Some
companies are very aggressive when it comes to proving up major
economic mineral deposits. Magellan Minerals,(TSX.V:MNM) came out of
the chute firing on all cylinders, and its success to date underscore’s
the wisdom of Newmont Mining’s (NYSE:NEM) investment in 8% of
Magellan’s outstanding shares.
Two weeks after its debut on the TSX Venture Exchange in
February 2008, the company began issuing press releases that
demonstrated the potential of its flagship asset, the Cuiú Cuiú project
in the Tapajos Region in Northern Brazil. Drilling yielded a 65.8 metre
core intercept assaying 3.54 grams per tonne gold. Two weeks after that
a spectacular 174.2 metre intercept assayed 1.46 grams per tonne gold,
that was only eclipsed in June 08 with a 220 metre section that assayed
just over 2 grams per tonne gold. Within that hole, intercepts such as
4.2 metres grading 25.69 grams per tonne gold demonstrate the presence
of high grade veins throughout the lower grade broadly disseminated
mineralization.
Newmont typically seeks to acquire deposits with the potential
for a minimum of 5 million gold ounces, and continuing exploration
success on Cuiú Cuiú seems to confirm that potential so far.
The Cuiu Cuiu project covers an entire gold district, and has
an estimated historic alluvial gold production of 1.5 to 2 million
ounces. Magellan controls mineral exploration licenses totaling over
47,000 hectares (>470 km2) at Cuiu Cuiu which is one of 14 projects
(11 of which are 100% owned) currently held by Magellan in the Tapajós
Mineral Province of northern Brazil.
The Tapajós province has yielded a total of between 20 to 30
million ounces of gold, primarily to alluvial miners. Old workings from
these operations pockmark the jungle throughout the region and are
easily visible from the air.
The discovery in Brazil is no fluke. Both Dr. Alan Carter,
Magellan’s CEO, and Dennis Moore, VP of Business Development, have
extensive experience in the region, and were responsible for the
Tocantinzho gold discovery that is the flagship asset of Brazauro
Resources (TSX.V:BZO).
Tocantinzinho has so far proved to contain a N.I. 43-101
compliant resource of 2.1 million ounces of gold, and last year
Brazauro inked an agreement with Eldorado Gold Corporation (TSX:ELD,
NYSE: EGO) whereby Eldorado can earn up to 75 % of the TZ project for a
total of C$ 123 million in expenditures and cash- payments.
