Magellan Minerals Ltd.
TSX VENTURE : MNM

Magellan Minerals Ltd.

July 12, 2011 09:30 ET

Magellan Reports Initial Drill Results Including 36.7m @ 0.79g/t Gold From Valdette Zone at Coringa Project, Brazil

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 12, 2011) - Magellan Minerals Ltd. (TSX VENTURE:MNM) ("Magellan") is pleased to report drill results from several previously un drill-tested soil anomaly zones at Coringa including the Valdette, Demetrio, and Peixoto zones. The Valdette and Demetrio zones are located north-west and west of the main structure at Coringa. Highlights from this set of results include 36.7m @ 0.79g/t and 28.0m @ 0.64g/t gold from the Valdette zone.

As reported on June 28th, 2011, Magellan is currently drilling with three rigs at Coringa. The objective of this program is to expand on the Coringa resource which currently totals 269,450oz of gold in the measured and indicated categories with an average diluted grade of 8.53g/t, and 98,224oz of gold in the inferred category with an average diluted grade of 9.34g/t.

The drill results from Valdette in particular are highly encouraging. Mineralized intervals are significantly wider than in other zones at Coringa and the style of mineralization is different to anything previously recognized on the property. Gold mineralization at Valdette appears to be related to a major shear zone with mineralized intercept widths of 28m to 37m unlike the narrower mineralized intervals that have been reported for the Galena, Meio, Serra, and the Mae de Leite zones.

Valdette

Results from the three initial holes into the Valdette zone are reported below.

Hole 110 was drilled under a trench with surface samples that averaged 5.5g/t gold across 8m. Drill hole intersections include 1m @ 2.38g/t gold from 95.0 to 96.0m depth, and 1m @ 2.80g/t gold from 183.8 to 184.8 metres depth.

Hole 112 was drilled approximately 170m north of hole 110. It intersected 28m @ 0.64 g/t gold from 194.0 to 222.0 metres, including 11m @ 1.21 g/t gold from 210.0 to 221.0 metres. This hole was drilled under a trench that returned 7m @ 0.5g/t, 1m @ 1.87g/t, and 2m @ 1.1g/t gold (see press releases dated April 5th, 2011 and May 17th, 2011).

Drill hole 114 was collared 120m north of hole 112 and tested the continuation of the same mineralized zone. Hole 114 intersected 36.7m @ 0.79g/t gold between 183.5m and 220.2m, including 7m @ 1.61g/t gold from 184.5 to 191.5m. This hole was drilled under a trench that returned 1m @ 12g/t and 2m @ 3.71g/t gold.

The mineralization intersected in holes 112 and 114 at Valdette is unlike the narrow high grade structures intersected elsewhere at Coringa. The wider mineralized sections of 28.0m and 36.7m reported above are characterized by intense sericite-pyrite alteration and quartz veinlets, suggesting the presence of a major shear zone which may represent a bulk tonnage target. The Valdette soil anomaly has a current strike length of 3.8km and further drilling is in progress to fully test this zone.

Hole ID From (m) To (m) Interval
Width
(m)*
Gold (g/t)
Valdette Zone
DDH 110 95.0 96.0 1.0 2.38
109.6 111.6 2.0 1.43
183.8 184.8 1.0 2.80
DDH 112 100.0 116.5 16.5 0.35
157.5 159.0 1.5 1.01
194.0 222.0 28.0 0.64
including 210.0 221.0 11.0 1.21
DDH 114 183.5 220.2 36.7 0.79
including 184.5 191.5 7.0 1.61
Demetrio Zone
DDH 111 118.2 118.8 0.6 9.50
141.0 142.0 1.0 4.38
159.0 160.0 1.0 1.16
DDH 113 119.0 122.0 3.0 1.26
Peixoto Zone
DDH 108 69.8 70.3 0.5 6.64
* All holes were drilled at -50 degrees. Dips of the intersected strucutres are not known, and intersection widths are not necessarily true widths

Demetrio

A total of four holes have been completed to date at Demetrio over a strike length of 450m. No previous drilling has been conducted on this target where recent trenching returned gold values of 4m @ 4.5g/t gold (see press release dated May 17th, 2011).

Results have been received on the initial two holes (111 and 113) drilled 320m apart on this target. Hole 111 was drilled to test the southern part of the soil anomaly and cut a number of discrete narrow vein structures which returned values including 0.6m @ 9.5g/t gold from 118.2 to 118.8m depth and 1m @ 4.38g/t gold from 141.0 to 142.0m depth. Hole 113 was drilled 320m to the north of hole 111 and intersected 3m @ 1.26 g/t gold. The style, width and grade of the mineralization at Demetrio is similar to that noted at the Serra zone, and is regarded as encouraging.

Analytical results are pending on holes 115 and 116. The Demetrio gold-in-soil anomaly is underlain by several narrow high grade structures and further drilling is planned.

Peixoto

Two additional holes, 108 and 109 were completed at the previously untested Peixoto zone located on the main structure 700m north of the Meio zone. Drill hole 108 returned significant results which include 0.5m @ 6.64 g/t gold confirming the presence of a narrow but high grade zone at Peixoto that is not currently included in the published resource. A surface grab sample at Peixoto previously returned 316.5g/t 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 Novo Progresso 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 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 Gordon Allen, B.Sc., P.Geo, a Professional Geoscientist in British Colombia and 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.

News Release #2011-13

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

Contact Information