Magellan Minerals Ltd TSXV:MNM announced results from its Cuiu Cuiu Project in Pará, Brazil. Highlights include 8.44 g/t gold over 7.8 metres, 58.7 g/t over 0.5 metres, 30.2 g/t over 0.5 metres, 0.51 g/t over 18.9 metres and 0.7 g/t over 10.3 metres.
President/CEO Alan Carter tells ResourceClips.com, “The Cuiu Cuiu project is located in the Tapajos region. The Tapajos region is the largest placer-gold field in Brazil and the third largest placer gold field in the world. Cuiu Cuiu itself is one of the two largest placer fields within that part of Brazil, so it’s produced an awful lot of placer gold. We have a current resource at Cuiu Cuiu of 1.3 million ounces. It is adjacent to Eldorado‘s Tocantinzinho project, which is at the feasibility stage now. Dennis Moore and I—the founders of Magellan—found Tocantinzinho, so we know this part of the world quite well.
“We’re pretty excited by these drill results. We’ve got three rigs turning on the property right now, and all the drilling we’re doing this year is step-out drilling. We’re looking for extensions and new deposits in the immediate vicinity of the existing deposits there, so these results are fairly significant for us. We’re hoping to update the resource in Q1 2012.
There were 20 million to 30 million ounces of placer gold that came out of the Tapajos region between 1978 and 1995. What we’re doing is looking for the source of that gold.—Alan Carter
“All options are on the table right now. Either we take the project all the way through to production, or at some point we might consider some sort of arrangement. But I think the short-term objectives are important, and those are to increase the ounces. It’s the same short-term objective that we’ve got at our other advanced project, Coringa, which is 200 kilometres from Cuiu Cuiu and where we’re also drilling with three rigs. So we’re doing a lot of work right now.
“Brazil’s a great place,” continues Carter. “It’s a country that’s growing at quite a clip. It’s resource rich, and there’s an amazing number of opportunities. It’s one of the world’s largest iron-ore producers, and in the 18th and 19th centuries, it was the largest gold producer in the world. So it’s got incredible potential. There were 20 million to 30 million ounces of placer gold that came out of the Tapajos region between 1978 and 1995. What we’re doing is looking for the source of that gold. It’s probably multiple sources, but we’ve got a couple of those in Coringa and Cuiu Cuiu, and we think we’re going to find other ones. It’s definitely a very exciting, emerging part of the world.
“Of the two projects, Coringa’s the more advanced. We already have a scoping study done at Coringa on a relatively small resource of about 370,000 ounces—but the average grade on that is 9 g/t. And the scoping study was very positive. It was done about 18 months ago, assuming a gold price of $950—so obviously things have changed a lot since then. The idea for Coringa next year is to update the resource and then complete a feasibility study by the end of 2012. We won’t get the feasibility study done on Cuiu Cuiu yet, but the idea there would be to at least start a scoping study in 2012. But the immediate objective for 1Q of next year for both projects is to update the resources.
“I think they’re very good quality projects,” Carter concludes. “We’ve spent a lot of time and energy and effort screening literally hundreds of gold prospects in Brazil, and these are two of the best that we’ve come across. The gold-in-soil anomaly at Cuiu Cuiu is now 12 kilometres long, and that’s based on 10,000 soil samples. And there’s large parts of that anomaly that have not been tested yet, so we expect to find additional deposits there. I think the potential of Cuiu Cuiu is that it could grow several times larger, ultimately, than the current resource. Similarly, at Coringa, the 370,000 ounces that we’ve got is almost two years out of date—a year and a half at least—and we have a mineralized shear zone there which is 10 kilometres long. Our resources are confined to three very small parts of that, and we keep finding new zones all the time. As I said, all the drilling now is step-out drilling, and we put out results last week from a brand new zone. I’d be very surprised if Coringa does not increase in size by several times. I’m not talking about a 20% or 30% increase, I’m talking several hundred percent larger than it already is.”
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