Magellan Minerals owns a 100% interest in the project which comprises a large 9434 hectare (94.3 km2) exploration license that hosts a large plateau area 65km west of the world class Trombetas bauxite mine and 100km northwest of the Juruti bauxite deposit, which is under development by Alcoa and expected to begin production in the latter half of this year.
Due to the underlying felsic geology, plateau geomorphology and proximity to the nearby Trombetas and Jurutí mines, the Nhamunda area is considered very prospective for bauxite mineralization. The entire surrounding region consists of bauxite exploration licenses held by Alcoa, Vale (CVRD), Rio Tinto and BHP-Billiton. Magellan acquired this exploration license through a purchase option agreement in 2007.
A total of ten widely spaced shallow auger holes were completed over the Nhamunda plateau during late 2007 to a maximum depth of 14m. Of the ten auger holes, six intersected significant widths of bauxite ranging from 1.5 to 4.7 meters. See the table below for a summary of the results:
| Hole | From | To | Intercept | Al | FeO | Reactive SiO2 |
|---|---|---|---|---|---|---|
| (m) | (m) | (m) | % | % | % | |
| NHBX-1 | 5.5 | 9.0 | 3.5 | 46.4 | 11.9 | 4.7 |
| NHBX-3 | 6.3 | 7.8 | 1.5 | 44.0 | 13.7 | 6.4 |
| NHBX-4 | 5.9 | 9.6 | 3.7 | 39.3 | 11.1 | 9.3 |
| NHBX-6 | 7.2 | 10.8 | 3.6 | 28.1 | 36.6 | 4.8 |
| NHBX-9 | 6.1 | 10.8 | 4.7 | 48.0 | 5.8 | 5.0 |
| NHBX-10 | 11.0 | 14.0 | 3.0 | 46.0 | 8.7 | 4.8 |
These initial results are from the first ten holes drilled in the area, and are very encouraging. This initial exploration program demonstrates that near-surface, economic grades of bauxite over mineable widths occur over extensive areas of the Nhamunda Plateau. Larger bulk samples of up to 20kg will be sent to the laboratory to confirm these results, and additional auger drilling is planned during the dry season in the third quarter of 2008.
Maps & Photos
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