Magma Metals Limited
TSX : MMW
ASX : MMW

Magma Metals Limited

February 16, 2010 09:01 ET

Magma Metals Limited: High-Grade Drill Intersection at Thunder Bay North

WEST PERTH, WESTERN AUSTRALIA--(Marketwire - Feb. 16, 2010) -

KEY POINTS

  • One of the best drill intercepts recorded at the Thunder Bay North project has been returned from infill drilling in the Bridge Zone:

           BL10-197: 44.65m @ 5.50g/t Pt, 4.75g/t Pd, (10.25g/t Pt+Pd),
                                                    1.20% Cu & 0.49% Ni from 145.35m,

            including 14.00m @ 16.23g/t Pt, 13.92g/t Pd, (30.15g/t Pt+Pd),
                                                    3.52% Cu & 1.24% Ni from 176.00m,

            including a massive sulphide interval from 187.40m of: 
                                                    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.

  • The basal 2.6m interval is the thickest and highest grade massive sulphide intersected to date at the project. 
  • Geophysical surveys and further drilling are planned to determine the extent of this high-grade zone.
  • This drill-hole is part of a 55,000m infill & extension diamond drilling program in progress with up to five drill-rigs in the mineral resource area.
  • A resource estimate update will be undertaken on completion of this drilling, based on a merged database from approximately 105,000m of diamond drilling.

Magma Metals Limited (TSX:MMW)(ASX:MMW) ("Magma" or the "Company") is pleased to report a zone of high-grade mineralization has been intersected in the Bridge Zone in drill-hole BL10-197, which is part of a 50m x 20m spaced infill drilling program currently in progress. Assay results for this hole are summarised above (in "Key Points") and detailed in the tables below.

This is one of the best drill intercepts recorded at the project to date and contains a 2.6m zone of massive sulphides with particularly high grades of mineralization. Massive sulphide mineralization is a key exploration target. Geophysical surveys and further drilling are planned to determine the geometry and extent of this zone.

To view a map of "Current Lake intrusive Complex", please visit the following link:

http://media3.marketwire.com/docs/mm_map_216.pdf

Other significant drilling results received recently are detailed in the tables below.

Significant Exploration 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)
Au
(g/t)
Ag
(g/t)
Cu
(%)
Ni
(%)
Pt+Pd
Cut-Off (g/t) 
BL09-193 155.00 167.00 12.00 0.89 0.83 1.72 0.06 - 0.19 0.16 1.0
including 162.00 164.00 2.00 1.71 1.61 3.32 0.11 - 0.37 0.24 3.0
BL10-194 150.00 156.20 6.20 0.99 0.95 1.94 0.08 - 0.23 0.14 1.0
BL10-195 152.00 169.00 17.00 1.41 1.36 2.77 0.09 - 0.35 0.21 1.0
including 158.00 167.00 9.00 1.88 1.80 3.68 0.11 - 0.48 0.26 3.0
  173.00 176.40 3.40 1.86 1.64 3.50 0.11 - 0.35 0.15 1.0
including 174.95 175.25 0.30 9.36 7.70 17.06 0.52 12.2 1.62 0.18 5.0
BL10-196 148.50 153.50 5.00 0.64 0.64 1.28 0.04 - 0.21 0.12 1.0
including 152.50 153.50 1.00 1.71 1.72 3.43 0.09 - 0.51 0.22 3.0
BL10-197 145.35 190.00 44.65 5.50 4.75 10.25 0.34 6.49 1.20 0.49 0.5
including 165.35 190.00 24.65 9.48 8.16 17.64 0.58 10.9 2.06 0.77 1.0
including 176.00 190.00 14.00 16.23 13.92 30.15 0.99 18.4 3.52 1.24 3.0
including 187.4 190.00 2.60 52.77 41.54 94.31 3.87 61.0 11.6 3.29 50.0
BL10-210 131.70 139.00 7.30 1.04 1.00 2.04 0.08 - 0.29 0.17 1.0
  165.00 177.00 12.00 1.11 1.02 2.13 0.07 - 0.26 0.24 1.0
  211.00 213.40 2.40 0.72 0.63 1.35 0.06 - 0.28 0.19 1.0

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. Results for drill-holes BL10-196 & 210 are preliminary and may change slightly subject to QA/QC checks.

Bridge Zone & Beaver Lake Zone Drill Hole Collar and Depth Information

Drill
Hole
Easting
(m)
Northing
(m)
Azimuth
(Deg)
Dip
(Deg)
Depth
(m)
BL10-193 357900 5402370 0 -90 201.0
BL10-194 357950 5402360 0 -90 201.0
BL10-195 357951 5402380 0 -90 207.0
BL10-196 357950 5402340 0 -90 183.0
BL09-197 357950 5402400 0 -90 240.0
BL10-210 358200 5402468 0 -90 234.2

 BL10-210 is from the Beaver Lake Zone; all other holes are from the Bridge Zone

An approximately 55,000m infill and extension diamond drilling program is in progress, mainly in the Bridge and Beaver Lake zones of the resource area in the Current Lake Intrusive Complex. Approximately 40% of the program has been completed. Once the infill drilling has been completed, which is scheduled for May 2010, it is planned to complete an update of the resource estimate from the combined database of approximately 105,000m of drilling. This should be available in mid-2010.

The current resource estimate, which was based on 50,416m of drilling, is shown below on a platinum equivalent (PtEq) basis (see Company announcement to the ASX dated 7th September 2009, available on the Company's website at www.magmametals.com.au, for the methodology and parameters used in the estimation of platinum equivalents):

Indicated Mineral Resources: 4.6Mt @ 2.88g/t PtEq for 425,000oz PtEq
Inferred Mineral Resources: 3.6Mt @ 2.29g/t PtEq for 265,000oz PtEq

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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