Magma Metals Limited
TSX : MMW
ASX : MMW

Magma Metals Limited

October 21, 2010 09:15 ET

Magma Metals Limited Quarterly Report for the Period Ended September 30, 2010

PERTH, WESTERN AUSTRALIA--(Marketwire - Oct. 21, 2010) - Magma Metals Limited (TSX:MMW)(ASX:MMW) ("Magma" or the "Company") today released its activities and cash flow report for the quarter ended September 30, 2010. Highlights included:

Thunder Bay North Platinum Project, Ontario
  • An independent updated mineral resource estimate for the project was announced during the quarter, which on a platinum equivalent (Pt-Eq) basis was:
Indicated Resource: 9.06 Mt @ 2.43g/t Pt-Eq for 708,000 Pt-Eq ounces
Inferred Resource: 0.27 Mt @ 2.81g/t Pt-Eq for 24,000 Pt-Eq ounces
  • A scoping study, which incorporates this mineral resource estimate, is in progress with planned completion in the December quarter, 2010.
  • Exploration drilling is in progress with two drill rigs to test:
  • High sulphide targets in the Bridge Zone, and
  • A large deep gravity target in the South East Anomaly.
Griffins Find Gold Project, Western Australia
  • A large 3km by 1km gold anomaly, greater than 0.1g/t gold, was defined by an auger geochemical survey during the quarter. Drilling to test the anomaly is planned in the December quarter, 2010.

The full report is available on the Company's website at www.magmametals.com.au and is filed under the Company's profile on SEDAR at www.sedar.com.

Quality Control and Assurance

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 during the quarter. These are available on the Company's website at www.magmametals.com.au. All drill intercepts referred to in this report are down-hole thicknesses and may not represent true thicknesses.

Assays for samples from Canada were conducted at the ALS Laboratory Group facility in Vancouver, British Columbia, following sample preparation at their facility in Thunder Bay, Ontario. Sample preparation and assays for samples from Australia were conducted at the ALS Laboratory Group facility in Perth, Western Australia.

Competent Persons Statements

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

The information in this report that relates to Mineral Resources was compiled by Greg Kulla P.Geo (APGO #1752, APEGBC #23492) and David Thomas, P.Geo, MAusIMM (APEGBC #149114, MAusIMM #225250), both full time employees of AMEC Americas Limited., Mr. Kulla and Mr. Thomas 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) and are independent qualified persons as this term is defined in National Instrument 43-101. Mr. Kulla and Mr. Thomas consent to the inclusion in this report of the matters based on this information in the form and context in which it appears.

Cautionary Statement Regarding Forward Looking Statements 

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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