Drilling “supports the belief the Deposit has size potential “

Posted by Dundee Capital Markets on Magellan Minerals

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Magellan Minerals sizable deposit

Step-out Drilling Expands Central Zone at Magellan’s Cuiu Cuiu Deposit


Dundee’s Trading Call June 20th/2010: The results announced this week continue to support the belief that Cuiu Cuiu has size potential. Although Magellan’s Coringa project is more advanced, Cuiu Cuiu is the largest and likely the most important project in Magellan’s portfolio. We continue to like the exploration potential of this project.

The News: Drilling steps out to the northwest at Cuiu Cuiu Central Zone. On June 8, Magellan reported drilling results from its Cuiu Cuiu gold project in Brazil.

The results are from three holes stepping out to the northwest from past drilling in the Central Zone, one of several targets identified on the property. Figure 3 shows a map of the project with drill hole locations. Highlights include 0.91 g/t gold over 136.2m in hole CC_55_10 and 0.96 g/t gold over 73.2m (including 18.75 g/t gold over 3m) in hole CC_56_10.

Implications: These are significant positive results that greatly increase the size of the Central Zone. These holes increase the strike length of mineralization by about 230m (to a total of 530m). The zone remains open to the northwest and at depth. Although there have been a few higher-grade holes in the Central Zone, the gold grades in these new holes are generally in-line with past drilling, with long intersections of gold mineralization from close to surface.

What’s Next: Drilling continues at Cuiu Cuiu. Assays are pending for additional drill holes targeting expansion of the Central Zone to the northwest, and drilling continues on the Central Zone and the Moreira Gomes Zone, two of several zones identified on this large property.

Magellan Minerals sizable deposit


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