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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 5, 2013) - Magellan Minerals Ltd. (News - Market indicators)(OTCQX:MAGNF) ("Magellan") is pleased to announce the results of eight additional exploration holes recently drilled at the previously untested Ivo, Ratinho South and Ratinho North targets at the Cuiu Cuiu project. Ivo is located 800m north of the Moreira Gomes gold deposit (comprising 14Mt @ 1.5 g/t of gold for 700,000oz in the Inferred category). The Ratinho North and Ratinho South anomalies are located 9km NNW and 8.5km NW of the Central gold deposit respectively which comprises 3.4Mt @ 1.0 g/t of gold for 100,000oz in the Indicated category and 17Mt @ 0.9 g/t of gold for 500,000oz in the Inferred category.
- The discovery of two additional mineralized zones at Ivo and Ratinho North at the Cuiu Cuiu project
- 7.5m @ 2.78 g/t gold including 0.5m @ 38.0 g/t gold in hole 169 which was drilled in the central part of the Ivo zone
- Numerous other mineralized intervals in hole 169 at Ivo including 8.8m @ 1.47 g/t and 4.2m @ 0.89 g/t gold
- Numerous mineralized intervals in two drill holes completed at the Ratinho North anomaly suggesting the potential for an additional mineralized body
Four reconnaissance holes were drilled at Ivo over a 500m E-W strike length and under small surface workings which returned values of 2m @ 104 g/t gold and 5m @ 54.8g/t gold in recently completed channel samples (see press releases dated October 11, 2012 and October 23, 2012). Of the 4 holes, hole 169 cut the most significant values and intersected a number of mineralized intervals including 7.5m @ 2.78 g/t gold from 37.9 to 45.4m depth including 0.5m @ 38.0 g/t gold from 43.5 to 44.0m depth confirming the presence of high grade gold mineralization at depth at Ivo. Other intervals intersected in hole 169 include 8.8m @ 1.47 g/t gold from 81.2 to 90.0m depth, 1.9m @ 1.43 g/t gold from 100.5 to 102.4m depth and 4.2m @ 0.89 g/t gold from 117.9 to 122.1m depth
The other three holes drilled at Ivo also cut numerous mineralized intervals but of generally lower grade and are shown in the accompanying table of drill results. These drill results are not dissimilar to the initial drill results returned from the Moreira Gomes deposit located immediately to the south. Furthermore, the Ivo structure is interpreted to trend in a more NW-SE direction (see map on website) akin to the deposit at Central and the mineralized zone at Jerimum do Baixo which would explain why mineralization is stronger in hole 169. Hole 170 drilled 100m west of hole 169 bottomed in mineralized rock (0.22 g/t gold) which further supports this conclusion.
Further drilling to the NW and SE at Ivo will be required to define the limits of the mineralization identified in hole 169.
Drill hole intersections are summarized in the following table:
All holes were drilled at -50°. Dips of the intersected structures are not known, and intersection widths are not necessarily true width.
Two reconnaissance holes, 175 and 176 were drilled at the Ratinho North target over a 150m E-W strike length (see map on website). Ratinho North has never been previously drill tested and is a gold-in-soil anomaly which is located approximately 9km NNW of the Central gold deposit.
Ratinho North extends in a NW-SE direction over approximately 4km and is coincident with a major structure and a pronounced magnetic low. Numerous low grade mineralized intervals were intersected in both drill holes including 10m @ 0.30 g/t gold, 1m @ 1.59 g/t gold, 1m @ 0.7 g/t gold, 1.6m @ 0.8 g/t gold, 6.5m @ 0.50 g/t gold, 2m @ 0.70g/t gold and 1m @ 1.0 g/t gold as well as a number of other lower grade intervals all within the top 70m of hole 176.
The two holes drilled thus far at Ratinho North have tested a very small portion of the 4km long gold-in soil and coincident magnetic anomaly. The presence of numerous mineralized intervals in both holes strongly suggests the presence of a significant mineralized body at Ratinho North and further drilling is required to fully test this area particularly to the north-west of the current drilling
Two additional holes, 173 and 174 were drilled at the Ratinho South target which has similarly never been previously drill tested. The gold-in-soil anomaly at Ratinho South is located approximately 8.5km NW of the Central gold deposit and extends in a NW-SE direction over approximately 2.5km.
The two holes reported here were drilled 100m apart and cut only narrow mineralized intervals. The source of the gold-in-soil anomaly at Ratinho South remains unexplained.
The discovery of significant mineralization at the Ivo and Ratinho North targets at Cuiu Cuiu demonstrates the potential for the discovery of additional mineralized bodies within the Cuiu Cuiu project areas and highlights the need for further drilling in order to expand the existing resources.
Holes were drilled at 50 degrees from horizontal. All core samples (HQ diameter) were cut with a Diamond saw and one-half of the core placed in bags, numbered and sealed then sent via a secure transport agency to the Company's office in Itaituba before shipping via secure transport 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 also includes the insertion of standards, field duplicates and blank material in the sample sequence with the normal core samples to monitor sampling variances, laboratory precision and accuracy.
This press release was reviewed by Guillermo Hughes, B.Sc., a member of the AIG and the AUSIMM, a qualified person in compliance with National Instrument 43-101.
Magellan Minerals (News - Market indicators)(OTCQX:MAGNF) is a TSX Venture Exchange listed exploration and development company with two advanced gold properties in the Tapajos Province of northern Brazil. The Coringa project is currently the subject of a Feasibility Study and contains Measured and Indicated resources of 561,000oz of gold (3.2Mt @ 5.5g/t gold) and Inferred resources of 534,000oz of gold (5.5Mt @ 3.0g/t gold). The Cuiu Cuiu project contains 100,000oz of gold in the Indicated category (3.4Mt @ 1.0g/t gold) and 1,200,000oz of gold in the Inferred category (31Mt @ 1.2g/t gold).
This news release contains forward-looking statements. 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. Particular risks applicable to this press release include risks associated with achieving production on the project within the parameters identified in the economic assessment, the ability of the project to generate significant cash flow to the company and earnings to the shareholders of the company. These statements are subject to risks due to regulatory, technical, economic and other factors. In addition there is no guarantee that additional exploration work will result in significant increases to resource estimates. The reader is referred to the Company's most recent annual and interim Management's Discussion and Analysis for a more complete discussion of such risk factors and their potential effects, copies of which may be accessed through SEDAR at http://www.sedar.com.
News release #2013-3