Magellan Minerals drills 17.3 m of 13.69 g/t Au at Cuiu

2010-01-19 09:43 ET - News Release

Mr. Alan Carter reports

MAGELLAN DRILLS 17.3M @ 13.69 G/T GOLD AND DISCOVERS NEW MINERALIZED ZONE AT CUIU CUIU PROJECT, BRAZIL

Magellan Minerals Ltd. has released the drill results for seven diamond drill holes recently completed at the Moreira Gomes prospect, located within the company's Cuiu Cuiu project in northern Brazil.

The Moreira Gomes anomaly has never been previously drill tested. It consists of a 1,500-metre-by-500-metre gold-in-soil anomaly located approximately five kilometres southeast of the Central discovery at Cuiu Cuiu. Moreira Gomes is centred on an east-west-trending shear zone with a coincident magnetic low geophysical anomaly that extends for at least 1.5 kilometres. A total of seven diamond drill holes (see Magellan's website for drill plan) were completed at Moreira Gomes in October and November, 2009, and results are shown in the accompanying table.

                 DRILL RESULTS                    

Drill hole    From       To      Int.       Au
               (m)      (m)       (m)     (g/t)

CC46-09          0     38.0      38.0      1.19
              94.6    125.7      31.1      1.23
CC47-09          0     10.7      10.7      0.39
              25.7     45.7      20.0      0.47
             111.2    120.4       9.2      0.46
             137.5    166.2      28.7      0.44
CC48-09        9.1     15.2       6.1      0.72
             148.4    151.0       2.6      0.70
CC49-09       78.3     83.2       4.9      0.97
CC50-09      139.0    141.0       2.0      0.80
             155.0    190.0      35.0      2.02
CC51-09          0     35.0      35.0      0.46
             144.1    171.8      27.7      0.66
incl.        162.1    171.8       9.7      1.45
CC53-09       74.4     91.7      17.3     13.69
              89.7     90.7       1.0     216.4

Dennis Moore, vice-president of exploration, stated: "Each of these holes intersected 25 metres to 35 metres (drilled width) of shear-hosted, quartz-sulphide stockwork over a strike length of 700 metres. The 100-per-cent hit rate and significant mineralized intercepts demonstrate that we have discovered a new mineralized shear zone, which was not previously known at Cuiu Cuiu. The mineralization is open along strike in both directions, particularly to the east, where the most easterly drill hole returned 35 metres at 2.02 grams per tonne (g/t) gold. In light of these results, a parallel magnetic low geophysical anomaly, which is located just to the north of the Moreira Gomes shear zone, has also become a priority target, and will be subject to mechanized auger drilling prior to the next drill campaign."

Alan Carter, Magellan's president and chief executive officer, added: "We are thrilled with these initial drill results from Moreira Gomes, which reveal the presence of ore grade drill intercepts at a fourth zone at Cuiu Cuiu. Previous results from Cuiu Cuiu include 220 metres at 2.02 g/t gold at the Central zone, 47.1 metres at 1.76 g/t gold at Pau de Merenda and 39 metres at 5.13 g/t gold at Jerimum Cima. The fact that the Moreira Gomes zone is open along strike and at depth suggests that we have made another significant discovery at Cuiu Cuiu. These results are perhaps even more striking when one considers there is virtually no rock exposed on surface at Cuiu Cuiu and thus far Magellan has drilled only 53 holes in a major soil anomaly, which is 13 kilometres in length."

Magellan is planning an aggressive drill program to start during the first quarter of 2010 to further test both the Central and Moreira Gomes zones at Cuiu Cuiu as well as other targets identified thus far at the project that display a similar signature. Drill results are pending on an additional two holes drilled during 2009 at Cuiu Cuiu: one hole at Central and one hole at the previously untested Machiche zone.

This press release was prepared by Mr. Moore, BSc, MEng, member of AusIMM and SEG, a qualified person in compliance with National Instrument 43-101.