114 581 047

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