Magellan Minerals Ltd.
TSX VENTURE : MNM
OTCQX : MAGNF

Magellan Minerals Ltd.

February 07, 2012 08:00 ET

Magellan Drills 1m @ 32.6 g/t Gold and Continues to Extend Mineralized Zone at Serra Along Strike, Coringa Project, Brazil

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 7, 2012) - Magellan Minerals Ltd. (TSX VENTURE:MNM)(OTCQX:MAGNF) ("Magellan") is pleased to report results from the last seven drill holes from the 2011 diamond drilling program, at the Coringa project, Brazil. As with previous holes reported, these are all step-out and exploration holes aimed at expanding the existing resources of 269,450oz of gold in the measured and indicated categories (982,291t @ 8.53 g/t), and 98,224oz of gold in the inferred category (327,054t @ 9.34 g/t).

Highlights include:

  • 1.0m @ 32.6 g/t gold in hole 160 at Serra which was drilled on the northern strike extent of the Serra zone 50m north of hole 148 (1.5m @ 11.73 g/t gold).
  • 4m @ 2.87 g/t gold including 0.5m @ 16.0 g/t gold in hole 157 at Meio-Onca which is located 400m south of main Meio zone in an area with no previously reported values of interest.
  • 2.9m @ 1.95 g/t gold including 1.0m @ 2.86 g/t in hole 154 at Come Quieto located 95m north of hole 151 (2.0m @ 6.07 g/t).

Serra

Results are reported here on the last two holes drilled along strike and down dip of the existing resource. Hole 160 was drilled on the northern strike extent of the Serra zone approximately 50m north of hole 148 (1.5m @ 11.73 g/t gold) and intersected 1.0m @ 32.6 g/t gold from 98.1 to 99.1m depth, including 0.5m @ 59.4 g/t gold from 98.6 to 99.1m (see longitudinal section on website). Hole 160 is the most northerly hole completed at Serra to date and demonstrates that the mineralized zone continues for an additional 200m along strike since the original 2009 resource calculation. More importantly, hole 160 demonstrates that the mineralized zone is still open to the north.

The mineralized zone at Serra zone has an existing resource of 161,731oz of gold in the Measured and Indicated categories (Measured; 210,405t @ 8.59 g/t gold and Indicated; 336,004t @ 9.59 g/t gold) and 94,294oz of gold in the Inferred category (280,794t @ 10.44 g/t gold). This initial resource, which was released in September 2009 was based on a mineralized structure which extended 900m along strike and to a depth of 80m. These results and those previously released from Serra during 2011 (see press releases dated 13th September 2011, 17th October 2011, 24th November 2011 and 12th January 2012) suggest that the mineralized zone currently extends at least 1100m along strike and to a depth of 180m below surface.

Analytical results from the Serra, Meio, and Come Quieto zones discussed in the text are tabulated below.

Hole ID From (m) To (m) Interval Width
(m)*
Gold (g/t)
Serra Zone
DDH 150 157.9 158.4 0.5 0.43
DDH 160 98.1 99.1 1 32.6
incl. 98.6 99.1 0.5 59.4
Meio Zone
DDH 156 165 166.5 1.5 1.20
DDH 157 141 145 4 2.87
incl. 142.5 143 0.5 16.0
DDH 158 No significant results
DDH 159 114.7 115.2 0.5 2.54
Come Quieto Zone
DDH 154 50.6 51 0.4 3.99
158.5 161.4 2.9 1.95
163 163.5 0.5 2.03
179 180 1 2.86
* All holes were drilled at between -50° and -65°. Dips of the intersected structure at Come Quieto and Meio-Onca are not known, and intersection widths are not necessarily true widths.
** True widths at Serra and Meio are estimated at 60-95% of the drill intersections.

Meio

Results were returned from two holes at the main Meio zone and two holes from the Meio-Onca zone located 400m south of Meio and 700m north of Come Quieto. Hole 157 was drilled at Meio-Onca 400m south of Meio zone and returned 4.0m @ 2.87 g/t gold from 141.0 to 145.0m including 0.5m @ 16.0 g/t gold from 142.5 to 143m. Hole 157 was placed in a completely new untested zone. Hole 159 was drilled 200m north of hole 157, and returned 0.5m @ 2.54g/t gold from 114.7 to 115.2m showing the possible continuity of the mineralized zone found in hole 157 (see map on website).

At the main Meio zone, hole 156 which was drilled on the northern end of the mineralized zone, intersected 1.5m @ 1.2 g/t gold from 165.0 to 166.5m depth, demonstrating that the mineralized structure continues at depth (see longitudinal section on website).

The Meio zone has an existing resource of 70,100oz of Measured and Indicated resources (Measured; 173,710t @ 9.01 g/t gold, Indicated; 92,917t @ 6.61 g/t gold) and 3,594oz of Inferred resources (41,715t @ 2.68 g/t gold).

Come Quieto

Results were returned on one additional hole from the Come Quieto zone south of Meio. Hole 154 was drilled 95m north of hole 151 (2.0m @ 6.07 g/t gold) and returned 0.4m @ 3.99 g/t gold from 50.6 to 51m, 2.9m @ 1.95 g/t gold from 158.5 to 161.4m, 0.5m @ 2.03 g/t gold from 163 to 163.5m and 1.0m @ 2.86 g/t gold from 179 to 180m confirming the extension of the mineralized ore zone at Come Quieto which now extends over approximately 400m and remains open to the north (see map on website). The Come Quieto zone was not included in the September 2009 resource calculation.

Magellan is currently in the process of completing a 43-101 compliant updated resource estimate for the Coringa project which is expected to be released in March 2012. Global Resource Engineering Ltd. of Denver has been contracted to assist with this work. The initial resource estimate for Coringa which was released in September 2009 was based on 8,750m of drilling. A total of 14,091m of additional drilling was completed to the end of 2011 and following the initial resource estimate.

All core samples (HQ diameter) 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 to the Company's office in Novo Progresso before shipping via secure transport to ACME preparation laboratory in Itaituba for sample preparation. Core samples were crushed down to 2mm and a 1kg split was pulverized to better than 85% minus 200 mesh. From Itaituba, ACME sent the pulp samples to Santiago, Chile for assaying. Gold analyses were conducted on 30g representative sample cuts using fire assay with an atomic absorption finish. Other sample cuts were subjected to a 4 acid digestion and analysed for silver and an additional 35 elements using inductively coupled plasma mass spectrometry (ICP-MS). ACME is an ISO 9001 registered laboratory and has a quality control program in place which includes the insertion of standard, blank, and duplicate samples, as well as conducting repeat analyses.

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.

This press release was reviewed by Dennis Moore, B.Sc., M.Eng., a member of AIG, AUSIMM, and the SEG, a qualified person in compliance with National Instrument 43-101.

Magellan Minerals Ltd. (TSX VENTURE:MNM) is a TSX Venture Exchange listed exploration company with a number of gold exploration properties in the Tapajos region of northern Brazil and is focused on the Cuiu Cuiu and Coringa projects.

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.

News release #2012-4

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

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