Magnus International Resources, Inc.

Magnus International Resources, Inc.

March 06, 2005 13:43 ET

Magnus International Resources, Inc. Releases Corporate Update-Primarily On Comprehensive Soil Sampling And Geochemical Analysis Program At Huidong


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: MAGNUS INTERNATIONAL RESOURCES INC.

OTC Bulletin Board SYMBOL: MGNU

MARCH 6, 2005 - 13:43 ET

Magnus International Resources, Inc. Releases
Corporate Update-Primarily On Comprehensive Soil
Sampling And Geochemical Analysis Program At Huidong

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 6, 2005) - Magnus
International Resources Inc. ("Magnus") ("the Company") (OTCBB:MGNU) is
pleased to provide the following corporate updates in relation to the
following developments:

1. An update in relation to the comprehensive soil sampling and
geochemical analysis program currently underway on one of Magnus' China
properties, at Huidong in Sichuan Province;

2. Updates in relation to other Magnus properties; and

3. An update in relation to Magnus personnel, and some other general
matters.

Magnus International Resources, Inc. is engaged in the acquisition,
exploration and development of mineral properties in China, focusing
primarily on gold and copper. Magnus currently retains a 90% interest in
various Chinese properties through joint venture agreements with China
Yunnan Province Nuclear Industry Brigade 209 ("Team 209").

1. HUIDONG PROPERTY UPDATE

Huidong is a gold-copper prospect in Sichuan Province immediately
northwest of, and on trend with, Southwestern Resources, Boka Gold
Project.

Based on recent drilling results at Boka as well as other evidence,
Southwestern geologists believe that Boka "has the potential to host a
very large, world-class gold deposit or group of deposits". In turn,
there are numerous geological similarities between Boka and the Magnus
Huidong property.

Magnus and Team 209 have entered into an agreement to jointly explore an
area of 82.39 square km at Huidong with the possibility of increasing
the joint venture area to include adjoining properties.

The Magnus website, at www.magnusresources.com, will be launched on
Monday March 7, 2005. For a full version of the above report, with
diagrams, please refer to the front page of the website, click on
"Magnus has received preliminary results from its comprehensive
geochemical program at Huidong" then click on "Click here to download
the full Magnus geochemistry report with diagrams". Alternatively, go
directly to the following hyperlink:

http://www.magnusresources.com/_content/Magnus%20International%20
Preliminary%20Geochemistry%20March%204.pdf

(Due to the length of this URL, it may be necessary to copy and paste
this hyperlink into your Internet browser's URL address field.)

Huidong Exploration Program

Magnus and Team 209 are conducting a comprehensive gold and copper
exploration program on the Huidong property under the expert direction
of AMEC, a leading global provider of mining expertise and services. The
goal of the program is to define the extent of the gold and copper
anomalies in the area. The program is well underway. It includes a
two-stage geochemical soil and rock sampling program, and geological
mapping and surveying to define targets for follow-up trenching,
tunneling and drilling. Also, there are at least 65 small-scale peasant
mining tunnels throughout Huidong. These tunnels will be used to
generate significant rock sample analyses. These Huidong exploration
strategies are the same as many strategies used at the Boka Gold
Project. Magnus is also using satellite imagery to attempt to identify
high-grade mineralized structures and zones by comparing the Huidong
property with images of the gold mineralization zones at Boka. This
imagery aids in mapping fault patterns and identifying key zones of gold
and copper-related hydrothermal alteration at both Boka and Huidong. It
is anticipated that geophysical surveys may also be employed.

Property-wide soil and rock sampling has been conducted, comprising more
than 7,282 samples on a 250m x 50m grid (high-density program) and 2,326
samples on a 750m x 100m grid (low-density program). Only half of the
high-density program will initially be analyzed on a 250m x 100m grid.
All of the samples were prepared for analysis at the Yunnan Province
Central Laboratory (YPCL) in Kunming, China. YPCL has been inspected by
AMEC and is also used by Southwestern Resources. The high-density
program is initially being analyzed at the YPCL lab for gold, copper,
and three other elements, and these results are being received by Magnus
at the rate of approximately 200 per day. As of March 4, 2005
approximately 12 % of the high density samples had been analyzed and
were known by Magnus. It is expected that all of the high density sample
results will be received by the end of March. The low-density program
has been analyzed for 36 elements at ACME Analytical labs in Vancouver,
BC. Based on the low density survey results (complete), and the high
density results that are in hand, the company's geoscientific staff (Dr.
Paul Taufen and Geological Team 209 of China) have released the
following preliminary report:

Huidong Concession Geochemical Survey - Preliminary Results

By Dr. Paul Taufen, March 4, 2005

Two parallel soil geochemistry sampling surveys have been completed at
the Huidong concession since November, 2004. A preliminary survey was
completed at a line spacing of 750 meters and a sample spacing of 100
meters along both NS and EW survey lines.

A total of 2,326 sites were sampled in the low density survey. Duplicate
samples were collected systematically throughout the sampled area.
Samples were prepared at the YPCL laboratory in Kunming where standards
and blanks were inserted into the pulp numbering system sequence.
Original soils, field duplicates, standards and blanks then were all
shipped to Acme Analytical Laboratories in Vancouver for analysis of 30
gram soil aliquots for Au plus 35 trace elements.

North - South soil sampling lines were completed across the entire
Huidong property as part of the "High Density" program. The program
sampled 7,282 soil sites, and duplicate samples were systematically
collected as part of the survey protocol. Analysis of these soils for
Au, Cu, As, Hg, and Ag is underway and is being completed at the modern
Yunnan Province Central Laboratory in Kunming.

As of March 4, 2005, 1069 selected infill soils have been analyzed
covering approximately the western 1/3 of the Huidong Concession.

Quality Control and Information Integrity

Field duplicates, blanks, and standards all were numbered with routine
sample numbers and submitted "blind" to Acme Analytical Laboratories for
systematic analysis of low level Au and 35 trace elements. An internal
laboratory materials standard also was systematically analyzed for Au
and 35 trace elements throughout the survey sequence of samples. In
addition, prepared pulp splits were routinely and systematically
separated from original pulps and analyzed for Au plus 35 elements as
replicate control samples.

The greatest source of statistical error associated with exploration
geochemistry surveys is sampling error, and the sampling error of the
low density survey is indicated by scatterplots of original versus
duplicate samples. Analysis and plotting of fifty duplicate pairs of
composite soils demonstrates that statistical error associated with
composite soil sampling is low and well within acceptable tolerance
limits.

Blind standards and blanks, laboratory standards, and laboratory
replicates all demonstrated very good analytical quality and high
information integrity associated with Au and multi-element results from
the geochemical survey.

Preliminary Geochemical Survey Results

Soil analysis results from the low density survey were compiled and
treated statistically to identify numerical distributions of element
concentrations and groupings or clusters of element combinations that
could be associated with rock types, rock alteration features associated
with mineralization, and Au mineralization itself. Analysis of samples
from the high density survey is not yet completed although results are
being communicated regularly from the Kunming YPCL laboratory.

Details of the data analysis, results from factor analysis, and displays
of more detailed findings are in the process of being generated.

With results in hand from the low density survey, additional evidence
for the regional fault zones interpreted from LandSat imagery is
available. A strong multi-element statistical factor containing
Cr-V-Ti-K-Na explains the most variance in the soil geochemistry data
and appears to correspond to a distinct rock unit near the eastern edge
of the Huidong concession. A very distinctive feature of this feature is
a sharp, linear western edge which is interpreted as a fault contact
between different rock formations. The sharp western edge of this
feature corresponds closely with the interpreted LandSat fault structure
extending north from Boka.

Gold concentrations are found in soil from a combination of the 750m x
100m low density soil Au data and available Au soil analyses from the
high density 250m x 50m survey. Strong, coherent soil Au anomalies are
found in at least 4 large clusters at Huidong, and are apparent even at
the relatively open sample line spacing of 750 meters. Gold
concentrations up to 849 ppb Au were identified in the low density
survey. It is apparent that large areas of anomalous Au occur in soils
on the Huidong concession.

Strong trace element support for alteration systems associated with soil
Au anomaly features is provided by elevated soil As (arsenic)
concentrations spatially associated with high Au in soils.

Open soil Au anomaly features intersect the edges of the Huidong
concession boundary, and applications for concession areas covering
these open anomalies are in progress.

Conclusions

The two parallel regional soil geochemistry surveys completed at the
Huidong concession display a high standard of quality and integrity in
the sampling, sample preparation, and analysis aspects of the program.
The survey results should be considered robust and repeatable.

Gold results indicate large areas of elevated gold concentrations in
soils at concentration levels that compare very favorably with the known
soil Au concentrations associated with Au mineralization at Boka. The
gold in soil anomalies at Huidong are spatially associated with elevated
concentrations of As and Bi (bismuth), elements known to occur with Au
in mineralized rock at the Boka Au system

Large soil Au anomaly features evident in the low density soil survey
are becoming better defined as Au analysis results from the high density
survey become available.

The Magnus website, at www.magnusresources.com, will be launched on
Monday March 7, 2005. For a full version of the above report, with
diagrams, please refer to the front page of the website, click on
"Magnus has received preliminary results from its comprehensive
geochemical program at Huidong" then click on "Click here to download
the full Magnus geochemistry report with diagrams". Alternatively, go
directly to the following hyperlink:

http://www.magnusresources.com/_content/Magnus%20International%20
Preliminary%20Geochemistry%20March%204.pdf

(Due to the length of this URL, it may be necessary to copy and paste
this hyperlink into your Internet browser's URL address field.)

Once all sampling results have been analyzed, the company expects to
receive a full AMEC geological report, including the identification of
potential anomalous gold trends or patterns, in April of 2005.

It is anticipated that at least 3,000 cubic meters of trenches will be
constructed across the best soil geochemical anomalies to obtain better
rock exposures for sampling and more detailed mapping. Gold zones
further defined by trenching and rock sampling will be targeted for
drilling in 2005. Tunneling in less accessible areas will further define
and sample gold mineralized zones. Team 209 has recently purchased two
new western-manufactured drill rigs, and has indicated that it will make
them available for use at the Huidong property.

2. UPDATES IN RELATION TO OTHER MAGNUS PROPERTIES AND FUTURE
ACQUISITIONS AND OTHER GENERAL MATTERS

Luquan Property

The 44.02 sq. km Luquan Property, also held by Magnus under the same
joint venture that holds Huidong, is located approximately 40 km west of
Boka and approximately 30 km southwest of the Huidong property. The
terrain is very similar to that of the Huidong and Boka properties.

Information on the extent of mineralization at the Luquan Property is
currently limited. Magnus is having reports on work done to date
translated into English and analyzed by its geological consultants. The
Company will report on their findings at the earliest opportunity. Based
on similarities to Huidong and Boka, Magnus is optimistic about
prospects for Luquan exploration.

Xintaizi Property

On December 2, 2004, Mr. Rongjin Yang of Team 209 entered into an
agreement, on behalf of Magnus, to purchase Kangding Kangma Mining Ltd.
("Kangding"), of Sichuan Province, China, which owns a mining license
for approximately 3 square kilometers in Sichuan Province known as the
Xintaizi mining area ("Xintaizi"). Under the agreement to purchase
Kangding, Mr. Yang is to pay, on behalf of Magnus, with funds advanced
by Magnus, 2,100,000 RMB (approximately $253,725 US dollars on December
2, 2004) to the vendor. Six hundred thousand (600,000) RMB has been paid
to the vendor, with the remaining 1,500,000 RMB due on the day the
transfer of the mining license is successfully registered and effected
under Chinese law.

The property is located at Kongyo Villiage, Kangding County, in Sichuan
Province. Geologically, the property is located at the inter-contact
belt between the Cuanxi altiplano and Sichuan basins. It is at the
Western limb of the Yangzizhunditai and the Northern end of the
Kangdiandi axis. The elevation is 1900 to 3200 meters, and the property
is a five hour drive from Chengdu City.

The mining license covers a 3.0877 square km mining area, with a current
production capacity of 10,000 tons per year. The effective period of the
license is December 1, 2003 to December 1, 2006, but this can be
renewed. The property has no actual mining facilities, but there has
been tunneling and sampling conducted by local geologists and Team 209.

The Company is currently in the process of having the equitable
interests in Kangding transferred to Magnus and Team 209, in proportions
of 90% and 10% respectively. Once this transfer has been completed,
Magnus and Team 209 will attempt to form a new Joint Venture company
called Long Teng Kangding Mining Ltd., and submit all necessary
approvals to the Chinese government. This process is anticipated to be
completed by the late summer of 2005.

Qilian Property

While not yet finalized, Magnus has signed through a preliminary joint
venture agreement with Team 209 on the Qilian property. In the near
future, Magnus anticipates that this preliminary joint venture will
formalize.

Qilian is a 200 square km property located in Qinghai province in
western China. The project is situated in an under explored, richly
mineralized region about 285 kilometers west of the provincial capital
city of Xining.

The Qilian region had for many years been a restricted military zone
because of its role in China's space program and, as a result, was off
limits to mineral exploration and development from 1950 to 2000. The
largely unexplored region includes the Donggou Copper Deposit, near the
Qilian Project, where recent small-scale mining by local miners in
tunnel complexes has revealed the presence of high-grade copper and
favorable gold values.

Regional Geology

The Qilian Project lies within a major tectonic zone of parallel,
northwest trending faults and fractures. Rocks in the mine area are
strongly fractured, creating a favorable environment for the emplacement
of copper and gold mineralization. Abundant quartz calcite veins are
common near the Donggou mine tunnels and especially in the more
copper-rich zones in the upper mine tunnel. Mineralization is hosted by
shear zones related to the strong, northwest-trending tectonic forces
that shaped the region's geology.

Evidence of placer gold mining, i.e. small pits and rock piles, is also
common along the rivers banks and streams channels that drain the area.
Unpublished reports of several nearby gold, lead-zinc and copper mines
offer further evidence of the mineral potential of the area.

Mining History

Small-scale mining is underway by a group of local miners at the Donggou
Deposit on a 0.57 square kilometer mining lease near the Qilian Project
area. Construction of a 150 ton/day mill was completed in 2002.
Mineralized rock from the two tunnels, now a combined length of about
1740 meters, is trucked 16 kilometers down the mountain to a mill that
is situated between the towns of Qilian and Donggou. Here, it is crushed
and recovered by floatation to produce a copper concentrate.

Samples collected on behalf of Magnus from the Donggou Copper Deposit's
two mine tunnels returned values as high as 14.9% copper and 2.57 grams
per tone of gold. Although not part of the joint venture agreement, the
presence of the Dongguo deposit is indicative of the mineral potential
in the area. Magnus will concentrate their early exploration program in
search of similar areas of copper and gold mineralization.

There are also reports of several nearby lead-zinc discoveries, further
attesting to the favorable geology of the region. Moreover, the presence
of abundant placer gold in the streams and rivers that drain the area
also point to its potential for impressive polymetallic discoveries.

A preliminary investigation of the Donggou Deposit suggests it bears
some similarities to the porphyry related, gold rich-skarn Fortitude
Deposit of central Nevada. Reserves at Fortitude in 1987, shortly after
its discovery, were stated to be 6.7 million tonnes of 8.02 grams per
tonne of gold.

Exploration

Magnus and its partner, Team 209, intend to conduct a systematic
exploration program at the Qilian Project in 2005. Its initial focus
will be on exploration for Donggou-like deposits. The program will
consist of sampling of mineralized outcroppings, surface geological
mapping and trenching. Also, ground based geophysical surveys and
airborne reconnaissance, including the use of satellite imagery, will be
used to identify similar mineralized zones within the project area.

Magnus may earn up to a 90% interest in this project by expending a
total of US $3 million on exploration and development over a 36 month
term. Under the terms of the yet to be finalized agreement, Team 209
will retain a 10% carried interest.

3. UPDATE IN RELATION TO MAGNUS PERSONNEL AND OTHER GENERAL MATTERS

Magnus is pleased to announce that Dr. Paul Taufen, who has been a
geological consultant for the Company through AMEC to date, has agreed
to work directly with Magnus and on a permanent basis in contributing to
the development of Magnus' properties. Magnus will retain its consulting
relationship with AMEC and continue to receive their expert guidance,
but will now also have a direct working relationship with one of the
industry's top managing geochemists.

Paul Taufen has been consulting with the company, through AMEC, since
November of 2004. He has over thirty years of domestic (North American)
and international experience in minerals exploration geochemistry both
in the employ of major international mining companies and as an
independent consultant. He is the founder of Geochemistry Solutions,
LLC, which provides innovative and focused solutions to the mining
industry in modem exploration techniques, QA/QC, and environmental
areas, specializing in both traditional and unconventional geochemical
exploration and in resolving environmental water quality issues.
Previously to that, he spent 15 years with Western Mining Corporation
(WMC), in Melbourne Australia, where he acted as Chief Geochemist -
Global exploration, and Chief Geochemist - Americas. He also acted as
Chief Geochemist for British Petroleum Minerals in Brazil from 1983 to
1987, coordinating all geochemical surveys, analysis, and reporting
works in Brazil for BP Minerals. Throughout his career, Dr. Taufen has
been involved in numerous mineral deposit discoveries and ongoing mining
production development plans. Dr. Taufen has a Ph.D. in Aqueous
Geochemistry from the Colorado School of Mines; an M.Sc. in Geochemistry
from the Colorado School of Mines; a BS in Chemistry from Georgetown
University, Washington D.C.; and a GLG Executive Excellence Senior
Management Program certification. Dr. Taufen also has language abilities
in English, Portuguese, Spanish, German, and French.

Magnus is also pleased to announce that its most recent private
placement has closed. Overall, the company sold 7.8 million units at
US$0.50 per unit, raising US$3.9 million for the company. Each unit
consisted of one common share in the company, one warrant exercisable at
US$1.00, and one piggy-back warrant exercisable at US$2.00. Piggy back
warrants may only be exercised if underlying warrants are exercised, and
the expiry dates for the warrants and piggy back warrants are July 31,
2005, and January 9, 2006 respectively. If all warrants are exercised,
the company would receive another US$23.4 million. In the near-term, it
is the Company's intention to raise a further US$1.25 million at US$1
per unit with a unit, consisting of one common share in the Company and
one-half share purchase warrant exercisable at US$2.00.

For further information please refer to the Company's filings with the
SEC on EDGAR or refer to Magnus' website at www.magnusresources.com.

If you would like to receive regular updates on Magnus please send your
email request to info@magnusresources.com.

FORWARD LOOKING STATEMENTS This news release may include
"forward-looking statements" regarding Magnus International Resources,
Inc., and its subsidiaries, business and project plans. Such forward
looking statements are within the meaning of Section 27A of the
Securities Act of 1933, as amended, and section 21E of the United States
Securities and Exchange Act of 1934, as amended, and are intended to be
covered by the safe harbor created by such sections. Where Magnus
expresses or implies an expectation or belief as to future events or
results, such expectation or belief is believed to have a reasonable
basis. However, forward-looking statements are subject to risks,
uncertainties and other factors, which could cause actual results to
differ materially from future results expressed, projected or implied by
such forward-looking statements. Such risks include, but are not limited
to price volatility of gold and other metals; currency fluctuations;
political, operational, and governmental approval and regulation risks
in China. For a more detailed discussion of such risks and other
factors, please see "Risk Factors" in our Form 10-K for our most
recently completed fiscal year, on file with the SEC at www.sec.gov.
This document also contains information about adjacent properties on
which Magnus has no rights to explore or mine. Investors are cautioned
that mineral deposits on adjacent properties are not necessarily
indicative of mineral deposits on Magnus' properties.


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