Magellan Minerals Ltd.
TSX VENTURE : MNM

Magellan Minerals Ltd.

February 24, 2009 09:00 ET

Magellan Minerals Drills 5m @ 8.25 g/t Gold at Central Zone, Cuiu Cuiu Project, Brazil

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 24, 2009) - Magellan Minerals Ltd. (TSX VENTURE:MNM) ("Magellan") is pleased to announce the results from four drill holes totaling 983.5m which were recently completed at the Central target at the Cuiu Cuiu property, as well as eight drill holes totaling 1231m completed late last year at the Uniao project.

Cuiu Cuiu

Recent drilling at Cuiu Cuiu comprised four additional drill holes at the Central zone. These holes were drilled to test the down-plunge and lateral extensions of mineralized zones within the Central discovery. One hole, CC 43-09 was lost at 61m depth. A larger drill program was originally planned but this was suspended as a result of the global financial crisis.

The results are as follows:



From To Au Interval
Hole ID (m) (m) (g/t) (m) Area
CC 42 09 No significant results Central
CC 43 09 Hole lost at 61 metres Central
CC 44 09 No significant results Central
CC 45 09 380.2 406.6 1.95 26.4 Central
including 384.6 389.6 8.25 5.0


Holes CC 42-09 and CC 44-09 were step-out holes designed to the test the lateral boundaries of the mineralized body discovered at Central during previous drill campaigns in 2006 and 2007-08. These two holes were also designed to test NE-trending structures which appear to control high grade mineralization encountered in previous drilling (see press releases dated March 17, 2008 and June 2, 2008). However, no significant mineralization was encountered, suggesting that ore shoots occur where NE-SW trending secondary structures intersect the large-scale NW-trending shear zone that localizes the five main soil anomalies at Cuiu Cuiu. This NW-SE shear zone is a regional feature which controls the location of other gold deposits in the Province, and is known locally as the Tocantinzinho Trend. Hole CC45-09 was targeted at the down-plunge SE extension of the high grade mineralization intersected in holes CC16-07 and CC32-08. At least part of the zone was intersected in this hole which returned 26.4m @ 1.95 g/t Au including 5m @ 8.25 g/t Au from 384.6m to 389.6m.

This limited program of step-out drilling at Central was insufficient to constrain the overall limits to the mineralization which is still open to the NW and SE and at depth. Furthermore the Central gold-in-soil anomaly extends 1.5km NW of the mineralized body and remains unexplained. The Cuiu Cuiu creek was also extensively mined for alluvial gold for a distance of 5km upstream of the Central body suggesting the presence of additional concealed gold mineralization north of Central, possibly in the vicinity of the Pau de Merenda anomaly located 3km to the north, where limited drilling by Magellan in early 2008 returned results up to 47m @ 1.76 gt/t gold.

On-going motorized auger drilling work at the Moreira Gomes soil anomaly has revealed significant amounts of gold in the soil and laterite profile to a depth of at least 20m. Along with the Central anomaly, Moreira Gomes is one of the largest soil anomalies on the property and currently extends for 1.5km in an E-W direction and is 150m to 200m wide.

The length, width and grade of the Moreira Gomes auger results are reminiscent of the 1998 auger results from the nearby Tocantinzinho deposit, prior to diamond drilling. Neither Moreira Gomes nor the nearby Guarim prospect, have been subject to previous drilling. Based on the recently conducted auger work, Magellan now plans a limited drill campaign on the project with drilling anticipated to start within the next few months.

Uniao

Uniao is located 100km SSW of the Cuiu Cuiu project and occurs within the Creporizao vein district, which historically produced in excess of one million ounces of gold from both alluvial and primary sources. Six holes were drilled on the Cuiabano-Laje target, and two holes targeted the Gaspar vein.

Mineralized intervals from the 2008 Uniao drill program are summarized below. Four of the six holes completed at Cuiabano-Laje intersected the targeted vein structure over a strike length of 700m, with widths ranging from 1.0m to 2.9m, demonstrating mineable widths and structural continuity.

At Gaspar, hole UN-008-08 intersected 4.5m of near-surface oxide material grading 1.61 g/t Au from surface to 4.5m depth, as well as two, 1m wide mineralized intercepts in the hanging wall. Additionally at Gaspar, hole UN-007-08 intersected 3.65m grading 1.35 g/t Au, at 40.0m to 43.6m, demonstrating good width potential at depth.



From To Au Interval
Hole ID (m) (m) (g/t) (m) Area
UN 003 08 9.14 10.90 0.53 1.76 Cuiabano-Laje
84.00 85.00 0.54 1.00 Cuiabano-Laje
85.50 87.50 3.20 2.00 Cuiabano-Laje
88.00 88.50 0.93 0.50 Cuiabano-Laje
UN 004 08 71.90 73.15 0.94 1.25 Cuiabano-Laje
79.50 80.50 0.72 1.00 Cuiabano-Laje
UN 005 08 47.85 50.20 0.76 2.35 Cuiabano-Laje
UN 006 08 104.10 107.00 0.74 2.90 Cuiabano-Laje
107.90 110.00 0.61 2.10 Cuiabano-Laje
UN 007 08 40.00 43.65 1.35 3.65 Gaspar
UN 008 08 0 4.50 1.61 4.50 Gaspar
67.60 68.95 0.78 1.35 Gaspar
87.60 88.60 1.59 1.00 Gaspar


Gold-bearing vein systems are typically erratic in terms of both grade and continuity of width. Drilling is particularly problematic at estimating the true grade of narrow structures with abundant visible gold due to the erratic distribution of gold within quartz veins. Whilst previous surface samples and underground workings at Gaspar and Cuiabano-Laje have returned assay results in the tens to hundreds of grammes per ton, the reconnaissance drilling on two areas at Uniao did not return high values. However, the recent drilling does demonstrate the continuity of the mineralized structures both at depth and along strike and the focus will now be on identifying the structural and lithological controls on the high grade ore shoots sampled underground and on surface.

Furthermore, the recent reconnaissance drilling was restricted to only two targets at Uniao. Ten other primary gold showings at Uniao remain untested including the Malvinas vein which returned grades ranging from tens to hundreds of grammes per tonne on surface and down to 80m depth in one shaft.

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.

Magellan is a well financed mineral exploration company with a principal focus on exploring for gold in the Tapajos Mineral Province of northern Brazil.

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

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