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Magellan Provides Coringa Project Feasibility Study Update

Magellan Minerals Ltd. ("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.

Highlights include:-

  • 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.

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