Magellan Minerals Ltd.

Magellan Minerals Ltd.

March 17, 2008 09:00 ET

Magellan Drills 174.2m @ 1.46g/t and Confirms Discovery at Central Target, Cuiu Cuiu Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 17, 2008) - Magellan Minerals Ltd. (TSX VENTURE:MNM) ("Magellan") is pleased to announce assay results on a further four holes of the drill program which is currently in progress at its 100% controlled Cuiu Cuiu project in northern Brazil. A total of 30 holes have been completed to date and results are pending on 22 of these holes.

All four of the holes reported here were drilled as inclined holes in the Central target area. Highlights from the current results include 179.6m @ 1.06g/t Au from 42.8m to 222.4m including 5.1m @ 14.05g/t Au in hole CC-15-07 and 174.2m @ 1.46g/t Au from 170.1 to 344.3m including 59.0m @ 2.86g/t Au in hole CC-16-07. A summary of the results obtained from holes CC-15-07 to CC-18-07 is as follows:-

From To Width Gold
Drill Hole (m) (m) (m) g/t

CC-15-07 42.8 222.4 179.6 1.06
incl. 217.3 222.4 5.1 14.05

CC-16-07 81.8 83.1 1.3 1.06
149.3 150.9 1.6 1.29
170.1 344.3(i) 174.2 1.46
incl. 218.0 277.0 59.0 2.86
incl. 275.0 277.0 2.0 36.15

CC-17-07 128.8 130.8 2.0 2.05
200.7 202.2 1.5 2.47

CC-18-07 no significant results

(i) hole CC-16-07 was stopped at 345.3m depth in a post-mineral aplite dyke.

These results confirm the discovery of significant gold mineralization under cover at the southern end of the Central soil anomaly. Hole 15 was drilled in a SW direction and located 100m to the SE of drill hole 13 which previously intersected 65.8m @ 3.54g/t Au. Hole 16 was drilled 75m to the WSW of drill hole 13 towards the SE. The current drill results confirm both the presence of high grade zones within a lower grade stockwork envelope at Central, and that mineralization extends to significant depth.

Gold mineralization at Central is broadly striking NW - SE and remains open to both the north and south and at depth. Drilling continues to define the limits of the mineralized zone which has now been tested over a strike length of 250m, a maximum width of 150m, and true vertical depths of 200 - 250m. A ground IP survey completed over the discovery area suggests the mineralization may be characterized by a chargeability low and highlights the potential for expanding the size of the mineralized zone, particularly to the south-east and the south-west. The main gold-in-soil anomaly at Central extends north of the current discovery holes for approximately 1500m and has only been partially tested. Limited drilling previously completed by Magellan over a small area 600m to the north of the recent drilling, produced anomalous results including 20m @ 0.73g/t and 13.9m @ 2.49g/t Au.

Results are currently pending on an additional ten diamond drill holes from the Central target as well as five drill holes from the Pao de Marenda anomaly, and seven drill holes from the Jerimum de Cima target. The main focus of the current drill program is to determine the extent and geometry of the mineralized body at Central as well as test two other significant gold-in-soil anomalies. The next set of drill results are expected later this month and will be from five holes on the Pau de Marenda target, located 2.5km north of Central.

Drill holes were inclined at between 55 degrees and 65 degrees and ranged in depth from 199.6m (CC-18-07) to a maximum of 345.3m (CC-16-07). Core recovery for the mineralized intervals averaged greater than 95%.

Drill cores for assaying were taken at a minimum of 0.4m and maximum of 2.5m intervals. All core samples (BTW and NTW diameter) were cut in half using a diamond saw with one-half of the core stored on site for future reference, and one half sent to an independent laboratory for analysis. The half core for analysis is placed in bags, numbered, sealed and then sent via secure transport directly to the SGS Geosol prep facility in Itaituba, with the pulverized splits being air-freighted to the SGS Laboratory in Belo Horizonte for subsequent fire assay. The preparation procedure involves pulverizing 100% of the core samples to better than 95% minus 150 mesh and then splitting off 50g for analysis. Gold analysis was by fire assay of the 50g split with an atomic absorption finish. Samples containing visible gold are analyzed by metallic screen assay, which involves fire assaying both the coarse and fine fractions of a particular sample. The final result combines both the fine and coarse assay results based on the weight of each individual fraction. The Company's QA/QC program, which is intended to check laboratory precision and accuracy, involves inserting a series of blanks and internationally recognized standards in the sample stream which is sent to the laboratory. SGS Geosol is an ISO 9001:2000 and ISO 14001:2004 registered laboratory and has its own quality control program in place.

The Cuiu Cuiu project covers an entire gold district, and has an estimated historic alluvial gold production of 1.5 to 2Moz. Magellan controls mineral exploration licenses totaling over 47,000 hectares (greater than 470 km2) at Cuiu Cuiu and is focusing its exploration efforts on a series of SE to NW striking gold-in-soil anomalies which extend along a trend which is 17km in length and cuts across Magellan's license area (see website: for map). Cuiu Cuiu is one of 13 projects (11 of which are 100% owned) currently held by Magellan in the Tapajos Mineral Province of northern Brazil. Other projects include; Uniao, Porquinho, Maranhense and Nhamunda.

This press release was prepared by Dennis Moore, B.Sc., M.Eng., member of AusIMM & SEG., a qualified person in compliance with National Instrument 43-101.

Magellan is a recently listed and well financed mineral exploration company with a principal focus on exploring for gold in the Tapajos province of northern Brazil.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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