Magma Metals Limited
TSX : MMW
ASX : MMW

Magma Metals Limited

August 20, 2010 09:25 ET

Magma Metals Limited: Large Gold Anomaly Defined at Griffins Find

PERTH, WESTERN AUSTRALIA--(Marketwire - Aug. 20, 2010) - Magma Metals Limited (TSX:MMW)(ASX:MMW) ("Magma" or the "Company") is pleased to advise that an auger geochemical soil survey has mapped a large gold anomaly at the Griffins Find project, 320km southeast of Perth in Western Australia. The anomaly is 3km by 1km in size when contoured at a level greater than 100 parts per billion (ppb) gold (equivalent to 0.1g/t gold). The historical Griffins Find gold mine, which produced approximately 55,000 ounces of gold in the 1980's from two shallow open pits, is located on the northern edge of this gold anomaly.

"This is a substantial soil anomaly which is very encouraging and clearly shows that the scale of the gold anomalism in this area is much more extensive than can be explained by the mineralization that was mined in the two shallow open pits," said Keith Watkins, Magma's Executive Chairman. "This was reinforced by the two shallow gold zones we defined by drilling in the June quarter, which were at opposite ends of the gold anomaly".

The gold anomaly was defined by a systematic multi-element auger geochemical soil survey conducted over most of the Griffins Find gold project. The survey comprised 3,505 samples collected on a 200m x 40m grid over an area of approximately 32km2 with a shallow auger drill and analysed for 27 elements, including gold. The gold assays define a large coherent anomaly which is cut by a recent alluvial channel (which partially masks the gold anomaly) (Figure 1). At the greater than 20ppb gold level, the anomaly is approximately 4km by 2.5km in size and shows two main trends, west-northwest and north-northwest. The greater than 100ppb gold anomaly occupies the west-northwest trend. A number of other elements are associated with the gold, particularly, arsenic, copper and tungsten, and interpretation of the multi-element data is in progress.

Numerous gold intersections have been recorded in historical shallow drilling within the gold anomaly. Magma completed a program of deeper holes in the June quarter 2010 and defined two shallow gold zones at the Ridge and Griffins West prospects on the periphery of the gold anomaly (Figure 1).

It is planned to commence drilling programs to further investigate the gold anomaly and the resource potential of the project in the December quarter, 2010.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/mmw820Figure1.pdf

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 the SEDAR website (sedar.com).

Drill-hole location and detailed assay data for all drill-holes mentioned in this report but not provided herein have been provided in previous announcements. These are available on the Company's website at www.magmametals.com.au. It should be noted that drill intercepts referred to in this report are down-hole thicknesses and may not represent true thicknesses.

Sample preparation and assays for samples were conducted at the ALS Laboratory Group facility in Perth, Western Australia.

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 and/or Mr Ralph Porter, the Executive Chairman and Executive Director – Exploration, Australia of Magma Metals Limited, respectively, who are both Members of the Australasian Institute of Mining and Metallurgy, and each of whom is a "qualified person" as such term is defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Both Dr Watkins and Mr Porter have sufficient experience, which is relevant to the style of mineralization and type of deposit under consideration and to the activities undertaken to qualify as Competent Persons 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 and Mr Porter consent to the inclusion in the report of the matters based on this information in the form and context in which they appear.

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 (sedar.com).

ABN 72 114 581 047

Contact Information