Magellan Minerals (MNM-V) discovered a new gold zone at its Cuiu Cuiu property in Brazil and the market took note.
The new gold mineralization was found north of the Central zone and Magellan is calling the new zone “Central North”. The hole returned a highlight intercept of 39.4 metres grading 1.25 grams gold.
The discovery hole was drilled 360 metres north of a hole in the Central zone that graded 58.7 grams gold over 0.5 metres.
Magellan also hit 13 metres grading 0.58 grams gold at the most eastern part of the Moreira Gomes zone. The company says the result confirms that Moreira Gomes remains open to the east.
Moreira Gomes currently has inferred resources of 14 million tonnes grading 1.5 grams gold for 700,000 oz. of gold.
And more gold was found too at the Jerimum Baixo zone (which is situated between the Central and Moreira Gomes zone) as an assay returned 2 metres grading 6.29 grams gold.
Magellan says the hole shows the northwest and southeast continuity of mineralization intersected in a previous hole.
The Jerimum Baixo zone is not currently part of the resource estimate at Cuiu Cuiu.
Overall, the property has indicated resources of 3.4 million tonnes grading 1 gram gold for 100,000 oz. of gold and inferred resources of 31 million tonnes grading 1.2 grams gold for 1.2 million oz. of gold.
The latest results helped lift Magellan shares up 13% or 8¢ to 68¢ on roughly 60,000 shares traded in Toronto on Sept. 8.
At this point the company hypothesizes that mineralization found in the new zone trends in a similar northwest southeast direction that the main Central mineralized zone trends in.
Magellan’s president and chief executive Alan Carter called the discovery hole the most important from the 2011 drill program to date.
“We are excited by the potential of the Central North zone to grow into a third mineralized body at Cuiu Cuiu and look forward to the results of further drilling,” Carter said in a statement.
Three drill rigs are currently turning at Cuiu Cuiu and the drill program is set to carry through until the end of the year.
Cuiu Cuiu sits in the in the Tapajos region of northern Brazil roughly 180 km southwest of the small city of Itaituba.
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