Magma Metals Limited
TSX : MMW
ASX : MMW

Magma Metals Limited

July 18, 2011 06:30 ET

Magma Metals Limited: Major Ground Position Staked Around the Griffins Find Gold Project

PERTH, WESTERN AUSTRALIA--(Marketwire - July 18, 2011) - Magma Metals Limited (TSX:MMW)(ASX:MMW) ("Magma" or the "Company") is pleased to provide an update on the Griffins Find gold project, located 320km southeast of Perth in Western Australia.

Highlights

  • Magma has lodged exploration licence applications over the gneiss belt to the north and south of the Griffins Find gold project covering a strike length of 180km and an area of approximately 7,000km2.
  • Results from the final six holes in the recent drilling program included:
    • 8m @ 2.52g/t gold & 3m @ 2.81g/t gold from the Griffins West prospect;
    • 52m @ 0.58g/t gold including 6m @ 2.05g/t gold from the Griffins Pit prospect; and,
    • 2m @ 3.29g/t gold & 1m @ 24.9g/t gold from the Ridge prospect.

Lake Grace Gold Project

Magma has applied for exploration licences covering an area of approximately 7,000km2, to be called the Lake Grace gold project, to the north and south of the Griffins Find gold project (Figure 1). This area covers a strike length of approximately 180km of the gneiss belt which hosts the Griffins Find gold deposits and is comparable in size to Ausgold Limited's Boddington South gold project, which is adjacent to the west (Figure 1). Ausgold recently announced a major seven rig drilling program on this project to delineate gold resources.

A number of large greenstone units prospective for gold mineralization have been identified in the Lake Grace project area from analysis of historical exploration records, interpretation of aeromagnetic data and Magma's own field reconnaissance. In addition a number of gold occurrences and anomalies are known in this belt, which is mainly under soil cover in a wheat farming district and has had little systematic modern exploration coverage. Regional exploration work is planned to investigate the gold potential of the project particularly within the identified greenstone units.

Dr Keith Watkins, Magma's Managing Director said, "This is an exciting and very prospective region where there is significant potential to generate value as demonstrated by Ausgold, our neighbour to the west. Although it is important to note that this initiative will not detract from our ongoing program at the Thunder Bay North platinum-palladium project in Canada, which continues to be the Company's primary focus."

To view Figures 1-3, please visit the following link: http://media3.marketwire.com/docs/mmw_Fig1-3.pdf.

Griffins Find Drilling

Results have been received from the last six holes in the recently completed 8,557m reverse circulation and diamond drilling program conducted to test various prospects at the Griffins Find gold project. Results from these holes are listed in Tables 1 and 2 and shown in Figure 2, along with previously announced drilling results.

The drilling results from the Ridge and Griffins West prospects define mineralization within broadly east to east-northeast trending structures; the mineralization remains open at depth and along strike at both prospects.

Geological interpretation of the diamond drill-hole under the historical Griffins Find open pit (MGFDD11 in Table 1 and Figure 3) indicates the mineralization is likely to be closed off at depth vertically beneath the open pit, although there is potential for further mineralization extending down-plunge to the south. There is a significant body of mineralization beneath the open pit, which extends to approximately 50m below the pit floor (Figure 3).

Drilling is being planned for the summer field season to further evaluate these prospects and other targets in the project.

Table 1. Significant drilling results.


Prospect

Hole Number
From (m) To (m) Interval (m) Au (g/t) Cut-off
(g/t Au)
Griffins West MGFDD9 64 72 8 2.52 1.0
including 66 68 2 4.03 3.0
77 78 1 1.64 1.0
MGFDD10 83 86 3 2.81 0.5
including 83 84 1 7.41 3.0
Griffins Pit MGFDD11 91 143 52 0.58 0.1
including 92 96 4 1.29 0.5
and 116 122 6 2.05 1.0
including 119 121 2 3.47 3.0
and 137 143 6 1.01 0.5
Ridge MGFDD12 111 113 2 3.29 1.0
MGFDD13 39 40 1 1.33 1.0
82 84 2 1.36 0.5
115 120 5 0.75 0.5
128 130 2 2.07 0.5
MGFDD14 133 144 1 1.26 1.0
179 184 5 1.14 0.5
including 179 180 1 3.25 3.0
196 197 1 24.9 3.0
207 208 1 4.31 3.0
210 211 1 1.74 1.0
224 226 2 1.47 1.0

Results are reported for intersections >1 g/t Au x metres 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.

Table 2. Drill hole collar and depth information


Hole Number
Easting
(m)
Northing
(m)
Azimuth
(Degrees)
Dip
(Degrees)
Depth
(m)
MGFDD9 622520 6339920 180 -60 105.0
MGFDD10 622560 6339920 180 -60 102.0
MGFDD11 623253 6340248 240 -55 200.5
MGFDD12 624666 6338680 150 -60 150.0
MGFDD13 624627 6338668 150 -60 252.4
MGFDD14 624700 6338700 150 -60 249.4

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 Mr Ralph Porter, the Managing Director and General Manager Exploration – Australia of Magma Metals Limited, respectively. Dr Watkins is a Fellow of the Australian Institute of Geoscientists and 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 are Members of the Australasian Institute of Mining and Metallurgy and 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

Contact Information