Message #1 From:
Stock News Bot Date: July 20, 2005 07:16:00 AM
MGNU News Magnus International Resources Inc. Updates on its Huidong Exploration Program
LAS VEGAS--(BUSINESS WIRE)--July 20, 2005--Magnus International Resources Inc. ("Magnus") ("the Company") (OTCBB:MGNU) is pleased to provide the following corporate update in relation to the exploration program progress at its Huidong property in Sichuan Province, China.
MAGNUS' HUIDONG CONCESSION AND SOUTHWESTERN RESOURCES' BOKA GOLD PROJECT: THE HUIDONG-BOKA DISTRICT
Magnus and Team 209 have an agreement to jointly explore an area of 83.29 square km at Huidong with the near-term possibility of increasing the joint venture area through the acquisition of exploration rights to three adjoining properties.
Huidong is a gold-copper prospect in Sichuan Province northwest of, and on trend with, Southwestern Resources' Boka gold project in Yunnan Province.
Southwestern Resources has just reported a current combined indicated and inferred resource at the Boka project of over 5 million ounces of gold. This significant, newly discovered resource is expected to increase in size and grade as Southwestern continues with expansion and infill drilling. A preliminary assessment and engineering scoping study was recently completed on the first two zones of the Boka gold system by Hatch Limited, a worldwide engineering firm with extensive experience in China. The study adopted a conservative approach to ore estimation using protocols and procedures in compliance with national instrument 43-101 reporting in Canada. The Hatch study considers the Boka Project to be one of the significant gold discoveries of recent years. Furthermore, capital and operating costs for mining operations in this part of China are reported to be low. Magnus management anticipates issuing a news release with a more detailed discussion of Hatch's Boka report findings and their relationship to the Huidong property after the full report is made publicly available. The complete study is anticipated to be available at Southwestern's website at www.swgold.com before 27 July, 2005.
The following update is in relation to our ongoing comprehensive exploration program at Huidong.
For a full version of the exploration update report, with diagrams, please refer to the front page of the Magnus website, at www.magnusresources.com, click on "HUIDONG EXPLORATION PROGRAM UPDATE" then click on "Click here for the full July 20 Huidong Exploration Program Update with Diagrams".
HUIDONG EXPLORATION PROGRAM PROGRESS UPDATE - by Paul Taufen (PhD)
Follow-up exploration by Magnus has continued favorably at Magnus' Huidong concession. Earlier geochemistry work completed from November 2004 through February 2005 identified three priority Gold exploration target areas within the Huidong Concession. Exploration work completed by Geological Team 209 of Yunnan Province (Team 209) and Magnus within Priority Area 1, located in the western portion of the Huidong Concession, has proceeded well since April 2005. Infill soil sampling in Priority Area 1 has generated coherent gold (Au) in soil anomalies, including one contiguous soil gold anomaly extending over 1.15 km2 in an area designated by the local village name of Dinjiaping. The anomaly is outlined in Figure 2 of the "Huidong Exploration Update with Diagrams" available at www.magnusresources.com. The thickest portion of this gold in soil anomaly commonly contains soil gold concentrations of 100 ppb Au and above. A concentration of 100 ppb or higher of gold in soil is a considered to be clearly indicative of associated gold mineralization in the Huidong - Boka district.
More detailed investigation of priority area 1 by Team 209 and Magnus has revealed the presence of fifty four old tunnels where historical gold mining has occurred. This is a very good indication of potentially high ore grades for gold since the gold concentrations in historical tunnels would typically have been high enough to warrant recovery by very labor-intensive and primitive mining methods.
Historical tunnel locations correspond spatially with the strong anomalous areas of Au in soil. Detailed satellite imagery shows that many of the tunnels occur down slope from areas of high Au in soils that would not have been recognized in historical artisan mining activity. Other identified Au in soil features have almost no associated historical tunneling activity nearby. The information obtained indicates that the Au in soil features likely represent a new discovery and not contamination from old workings.
Rocks from these tunnels and other exposures away from tunnels have been sampled and analyzed for Au. Sixteen rock samples were collected and analyzed from the area of the 1.15 km2 soil gold anomaly Thirteen of these sixteen rocks returned Au concentrations of 1 g/tonne or higher, with the highest Au concentration at 7.2 g/tonne Au.
As detailed in the table below, there are already 21 surface rock samples with greater than 1 g/tonne Au based on only limited surface sampling to date. The occurrence of gold-bearing rock samples at surface with these gold concentrations is considered highly encouraging.
Table 1: Gold assays of rocks sampled in Priority Area 1 with greater
than 1 g/tonne Au
Au_g/
Sample Latitude Longitude tonne Description
HDW-001 26.552444 102.911806 5.40 Iron oxide,
copper quartz vein
HDW-003 26.552444 102.911806 4.50 Sampled from copper ore
HDW-004 26.562917 102.931056 5.30 Iron oxide with clay
- broken quartz vein
HDW-5 26.549250 102.910917 1.30 Quartz - alteration
with pyrite,
chalcopyrite
HDW-6 26.549250 102.910917 1.60 Quartz - alteration
with pyrite,
chalcopyrite
HDW-8 26.549389 102.910333 4.70 Quartz - fine sandstone
with malachite
HDW-9 26.549389 102.910333 7.20 Quartz, iron oxide with
breccia
HDW-14 26.550778 102.916167 4.40 Altered rock with
quartz and limonite
HDW-15 26.550778 102.916167 3.80 Sample of ore
HDW-16 26.550778 102.915500 4.80 Fault with iron oxide
and quartz
LHDW-29 26.553611 102.907333 1.61 Limonitic rock
LHDW-32 26.551000 102.904361 1.03 Iron oxide and argillite
HDWZ-003 26.551250 102.905694 1.12 Iron oxide - quartz vein
with sulphides
HDWZ-008 26.550944 102.905528 1.25 Iron oxide - quartz vein
HDWZ-009 26.550833 102.905500 1.65 Iron oxide - quartz vein
HDWZ-024 26.549500 102.910083 3.51 Iron oxide - quartz vein
with copper?
HDW-75 26.550694 102.913472 1.55 Iron oxide - quartz vein
HDW-76 26.550694 102.913472 2.47 Iron oxide and quartz
- malachite
HDW-77 26.550694 102.913472 1.09 Iron oxide vein with
argillite
HDW-79 26.556194 102.903500 4.10 Iron oxide breccia with
quartz vein
Q1H-6 26.553639 102.907361 3.46 Surface material
XAu-30 26.550694 102.913472 1.26 Iron oxide quartz vein
- clay sandstone
More detailed investigation of the surface gold features at Priority Area 1 continues. A trench sampling program is underway to better define Au mineralized zones inferred by geological mapping and apparent in the soil and rock geochemistry completed to date. Completion of first phase trench sampling is anticipated in August 2005. This will be followed by additional trenching, tunneling, and drilling programs.
ABOUT MAGNUS INTERNATIONAL RESOURCES INC.
Magnus International Resources Inc. is engaged in the acquisition, exploration and development of mineral properties, focusing primarily on gold and copper properties in China. Under a joint venture agreement with Yunnan Province Nuclear Industry Brigade 209 ("Team 209"), Magnus retains a 90% interest in the Huidong property through its joint venture company, Long Teng Mining Ltd.
For further information please refer to the Company's filings with the SEC on EDGAR or refer to Magnus' website at www.magnusresources.com.
If you would like to receive regular updates on Magnus please send your email requestt to info@magnusresources.com.
FORWARD-LOOKING STATEMENTS This news release may include "forward-looking statements" regarding Magnus International Resources Inc., and its subsidiaries, business and project plans. Such forward-looking statements are within the meaning of Section 27A of the Securities Act of 1933, as amended, and section 21E of the United States Securities and Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor created by such sections. Where Magnus expresses or implies an expectation or belief as to future events or results, such expectation or belief is believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to price volatility of gold and other metals; currency fluctuations; political, operational, and governmental approval and regulation risks in China. For a more detailed discussion of such risks and other factors, please see "Risk Factors" in our Form 10-K for our most recently completed fiscal year, on file with the SEC at www.sec.gov. This document also contains information about adjacent properties on which Magnus has no rights to explore or mine. Investors are cautioned that mineral deposits on adjacent properties are not necessarily indicative of mineral deposits on Magnus' properties.
Magnus International Resources Inc. (OTC Bulletin Board:MGNU)
