03 | AFRICA » PROJECTS » UPDATES

Uganda Update

Magnus International Resources has commenced the second stage of a 5,000m RC drill program. The first stage comprising 2,037m was completed at the Lugazi Project earlier in the year. The current program planned for 2,500m is being drilled at the Company’s flagship project – Mashonga. To date some 667m have been completed at the Mashonga mine. In total Magnus’ mineral exploration properties encompass a total of 4,829 sq.km and 29 licenses.

5,000 Meter Drill Program

• Lugazi Project:  The first phase Lugazi drill program was completed in February - 31 drill holes totaling 2,037m. A strong 3.5km by 300m wide gold-in-soil and magnetic anomaly at Lugazi was tested.
• Mashonga Project:  Magnus commenced drilling at Mashonga in July 2008. This drill program will test the high-grade gold-PGE shear zone at depth below the Mashonga mine and a promising 3km by 500m gold-in soil anomaly.
• Mwerusandu Project:  Drilling at the Nyamulindira target will test a high grade trench intersection (20.4 g/t gold over 3.5m) and a 1km long gold soil anomaly.

Lugazi Project:
At Lugazi a soil sampling program of over 1,500 samples has delineated a strong 300m to potentially 700m wide gold-in-soil anomaly over a distance of at least 3 km. The anomaly is offset to the east and there is potential to extend the anomaly in this direction. A fixed-wing, high-resolution airborne geophysical survey, with magnetics and radiometrics was flown and covered 574.5 sq. km at 200m line spacing. There is a strong correlation between the soil anomalies and the lithological contact with a magnetic zone and increased levels of potassium.

Due to the lack of outcrop and soil geochemistry being the only surface indicator of gold mineralisation, the RC drill program was designed to traverse and test the upper weathered zone within 50m of surface. The aim of the drilling was to locate possible feeders that could indicate zones of primary gold mineralisation.

The results indicate zones of gold enrichment mostly within the saprolitic sericite schist, and In one borehole within the lateritic part of the regolith. The main gold intersections are listed below:

^ Cross section through the Kiyola target at Lugazi. The upper graph shows the soil anomaly while the lower section shows a zone of gold mineralisation dipping to the south.

Mashonga Project:
At Mashonga, high grade gold and PGE-group metal values have been recorded in grab samples collected from the mine dump at the entrance to the Mashonga open-pit mine. The samples are reported to come from an underground source which were accessed and mined by means of a vertical shaft. Values from these grab samples reach 58.8 g/t gold, 4.15 g/t platinum and 3.68 g/t palladium. A widespread soil sampling survey has delineated a strong north-west trending gold anomaly with platinum and bizmuth support, located to the east of the mine. To date some 667m of RC drilling has been completed at the Mashonga mine, designed to test the gold-PGE bearing structures below the mine workings. Results of this program are pending.

Mwerusandu Project:
At the Nyamulindira gold prospect, trench sampling and mapping have identified a scorodite hydrothermal alteration zone associated with quartzites in a sedimentary sequence close to the contact with a granitoid body. Channel sampling across a sequence of in-situ boulders returned an intersection of 20 gram per tonne gold over 3.5m. A one kilometre long soil anomaly has also been delineated and appears to occur along the granite-sediment contact. The anomaly is open to the south and is currently being extended through detailed infill soil sampling.

The target which reported the high-grade intersection, and where visible gold was also observed in outcrop, will be drill tested initially, followed by further drill holes along the length of the soil anomaly.