MTT.V · 2019-04-16 12:00:00

Magna Terra Reports Thick Intercept of Near-Surface Gold Oxide at the 100% Owned Luna Roja Project

Drill Results

Magna Terra Reports Thick Intercept of Near-Surface Gold Oxide at the 100%

Owned Luna Roja Project

Featuring 42 M @ 1.01 g/t of oxide gold (plus 4.6 g/t of silver) from the first phase of drilling at the Cruz del Sur

target

TORONTO, April 16, 2019 -- Magna Terra Minerals Inc. (the “Company” or “Magna Terra”) (TSX-V: MTT) (SSE: MTTCL) is

pleased to announce assay results representing vertically zoned epithermal Gold Mineralization from an eight hole (1,184

meter) first phase drill program on its Luna Roja Project in Santa Cruz Province, Argentina. The drilling began on January 12,

2019 and was completed on January 31. The program was designed to test three target areas – Cruz Del Sur, Orion and

Estrella del Norte, which constitute a mineralized surface footprint of approximately three kilometers by one kilometer. Assays

have been received from three holes in the Cruz del Sur Target area and from one hole in the Estrella del Norte area. The

company is still waiting for assays from another four holes.

Drill hole LR_DDH002 intersected 75.0 m of 0.62 g/t Au and 5.6 g/t Ag (from 37.0 m to 112.0 m). The deepest part of the

zone, which is oxidized, included 42.0 m of 1.01 g/t Au and 4.6 g/t Ag (from 68.0 m to 110.0 m - Table 1), indicating

increased grade with depth.

“The mineralisation from the first two holes in the campaign is highly significant because it shows upgrading of tenor by 2.5

times at only 50 meters depth relative to the trench samples. We are very encouraged to have significant intercepts in two out

of the three holes from the initial program at Cruz del Sur. The first two holes combine to give a significant strike length of

shallow, disseminated mineralization with much of which is oxidized, implying potential for early definition of a low-cost bulk

minable resource”

- Dr. Paul David Robinson, Vice President of Exploration

The mineralization is disseminated in lithic crystal tuffs and rhyolitic crystal tuffs in the hanging wall of the Via Lactea fault

zone. This hole was collared 145 m to the NNW of hole LR_DDH001, which reported 51.4 m of 0.26 g/t Au and 9.7 g/t Ag,

including 2 m of 1.08 g/t Au and 79.6 g/t Ag. These two holes are the only holes testing the Via Lactea Fault zone, which is

recessive and associated with surface Gold, Silver and trace element anomalies along its 3 km N-NW strike. Mineralization

remains open-ended in all directions along the Via Lactea fault.

Assays have also been received for two additional holes, one testing an IP chargeability anomaly in the Cruz del Sur area, and

the other testing an IP chargeability anomaly in the Estrella del Norte area. These two holes did not return notable intercepts

(Table 1). Assays for the remaining holes (holes LR_DDH004, 5, 6, and 8) are pending.

Key Characteristics of Luna Roja

• Long, 75-meter intercept of 0.62 g/t Au, suggests possibility of bulk minable potential

• A 42-meter oxidized intercept of 1.01 g/t Au suggests potential for high gold recovery (see Figure 1 b)

• Shallow mineralization, between surface and 80 meters vertical depth, offers the possibility of an open pit operation

• Mineralized strike length of 145 meters between LR_DDH001 and LR_DDH002 shows potential for continuity along the

Via Lactea structural zone

• Mineralized surface strike length of 3 Km on the Via Lactea Fault system shows strong potential considering that only

145 meters of the fault system has been drill tested to date

• Favorable tuffaceous stratigraphy to the West, hanging wall side, of the Via Lactea Fault system, is thus far un-tested

• Rhyolitic and tuffaceous dome complex to the East of Via Lactea is silicified and has multiple geophysical targets

• The concept of targeting disseminated Gold in tuffs is a new paradigm for the Deseado Massif, but the Luna Roja

mineralization is more analogous of Round Mountain in Nevada than it is to any of the operating mines in Santa Cruz

The Cruz del Sur Target

The Cruz del Sur target lies toward the southern end of the project, on the Via Lactea fault, and is associated with Au in rock

chips and Trench channel samples on the southwestern edge of a major rhyolitic and tuffaceous dome complex. (see Figure 1

a).

LR_DDH001 and LR_DDH002 target structurally controlled mineralization beneath wide Au anomalies in Trenches 1 and 2.

Figure 2 illustrates a West-East cross section, which includes LR_DDH002 and LR_DDH003 where LR_DDH003 is a

geophysical target and is collared 280 meters to the East of LR_DDH002. Trench 2 reported 55 meters of 0.41 g/t Au and 13.2

g/t Ag which occurs above the LR_DDH002 intercept and is structurally related to the oxidized zone of 1.01 g/t Au between 47

and 78 meters vertical depth. Mineralization appears to be controlled largely by the high permeability of the tuffaceous units to

the West of the Via Lactea Fault, implying that the system is open in that direction. LR_DDH003 did not return reportable Au

or Ag anomalies but was anomalous in Arsenic along much of its length as well as having traces of Antimony. Despite the

distance East from hole LR_DDH002, this hole remains within the mineralized system and is potentially close to the Au

mineralization.

Trench 1 reported 25 meters of 0.1 g/t Au and 7.6 g/t Ag which occurs above the LR_DDH001 intercept and is structurally

related to the mineralized zone with 0.26 g/t Au and 9.7 g/t Ag between 30- and 70-meters vertical depth. (See Figure 3).

Table 1: Drill hole collar details

Hole Area x y z Azim Dip TD

LR_DDH001 Cruz del Sur 589080 4759260 236 90 45 203

LR_DDH002 Cruz del Sur 589040 4759400 240 90 45 215

LR_DDH003 Cruz del Sur 589320 4759400 247 90 65 173

LR_DDH004 Orion 589240 4760050 270 90 75 139

LR_DDH005 Orion 589100 4760050 269 270 60 142.5

LR_DDH006 Orion 589100 4760200 272 270 60 145.6

LR_DDH007 Estrella del Norte 588900 4760950 250 270 60 74

LR_DDH008 Estrella del Norte 588700 4760950 237 90 60 92

Table 2: Drill assay results for LR_DDH_001, 2, 3 and 7 (with 0.2 g/t Au cut-off grade)

Hole From (m) To

(m)

Length

(m)

(g/t)

LR_DDH00

44.6 96 51.4 0.26 9.7

Including: 62 64 2 1.08 79.6

LR_DDH002

and:

Including:

108

112

110

0.27

0.62

1.1

1.41

2.84

0.25

5.6

4.6

5.0

2.7

Including:

LR_DDH00

No Reportable

Intercepts

No Reportable

Intercepts

QAQC

Sampling was carried out with core being cut by angle grinder and half of the core retained for logging and potential re-

analysis. Blind standards, blanks, and duplicates were inserted into the sample chain accounting for 10 % of samples.

Samples were then delivered, by Magna Terra staff, to Andesmar in Caleta Olivia, Santa Cruz, Argentina from where they were

transported to ALS Chemex Laboratories in Mendoza, Argentina, for gold fire assay and multi element analysis.

Qualified Person

All technical data disclosed in this press release has been verified by Magna Terra’s Qualified Person, Paul D. Robinson Ph.D.

and Certified Professional Geologist as recognized by the Association of Professional Geoscientists of Ontario (APGO).

About Us

Magna Terra Minerals Inc. is a precious metals focused exploration company, headquartered in Toronto, Canada. Magna Terra

(MTT) has a significant interest in the province of Santa Cruz, Argentina within the prolific Deseado Massif in southern

Patagonia. With five district scale drill ready projects, and a highly experienced management and exploration team, MTT is

positioned to deliver significant shareholder value through the potential for precious metals discovery(s) on its extensive

portfolio. For detailed information regarding our projects, please visit the Company’s website at: www.magnaterraminerals.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture

Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statements Regarding Forward Looking Information

Some statements in this release may contain forward-looking information. All statements, other than of historical fact, that

address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future

(including, without limitation, statements regarding potential mineralization) are forward-looking statements. Forward-looking

statements are generally identifiable by use of the words “may”, “will”, “should”, “continue”, “expect”, “anticipate”, “estimate”,

“believe”, “intend”, “plan” or “project” or the negative of these words or other variations on these words or comparable

terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the

Company’s ability to control or predict, that may cause the actual results of the Company to differ materially from those

discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current

expectations include, among other things, without limitation, failure by the parties to complete the Transaction, failure to

establish estimated mineral resources, the possibility that future exploration results will not be consistent with the Company's

expectations, changes in world gold markets or markets for other commodities, and other risks disclosed in the Company’s

public disclosure record on file with the relevant securities regulatory authorities. Any forward-looking statement speaks only

as of the date on which it is made and except as may be required by applicable securities laws, the Company disclaims any

intent or obligation to update any forward-looking statement.

Photos accompanying this announcement are available at:

http://www.globenewswire.com/NewsRoom/AttachmentNg/47c67171-659b-4346-9ebc-8983780ab111

http://www.globenewswire.com/NewsRoom/AttachmentNg/16b59edd-c126-4300-8359-38fdb95d0d03

http://www.globenewswire.com/NewsRoom/AttachmentNg/870c38f6-8850-4ba4-8056-d885931ec6e1

FOR FURTHER INFORMATION PLEASE CONTACT:

Magna Terra Minerals Inc.

Lewis Lawrick, President & CEO: 647-478-5307

Email: [email protected]

Website: www.magnaterraminerals.com

← Back to feed