Magellan Minerals Ltd.
TSX VENTURE : MNM

Magellan Minerals Ltd.

February 08, 2011 09:01 ET

Magellan Minerals Drills 7.5m @ 18.83 g/t Gold at Moreira Gomes, Cuiu Cuiu Project, Brazil

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 8, 2011) - Magellan Minerals Ltd. (TSX VENTURE:MNM) ("Magellan") is pleased to report the results for additional diamond drill holes which were recently completed at the Central, Moreira Gomes and Jerimum Baixo targets at the Cuiu Cuiu project in Brazil.

The holes reported here from the Central and Moreira Gomes zones were designed to further test the down depth extent of both mineralized zones. No deeper holes have been reported thus far from the Moreira Gomes zone. Three additional holes were also drilled in the recently identified Jerimum Baixo zone (see press release dated 15th November 2010 and new figures on website). Highlights include 7.5m @ 18.83g/t gold in hole 104 and 33m @ 1.82g/t gold in hole 101 from Moreira Gomes and 11m @ 3.09g/t gold from Central. A summary of results is as follows:

Hole ID From (m) To (m) Width (m) Gold (g/t)
Moreira Gomes        
CC_101_10 388.0 421.0 33.0 1.82
  incl. 396.0 412.5 16.5 2.73
CC_104_10 0 52.0 52.0 0.64
  incl. 38.0 52.0 14.0 2.00
  107.0 114.5 7.5 18.83
  269.4 290.0 20.6 1.64
  337.6 347.6 10.0 0.95
         
Central        
CC_102_10 No significant results   
CC_103_10 152.7 164.2 11.5 1.91
  208.6 231.9 23.3 0.80
  271.7 352.9 81.2 0.68
  incl. 274.7 285.7 11.0 3.09
         
Jerimum Baixo        
CC_97_10 No significant results   
CC_98_10 70.0 108.0 38.0 0.67
  incl. 95.0 107.0 12.0 1.69
CC_100_10 No significant results   

Moreira Gomes

Both holes 101 and 104 were drilled in the centre of the Moreira Gomes zone as it is currently known, and were designed to test the depth continuity of the mineralized body. Drill hole 101 was drilled 100m to the SE of hole 69 (112m @ 1.7g/t), and 100m SW of hole 70 (10.5m @ 0.61g/t), and returned 33m @ 1.82g/t, from 388m to 421m, confirming the continuity of mineralization to a true depth of 350m below surface.

Drill hole 104 was drilled 95m to the SE of hole 50 (35m @ 2.02g/t), and 95m SW of hole 69. It returned four mineralized intervals, the first two of which were unexpected. The first interval, from 0m to 52m, returned 52m @ 0.64g/t gold, including 14m @ 2.0g/t, from 38m to 52m depth. This intersection probably represents a new mineralized structure parallel to the main ore body. The second interval returned 7.5m @ 18.83g/t of gold from 107m to 114.5m and similarly represents a previously unknown structure immediately south of the main Moreira Gomes structure. The third and fourth intervals returned 20.6m @ 1.64g/t, from 269.4m to 290m depth and 10m @ 0.95g/t from 337.6m to 347.6m depth.

Drilling at Moreira Gomes is currently in progress and further drilling will be required to follow up on the new zones intersected in hole 104.

Central

At Central, drill hole 103 was drilled 83m to the NE of hole 63 (53.6m @ 1.3g/t), and 40m N of hole 88 (43.4m @ 0.62g/t). It returned three mineralized intervals. The first intersection from 152.7 to 164.2m returned 11.5m @ 1.91g/t of gold. The second interval returned 23.3m @ 0.80g/t of gold from 208.6m to 231.9m, and the third interval returned 81.2m @ 0.68g/t gold from 271.7m to 352.9m depth, including 11m @ 3.09g/t from 274.7m to 285.7m. This hole extended the mineralized zone vertically by a further 190m below hole 63.

Drilling in Central is continuing with the objective of further defining the down dip continuity of the mineralized body and following up on the new structure recently intersected in hole 96 (see press release dated 5th January 2011).

Pincock, Allen and Holt are continuing to work on the independent 43-101 compliant resource estimate for both the Central and Moreira Gomes zones which is expected during the first quarter of 2011.

Jerimum Baixo

Of three additional holes drilled at Jerimum Baixo, hole 98 intersected 38m @ 0.67 g/t gold from 70.0 to 108.0m depth including 12m @ 1.69g/t gold from 95.0 to 107.0m. Hole 98 was drilled 100m NW of hole 92 which intersected 40m @ 0.36g/t gold (see press release dated 15th November 2010).

The mineralized intersection in hole 98 confirms the presence of significant mineralization previously intersected at Jerimum Baixo in hole 94 which returned 40.7m @ 1.29 g/t gold. Ground geophysics is planned during February in advance of further drilling at Jerimum Baixo in order to better define the orientation and extent of the mineralization intersected to date.

Holes were drilled at angles of 50 to 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 Dennis Moore, B.Sc., M.Eng., member of AusIMM & SEG., 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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