If results from the next 24 drill holes are as promising as results from the first four drill holes were, 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 word of results was released on Feb. 28.
Its share price has gained 48% since then, growing from $1.15 to $1.70 on a volume of roughly 592,000 shares. Magellan has roughly 31 million shares outstanding.
The holes are part of an ongoing program at its wholly owned Cuiu Cuiu project 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 crossing a width of 65.8 metres grading 3.54 grams gold per tonne from 41.2 metres to 107, another hole intersecting 87.9 metres grading 1.11 grams gold per tonne from 71 to 158.9 metres, and a third hole returning an intersect of 29.8 metres grading 1.48 grams gold per tonne. The fourth hole returned no significant results.
Results are from an area the company is calling the central zone. Prior drilling in the zone intersected 96.8 metres grading 1.02 grams gold and 134.5 metres grading 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 sulfides, and 1 to 3% pyrite.
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