Magellan Minerals Ltd.

Magellan Minerals Ltd.

November 03, 2009 09:15 ET

Magellan Extends Meio Zone at Coringa Project, Brazil

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 3, 2009) - Magellan Minerals Ltd. (TSX VENTURE:MNM) ("Magellan") announces that prospecting to the SE of the Meio resource block at the Coringa project in Brazil has identified sub-cropping and outcropping veins and mineralized float extending over a distance of 1km immediately SE of the Meio zone (see map on website).

Rock chip, grab and float samples taken from the mineralized vein material both on surface and at depths of 0.5 to 2m confirms significant gold mineralization (1.02 g/t to 67.91g/t Au). Four of the widely spaced rock chip samples of the mineralized vein along 500m strike length, returned gold values greater than 16 g/t (see Table below and map on the Magellan website). The mineralized and oxidized vein material varies in width from approximately 30cm to 2m and dips vertically to 80 degrees to the NE. The nature of the oxidized vein material is very similar to that which is exposed on surface within the historic Meio workings located 1km to the NW. High grade gold values on surface are generally associated with steeply plunging high grade shoots at depth along the vein system at Coringa.

In addition to the discovery of sub-cropping high-grade vein material, recent soil sampling confirms gold in soil anomalies of 30 to 1,108ppb gold which extend for another 1.5km to the NW of Meio. The soil anomaly extends towards an undrilled artisanal working known as Mae de Leite where historic workings extended to depths of 70m. The soil anomaly is coincident with the NW extension of a geophysical anomaly underlying the Meio resource block (see press release of October 8, 2009).

Both the high-grade vein structure to the SE and the soil anomaly to the NW of Meio confirm potential drill targets extending over at least another 2.5km.

Table 1: Coringa - SE Meio Zone
Rock chip, grab and float samples with greater than 1.0 g/t gold.

SAMPLE_#Sample TypeInterval (m)Au_g/tComments
R0005303 Chip 0.908.18Brecciated vein quartz
R0005304 Chip 0.303.55Vein quartz with hematite
R0005305 Chip 0.5019.12Vein quartz with pyrite
R0005306 Chip 1.001.61Saprolite
R0005307 Chip 1.001.80Silicified zone
R0005316 Chip 0.502.49Brecciated quartz
R0005317 Float 16.09Quartz vein with boxworks
R0005318 Chip 2.0016.61Quartz veins with boxworks
R0005322 Chip 1.001.99Quartz veinlets in saprolite
R0005327 Chip 1.005.12Quartz veinlets in Saprolite
R0005332 Chip 0.8013.28Vein quartz with hematite fill
R0005334 Chip 0.601.02Saprolite
R0005335 Chip 0.3042.74Vein quartz with disseminated hematite
R0005338 Chip 0.506.66Vein Quartz
R0005340 Chip 0.6017.32Vein quartz
R0005341 Chip 1.002.32Saprolite with oxidized rock fragments
R0005343 Chip 1.006.48Vein quartz
R0005346 Chip 0.6067.91Vein Quartz
R0005352 Chip 0.401.23Vein quartz
R0005355 Chip 0.4510.64Vein quartz
R0008932Grab 5.71Quartz stockwork with sericite
R0008936 Grab 4.11Milky quartz with pyrite
R0008937 Grab 6.67Quartz stockwork
R0008943 Float 1.41Vein quartz
R0008945 Float 1.95Vein quartz
R0008946 Chip 0.606.45Vein with pyrite
R0008947 Float 1.57Brecciated quartz
R0008949 Float 3.33Strong sericite alteration

Note: The above twenty-eight (28) rock samples represent 41% of the total sixty-nine (69) rock samples collected in August to September 2009. Gold values for the sixty-nine (69) samples ranged from less than 0.01g/t to 67.91g/t Au.

Rock and soil samples were sent via a secure transport agency to the SGS Geosol laboratory in Itaituba in Brazil for preparation and the pulps sent directly to the SGS Geosol laboratory in Belo Horizonte and Vespasiano for analysis. Gold analysis was by fire assay of a 30 g sample and an atomic absorption finish. SGS Geosol, which is an ISO, 9001:2000 and ISO 14001: 2004 registered laboratory has a quality control program in place, which includes standards and duplicates.

On 8th October 2009, Magellan announced an initial resource estimate at Coringa of 269,500 measured and indicated ounces of gold representing 982,291 tonnes at an average grade of 8.53 g/t gold and 98,224 inferred ounces of gold representing 327,054 tonnes at an average grade of 9.34 g/t gold on a diluted basis and using a 2 g/t gold cut-off. The identification of additional high-grade mineralization on surface immediately along strike from existing resources at Coringa suggests the presence of additional high grade, and thus far untested, ore shoots within the known vein system. A drill program is currently being finalized in order to test this new area SE of Meio and several previously untested areas along the known vein system.

Magellan expects to announce the commencement of a scoping study at Coringa by the end of November 2009.

This press release was prepared by Magellan's Chief Operating Officer, Ian Gendall (Pr. Sci. Nat.), a qualified person in compliance with National Instrument 43-101.

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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