Magma Metals Limited
TSX : MMW
ASX : MMW

Magma Metals Limited

March 29, 2011 09:25 ET

Magma Metals Limited: Thunder Bay North-Exploration Update

TBND233 intersects 53.65m @ 7.58g/t Pt+Pd, 0.92% Cu & 0.51% Ni

PERTH, WESTERN AUSTRALIA--(Marketwire - March 29, 2011) - Magma Metals Limited (TSX:MMW)(ASX:MMW) ("Magma" or the "Company") is pleased to provide an update on the winter drilling program at its Thunder Bay North platinum-palladium-copper-nickel (Pt-Pd-Cu-Ni) project in Ontario and an outline of its exploration plans for the remainder of 2011.

Highlights

  • A drill hole which tested an electro-magnetic (EM) target in the southern part of Current Lake intersected:

    TBND233: 53.65m @ 3.86g/t Pt, 3.72g/t Pd (7.58g/t Pt+Pd), 0.92% Cu & 0.51% Ni,
    including: 33.00m @ 5.60g/t Pt, 5.39g/t Pd (10.99g/t Pt+Pd), 1.29% Cu & 0.71% Ni.

  • Drilling in the northern part of Current Lake and in the Beaver Lake area intersected mineralization outside the mineral resource, confirming the potential to extend resources into these areas.

  • A 30,000m exploration drilling program is being designed to test resource extension targets and regional targets in 2011.

Winter Drilling Program

The winter drilling program is nearing completion with 47 holes drilled for 9,882m out of a planned 52 holes. The first part of the program focused on ice drilling to test several targets occurring under lakes, swamps and watercourses, which are easier to access when frozen in the winter months (Figure 1). These targets included:

  • EM conductors in the southern part of Current Lake;
  • Magnetic targets under the northern part of Current Lake and Beaver Lake, adjacent to the mineral resource area; and
  • Several shallow regional targets in the EWC Complex and the South-East Anomaly area.

This part of the drilling program has been completed and most assay results have been received.

The second part of the program focused on two land targets:

  • Magnetic anomalies east of Beaver Lake; and
  • The central part of the Steepledge Lake Intrusive Complex.

Assay results are pending for this part of the program. Drilling is currently in progress on the Steepledge Lake Intrusive Complex.

To view, "Figure 1. Intrusive complexes and the winter drilling program at the Thunder Bay North," please visit the following link: http://media3.marketwire.com/docs/magmaFig1.pdf

EM Targets – South Current Lake

Drilling of EM targets in the Current Lake Intrusive Complex has shown a good correlation between high-grade mineralization and EM conductors, particularly down-hole EM conductors.

A number of EM conductors have been mapped in the southern part of Current Lake. A down-hole EM conductor is broadly associated with an airborne versatile time-domain EM (VTEM) anomaly which runs along the western margin of the peridotite intrusion hosting the mineralization in this area. Drill holes TBND233 and TBND215 targeted the centre and northern part of the down-hole EM conductor, respectively (Figures 2 and 3). These holes intersected thick zones of mineralization (Tables 1 and 2):

TBND233:   53.65m @ 3.86g/t Pt, 3.72g/t Pd (7.58g/t Pt+Pd), 0.92% Cu & 0.51% Ni,
including:   33.00m @ 5.60g/t Pt, 5.39g/t Pd (10.99g/t Pt+Pd), 1.29% Cu & 0.71% Ni.
     
TBND215:   55.05m @ 1.20g/t Pt, 1.05g/t Pd (2.25g/t Pt+Pd), 0.26% Cu & 0.17% Ni,
including:   3.00m @ 5.46g/t Pt, 4.18g/t Pd (9.64g/t Pt+Pd), 0.79% Cu & 0.24% Ni,
  and:   4.00m @ 3.12g/t Pt, 2.80g/t Pd (5.92g/t Pt+Pd), 0.61% Cu & 0.34% Ni.

The results confirmed and significantly upgraded the lens of high-grade mineralization in this area broadly defined by previous drilling.

A group of surface EM conductors along the eastern margin of the intrusion in this area were also drill tested (TBND216 & 218 in Figure 2). TBND218 intersected disseminated sulphide mineralization (Tables 1 and 2), but the EM anomalies remain unexplained.

To view, "Figure 2. Recent drilling to test EM anomalies in the southern part of Current Lake," please visit the following link: http://media3.marketwire.com/docs/magmaFig2.pdf

(see Figure 3 for location of drilling in a regional context).

Drilling Adjacent to the Mineral Resource Area

Reconnaissance drilling of magnetic targets in the northern part of Current Lake and the eastern part of the Beaver Lake area, outside the mineral resource, intersected mineralization confirming the potential to extend resources into these areas (Figure 3).

Drilling in the northern part of Current Lake, returned a shallow intersection of 2.0m @ 0.84g/t Pt, 0.79g/t Pd (1.63g/t Pt+Pd), 0.23% Cu & 0.19% Ni in drill hole TBND226, 100m north of the mineral resource area (Tables 1 and 2, Figure 3). 

Drilling in the eastern part of the Beaver Lake area was designed to test a number of magnetic targets adjacent to the mineral resource (Figure 3). Results have been received for two of the four western group of drill holes in this area, which were drilled from the ice at Beaver Lake. Drill hole BL11-382 intersected 4.00m @ 1.56g/t Pt, 1.44g/t Pd (3.00g/t Pt+Pd), 0.35% Cu & 0.22% Ni (Tables 1 and 2). This is in an area adjacent to the mineral resource, which was previously considered to be un-mineralized.

Drilling of the eastern group of drill holes has just been completed and some zones of disseminated sulphides were intersected. Assay results from this drilling are pending.

To view, "Figure 3. Drilling, geophysical surveys and mineral resources in the Current Lake Intrusive Complex," Please visit the following link: http://media3.marketwire.com/docs/magmaFig3.pdf

Regional Drilling

Drilling is in progress in the Steepledge Lake Intrusive Complex, where two traverses of holes are being drilled to follow up encouraging intersections of mineralization recorded in previous reconnaissance holes (Figure 1). A number of these holes have intersected zones of disseminated sulphides. Assay results from this drilling are pending.

Drilling of other regional targets in the Winter Drilling Program (Figure 1) tested magnetic anomalies over relatively shallow features and mainly intersected hybrid intrusive rocks. These rocks represent an early phase of the intrusive complex hosting the mineralization, but are not generally mineralized themselves. Mineralized peridotite generally intrudes the earlier hybrid rocks, so their presence is a positive indicator of potential and further work is planned in some of these areas.

Geophysical Surveys

A high-resolution ground magnetic survey was completed on the lake ice over the northern part of Current Lake during the winter (Figure 3). The mineral resource is open into this area and the survey was designed to map the distribution of magnetic intrusive rocks in detail to aid future drill targeting.

In addition, large high-resolution ground gravity and magnetic surveys are in progress in the Beaver Lake – Escape Lake area (Figure 3). The objective of the Beaver Lake survey is to identify anomalies which could potentially be related to sub-vertical feeder structures beneath the intrusive complex. These are important targets for high-grade massive sulphide mineralization. The survey in the Escape Lake area is designed to provide more information on the nature and prospectivity of the intrusive rocks associated with the Escape Lake Fault Zone, a prominent structural feature in the region (Figure 1).

Exploration Strategy & Programs - 2011

The focus for the remainder of this year and into next year will be on resource extension drilling and testing regional targets with the objective of building a larger resource inventory for the project.

Approximately 25,000m of drilling has been budgeted in 2011 to identify extensions to the mineral resource. This drilling will be focused on the 2.5km strike extent of the Current Lake Intrusive Complex immediately east of the mineral resource (Figure 3). Some of this drilling may also be directed at feeder targets beneath the intrusive complex. Down-hole EM surveys will be completed on a large proportion of the resource extension holes to aid drill targeting.

In addition, approximately 5,000m of drilling has been allocated to testing regional targets within the Thunder Bay North project (Figure 1).

Table 1.Significant Drilling Results
 
Drill
Hole
  From
(m)
  To
(m)
  Length
(m)
  Pt
(g/t)
  Pd
(g/t)
  Pt+Pd
(g/t)
  Cu
(%)
  Ni
(%)
  Cut-off
Current Lake Zone
TBND215   30.50   85.55   55.05   1.20   1.05   2.25   0.26   0.17   0.5
including   41.55   76.55   35.00   1.54   1.32   2.86   0.30   0.18   1.0
including   54.55   57.55   3.00   5.46   4.18   9.64   0.79   0.24   3.0
  and   61.55   65.55   4.00   3.12   2.80   5.92   0.61   0.34   3.0
TBND218   35.45   44.45   9.00   0.99   0.96   1.95   0.24   0.13   1.0
including   41.45   43.45   2.00   1.73   1.66   3.39   0.40   0.16   3.0
TBND226   27.00   29.00   2.00   0.84   0.79   1.63   0.23   0.19   1.0
TBND233   34.4   88.05   53.65   3.86   3.72   7.58   0.92   0.51   1.0
including   50.00   83.00   33.00   5.60   5.39   10.99   1.29   0.71   5.0
including   73.00   77.00   4.00   8.40   7.97   16.37   1.89   0.96   15.0
Beaver Lake Zone
BL11-382   264.70   270.70   6.00   0.67   0.63   1.30   0.15   0.21   1.0
    293.70   297.70   4.00   1.56   1.44   3.00   0.35   0.22   1.0

Results are reported for intercepts >1.0g/t Pt+Pd at the lower cut-off grades shown in the right hand column of the table above; these may include intervals of up to 2.0m below the cut-off grade. Drill intercepts are down hole thicknesses and may not represent true thicknesses. 

Table 2.Drill Hole Collar and Depth Information
 
Drill
Hole
  Easting
(m)
  Northing
(m)
  Azimuth
(Deg)
  Dip
(Deg)
  Depth
(m)
TBND215   357450   5402900   0   -90   141
TBND218   357437   5402830   0   -90   141
TBND226   357051   5404096   0   -90   75
TBND233   357430   5402875   0   -90   130
BL11-382   358450   5402300   0   -90   330

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.

For information on Mineral Resources, please refer to the Company's announcement dated February 7, 2011, available on the Company's website at www.magmametals.com.au.

Drill-hole location and detailed assay data for 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.

Assays were conducted at the ALS Laboratory Group facility in Vancouver, British Columbia, following sample preparation at the ALS facility in Thunder Bay, Ontario. 

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 Dr William Stone, the Executive Chairman and Vice President Exploration - Canada of Magma Metals Limited, respectively, who are both Members of the Australasian Institute of Mining and Metallurgy, and each of whom is a "qualified person" as such term is defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Dr Watkins 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 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 Dr Stone 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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