Magellan Minerals (MNM-V) has discovered a new gold zone at its Cuiu Cuiu gold project in northern Brazil driving shares up 16% today.
The new area of mineralization is known as the Moreira Gomes target – a 1,500-metre by 500-metre gold-in-soil anomaly about 5 km south-east of the Central zone at Cuiu Cuiu that’s open along strike.
Magellan drilled seven holes in October and November and all of them returned gold values.
The hole that’s getting the most attention is hole CC53-09, which returned 17.3 metres grading 13.69 grams gold per tonne, extending to 91.7 metres depth. This intercept includes 1 metre grading 216.4 grams gold
Hole CC50-09 returned a 35-metre intercept grading 2.02 grams gold per tonne reaching a depth of 190 metres.
Hole CC46-09 returned 38 metres grading 1.19 grams gold per tonne from surface and 31.1 metres grading 1.23 grams gold per tonne reaching a depth of 125.7 metres.
Each of these holes intersected 25 metres to 35 metres of shear-hosted, quartz sulfide stockwork over a strike length of 700 metres, said Magellan vice president of exploration Dennis Moore in a statement.
“The 100% hit rate and significant mineralized interprets demonstrates that we have discovered a new mineralized shear zone which was not previously known at Cuiu Cuiu,” Moore said.
Magellan plans to continue with another aggressive drill program in the first quarter to test both the Central and Moreira Gomes zones at Cuiu Cuiu as well as other targets with a similar signature including a parallel magnetic low geophysical anomaly just north of the Moreira Gomes shear zone.
The Cuiu Cuiu project is located where a modern day gold rush occurred between 1972 and 1992. More than one million people rushed to northern Brazil to seek their fortunes and about 5,000-10,000 people lived in the Cuiu Cuiu area, extracting about 1.5-2 million oz. gold.
The Cuiu Cuiu district is about 180 km southwest of Itaituba in Tapajos Mineral Province.
Magellan shares rose 12¢ to 88¢ each on a trading volume of 570,000 shares.
Excellent Results, Moreira Gomes is 5km away from Central which shows huge size. Magellan just keeps getting bigger and bigger. Hallgarten & Co in New York has a 12 month target of $1.60 per share.