Magellan Files Report on Coringa Resource Estimate and Provides Update on Progress of Feasibility Study
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 21, 2015) - Magellan Minerals Ltd. (TSX VENTURE:MNM) ("Magellan") is pleased to announce that further to its news release dated April 8, 2015, it has filed with the British Columbia, Alberta, Ontario and Nova Scotia Securities Commissions, a NI 43-101 Technical Report dated May 13, 2015 (the "Report") in connection with the updated resource estimate for the Coringa project, Brazil. The Report was prepared by Mr. Walter Dzick, P.Geo., a registered Professional Geologist with APEGBC and Principal Geologist at Snowden Mining Industry Consultants ("Snowden"), and forms part of the ongoing feasibility study. The Report can be found on SEDAR at www.sedar.com and on Magellan's website at www.magellanminerals.com.
Measured and indicated resources at Coringa amount to 553,000 ounces of gold representing 2.18Mt @ 7.88 g/t gold at a 2.5g/t cut-off grade. Inferred resources of 360,000 ounces of gold have been calculated representing 2.06Mt @ 5.43 g/t gold at a 2.5 g/t gold cut-off grade.
Due to internal corporate issues, Snowden who is responsible for the resources, reserves and underground geotechnical components of the feasibility study, had to move the mining work component of the study from their Vancouver office to their Perth offices. This move added an unanticipated level of complexity due to time zone differences that in conjunction with certain mining method optimization requested by Magellan, has resulted in the anticipated completion date of the study being delayed until early June 2015.
Despite this delay, the remaining components of the study are largely complete. Ausenco Engineering Canada Inc., which is responsible for the overall study compilation, has completed the detailed process plant design as well as the site infrastructure, access road and electrical power supply aspects. Kovit Engineering Limited has completed the design and costing of the tailings and backfill aspects of the project and Global Resource Engineering has completed the hydrogeology and the site water balance studies on the project. Terra Meio Ambiente has completed the environmental and permitting aspects of the study. Deswik Mining Consultants have completed the mining redesign and scheduling and in conjunction with Snowden will finalize the mine plan and reserves for study completion during early June.
In addition, Mario Szotlender, a founding director of the Company has announced his resignation from the Board of Directors. Mr. Szotlender sits on a number of other boards of public companies including both Fortuna Silver Mines Inc. and Endeavour Silver Corp. and has been advised by a proxy advisory service to institutional shareholders that they will not recommend his re-election as he sits on more than six boards. Hence, his decision to resign from the board of Magellan. He will remain as a corporate advisor to the Company. Alan Carter, President & CEO commented, "It is very unfortunate that Mario has had to resign as a director from Magellan due to external pressures forced upon him, but I am grateful for the many years of invaluable counsel provided to Magellan and am happy that he will remain as a corporate advisor to the Company."
Magellan has granted stock options to directors, officers, employees and consultants of the Company. The options entitle the holders to purchase 4,530,000 common shares in the capital stock of the Company at a price of $0.10 per share. The options are exercisable until May 20th, 2020 and are subject to vesting over 24 months. A total of 3,600,000 stock options were granted to officers and directors of the Company.
John Kiernan P.Eng, Magellan's VP Project Development and a "qualified person" within the definition of that term in NI 43-101, has reviewed the technical information contained in this news release.
Magellan Minerals (TSX VENTURE:MNM) 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 contains underground Measured resources of 110,000oz of gold (0.27Mt @ 12.8g/t gold) and underground Indicated resources of 443,000oz of gold (1.91Mt @ 7.2g/t gold) as well as Inferred resources of 360,000oz of gold (2.0Mt @ 5.4g/t gold) at a cut-off of 2.5g/t gold. (See the Company's news release dated April 8, 2015).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). (See the report entitled "Resource Estimate and Technical Report for the Cuiu Cuiu Project, Tapajos Region, North Central Brazil" dated April 19, 2011 and filed on Sedar on April 21, 2011, and the Company's news release dated March 8, 2011).
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.
News release #2015-4
Contact
Alan Carter
President and CEO
Tel: 604.676.5663
Email: info@magellanminerals.com