Magellan Minerals Ltd.
TSX VENTURE : MNM

Magellan Minerals Ltd.

September 08, 2011 09:30 ET

Magellan Drills 39.4m @ 1.25 g/t Gold 360m North of Central and Discovers New Zone at Cuiu Cuiu Project, Brazil

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 8, 2011) - Magellan Minerals Ltd. (TSX VENTURE:MNM) ("Magellan") is pleased to announce the discovery of a new and previously unrecognized zone of gold mineralization located approximately 360m north of the Central zone at Cuiu Cuiu. This zone has been named Central North and represents a significant new discovery.

Highlights include:-

  • 39.4m @ 1.25 g/t gold in hole 131 located 360m due north of hole 118 (0.5m @ 58.7g/t gold) at Central and appears to represent a new and thus far unrecognized zone of gold mineralization which has been named Central North
  • 13m @ 0.58 g/t gold in hole 125, located in the extreme eastern part of the Moreira Gomes zone confirming that the Moreira Gomes zone remains open to the east
  • 2m @ 6.29 g/t gold in hole 135 at the Jerimum Baixo zone located between Central and Moreira Gomes

Central

Hole 131 was drilled 360m due north of hole 118 (0.5m @ 58.7 g/t gold) under a small area of placer workings and intersected 39.4m @ 1.25 g/t gold from 148.2 to 187.6m depth. This new zone has been named Central North and is open in every direction (see map on website). Oriented drill core measurements suggest the gold mineralization intersected in hole 131 trends NW-SE similar to the main Central mineralized zone and the large-scale Tocantinzinho shear that transects the property. Extensive historic gold placer workings occur approximately 500m north of the drill hole location within the Pau de Merenda creek. Additional drilling aimed at defining the strike and down dip extent of this zone is in progress.

Alan Carter, President & CEO of Magellan commented, "Hole 131 is the most important hole reported to date from the 2011 drill program at Cuiu Cuiu and is a significant new discovery. We are excited by the potential of the Central North zone to grow into a third mineralized body at Cuiu Cuiu and look forward to the results of further drilling."

Drill hole intersections discussed in the text are summarized in the following table:

Hole ID From (m ) To (m ) Width* (m ) Gold (g/t )
Central Zone / Central North
DDH 131 6.0 28.0 22.0 0.40
125.5 140.1 14.6 0.33
148.2 187.6 39.4 1.25
incl. 157.2 158.2 1.0 9.65
Moreira Gomes Zone
DDH 125 89.7 102.7 13.0 0.58
DDH 126 No significant results
DDH 133 No significant results
Jerimum Baixo
DDH 135 0 17.6 17.6 0.42
48.1 57.1 9.0 0.63
68.1 88.1 20.0 0.49
102.1 104.1 2.0 6.29
* All holes were drilled at -50°. Dips of the intersected structures are not known, and intersection widths are not necessarily true widths
** Results are pending on holes 132 and 134

Moreira Gomes

Results on three additional step-out holes have been returned from the Moreira Gomes zone which contains an inferred resource of 0.7Moz of gold (14Mt @ 1.5 g/t gold) (see map on website). Hole 125 was drilled on the extreme eastern limit of the deposit in the same fence as hole 122 (see press release dated 31st August 2011), and returned 13m @ 0.58g/t gold from 89.7 to 102.7m depth confirming that the mineralized zone remains open to the east.

Hole 126 and 133 were drilled as step-out holes on the western extremity of Moreira Gomez and despite cutting a strongly altered shear zone, neither hole cut values of significant of interest, although in the case of hole 126, samples have been sent to a second lab for metallic screen fire assay.

Jerimum Baixo

The Jerimum Baixo zone is located between the Central and Moreira Gomes deposits and is not currently part of the resource at Cuiu Ciuu. Previous reconnaissance drilling on this anomaly has returned results up to 105.2m @ 0.6 g/t including 41m @ 1.3g/t gold (see map on website).

Hole 135 was drilled in a NE direction in a location 70m SE of hole 94 which intersected 41m @ 1.3 g/t gold. Hole 135 intersected 17.6m @ 0.42g/t from 0 to 17.6m, 9m @ 0.63g/t gold from 48.1 to 57.1m, 20m @ 0.49g/t gold from 68.1 to 88.1m and 2m @ 6.29g/t gold from 102.1 to 104.1m.

This hole is significant because it demonstrates the NW-SE continuity of mineralization intersected in hole 94. Results are pending on step out holes to the NW and SE.

Magellan currently has three drill rigs operating at Cuiu Cuiu, with drilling expected to continue at least until the end of 2011. Results are currently pending on additional drill holes from Central North, Central SE and Jerimum Baixo.

Current resources at Cuiu Cuiu total 1.2Moz (31Mt @ 1.2 g/t) of gold in the inferred category and 0.1Moz (3.4Mt @ 1.0g/t) of gold in the indicated category.

Holes were drilled at 50 degrees from horizontal. 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 Itaituba before shipping via secure transport to ACME preparation laboratory in Itaituba for sample preparation. Core samples were crushed down to 2 mm and a 1 kg 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 where drilling is currently in progress.

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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 #2011-20

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