Magellan Minerals begins drilling at Uniao project

2008-09-25 09:08 ET - News Release

Mr. Alan Carter reports

MAGELLAN MINERALS COMMENCES DRILLING AT UNIAO PROJECT, BRAZIL

Magellan Minerals Ltd. has commenced drilling at its Uniao project in northern Brazil. The project is located 100 kilometres south-southwest of Magellan's Cuiu Cuiu project, close to the town of Creporizao, and is accessible by road. Previous historic production from the Uniao concession area is estimated to be in the order of one million ounces of gold.

Magellan has conducted a program of ground magnetics, mapping and sampling at the Malvinas, Gaspar and Cuiabano-Laje occurrences in advance of drilling. Drilling has initially commenced at Cuiabano-Laje, where four holes are planned to test a significant soil anomaly, which extends for at least 1.3 kilometres east-west and is 400 metres in width.

Other notable advances at Uniao are as follows:

Historic surface workings at Gaspar, which is located 4.5 kilometres north of Cuiabano-Laje, have been de-watered and confirm the presence of a high-grade vein system 0.5 to 1.5 metres in width, which was worked for 150 metres along strike and mined to a depth of 50 metres. Historic sampling at Gaspar reportedly returned very high grades and recent samples collected from the drained workings contain abundant visible gold. Grab samples of dump material collected by Magellan during 2007, returned gold values up to 29 grams per tonne. Drilling will commence at Gaspar following the completion of the drill holes at Cuiabano-Laje.

Two additional vein structures have been identified at Malvinas where recent sampling returned values up to 928.9 grams per tonne gold (see news release issued in Stockwatch dated Aug. 14, 2008). The Burraco Velho structure is a narrow high-grade, east-northeast-trending vein system containing visible gold on surface which is subparallel to the original Malvinas vein identified by artisanal miners. The structure has so far been mapped for a total of 700 metres along strike. Results on surface samples are pending. Three to four holes will be completed at Malvinas if surface results continue to return positive results.

The detailed program of ground geophysics at the Cuiu Cuiu project is almost complete. Data processing and compilation are currently in progress in advance of drill target selection.

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

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