VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/17/13 -- Magellan Minerals Ltd. (TSX VENTURE: MNM)(OTCQX: MAGNF) ("Magellan") is pleased to provide an update regarding the ongoing feasibility study at its Coringa project, located in the state of Para in northern Brazil.
-- Diamond drilling is in progress with two rigs currently drilling at depth and in the southern part of the Serra zone. The initial three holes have all intersected the Serra structure at depths in excess of 200m below surface-- Metallurgical test work is in progress at Testwork Desenvolvimento de Processo Ltda, a laboratory based in the state of Minas Gerais, Brazil. Two 250kg composite samples are currently undergoing testing-- Ausenco is currently engaged in backfill/tailings tradeoffs and geotechnical studies for the tailings site facilities as well as the plant site.-- Snowden is conducting an underground geotechnical study, their rock mechanics engineer will be on site at the end of the month-- Hydrogeological work is currently being completed under the direction of Global Resource Engineering Ltd
The Feasibility Study at Coringa is currently well advanced with two rigs currently operating on site with the objective of upgrading Inferred resources to the Measured and Indicated category at Serra, Meio - Come Quieto and Mae de Leite. Drill results are expected during May-June.
The results of metallurgical test work currently in progress at Testwork Desenvolvimento de Processo Ltda, in Brazil, are expected in late June.
The feasibility study is expected to be completed during October 2013.
Following the completion of the current drill program at Coringa, the rigs will move to the adjacent and contiguous Mato Velho property which is located 15km from Coringa and where previous drilling returned a number of high grade gold intercepts.
This press release was reviewed by Guillermo Hughes, B.Sc., a member of the AIG and the AUSIMM, a qualified person in compliance with National Instrument 43-101.
Magellan Minerals (TSX VENTURE: MNM)(OTCQX: MAGNF) is a TSX Venture Exchange listed exploration and development company with two advanced gold properties in the Tapajos Province of northern Brazil. The Coringa project is currently the subject of a Feasibility Study and contains Measured and Indicated resources of 561,000oz of gold (3.2Mt @ 5.5g/t gold) and Inferred resources of 534,000oz of gold (5.5Mt @ 3.0g/t gold). The Cuiu Cuiu project contains 100,000oz of gold in the Indicated category (3.4Mt @ 1.0g/t gold) and 1,200,000oz of gold in the Inferred category (31Mt @ 1.2g/t gold).
This news release contains forward-looking statements. 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. Particular risks applicable to this press release include risks associated with achieving production on the project within the parameters identified in the economic assessment, the ability of the project to generate significant cash flow to the company and earnings to the shareholders of the company. These statements are subject to risks due to regulatory, technical, economic and other factors. In addition there is no guarantee that additional exploration work will result in significant increases to resource estimates. The reader is referred to the Company's most recent annual and interim Management's Discussion and Analysis for a more complete discussion of such risk factors and their potential effects, copies of which may be accessed through SEDAR at http://www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Magellan Minerals Ltd.
President and CEO