Magellan Minerals Ltd.
TSX VENTURE : MNM

Magellan Minerals Ltd.

September 13, 2011 06:00 ET

Magellan Minerals Drills 1m @ 118.27 g/t Gold Down-Dip at Serra Zone, Coringa Project, Brazil

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 13, 2011) - Magellan Minerals Ltd. (TSX VENTURE:MNM) ("Magellan") is pleased to report results from six additional drill holes from the Serra, Valdette and Come Quieto zones at the Coringa project. These holes are all step-out / down dip 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:-

  • 1m @ 118.27 g/t gold in hole 121 at Serra down dip of the existing Measured and Indicated resource confirming that the Serra resource is high grade and remains open at depth
  • 2m @ 10.81 g/t gold in hole 127 and 1.5m @ 10.23 g/t gold in hole 124 also at Serra. Both holes are again located down dip at Serra. Holes 121, 124 and 127 are drilled over a strike length of approximately 480m
  • 14.3m @ 0.90 g/t gold in hole 125 at Valdette

Serra

Results are reported here on three holes drilled down dip on the existing structure and all three returned high gold grades including hole 121 which was drilled close to the known northern limit of the Serra zone and intersected 1m @ 118.27 g/t gold from 90.3 to 91.3m depth. This drill intersection contains the highest gold grades thus far encountered from any drill hole at Serra. The hole also cut 1m @ 4.42 g/t between 46.0 and 47.0m depth. The hole was designed to test the down dip extensions on the northern part of the Serra zone which has an existing resource of 161,731oz of Measured and Indicated resources (Measured; 210,405t @ 8.59 g/t gold and Indicated; 336,004t @ 9.59 g/t gold) and 94,294oz of Inferred resources (280,794t @ 10.44 g/t gold). Hole 121 demonstrates that the mineralized zone at Serra remains open to the north and at depth (see map and longitudinal section on website).

Holes 124 and 127 were drilled approximately 40m down dip of previous holes in the southern central part of Serra structure and 370m and 480m SE of hole 121. Hole 124 cut 1m @ 3.41 g/t gold from 99.5 to 100.5m depth and 1.5m @ 10.23 g/t gold from 119.5 to 121.0m depth. Hole 127 cut 2m @ 10.81 g/t gold from 102.4 to 104.4m depth (see map and longitudinal section on website). These results confirm that the mineralized zone has excellent continuity both at depth and along strike and remains open at depth.

Alan Carter, President & CEO of Magellan commented, "Hole 121 is the highest grade drill hole that we have so far encountered at Serra and confirms the presence of bonanza gold grades at depth. We are optimistic that these results and the ongoing drill program at Coringa will significantly add to the existing resource base."

Valdette

Results were returned on two additional holes drilled on the Valdette structure. Hole 125 intersected 14.3m @ 0.90 g/t gold (see map on website) and was drilled 115 m south of hole 112 which intersected 28m @ 0.64 g/t gold (see July 12th, 2011 news release). Hole 123 was drilled 75m north of hole 114 (36.7m @ 0.79 g/t gold) and failed to intersect significant gold mineralization.

The latest results from Valdette confirm the presence of a relatively wide but lower grade mineralized structure which currently extends over 750m along strike and is open both to the north and south and at depth.

Come Quieto

Results were returned from one hole (120) on the Come Quieto target which is located approximately 1.7km SE of the Meio zone and returned no values of interest. Results are pending on two additional holes; 122 and 126.

Analytical results from the Serra and Valdette zones discussed in the text are tabulated below.

Hole ID From (m ) To (m ) Interval Width (m)* Gold (g/t )
Serra Zone
DDH 121 46.0 47.0 1.0 4.42
90.3 91.3 1.0 118.27
DDH 124 99.5 100.5 1.0 3.41
113.5 115.5 2.0 0.96
119.5 121.0 1.5 10.23
DDH 127 102.4 104.4 2.0 10.81
Valdette Zone
DDH 125 84.7 99.0 14.3 0.90
* 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 122 and 126

Drilling is currently in progress at Valdette and on the down dip extensions to the Meio and Serra structures which contain the bulk of the resource at Coringa. Results are currently pending on an additional 14 holes.

All core samples (HQ diameter) were cut with a diamond saw. One-half of the core was placed in numbered and sealed bags and sent via a secure transport agency to the Company's office in Novo Progresso, and subsequently 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 includes the insertion of standards, field duplicates and blank material into 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.

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 #2011-22

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

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