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Magma Metals Limited (TSX:MMW - News; ASX:MMW - News;
"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
From
To
Length
Pt Pd Pt+Pd Cu Ni
Hole
(m)
(m) (m) (g/t) (g/t) (g/t) (%) (%) 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 greater than 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
Easting
Northing
Azimuth
Dip
Depth
Hole
(m)
(m) (Deg) (Deg)
(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
Contact:
further information to: Magma
Metals Limited
Please direct enquiries or requests for
Keith Watkins
Executive Chairman
+61 (0)8 9324 1500 (Perth)
keith.watkins@magmametals.com.au
Greg Taylor
Magma Metals Limited
Investor Relations
+1-905-337-7673 (Toronto) or Mob: +1-416-605-5120
gtaylor@magmametals.ca
www.magmametals.com.au
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