Magma Metals Limited
TSX : MMW
ASX : MMW

Magma Metals Limited

December 09, 2010 09:25 ET

Magma Metals Limited: Thunder Bay North-Scoping Study Update

PERTH, WESTERN AUSTRALIA--(Marketwire - Dec. 9, 2010) - Magma Metals Limited (TSX:MMW)(ASX:MMW) ("Magma" or the "Company") advises that completion of the Scoping Study (Preliminary Economic Assessment) on its Thunder Bay North platinum – palladium – copper – nickel project in Ontario, has been re-scheduled for the March quarter 2011. 

AMEC Americas Limited ("AMEC") is undertaking the independent Scoping Study for the Thunder Bay North project, based on their recently completed Mineral Resource Estimate (see Magma announcement of September 6, 2010). The Scoping Study was originally scheduled for completion in the December quarter, 2010. AMEC has advised that it is unable to complete the study until next quarter.

"While much work has been completed on the study to date, this extension of time will allow AMEC to complete their work in an orderly and comprehensive manner" said Keith Watkins, Magma's Executive Chairman. "Although we are disappointed in this delay, we are looking forward to launching our winter drilling program next month to test several promising targets beyond the resource area that AMEC has been studying."

Competent 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 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 (sedar.com).

ABN 72 114 581 047

Contact Information