Magellan Minerals Ltd.
TSX VENTURE : MNM

Magellan Minerals Ltd.

July 08, 2010 09:00 ET

Magellan Drills 53.6m @ 1.3g/t Gold and Continues to Expand Central Zone at Cuiu Cuiu Project, Brazil

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 8, 2010) - Magellan Minerals Ltd. (TSX VENTURE:MNM) ("Magellan") is pleased to provide an update on its drilling program at the Central zone which forms part of the Cuiu Cuiu project in northern Brazil. 

Results have been received on an additional six diamond drill-holes recently completed at the Central zone at the Cuiu Cuiu project. Magellan recently announced the extension of the Central zone to the northwest by 230m with the most northerly hole (CC-56-10) intersecting 73.2m @ 0.96g/t gold (see press release dated 8th June 2010).

Of the six diamond drill-holes reported here, two holes (60 and 61) were designed as in-fill holes and were drilled between holes 54 and 56. Two holes (63 and 65) were drilled to the northwest of hole 56 to further test the northern extensions of the zone. Two holes were drilled 150m to the east of the main zone in a previously untested area to check for the possible presence of secondary NW trending structures parallel to the main Central zone.

Drill holes 63 and 65 were both drilled approximately 75m and 150m respectively to the NW of hole 56 (see map on website). Hole 63 returned 53.6m @ 1.30g/t gold from 37 to 90.6m depth and hole 65 returned 42m @ 1.52g/t gold from 74 to 116m depth including 17m @ 2.91g/t gold. These holes were aimed at defining the northern limit to the mineralized zone at Central and have further extended the zone along strike to the northwest by an additional 150m for a total of 690m Whilst the zone appears to be narrowing to the northwest, it remains open.

Drill hole 60 was a re-drill of hole 57, which was lost prematurely at 179m depth. Hole 60 returned 45.6m @ 0.89g/t gold from 92.3 to 137.9m including 20.7m @ 1.53g/t from 109.5 to 130.2m depth.

Hole 61 was drilled midway between holes 55 and 56 but was offset from the trend by approximately 55m to the southwest and as a result may have missed the main zone. The hole intersected 19m @ 1.10g/t gold from 99.3 to 118.5m depth.

Holes 67 and 68 were drilled 150m to the east of the main zone in a previously untested area to check for the possible presence of secondary NW trending structures parallel to the main Central zone. No significant zones were intersected although hole 67 cut 77m @ 0.76g/t gold which probably represents the eastern margin of the Central body.

A table of results for all six holes is shown below:

  Hole ID   From (m)   To (m)   Width (m)   Gold (g/t)
         
  CC-60-10   92.3   137.9   45.6   0.89
  Includes   109.5   130.2   20.7   1.53
    254.8   276.7   21.9   0.66
  CC-61-10   99.3   118.5   19.2   1.10
  CC-63-10   37.0     90.6   53.6   1.30
  CC-65-10   74.0   116.0   42.0   1.52
  Includes   74.0     91.0   17.0   2.91
  CC-67-10   58.0     64.0   6.0   1.20
  and   177.0     254.0   77.0   0.76
  CC-68-10   No significant values
         

Drill holes 63 and 65 have confirmed that the Central zone continues for an additional 125m northwest of hole 56 and continues to remain open. As a result, further drilling is planned to the northwest of hole 65 aimed at determining the northwest limit to the mineralized zone at Central.

Drilling is currently in progress at the Pau de Merenda zone, which is located 3km northwest of Central. Previous reconnaissance drilling (five holes) at Pau de Merenda returned values of 47.1m @ 1.76g/t, 8.5m @ 5.07g/t and 30.2m @ 1.11g/t gold in three holes. The objective of the current drilling at Pau de Merenda is to determine the extent of the mineralization at Pau de Merenda with the objective of locating a third mineralized body at Cuiu Cuiu. Drilling is continuing at the Moreira Gomes zone, located 5km southeast of Central.

(See Figures on website: www.magellanminerals.com). 

Holes were drilled at angles of 50 to 60 degrees. All core samples (NTW and BTW 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 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 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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