If results from its next 24 drill holes are as promising as assays from its first four, Magellan Minerals (MNM-V) will be the next hot name on the junior exploration circuit.
The company’s shares broke through their previous 52-week trading high after results from its wholly owned Brazilian gold project, Cuiu Cuiu, were released.
Its share price has gained 48% since then, growing to $1.70 from $1.15 on a volume of roughly 592,000 shares. Magellan has roughly 31 million shares outstanding.
The holes are part of an ongoing program at Cuiu Cuiu, in Brazil’s northern province of Para. Magellan holds roughly 470 sq. km of land in the district.
Highlights from the program include one hole that intersected 65.8 metres grading 3.54 grams gold per tonne starting from 41.2 metres down-hole, another that cut 87.9 metres grading 1.11 grams gold from 71 metres, and a third hole that returned 29.8 metres grading 1.48 grams gold. The fourth hole returned no significant results.
Results are from an area the company is calling the central zone. Previous drilling in the zone intersected 96.8 metres grading 1.02 grams gold and 134.5 metres at 1.1 grams gold.
Magellan — which says the aim of the program is to delineate the zone and test two other gold-in-soil anomalies at the property — says gold in the central zone occurs within sheeted grey quartz-calcite veinlets and is associated with accessory base metal sulphides, and 1-3% pyrite.
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