Magellan Minerals Ltd.

Magellan Minerals Ltd.

February 01, 2012 09:00 ET

Magellan Reports Drill Results from Exploration Drilling at Central North Zone, Cuiu Cuiu Project, Brazil

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 1, 2012) - Magellan Minerals Ltd. (TSX VENTURE:MNM)(OTCQX:MAGNF) ("Magellan") is pleased to announce the results of seven additional exploration holes recently drilled at the Central North zone at the Cuiu Cuiu project. Central North is located 300m - 600m north of the Central zone (comprising 3.4Mt @ 1.0 g/t of gold in the indicated category and 17Mt @ 0.9 g/t of gold in the inferred category) at Cuiu Cuiu.

Highlights include:

  • 19m @ 0.49 g/t gold and 9m @ 0.94 g/t gold in hole 148 which was drilled as a scissor hole to hole 131 which intersected 39.4m @ 1.25 g/t gold
  • 20m @ 0.59 g/t gold in hole 163 which was drilled in an ESE direction approximately 130m north of hole 131
  • 6.1m @ 1.87 g/t gold in hole 159 located 75m north of hole 148
  • 2m @ 5.97 g/t gold at depth in hole 163 drilled 150m N of hole 148

Central North

The seven holes reported here are all from follow-up holes designed to test the extent of the mineralization encountered in hole 131 which intersected 39.4m @ 1.25 g/t gold and is located 360m from the northern margin of the Central zone. All of the holes are exploration / step-out holes and are drilled outside of the known resource and between 300 and 600m north of the Central zone (see map on website).

Six of the seven holes reported here intersected gold mineralization in multiple intervals confirming the presence of another mineralized zone at Cuiu Cuiu and immediately north of the Central body. The gold mineralization reported here from Central North is all well above the 0.30 g/t grade cut-off used for the Cuiu Cuiu resource estimate (see press release dated March 8, 2011) The Central North zone has been traced for at least 350m and appears to trend NW-SE and is offset from the main Central body (see map on website). The zone remains open to the north-west and south east. Further drilling is planned during 2012 to more accurately define the extent of gold mineralization of Central North.

Alan Carter, President & CEO of Magellan, commented, "These recent drill results confirm the presence of a new mineralized zone at Cuiu Cuiu 300 - 600m north of the existing Central zone. This zone together with the recently identified Jerimum Baixo zone located 3km SE of Central is outside the existing resource estimate and confirms the presence of multiple mineralized bodies at Cuiu Cuiu."

Drill hole intersections are summarized in the following table:

Hole ID From (m) To (m) Width* (m) Gold (g/t)
Central North
DDH 148 148.4 157.4 9.0 0.94
177.1 203.1 26.0 0.38
incl. 194.1 203.1 9.0 0.76
266.2 282.2 16.0 0.38
324.2 343.2 19.0 0.49
DDH 150 54.0 58.5 4.5 0.46
DDH 153 30.0 32.0 2.0 1.45
73.1 83.5 10.4 0.60
94.6 104.6 10.0 0.51
138.6 142.6 4.0 1.46
245.0 247.0 2.0 1.35
259.0 267.0 8.0 0.76
DDH 156 151.6 153.6 2.0 0.82
165.0 166.0 1.0 4.73
DDH 159 51.2 57.3 6.1 1.87
66.0 68.0 2.0 0.90
DDH 163 24.0 44.0 20.0 0.59
109.8 123.8 14.0 0.50
138.8 140.8 2.0 5.97
DDH 165 No significant results
* All holes were drilled at -50°. Dips of the intersected structures are not known, and intersection widths are not necessarily true widths

Magellan is currently conducting a program of ground IP geophysics over the Moreira Gomes and Central deposits at Cuiu Cuiu which collectively comprise current published resources of 1.2Moz (31Mt @ 1.2 g/t) of gold in the inferred category and 0.1Moz (3.4Mt @ 1.0g/t) of gold in the indicated category. The published block model inventory for the Central and Moreira Gomes deposits at a 0.30 g/t gold cut-off comprises 3.5Mt @ 1.0 g/t gold for 110,000oz of contained gold and 45Mt @ 1.0 g/t gold for 1.4Moz of contained gold.

Holes were drilled at 50 degrees from horizontal. All core samples (HQ 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 to the Company's office in Itaituba before shipping via secure transport 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 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.

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.

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 #2012-4

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

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