🕐08.10.09 - 18:41 Uhr
Magellan Reports Initial Resource Estimate at Coringa Project
MAGELLAN REPORTS INITIAL RESOURCE ESTIMATE AT CORINGA PROJECT, BRAZIL
Vancouver, BC, October 8, 2009 Magellan Minerals Ltd.
(TSX-V: MNM)
(Magellan) is pleased to report the results of an initial National
Instrument (NI) 43-101 compliant resource estimate on its Coringa project,
Brazil which has been completed by independent consultants, Global Resource
Engineering (GRE) Ltd.
The work was originally commissioned by Chapleau
Resources Ltd.
prior to completion of the business combination with
Magellan.
Highlights
* The resource estimate completed by GRE includes 269,500 measured and
indicated troy ounces of gold representing 982,291 tonnes at an average
grade of 8.53 g/t gold and 98,224 inferred troy ounces of gold representing
327,054 tonnes at an average grade of 9.34 g/t ton gold on a diluted basis
and using a 2 g/t gold cut-off.
* Of the total gold resource reported here, 73% of the total are
measured and indicated resources and 27% of the total are inferred
resources.
Table 1 below presents the Coringa mineral resource by block at a
2 g/t gold cut-off grade.
* Raising the cut-off grade to 5 g/t gold results in a measured and
indicated resource of 0.563 Mt @ 12.37 g/t gold (223,914 troy ounces gold)
and an inferred resource of 0.178 Mt @ 14.65 g/t gold (83,873 troy ounces
gold) on a diluted basis.
Table 2 below presents the Coringa mineral
resource by block at a 5 g/t gold cut-off grade.
* Preliminary metallurgical test work showed that a combination of
gravity separation and flotation should result in an estimated 85 to 90%
gold recovery.
* GRE concluded that the vein system is open both at depth and along
strike and that it is highly probably that the main vein system comprised
of the 4 resource areas (see plans on Magellan Minerals website) is
continuous between blocks.
Geology and Mineralization
The Coringa Project is a shear-vein system, hosted in mid-Proterozoic
volcanic rocks and granites on the southern margin of the Tapajos Gold
Province.
An estimated 10 tonnes of gold has reportedly been produced from
alluvial and primary sources at the property.
The main shear structure at the project is approximately 7 km in length,
trends 345 and is open both to the north and south.
Sub-parallel and
parallel shear structures add at least another 2.7 km to the total strike
length.
The mineralized shear and vein structures vary in width from 15 cm
to 4.0 m.
Pyrite is the most common sulphide, followed by sphalerite,
galena, chalcopyrite, and in a smaller amount covellite.
The alteration is
mainly sericitization, with some silicification and chloritization which
generally occurs as narrow haloes.
Table 1
Coringa Mineral Resource, 2 g/t Gold Cut-Off Grade (Diluted) October 8, 2009
Resource Area
Tonnes
Au (troy oz)
Au (g/t)
MEASURED
Serra
210,405
58,120
8.59
Meio
173,710
50,343
9.01
Galena
96,012
23,001
7.45
Eloy Juara
17,708
3,884
6.82
INDICATED
Serra
336,004
103,611
9.59
Meio
92,917
19,757
6.61
Galena
38,142
8,098
6.60
Eloy Juara
17,393
2,636
4.71
TOTAL MEASURED & INDICATED
All Areas
982,291
269,450
8.53
INFERRED
Serra
280,794
94,294
10.44
Meio
41,715
3,594
2.68
Galena
3,735
268
2.23
Eloy Juara
810
68
2.61
TOTAL INFERRED
All Areas
327,054
98,224
9.34
Table 2
Coringa Mineral Resource, 5 g/t Gold Cut-Off Grade (Diluted) October 8, 2009
Resource Area
Tonnes
Au (troy oz)
Au (g/t)
MEASURED
Serra
120,931
48,131
12.38
Meio
114,833
44,141
11.96
Galena
60,232
19,058
9.84
Eloy Juara
9,551
3,059
9.96
INDICATED
Serra
184,051
86,659
14.64
Meio
39,118
14,254
11.33
Galena
27,188
7,076
8.10
Eloy Juara
7,142
1,536
6.69
TOTAL MEASURED & INDICATED
All Areas
563,046
223,914
12.37
INFERRED
Serra
177,718
83,805
14.67
Meio
405
68
5.22
Galena
0
0
Eloy Juara
0
0
TOTAL INFERRED
All Areas
178,123
83,873
14.65
NOTE: Mineral resources that are not reserves do not have demonstrated
economic viability.
An Inferred Mineral Resource is that part of a mineral
resource for which quantity and grade can be estimated on the basis of
geological evidence and limited sampling and reasonably assumed, but not
verified, geological and grade continuity.
An Indicated Mineral Resource is
that part of a mineral resource for which quantity, grade or quality,
densities, shape and physical characteristics, can be estimated with a level
of confidence sufficient to allow the appropriate application of technical
and economic parameters, to support mine planning and evaluation of the
economic viability of the deposit.
The resource estimate used a density of 2.7 t/m and dilution representing a
minimum mining width of 1.5 m.
Magellans President and CEO, Alan Carter stated, "We are very pleased with
the results of this initial resource estimate at Coringa which covers only
20% of the mineralized structures identified thus far.
Both the grade, and
the ongoing identification of additional high grade zones and previously
undiscovered structures, suggest that Coringa will grow into a major gold
deposit.
Further drilling aimed at adding to the known gold resource and testing new
targets at Coringa is planned and will be initiated once all outstanding
soil sampling results and additional rock sampling of new identified
structures have been received and evaluated.
Magellan is committed to the
completion of a scoping study at Coringa during early 2010.
Coringa Mineral Resource Estimation Methodology
The Coringa mineral resource estimate was prepared under the supervision of
Mr.
Kevin J.
Gunesch a registered Professional Engineer in the state of
Alabama (27448) and Principal Mining Engineer of Global Resource Engineering
Ltd.
(GRE).
Christopher K.
Chapman a registered Professional Engineer in the
State of Colorado (40679) and Principal Mining and Civil Engineer of GRE and
Terry A.
Lane associate of GRE, AusIMM registered, and Principal Mining
Engineer for Gustavson and Associates participated in the Coringa NI 43-101
report preparation.
The mineral resource estimate was prepared under
Canadian Institute of Mining Metallurgy and Petroleum (CIM) Definition
Standards (2005) and CIM Best Practice Guidelines for preparing mineral
resources and mineral reserves.
Mr.
Gunesch is an "independent" and
"qualified person" as such terms are defined in NI 43-101.
GRE developed a block model using the drill-hole data from 8,785 m of core
drilling in 81 exploration holes, assay results, and geological structure of
the deposit.
Gold grades were estimated using the inverse distance squared
method and were confined to the mineralized zones, which are comprised of
gold veins within the shear areas of the project.
The Mineral Resource
estimate for the project was completed independently by GRE using Chapleaus
exploration database.
Prior to completing the calculation, GRE verified the
data contained within the database.
This included taking firsthand
measurements of the drill holes and comparing them to the database;
comparing original handwritten geologic logs to the database and onsite
core; completing a review of the quality assurance data gathered from the
blanks, standards, and duplicated used in the Quality Assurance/Quality
Control (QA/QC) sample program; reviewing the chain of custody sample
documentation for completeness; and sending two additional core samples
chosen by GRE to verify laboratory assay results.
A site visit was
performed by Mr.
Kevin J.
Gunesch P.E.
of GRE in May 2009.
It is GREs
opinion that the data used for the resource calculation describes the
deposit sufficiently to support this technical assessment of the resource.
GRE utilized all drill holes to develop continuity of different veins.
The
veins are sub-parallel, in echelon.
Five vein horizons have been modeled.
A
mine grid was created to simplify the modeling of the steeply dipping
deposit.
A gridded model covering the Coringa area was built in the mine
grid coordinate system, in meters, using Techbase software.
The gridded
model was defined sufficiently large to cover all drilling and known
deposits.
The grid size was 10 by 10 meters, orientated vertically.
The x
coordinate of the hangingwall and footwall contacts was modeled, and the
horizontal vein thickness determined by subtracting the footwall coordinate
from the hangingwall coordinate.
Topography was based on ground survey data
provided by Chapleau (comprised of a digital elevation model produced during
airborne geophysical surveys combined with the drill-hole collar surveys)
and was used to constrain the upper limit of the block model.
It should be
noted that detailed survey of the artisanal surface workings has not been
performed and is recommended for future work.
Grade was estimated separately for the vein, hangingwall, and footwall using
the composite data for each of these regions.
Grade was estimated using the
inverse distance squared relationship and a search distance of 100 m.
The
tonnage of each block was estimated using a global average density of 2.7
t/m.
Resources were calculated for gold cutoff grades of 2 g/t, 3 g/t, 4 g/t, and
5 g/t, for both undiluted and diluted conditions.
Blocks located within
1/3rd of the variogram range (33 meters) of composites exceeding the cutoff
grade were classified as measured resources, those falling between 1/3rd and
2/3rds of the variogram range (33 meters and 67 meters) were classified as
indicated resources, and those falling between 67 meters and 100 meters were
classified as inferred resources.
Dilution calculations considered a
minimum mining width of 1.5 meters and a minimum 0.3 meters dilution on both
the hangingwall and footwall.
This means that for vein thicknesses equal to
or greater than 0.9 meters, dilution is taken equally from the hangingwall
and footwall at 0.3 meters thickness.
For vein thicknesses less than 0.9
meters, greater than 0.3 meters of dilution must be taken from either the
hangingwall or footwall in order to achieve a minimum mining width of 1.5
meters.
In this case, the grades of the hangingwall and footwall were
compared and greater dilution taken from the side with the higher grade.
The complete NI 43-101 report on the Coringa project will be filed on SEDAR
within the next 45 days.
Ian Gendall (Pr.
Sci.
Nat.), Magellans Chief Operating Officer and a
"qualified person" within the definition of that term in NI 43-101, has
reviewed the technical information contained in this news release.
For further information, please contact:
Alan Carter
President and CEO
Tel: 604.676.5663
Email:
The TSX Venture Exchange has not reviewed and does not accept responsibility
for the adequacy or accuracy of this release.
This news release may contain
forward-looking statements including but not limited to comments regarding
the timing and content of upcoming work programs, geological
interpretations, receipt of property titles, potential mineral recovery
processes, etc.
Forward-looking statements address future events and
conditions and therefore, involve inherent risks and uncertainties.
Actual
results may differ materially from those currently anticipated in such
statements.