Magellan Minerals Ltd.
TSX VENTURE : MNM

Magellan Minerals Ltd.

May 12, 2011 09:00 ET

Magellan Minerals Drills 24m @ 4.06 g/t Gold at Eastern Extension to Moreira Gomes Deposit, Cuiu Cuiu Project, Brazil

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 12, 2011) -Magellan Minerals Ltd. (TSX VENTURE:MNM) ("Magellan") is pleased to report the results for several additional diamond drill holes which were recently completed at the Central and Moreira Gomes gold deposits at the Cuiu Cuiu project in Brazil.

The Central and Moreira Gomes deposits currently have a combined total of 1.2Moz of Inferred resources and 0.1Moz of Indicated resources at an average grade of 1.2g/t gold (see press release dated 8th March 2011).

The holes reported here from the Central and Moreira Gomes zones were designed to partially test the strike extent of both mineralized zones and form part of an ongoing program of step-out drilling. A summary of results is as follows:

Hole IDFrom
(m)
To
(m)
Width
(m)
Gold
(g/t)
Moreira Gomes
CC_106_11106.5116.09.50.44
237.9251.413.50.55
CC_108_119.213.24.00.76
188.0190.02.02.10
280.2295.215.00.73
337.4344.16.71.18
CC_110_11181.6205.624.04.06
Incl.181.6182.61.085.50
Central
CC_105_1197.3101.34.02.31
199.3252.753.40.53
Incl237.7249.712.00.77
CC_107_11405.1407.12.03.00
CC_109_11138.0139.01.04.66
197.0214.017.00.76

Moreira Gomes

Hole 110 was drilled 40m to the E of hole 79 (84m @ 1.24g/t), and cut 24m @ 4.06g/t gold, including 1m @ 85.5g/t, confirming the continuity of mineralization to the east of the known resource which currently amounts to 0.7Moz of Inferred ounces averaging 1.5g/t gold. Holes 111 and 112 have been drilled 70 and 140m further east respectively in an effort to further extend the mineralized zone to the east where extensive alluvial workings are present. Results are currently pending on these holes (see Moreira Gomes Drill Map).

Drilling at Moreira Gomes is in progress and is currently aimed at also extending the mineralized body to the west.

Central

Drill hole 105 was designed to test the down dip continuity of the northern part of the Central body and intersected 53.4m @ 0.53g/t gold. Holes 107 and 109 were drilled to test for deeper extensions to both the main body and the deep drill intersection in hole 96 which intersected 44.7m @ 0.72g/t, 60.0m @ 0.63g/t and 31.1m @ 0.77g/t and was previously reported (see press release dated 5th January 2011).

Drilling in Central is continuing with the objective of testing both the north-west and eastern extensions to the current resource at Central which includes 0.5Moz of Inferred ounces and 0.1Moz of Indicated ounces of gold.

Holes were drilled at angles of 50-60 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.

This press release was reviewed by Guillermo Hughes, B.Sc., a member of AusIMM and a qualified person in compliance with National Instrument 43-101.

Moreira Gomes Drill Map - www.magellanminerals.com/_resources/110510-mg-nr-2.jpg.

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 #2011-9

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