Magellan Minerals Ltd.
TSX VENTURE : MNM

Magellan Minerals Ltd.

November 15, 2010 09:00 ET

Magellan Drills 105.2m @ 0.60g/t Gold and Discovers New Mineralized Zone At Jerimum Baixo, Cuiu-Cuiu, Brazil

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 15, 2010) - Magellan Minerals Ltd. (TSX VENTURE:MNM) ("Magellan") is pleased to report the results for three of seven diamond drill holes (1612.47m) recently completed at the Jerimum Baixo target area, located approximately mid-way between the previously discovered Central and Moreira Gomes zones. Gold mineralization was intersected in all three holes with the best intersection consisting of 105.2m @ 0.60g/t gold in hole 94 including 40.7m @ 1.29g/t gold. See table below for the summarized results with Figure of drill plan on website: www.magellanminerals.com.

Jerimum Baixo Target

Jerimum Baixo is located approximately 3km ESE of Central and 2.2km WNW of Moreira Gomes. The seven-hole drill plan was designed to test an interpreted NW trending structure and a +100ppb gold-in-soil anomaly extending over approximately 850m in length and 450m wide. Extensive alluvial and saprolite-hosted gold workings at Jerimum Baixo occur immediately to the east and west of this soil anomaly (see Figure on website). Previous drilling of one hole (CC_10_06), within the target area returned 9.7m @ 0.84g/t gold from 55.2m to 64.9m. 

Of the three holes received to date, 91 and 92 cut low-grade mineralization over 30-40m width (see results table), which may represent the SE and NW extensions of the zone intersected in hole 10. Hole 94 however intersected 105.2m @ 0.60g/t gold including 40.7m @ 1.29 g/t gold and may have cut a different zone to the northeast which possibly trends parallel to the zone intersected in holes 91 and 92. The zone intersected in hole 94 is coincident with the highest gold values in soils, which are in excess of 350ppb. Gold mineralization in all three holes is associated with strong silica-sericite-chlorite-pyrite alteration.

Alan Carter, President & CEO commented that, "Whilst it is still early days for Jerimum Baixo, drilling appears to have intersected another mineralized zone at Cuiu Cuiu between Central and Moreira Gomes, and perhaps most significantly, the style of mineralization is very similar to the previously discovered zones, as well as mineralization at the nearby Tocantinzinho deposit." 

Table of Results: Jerimum Baixo Zone

Hole ID From (m) To (m) Width (m) Gold (g/t)
CC_91_10 130.0 160.4 30.4 0.40
CC_92_10 101.0 141.0 40.0 0.36
CC-94_10 1.5 106.7 105.2 0.60
Includes 1.5 42.2 40.7 1.29
Note: Widths reported in the above table are down hole widths and the true widths are estimated to be between 70 and 90%.

Results are currently pending on four additional holes (95, 97, 98 and 100) from the Jerimum Baixo target.

Pau da Merenda Target

Pau da Merenda is located approximately 3km NW of Central and results for six recent follow up holes (1530m) have been received. Narrow gold mineralized structures were intersected in five of the six holes with the best intersections being, 7.1m @ 2.35g/t gold in hole 78, 6m @ 2.00g/t gold in hole 75 and 4m @ 6.42g/t gold in hole 72. See table below for all summarized results with Figure of drill plan on website: www.magellanminerals.com.

The six-hole drill plan was designed to test the possible gold extension along a northwest trending structure and a +100ppb gold-in-soil anomaly which extends over approximately 800m in length and 370m wide. Previous drilling by Magellan at Pau de Merenda returned 47.1m @ 1.76g/t gold in hole 20, 8.5m @ 5.07 g/t gold in hole 22 and 30.2m @ 1.11 g/t gold in hole 19 (see press release of April 15, 2008). 

The follow up drill program at Pau de Merenda suggests that the mineralized zones in this area are narrower than at Central, Moreira Gomes or Jerimum Baixo and may be of a different orientation. The zone of 7.1m @ 2.35g/t gold intersected in hole 78 may represent the eastern extension of the zone intersected in holes 19 and 20 which would suggest an ESE orientation. If this is the case the zone is still open to the west and the east. Furthermore, the mineralized zones intersected in holes 72 (4m @ 6.42g/t gold) and 82 (18.3m @ 0.46g/t gold) will require follow up. Further evaluation of geophysical and geochemical data at Pau de Merenda is in progress prior to further drilling.

Table of Results: Pau da Merenda Zone

Hole ID From (m) To (m) Width (m) Gold (g/t)
CC_72_10 65.9 69.9 4.0 6.42
CC_75_10 95.8 99.8 4.0 0.68
  240.2 246.2 6.0 2.00
CC-78_10 151.1 158.2 7.1 2.35
CC_80_10 No significant results
CC_82_10 0 18.3 18.3 0.46
CC_84_10 101.1 106.6 5.5 0.25
Note: Widths reported in the above table are down hole widths and the true widths are estimated to be between 70 and 90%.

Babi Target

Drilling of three holes, (DDH 85, 87 and 89) totaling 667.5m on the Babi target located approximately 800m north of Central was completed. Babi is a coincident gold-in-soil geochemical and magnetic anomaly which spans the main stream at Cuiu Cuiu. Whilst no significant gold mineralization was intersected in any of the three holes, thus far only the southern portion of the anomaly has been tested. Further drilling on the northern part of this target is planned for 2011.

Drilling is currently in progress at Central and Moreira Gomes where both infill and deep (250m vertical depth) drilling below previously reported mineralized zones (see press releases on website: www.magellanminerals.com) is being undertaken.

The seven holes at Jerimum Baixo were drilled at angles of between 50 and 60 degrees. The holes at Pau da Merenda and Babi were drilled at an angle of 50 degrees. All core samples 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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