Gold Price: US $1,198.9/ounce
Drilling at Serra Intersects 7m @ 6.10g/t Gold at Coringa Project, Brazil
November 24, 2011
Vancouver, BC, November 24, 2011 - Magellan Minerals Ltd. (TSX-V: MNM) (“Magellan”) is pleased to report results from thirteen additional drill holes from the Serra, Meio and Domingo zones at the Coringa project, Brazil. As with previous holes reported from the 2011 diamond drill program, these are all step-out and exploration holes aimed at expanding the existing resources of 269,450oz of gold in the measured and indicated categories (982,291t @ 8.53 g/t), and 98,224oz of gold in the inferred category (327,054t @ 9.34 g/t).
Results are reported here on five additional holes drilled down dip on the existing structure. Hole 145 was drilled approximately 50m south and 130m down dip of hole 127 (2m @ 10.81 g/t gold) and intersected 7.0m @ 6.10 g/t gold from 209.0 to 216.0m depth including 2m @ 18.03 g/t gold from 213.0 to 215.0m depth (see map and longitudinal section on website). Hole 145 is the deepest hole completed at Serra to data and confirms the high grade continuity of the mineralized zone down dip and at depth.
Hole 139 was drilled 50m north and 120m down dip of hole 124 (1.5m @ 10.23 g/t gold) at Serra in the central part of the Serra zone and returned 0.6m @ 17.60 g/t gold.
The Serra zone has an existing resource of 161,731oz of Measured and Indicated resources (Measured; 210,405t @ 8.59 g/t gold and Indicated; 336,004t @ 9.59g/t gold) and 94,294oz of Inferred resources (280,794t @ 10.44 g/t gold). These results build on previous results (see press releases dated 13th September 2011 and 17th October 2011) and continue to expand the mineralized zone at depth and along strike. Results are currently pending on an additional three deep holes at Serra and drilling continues.
Analytical results from the Serra, Meio and Domingo zones discussed in the text are tabulated below.
* All holes were drilled at between -50° and -65°. Dips of the intersected structure at Domingo are not known, and intersection widths are not necessarily true widths
Results were returned from five holes at the Meio zone including hole 130 which was drilled approximately 225m SE of the main Meio zone and intersected 1m @ 11.52 g/t gold from 39.5 to 40.5m depth, 0.5m @ 8.80 g/t gold from 197.0 to 197.5m depth, 1.5m @ 4.80 g/t gold from 246.0 to 247.5m depth and 1.5m @ 17.74 g/t gold from 254.6 to 256.1m depth (see map on website). Hole 130 is a significant hole because it intersected at least four high grade structures at depth in an area to the south and well beyond the existing resource, suggesting the presence of several high grade parallel veins.
Hole 144 was drilled in the central part of Meio at depth, and intersected 2m @ 12.05 g/t gold from 261.5 to 263.5m depth. The hole was drilled at least 100m down-dip and below nearby drill holes and confirms the presence of high grade mineralization at depth at Meio (see map on website).
The Meio zone has an existing resource of 70,100oz of Measured and Indicated resources (Measured; 173,710t @ 9.01 g/t gold and Indicated; 92,917t @ 6.61g/t gold) and 3,594oz of Inferred resources (41,715t @ 2.68 g/t gold). These results continue to expand the mineralized zone both at depth and along strike. Results are currently pending on an additional three deep holes at Meio and drilling continues.
Domingo and Valdette
Results were returned from two initial holes at the Domingo structure which is located 4km west of the main structure at Coringa (see press release dated 22nd September 2011). Hole 142 returned 0.5m @ 2.78 g/t gold and hole 143 which was drilled 300m to the south-east returned 1m @ 0.90 g/t gold and results are pending on an additional two holes. The bulk of the gold-in-soil geochemical anomaly at Domingo which is 3.8km in length, remains untested (see map on website).
Results were returned on one additional hole drilled at Valdette structure and failed to cut any results of significant interest.
Drilling is currently in progress on the down dip extensions of the Meio and Serra structures which contain the bulk of the resource at Coringa as well as at Come Quieto. The 2011 drill program at Coringa is aimed at significantly expanding the existing resource which was initially reported in September of 2009.
All core samples (HQ diameter) were cut with a diamond saw. One-half of the core was placed in numbered and sealed bags and sent via a secure transport agency to the Company’s office in Novo Progresso, and subsequently to ACME preparation laboratory in Itaituba for sample preparation. Core samples were crushed down to 2 mm and a 1 kg split was pulverized to better than 85% minus 200 mesh. From Itaituba, ACME sent the pulp samples to Santiago, Chile for assaying. Gold analyses were conducted on 30g representative sample cuts using fire assay with an atomic absorption finish. Other sample cuts were subjected to a 4 acid digestion and analysed for silver and an additional 35 elements using inductively coupled plasma mass spectrometry (ICP-MS). ACME is an ISO 9001 registered laboratory and has a quality control program in place which includes the insertion of standard, blank, and duplicate samples, as well as conducting repeat analyses.
Magellan’s QA/QC program includes the insertion of standards, field duplicates and blank material into the sample sequence with the normal core samples to monitor sampling variances, laboratory precision and accuracy.
Further to the Company's November 14, 2011 news release, the Company's Board of Directors have determined not to proceed with the grant of stock options as announced. Accordingly, the Company has cancelled 2,810,000 stock options, of which 1,400,000 stock options were granted to officers and directors of the Company, exercisable at a price of $0.70 per common share, for a period of five years
This press release was reviewed by Dennis Moore, B.Sc., M.Eng., a member of AIG, AUSIMM, and the SEG, a qualified person in compliance with National Instrument 43-101.
Magellan Minerals Ltd. (TSX-V: MNM) is a TSX Venture Exchange listed exploration company with a number of gold exploration properties in the Tapajos region of northern Brazil and is focused on the Cuiu Cuiu and Coringa projects where drilling is currently in progress.
For further information, please contact:
Jennifer Duthie, Corporate Communications Manager
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements
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