Magellan Minerals releases more results from Cuiu Cuiu, Brazil

Five drill holes in the Moreira Gomes zone at the Cuiu Cuiu project in Brazil have extended mineralization 600 metres to the east, doubling the strike extent of the zone without defining its eastern limit, Magellan Minerals (MNM-V) reported today.

The Moreira Gomes zone is 5 km southeast of the project’s Central zone. The best hole was number 79, returning 84 metres of 1.24 grams gold per tonne from 184.2 metres to 268.2 metres. Included within that interval was 48.7 metres of 2.01 grams gold per tonne from 184.2 metres to 232.9 metres.

Hole 79 was drilled 280 metres to the east of previously reported hole 69, which returned 112 metres at 1.70 grams gold per tonne from 72 metres to 184 metres.

All five of the holes intersected mineralized and hydrothermally altered granite, the company says, and extends the mineralized strike length at Moreira Gomes by another 60% for total strike length of 1,640 metres, and demonstrates that the ore is hosted in anastomozing shears that vary from 10 metres to 112 metres width (drilled widths).

The mineralized zone remains open to the east in the direction of alluvial workings that extend for an additional 300 metres.

The other four drill hole results include 0.26 gram gold over 9.8 metres from 184.9 metres to 194.7 metres (hole 74); 1.31 grams gold over 5 metres from 147.8 metres to 152.8 metres (hole 76); 0.88 gram gold over 17.3 metres between 151 metres and 168.3 metres (hole 77); and 0.74 gram gold over 7 metres between 223.6 metres and 230.6 metres(hole 81). Widths reportedare down hole widths and the true widths are estimated to be between 70 and 90%.

Drilling at Cuiu Cuiu is also underway in the Central zone and results are pending from six holes completed recently at the Pau de Merenda zone, 3 to the northwest of the Central zone. Drilling is also underway at the previously untested Babi zone, about 600 metres northeast of the Central zone.

In addition to project drilling, a detailed, 8128-line-km airborne magnetic and radiometric survey is being conducted to define targets for further drilling beyond the currently planned program. A detailed geophysical survey is expected to be completed by September.

Cuiu Cuiu is about 180 km southwest of the city Itaituba, the regional hub of northern Brazil’s Tapajos mineral province. Cuiu Cuiu’s heyday was as an alluvial gold producer from 1972 to 1992, when roughly 1.5-2 million oz. gold was pulled out of the ground.

Magellan trades in Toronto at about $1 per share. Over the last year it has traded within a band of 52¢ to $1.20 per share.