Magma Metals Limited
TSX : MMW
ASX : MMW

Magma Metals Limited

April 06, 2011 09:25 ET

Magma Metals Limited: Griffins Find Gold Project-Exploration Update

Significant potential identified beneath Griffins Find open-pit

PERTH, WESTERN AUSTRALIA--(Marketwire - April 6, 2011) - Magma Metals Limited (TSX:MMW)(ASX:MMW) ("Magma" or the "Company") is pleased to provide an update on progress for the current exploration program at the Griffins Find gold project, located 320km southeast of Perth in Western Australia. 

Highlights

  • Analysis and re-logging of historical drilling at the Griffins Find open pit mine, which produced approximately 55,000 ounces of gold, has identified significant potential to extend the known mineralization beneath the pit.

  • A 9,000m drilling program is in progress to evaluate the Ridge and Griffins West prospects and test several targets in a 3km x 1km gold-in-soil anomaly. Initial results are encouraging and have better defined a number of the current targets.

Potential beneath the Griffins Find open-pit mine

Approximately 55,000 ounces of gold was produced in the 1980's from two shallow open-pits, Griffins Find and the much smaller Griffins Find North (Figure 1). Analysis and interpretation of historical drilling data and re-logging of drill core from Griffins Find has revealed significant potential to extend the known mineralization beneath the open-pit, which is approximately 50m deep.

Several historical drill holes intersected a thick zone of mineralization up to 70m vertically below the base of the open-pit over a strike length of approximately 200m (Figures 2 and 3). Drill intersections up to 26m @ 3.70g/t gold were recorded in these holes (Tables 1 and 2). The mineralization strikes northwest and is interpreted to dip steeply east beneath the pit and then roll-over to dip steeply west at depth, due to the influence of a large fold structure (Figure 3).

Diamond drilling is in progress to test potential extensions of this mineralized zone at depths of up to 150m vertically below the surface.

Current Drilling Program

A reverse circulation (RC) and diamond drilling program is in progress to evaluate the potential of the Ridge and Griffins West prospects and to test parts of a large 3km x 1km gold-in-soil anomaly previously defined by auger drilling (Figure 1). A total of 47 RC holes for 5,643m and 11 diamond holes for 1,675m have been completed so far. Drilling is in progress to complete a further nine diamond drill holes for approximately 1,730m (including the holes discussed above beneath the Griffins Find open-pit). Assay results for much of this drilling are pending.

The diamond drilling, in particular, has been critical in determining the trends of mineralized zones and styles of mineralization at the Ridge and Griffins West prospects.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/mmw406fig1.pdf

To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/mmw406fig2.pdf

To view Figure 3, please visit the following link: http://media3.marketwire.com/docs/mmw406fig3.pdf

Ridge Prospect

The Ridge prospect, located 2km southeast of the Griffins Find open-pit, consists of a 200-400m wide zone of gold and arsenic mineralization and anomalism, which appears to trend east-northeast for at least 500m (Figures 1 and 4). The zone is open to the east and west. A shallow east-dipping granite sheet precludes the shallow expression of mineralization to the east, but the mineralization could continue in this direction both below and above the granite sheet.

Magma's drilling within the central part of the prospect on east-west oriented sections has defined a zone of gold mineralization associated with arsenic anomalism, which appears to trend east-northeast over a strike length of at least 300m. A surface arsenic anomaly mapped with a hand held Niton XRF analyser supports this interpretation and defines the broad trend of the gold mineralization (Figure 4). The gold zone is open along strike and at depth and includes drill intersections of 20m @ 2.86g/t gold and 15m @ 2.05g/t gold from Magma's 2010 drilling, and intersections from the current drilling program to date include 4m @ 3.18g/t gold and 2m @ 4.76g/t gold (Tables 3 and 4).

Analysis of historical drilling and Magma's recent drilling indicates the potential for a system of sub-parallel stacked sheets of mineralization, striking east-northeast and dipping steeply north, within the broad 200-400m wide gold-arsenic anomaly.

Three diamond drill holes are planned in the zone of gold mineralization over an 80m strike length to provide further information on the style, thickness and orientation of mineralization (Figure 4). 

Griffins West Prospect

The Griffins West prospect, located 600m west-southwest of the Griffins Find open-pit, consists of a 200m-long east-west trending zone of gold mineralization, which is open along strike and at depth (Figure 1). Intersections from Magma's 2010 drilling included 11m @ 2.28g/t gold and 6m @ 2.22g/t gold, and intersections from the current drilling program to date include 4m @ 1.89g/t gold and 2m @ 9.73g/t gold (Tables 3 and 4).

Analysis of historical drilling and Magma's recent drilling indicate the Griffins West mineralization is likely to plunge at a low angle to the east. Three diamond holes are being drilled to test this interpretation. There is no drilling for 300m to the east of the prospect.

Regional Targets

As part of the current program, regional drilling tested various parts of the 3km x 1km gold-in-soil anomaly mapped by an auger geochemistry survey in 2010. Anomalous results were returned from three areas (Figure 1, Tables 3 and 4):

  1. A target 500m northwest of the Ridge prospect returned intercepts of 3m @ 7.65g/t gold and 2m @ 23.80g/t gold in Magma's 2010 drilling and intercepts of up to 4m @ 2.42g/t gold in the current drilling.
  2. Drilling west of the Griffins Find open-pit intersected widespread gold anomalism with values up to 2m @ 2.14g/t gold.
  3. A traverse of holes drilled in the alluvial channel in the central part of the auger geochemistry anomaly identified an anomalous gold zone associated with sulphides and alteration approximately 200m wide with values up to 1m @ 1.06g/t gold.

Further work is required to understand the potential of these areas.

To view Figure 4, please visit the following link: http://media3.marketwire.com/docs/mmw406fig4.pdf

Further announcements will be made in due course when additional results from the current drilling program are available.

Table 1. Significant historical drilling results from beneath the Griffins Find open-pit.

Hole Number From (m) To (m) Interval (m) Au (g/t)
GFD010 78.0 104.0 26.0 3.70
GFD016 83.0 105.0 22.0 2.73
GFD017 102.3 120.4 18.1 2.82
and 137.0 143.25 6.3 1.03
GFD018 113.9 132.8 18.9 1.48
GFD020 109.0 122.0 13.0 2.74
GFD023 79.7 99.0 19.3 1.09
and 110.0 116.0 6.0 1.25
and 139.5 143.6 4.1 2.96
WLGD02 57.2 68.2 11.0 2.4
WLGD08 53.0 59.0 6.0 3.92
WLGD12 53.6 56.5 2.9 2.44
WLGD013 55.0 71.0 17.0 3.00

Drill intercepts are shown at a 0.5g/t Au lower cut-off grade; these may include internal intervals of up to 3m below the cut-off grade. Note the intercepts for drill holes WLGD02, 08 and 13 are located immediately below the pit floor, which has not been surveyed and it is possible that some portion of these intercepts may have been mined.

Table 2. Griffins Find open-pit historical drill hole collar and depth information.

Hole Number Easting (m) Northing (m) Dip (Degrees) Azimuth (Degrees) Depth (m)
GFD010 623180 6340302 -60 242 132.7
GFD016 623169 6340320 -60 240 133
GFD017 623233 6340288 -60 240 156
GFD018 623214 6340323 -60 240 139.6
GFD020 623177 6340348 -60 242 139
GFD023 623272 6340218 -60 242 157
WLGD02 623199 6340245 -55 243 136.7
WLGD08 623116 6340290 -60 240 87
WLGD12 623096 6340279 -60 240 85.6
WLGD13 623126 6340273 -59 240 87.1

Table 3. Significant drilling results – current Magma drilling program. 

Prospect Hole Number From (m) To
(m)
Interval (m) Au
(g/t)
Cut-off
(g/t Au)
Ridge MGFRC063 86 90 4 1.45 1.0
Ridge MGFRC066 24 26 2 3.73 1.0
Ridge MGFRC068DT 36 38 2 1.58 1.0
Ridge MGFRC069DT 82 86 4 3.18 0.5
    and 102 104 2 4.76 1.0
    and 165 166 1 1.03 1.0
    and 200 205 5 1.52 1.0
    and 239 244 5 1.48 0.5
    including 241 243 2 2.76 1.0
Griffins West MGFRC071 98 100 2 1.75 1.0
Griffins West MGFRC073 124 134 10 0.67 0.5
    including 130 134 4 1.89 1.0
    and 146 148 2 9.73 1.0
Regional (1) MGFRC037 0 2 2 1.44 1.0
Regional (1) MGFRC038 70 80 10 0.62 0.5
    including 70 74 4 2.42 1.0
Regional (2) MGFRC075 78 80 2 1.09 1.0
Regional (2) MGFRC076 102 104 2 2.14 1.0
Regional (2) MGFRC079 48 50 2 1.49 1.0
Regional (3) MGFDD002 133 134 1 1.06 1.0

Results are reported at the lower cut-off grades shown in the right hand column; these may include internal intervals of up to 2m below the cut-off grade. Regional (1), (2) & (3) refer to the three regional targets referred to by number in the section titled "Regional Targets" above.

Table 4. Drill hole collar and depth information

Hole Number Easting
(m)
Northing
(m)
Azimuth (Degrees) Dip (Degrees) Depth (m)
MGFRC037 624260 6339050 270 -60 130
MGFRC038 624320 6339050 270 -60 126
MGFRC063 624650 6338575 270 -60 214
MGFRC066 624550 6338680 270 -60 200
MGFRC068DT 624750 6338680 270 -60 203.6
MGFRC069DT 624850 6338680 270 -60 251.9
MGFRC071 622480 6339970 180 -60 180
MGFRC073 622560 6339970 180 -58 190
MGFRC075 622655 6340367 240 -60 100
MGFRC076 622700 6340394 240 -60 120
MGFRC079 622860 6339986 240 -60 150
MGFDD002 623860 6339650 240 -60 162

Technical Information

Additional information on Magma and its projects, including descriptions of its quality control and assurance procedures, is available on its website at www.magmametals.com.au and in technical reports filed under the Company's profile on the SEDAR website at www.sedar.com.

Drill-hole location and detailed assay data for all drill-holes mentioned in this report but not provided herein have been provided in previous announcements. These are available on the Company's website at www.magmametals.com.au. It should be noted that drill intercepts referred to in this report are down-hole thicknesses and may not represent true thicknesses.

Sample preparation and assays for samples were conducted at the ALS Laboratory Group facility in Perth, Western Australia.

Competent & Qualified Persons Statement

The information in this report that relates to Exploration Results or Mineral Resources is based on information compiled, reviewed or prepared by Dr Keith Watkins and/or Mr Ralph Porter, the Executive Chairman and Executive Director – Exploration, Australia of Magma Metals Limited, respectively. Dr Watkins is a Fellow of the Australian Institute of Geoscientists. Both Dr Watkins and Mr Porter are Members of the Australasian Institute of Mining and Metallurgy, and each is a "qualified person" as such term is defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Both Dr Watkins and Mr Porter have sufficient experience, which is relevant to the style of mineralization and type of deposit under consideration and to the activities undertaken to qualify as Competent Persons as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (the JORC Code). Dr Watkins and Mr Porter consent to the inclusion in the report of the matters based on this information in the form and context in which they appear.

Cautionary Statement

Certain information contained in this report constitutes "forward-looking information" under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" , "is expected", "estimates", "intends", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Although management believes that the expectations expressed in such forward-looking information disclosed herein are based on reasonable assumptions, these statements are not guarantees of future performance. A number of factors could cause actual results, performance or achievements to differ materially from those in the forward-looking information. Such factors include future metal prices, exploration and evaluation results, future availability of capital and general economic, market or business conditions, government regulation of mining operations, failure of equipment or processes to operate as anticipated, risks inherent in mineral exploration and development including unusual or unexpected geological formations. Descriptions of these risks can be found in the Company's various statutory reports, including its Annual Information Form available on its website at www.magmametals.com.au and on the SEDAR website at www.sedar.com.

ABN 72 114 581 047

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