Magellan Minerals Ltd.
TSX VENTURE : MNM

Magellan Minerals Ltd.

May 05, 2008 09:00 ET

Magellan Drills Bauxite in Six of Ten Exploratory Drill Holes at Nhamunda, Brazil

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 5, 2008) - Magellan Minerals Ltd. (TSX VENTURE:MNM) ("Magellan") is pleased to announce the results on ten shallow auger holes which were recently completed as part of a first stage bauxite evaluation program at its' 100% owned Nhamunda project in northern Brazil.

The Nhamunda property is a large 9434 hectare (94.3 km2) exploration license that hosts a large plateau area 65km west of the world class Trombetas bauxite mine and 100km northwest of the Juruti bauxite deposit, which is under development by Alcoa and expected to begin production in the latter half of this year. The Nhamunda plateau has excellent river access and is serviced by the small town of Nhamunda. A satellite image showing the location of the plateau and the ten drill holes is available on the Magellan Minerals web site (www.magellanminerals.com).

Due to the underlying felsic geology, plateau geomorphology and proximity to the nearby Trombetas and Juruti mines, the Nhamunda area is considered very prospective for bauxite mineralization. The entire surrounding region consists of bauxite exploration licenses held by Alcoa, Vale (CVRD), Rio Tinto and BHP-Billiton. Magellan acquired this exploration license through a purchase option agreement in 2007.

A total of ten widely spaced shallow auger holes were completed over the Nhamunda plateau during late 2007 to a maximum depth of 14m. Of the ten auger holes, six intersected significant widths of bauxite ranging from 1.5 to 4.7 meters. See the table below for a summary of the results:



Reactive
Hole From To Intercept Al FeO SiO2
(m) (m) (m) % % %

NHBX-1 5.5 9.0 3.5 46.4 11.9 4.7

NHBX-3 6.3 7.8 1.5 44.0 13.7 6.4

NHBX-4 5.9 9.6 3.7 39.3 11.1 9.3

NHBX-6 7.2 10.8 3.6 28.1 36.6 4.8

NHBX-9 6.1 10.8 4.7 48.0 5.8 5.0

NHBX-10 11.0 14.0 3.0 46.0 8.7 4.8

(Note: percentages of Al greater than 44% are considered economic, while
deleterious impurities such as FeO and reactive SiO2 should be below 20%
and 5% respectively)


These initial results are from the first ten holes drilled in the area, and are very encouraging. This initial exploration program demonstrates that near-surface, economic grades of bauxite over mineable widths occur over extensive areas of the Nhamunda Plateau. Larger bulk samples of up to 20kg will be sent to the laboratory to confirm these results, and additional auger drilling is planned during the dry season in the third quarter of 2008.

Magellan Minerals' approach is to rapidly evaluate mineral properties and either terminate them, if they fail to demonstrate potential to host economic ore, or retain and advance them, if the initial exploration is positive. This keeps the pipeline of potential projects dynamic, and precludes wasting management resources on projects with slight potential. As part of this strategy Magellan has simultaneously optioned three new license areas that are prospective for bauxite and terminated two existing option agreements covering the Maues and Maues Sul bauxite properties. Reconnaissance auger drilling for bauxite and stream sediment sampling for gold at both Maues and Maues Sul failed to provide any significant encouragement.

The three new tenements are granted exploration licenses totaling 19,394 hectares which occupy upland plateaus near and adjacent to Magellan's Nhamunda license. The three properties; Nhamunda North, Aduaca and Japura were acquired through an option agreement with ASM, a private exploration company, whereby Magellan has an option to earn a 100% interest in the properties. Magellan has agreed to pay US$80,000, $90,000 and $100,000 for each respective license if quantities of bauxite are discovered within the respective license areas. At least one of the licenses must be evaluated within 18 months of the start of the contract. After 3.5 years, Magellan also agrees to pay ASM a total of US$0.15 per ton of bauxite outlined in the measured and indicated categories. Wide spaced reconnaissance auger drilling programs are planned on all three areas during the third and fourth quarters of 2008.

Magellan is a recently listed and well financed mineral exploration company with a principal focus on exploring for gold and bauxite in the Tapajos Mineral Province and near-by regions of northern Brazil.

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

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

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