Magellan Minerals Ltd. - QwikReport

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União

The União project is located to the south of Magellan's other land holdings, at the western end of the Transgarimpeiro Highway, just east of the mining town of Creporizao. The area is accessible by road from Itaituba, and has several all weather airstrips. It is an intensely mineralized area that historically produced in excess of 1Moz of gold. The district still has several producing pits and one small underground mine.

Reconnaissance work at the project has identified several parallel shear zones hosting quartz vein and stockwork gold mineralization with strike lengths of up to 4km. Surface gold values are highly anomalous returning values up to 928.9g/t Au from select vein samples.

A regional soil sampling program consisting of lines extending beyond the four identified prospects of Cuiubana, Juarez, and Edvaldo and a ground magnetometer survey was completed during.

União has had no previous drilling. The identification of such an extensive zone of workings and stockwork veining bodes well for the possible discovery of a significant gold deposit. Drilling by Magellan in late 2008 on the Gaspar and Cuibano -- laye showings totaled 8 holes and intersected the following values:

Hole ID	From (m)	To (m)	Au (g/t)	Interval (m)	Area
UN 003 08	9.14	10.90	0.53	1.76	Cuiabano-Laje
	84.00	85.00	0.54	1.00	Cuiabano-Laje
	85.50	87.50	3.20	2.00	Cuiabano-Laje
	88.00	88.50	0.93	0.50	Cuiabano-Laje
UN 004 08	71.90	73.15	0.94	1.25	Cuiabano-Laje
	79.50	80.50	0.72	1.00	Cuiabano-Laje
UN 005 08	47.85	50.20	0.76	2.35	Cuiabano-Laje
UN 006 08	104.10	107.00	0.74	2.90	Cuiabano-Laje
	107.90	110.00	0.61	2.10	Cuiabano-Laje
UN 007 08	40.00	43.65	1.35	3.65	Gaspar
UN 008 08	0	4.50	1.61	4.50	Gaspar
	67.60	68.95	0.78	1.35	Gaspar
	87.60	88.60	1.59	1.00	Gaspar

Uniao is located 100 km SSW of the Cuiu Cuiu project and occurs within the Creporizao vein district, which historically produced in excess of one million ounces of gold from both alluvial and primary sources. Six holes were drilled on the Cuiabano-Laje target, and two holes targeted the Gaspar vein.

Four of the six holes completed at Cuiabano-Laje intersected the targeted vein structure over a strike length of 700m, with widths ranging from 1.0m to 2.9m, demonstrating mineable widths and structural continuity.

At Gaspar, hole UN-008-08 intersected 4.5m of near-surface oxide material grading 1.61 g/t Au from surface to 4.5m depth, as well as two, 1m wide mineralized intercepts in the hanging wall. Additionally at Gaspar, hole UN-007-08 intersected 3.65m grading 1.35 g/t Au, at 40.0m to 43.6m, demonstrating good width potential at depth.

Gold-bearing vein systems are typically erratic in terms of both grade and continuity of width. Drilling is particularly problematic at estimating the true grade of narrow structures with abundant visible gold due to the erratic distribution of gold within quartz veins. Whilst previous surface samples and underground workings at Gaspar and Cuiabano-Laje have returned assay results in the tens to hundreds of grammes per ton, the reconnaissance drilling on two areas at Uniao did not return high values. However, the recent drilling does demonstrate the continuity of the mineralized structures both at depth and along strike and the focus will now be on identifying the structural and lithological controls on the high grade ore shoots sampled underground and on surface.

Furthermore, the recent reconnaissance drilling was restricted to only two targets at Uniao. Other primary gold showings at Uniao remain untested including the Malvinas vein which returned grades up to 928.9 g/t.

Maps & Photos

União Location Map
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União Mineral Occurrence Map
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Edivaldo's Pit - União
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União - Garimpo
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União: Channel Sampling Edivaldo
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União - Visible gold from Malvinas Shaft
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This page was created on Mon Sep 6, 2010 at 7:17:00 PM Pacific Time.