Magma Metals Limited: High Grade Drill Intercepts From EM Targets in the Bridge Zone at Thunder Bay North

Press Release Source: Magma Metals Limited On Wednesday July 21, 2010, 9:00 am EDT

PERTH, WESTERN AUSTRALIA--(Marketwire - July 21, 2010) - Magma Metals Limited (TSX:MMW - News; ASX:MMW - News; "Magma" or the "Company") is pleased to advise that drilling to test electro-magnetic (EM) anomalies in the Bridge Zone intersected several high grade mineralized zones at the Thunder Bay North platinum-palladium-copper-nickel project in northwest Ontario.

Bridge Zone EM targets

Extensive down-hole electro-magnetic (DHEM) surveys in the Bridge Zone were completed in the June quarter to map potential high-sulphide zones near the base of the mineralized mafic-ultramafic intrusion. Many anomalies were identified and modelled and 12 of these were prioritized for drill testing (Figure 1). Drilling is in progress and assay results have been received for the first five holes, which returned the following excellent intercepts:

BL10-326: 51.0m @ 5.02g/t Pt, 4.84g/t Pd, (9.86g/t Pt+Pd),

1.18% Cu & 0.56% Ni from 85.1m,

including 8.6m @ 11.55g/t Pt, 10.81g/t Pd, (22.36g/t Pt+Pd),

2.80% Cu & 1.27% Ni from 127.5m,

including 1.1m(i) @ 23.40g/t Pt, 22.80g/t Pd, (46.20g/t Pt+Pd),

6.80% Cu & 3.76% Ni from 135.0m;

BL10-328: 23.5m @ 4.20g/t Pt, 3.80g/t Pd, (8.00g/t Pt+Pd),

0.85% Cu & 0.39% Ni from 123.25m,

including 8.5m @ 6.23g/t Pt, 5.73g/t Pd, (11.96g/t Pt+Pd),

1.21% Cu & 0.61% Ni from 128.25m;

BL10-329: 21.0m @ 2.37g/t Pt, 2.12g/t Pd, (4.49g/t Pt+Pd),

0.54% Cu & 0.25% Ni from 156.1m,

including 9.5m @ 3.78g/t Pt, 3.32g/t Pd, (7.10g/t Pt+Pd),

0.80% Cu & 0.31% Ni from 157.1m;

BL10-330: 11.5m @ 2.08g/t Pt, 1.96g/t Pd, (4.04g/t Pt+Pd),

0.46% Cu & 0.26% Ni from 172.2m,

including 1.5m @ 5.79g/t Pt, 5.33g/t Pd, (11.12g/t Pt+Pd),

1.15% Cu & 0.36% Ni from 177.2m,

and 0.5m(i) @ 5.18g/t Pt, 5.49g/t Pd, (10.67g/t Pt+Pd),

1.26% Cu & 0.85% Ni from 183.2m;

BL10-332: 21.5m @ 2.98g/t Pt, 2.40g/t Pd, (5.38g/t Pt+Pd),

0.61% Cu & 0.25% Ni from 156.35m,

including 6.5m @ 8.95g/t Pt, 7.10g/t Pd, (16.05g/t Pt+Pd),

1.80% Cu & 0.51% Ni from 171.35m,

including 0.50m(i) @ 71.0g/t Pt, 47.8g/t Pd, (118.8g/t Pt+Pd),

14.40% Cu & 2.38% Ni from 176.85m.

((i)Contains massive sulphide interval)

Results are detailed in Tables 1 and 3.

"These results are very encouraging, particularly for hole BL10-326, which is amongst the best drill intercepts recorded at the project. Once we have received the remaining results from drilling the EM targets, we will plan a close-spaced drilling program to carefully delineate the high-sulphide zones defined by this program and previous drilling in this area," said Keith Watkins, Magma's Executive Chairman. "These zones have the potential to form a high value domain within the existing mineral resource and it's important to accurately define their shapes by drilling so that we can estimate their tonnages and grades".

High sulphide zones generally comprise heavily disseminated to semi-massive (net-textured) sulphides, which may overlie a massive sulphide unit. The high sulphide zones are generally associated with trough-like depressions in the floor of the mafic-ultramafic intrusion and appear to form linear bodies and pods. There have been 15 intersections of massive sulphide units, with down-hole thicknesses ranging from 0.1 to 2.6m, from drilling so far in the Bridge Zone and the western Beaver Lake Zone, including four from this program (assays are pending for one of these) (Figure 1).

Other Bridge Zone Targets

Drilling has also been completed in the Bridge Zone to test interpreted depressions in the floor of the intrusion for potential sulphide accumulations and to define the edges of the mineralized zones in a number of areas (Figure 1). Results have been received from some of this drilling and are detailed in Tables 2 and 3.

In addition, exploration drilling is in progress to test magnetic targets adjacent to the Bridge Zone which could represent lateral extensions or branches of the mineralized mafic-ultramafic magma conduit (Figure 1).

Elsewhere in the project, a drilling program is in progress to test a number of regional targets including magnetic anomalies in the South East Anomaly (south-eastern part of the Current Lake Intrusive Complex), and the Lone Island Lake Intrusive Complex in the western part of the project. Any significant results from this program will be reported in due course.

The mineral resource estimate update being undertaken as part of the current Scoping Study is in progress and on schedule with planned completion in the September quarter, 2010. The Scoping Study is scheduled for completion in the December quarter, 2010.

To view Figure 1. Magnetic image showing exploration drilling to test DHEM conductors and other targets in and around the Bridge Zone, please visit the following link - http://media3.marketwire.com/docs/mmw0721.pdf

Table 1. Significant drilling results from EM targets in the Bridge Zone

----------------------------------------------------------------------------

Pt+Pd

Length Pt Pd Pt+Pd Cu Ni Cut-Off

Drill Hole From (m) To (m) (m) (g/t) (g/t) (g/t) (%) (%) (g/t)

----------------------------------------------------------------------------

BL10-326 85.10 136.10 51.00 5.02 4.84 9.86 1.18 0.56 1.0

----------------------------------------------------------------------------

including 100.50 136.10 35.60 6.69 6.42 13.11 1.55 0.71 5.0

----------------------------------------------------------------------------

including 127.50 136.10 8.60 11.55 10.81 22.36 2.80 1.27 15.0

----------------------------------------------------------------------------

including 135.00 136.10 1.10(i) 23.40 22.80 46.20 6.80 3.76 25.0

----------------------------------------------------------------------------

BL10-328 123.25 146.75 23.50 4.20 3.80 8.00 0.85 0.39 1.0

----------------------------------------------------------------------------

including 128.25 136.75 8.50 6.23 5.73 11.96 1.21 0.61 10.0

----------------------------------------------------------------------------

BL10-329 156.10 177.10 21.00 2.37 2.12 4.49 0.54 0.25 1.0

----------------------------------------------------------------------------

including 157.10 166.50 9.50 3.78 3.32 7.10 0.80 0.31 5.0

----------------------------------------------------------------------------

BL10-330 150.00 160.00 10.00 0.77 0.78 1.55 0.20 0.15 1.0

----------------------------------------------------------------------------

172.20 183.70 11.50 2.08 1.96 4.04 0.46 0.26 1.0

----------------------------------------------------------------------------

including 177.20 178.70 1.50 5.79 5.33 11.12 1.15 0.36 5.0

----------------------------------------------------------------------------

and 183.20 183.70 0.50(i) 5.18 5.49 10.67 1.26 0.85 10.0

----------------------------------------------------------------------------

BL10-332 156.35 177.85 21.50 2.98 2.40 5.38 0.61 0.25 0.5

----------------------------------------------------------------------------

including 171.35 177.85 6.50 8.95 7.10 16.05 1.80 0.51 1.0

----------------------------------------------------------------------------

including 176.85 177.35 0.50(i) 71.0 47.8 118.8 14.4 2.38 25.0

----------------------------------------------------------------------------

Table 2. Significant drilling results from other targets in the Bridge Zone

----------------------------------------------------------------------------

Pt+Pd

Length Pt Pd Pt+Pd Cu Ni Cut-Off

Drill Hole From (m) To (m) (m) (g/t) (g/t) (g/t) (%) (%) (g/t)

----------------------------------------------------------------------------

BL10-308 171.00 183.00 12.00 0.81 0.80 1.61 0.27 0.23 1.0

----------------------------------------------------------------------------

including 182.00 183.00 1.00 1.98 1.87 3.85 0.62 0.36 3.0

----------------------------------------------------------------------------

BL10-317 152.50 153.00 0.50 2.36 2.50 4.86 0.97 0.39 1.0

----------------------------------------------------------------------------

BL10-318 151.00 159.00 8.00 1.07 1.03 2.10 0.28 0.17 1.0

----------------------------------------------------------------------------

including 153.00 155.00 2.00 1.65 1.64 3.29 0.44 0.23 3.0

----------------------------------------------------------------------------

BL10-319 177.00 180.00 3.00 1.95 1.80 3.75 0.38 0.25 1.0

----------------------------------------------------------------------------

including 178.00 180.00 2.00 2.63 2.44 5.07 0.50 0.29 3.0

----------------------------------------------------------------------------

BL10-322 147.00 160.00 13.00 1.73 1.65 3.38 0.28 0.13 1.0

----------------------------------------------------------------------------

including 159.00 160.00 1.00 5.79 4.89 10.68 1.07 0.12 5.0

----------------------------------------------------------------------------

BL10-323 148.00 156.00 8.00 1.56 1.57 3.13 0.49 0.25 1.0

----------------------------------------------------------------------------

including 151.00 154.20 3.20 2.33 2.41 4.74 0.82 0.41 3.0

----------------------------------------------------------------------------

BL10-327 158.40 161.90 3.50 3.75 3.60 7.35 0.70 0.39 1.0

----------------------------------------------------------------------------

including 161.40 161.90 0.50(i) 8.46 8.06 16.52 0.40 0.84 15.0

----------------------------------------------------------------------------

Results in Tables 1 & 2 are reported for intercepts greater than 1.0 g/t Pt+Pd and greater than 5 gram-metres (g/t Pt+Pd x metres) at the lower cut-off grades shown in the right hand column; these may include internal intervals up to 2m below the cut-off grade. Drill intercepts are down-hole thicknesses and may not represent true thicknesses.

(i) Contains massive sulphide intercept.

Table 3. Drill hole collar and depth information

-------------------------------------------------------------------------

Azimuth

Drill Hole Easting (m) Northing (m) (Deg) Dip (Deg) Depth (m)

-------------------------------------------------------------------------

BL10-308 357926 5402501 0 -90 240.0

-------------------------------------------------------------------------

BL10-317 357784 5402443 0 -90 219.0

-------------------------------------------------------------------------

BL10-318 357812 5402387 0 -90 198.0

-------------------------------------------------------------------------

BL10-319 357825 5402410 0 -90 226.4

-------------------------------------------------------------------------

BL10-322 357804 5402479 0 -90 219.0

-------------------------------------------------------------------------

BL10-323 357795 5402462 0 -90 219.0

-------------------------------------------------------------------------

BL10-326 367557 5402651 306 -80 186.0

-------------------------------------------------------------------------

BL10-327 357762 5402453 0 -90 193.0

-------------------------------------------------------------------------

BL10-328 357670 5402605 0 -90 196.5

-------------------------------------------------------------------------

BL10-329 357870 5402520 0 -90 231.0

-------------------------------------------------------------------------

BL10-330 357962 5402405 0 -90 234.0

-------------------------------------------------------------------------

BL10-332 357770 5402475 0 -90 210.0

-------------------------------------------------------------------------

Additional information on Magma and its projects, including descriptions of its quality control and assurance procedures, is available on its website at www.magmametals.com.au and in technical reports filed under the Company's profile on the SEDAR website (sedar.com).

The information in this report that relates to Exploration Results or Mineral Resources is based on information compiled, reviewed or prepared by Dr Keith Watkins, the Executive Chairman of Magma Metals Limited, who is a Member of the Australasian Institute of Mining and Metallurgy, and a "qualified person" as such term is defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects. Dr Watkins has sufficient experience, which is relevant to the style of mineralization and type of deposit under consideration and to the activities undertaken to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (the JORC Code). Dr Watkins consents to the inclusion in the report of the matters based on this information in the form and context in which they appear.