VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 22, 2012) - Magellan Minerals Ltd. (TSX VENTURE:MNM)MAGNF ("Magellan") is pleased to announce a National Instrument 43-101 compliant updated resource estimate for the Coringa Project, Para State, Brazil, which has been completed by independent consultants, Global Resource Engineering (GRE) Ltd.
Highlights include:-
-- Total resources of 561,000 Measured and Indicated ounces of gold
representing 3.17Mt @ 5.50 g/t gold and 534,000 Inferred ounces of gold
representing 5.51Mt @ 3.02 g/t gold on an undiluted basis and using a 1
g/t gold cut-off
-- An increase of 108% in the Measured and Indicated category and an
increase of 444% in the Inferred category. Measured and Indicated
resources for the three main zones have increased by 104% due to
additional intercepts on the lower portions of the structures. Inferred
resources for the three main zones have increased 273% due to additional
strike length of 3.8 km from step-out drilling
-- Resources are contained within five areas which include Serra (42% of
Measured and Indicated, 19% of Inferred), Valdette (2% of Measured and
Indicated, 13% of Inferred), Meio - Come Quieto (42% of Measured and
Indicated, 35% of Inferred), Galena - Mae de Leite (15% of Measured and
Indicated, 14% of Inferred) and Demetrio (18% of Inferred)
-- Using a 2g/t gold cut-off, resources total 516,000 ounces of gold in the
Measured and Indicated category representing 2.26Mt @ 7.22 g/t gold and
409,000 ounces of gold in the Inferred category representing 2.72Mt @
4.68 g/t gold
The total resource at Coringa has increased by 108% in the Measured and Indicated category representing 561,000 oz gold (3.17Mt @ 5.50 g/t gold) and 444% in the Inferred category representing 534,000 oz gold (5.51Mt @ 3.02 g/t gold) at a 1g/t cut-off. Five main zones now form the basis of the resources at Coringa which were calculated based on 157 drill holes, totaling 23,836 meters.
Magellan's President and CEO, Alan Carter stated, "We are delighted with the updated resource estimate for Coringa which is a vindication of our efforts thus far. All of the mineralized zones remain open at depth and along strike, and the recent identification of large gold-in-soil anomalies which are untested, suggest that Coringa has the potential to expand significantly beyond the current estimate."
Tables 1 and 2 show the resources calculated for each zone and category at Coringa using 1g/t and 2g/t gold cut-offs respectively.
Table 1 Coringa Mineral Resource, 1 g/t Gold Cut-Off Grade (Undiluted)
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Resource Area Tonnes Au (gpt) Au (grams) Au (oz)
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Measured
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Serra 520,000 7.29 3,793,000 122,000
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Valdette 18,000 1.22 22,000 1,000
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Meio - Come Quieto 335,000 7.15 2,395,000 77,000
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Galena - Mae de Leite 278,000 5.85 1,625,000 52,000
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Demetrio
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Total 1,151,000 6.81 7,835,000 252,000
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Indicated
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Serra 383,000 9.23 3,534,000 114,000
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Valdette 227,000 1.33 303,000 10,000
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Meio - Come Quieto 1,196,000 4.06 4,859,000 156,000
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Galena - Mae de Leite 217,000 4.23 917,000 29,000
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Demetrio
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Total 2,023,000 4.75 9,613,000 309,000
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Measured & Indicated
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All Areas 3,174,000 5.50 17,448,000 561,000
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Inferred
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Serra 482,000 6.55 3,156,000 101,000
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Valdette 1,661,000 1.33 2,216,000 71,000
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Meio - Come Quieto 1,948,000 3.01 5,865,000 189,000
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Galena - Mae de Leite 564,000 4.20 2,367,000 76,000
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Demetrio 856,000 3.52 3,010,000 97,000
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Total 5,511,000 3.01 16,614,000 534,000
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Table 2 Coringa Mineral Resource, 2 g/t Gold Cut-Off Grade (Undiluted)
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Resource Area Tonnes Au (gpt) Au (grams) Au (oz)
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Measured
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Serra 446,000 8.27 3,688,000 119,000
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Valdette
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Meio - Come Quieto 285,000 8.14 2,319,000 75,000
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Galena - Mae de Leite 200,000 7.49 1,498,000 48,000
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Demetrio
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Total 931,000 8.06 7,505,000 242,000
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Indicated
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Serra 324,000 10.59 3,432,000 110,000
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Valdette
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Meio - Come Quieto 844,000 5.13 4,333,000 139,000
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Galena - Mae de Leite 122,000 6.44 786,000 25,000
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Demetrio
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Total 1,290,000 6.63 8,551,000 274,000
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Measured & Indicated
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All Areas 2,221,000 7.23 16,056,000 516,000
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Inferred
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Serra 408,000 7.41 3,025,000 97,000
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Valdette 60,000 2.32 139,000 4,000
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Meio - Come Quieto 1,355,000 3.64 4,936,000 159,000
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Galena - Mae de Leite 449,000 4.90 2,199,000 71,000
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Demetrio 448,000 5.39 2,415,000 78,000
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Total 2,720,000 4.67 12,714,000 409,000
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NOTE: Mineral resources that are not reserves do not have demonstrated
economic viability. An Inferred Mineral Resource is that part of a mineral
resource for which quantity and grade can be estimated on the basis of
geological evidence and limited sampling and reasonably assumed, but not
verified, geological and grade continuity. An Indicated Mineral Resource is
that part of a mineral resource for which quantity, grade or quality,
densities, shape and physical characteristics, can be estimated with a level
of confidence sufficient to allow the appropriate application of technical
and economic parameters, to support mine planning and evaluation of the
economic viability of the deposit.
The resource estimate used a density of 2.7 t/m3. All numbers have been
rounded to reflect their appropriate level of accuracy.
Magellan plans to update the preliminary economic assessment at Coringa which was released in May 2010 (see press release here) that returned a 34% Internal Rate of Return based on a 400tpd underground mine and a gold price of $950/oz.
Structural models for each of the mineralized gold veins or shear zones were created for each resource area. Gold grades were confined to the mineralized zones and estimated using the inverse distance squared method capped at 50 g/t gold.
The Coringa mineral resource estimate was prepared under the supervision of Mr. Kevin J. Gunesch a registered Professional Engineer in the state of Alabama (27448) and Principal Mining Engineer of Global Resource Engineering Ltd. (GRE). Donald Hulse, associate of GRE, a registered Professional Engineer in the state of Colorado (35269), and Principal Mining Engineer for Gustavson and Associates participated in the Coringa NI 43-101 report preparation. The mineral resource estimate was prepared under Canadian Institute of Mining Metallurgy and Petroleum (CIM) Definition Standards (2010) and CIM Best Practice Guidelines for preparing mineral resources and mineral reserves. Mr. Gunesch is an "independent" and "qualified person" as such terms are defined in NI 43-101.
The complete NI 43-101 report on the Coringa project will be filed on SEDAR within the next 45 days.
Magellan Minerals (TSX VENTURE:MNM) is a TSX Venture Exchange listed exploration and development company with a number of gold properties in the Tapajos Province of northern Brazil and is focused on the Cuiu Cuiu and Coringa projects.
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.
News Release #2012-8
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