Magellan Minerals has declared the beginning of primary reconnaissance drilling at several targets in the western Brazil-based Mato Grosso JV gold project.
The company holds a 35% interest in a joint venture with ECI Mining and Exploration, which also holds a 35% interest in this project and operates the joint venture, and Brazil Central Engenharia has a 30% interest in the same.
Magellan was performing a wide ground reconnaissance and data collection work in the previous months. It has discovered at least six targets in different sites based on structural, geological, geochemical and geophysical criteria. At first, these targets will be examined by employing an air core drill rig, which is capable of drilling to a maximum depth of 60 m.
The primary program is being scheduled to drill between 2,500 m and 4,000 m in total and is planning to progress the drilling from 10,000 m to 20,000 m during late 2011 by means of a RC rig, which can drill to an utmost depth of 250 m.
At present, the company has three drill rigs that is operating at Cuiu Cuiu property in Brazil, wherein the latest work has found an 1.2 Moz gold in an Inferred Resource and 0.1 Moz gold in Indicated Resource. Moreover, additional three drill rigs are working at the Coringa project that has 0.1 Moz gold in an Inferred Resource and 0.27 Moz gold in an Indicated Resource.