HUGE BUYING OPPORTUNITY AT THE MOMENT!!!!!!!Magma extends zone...

HUGE BUYING OPPORTUNITY AT THE MOMENT!!!!!!!

Magma extends zone but cops markdown

Paul Garvey
Monday, 8 January 2007

THE managing director of platinum explorer Magma Metals believes the market may have misunderstood the significance of the company's announcement this morning, with shares in the junior marked down more than 16% in the wake of the news.



Drilling at Magma Metals' Thunder Bay project

Shares in Magma soared from 12.5c to a high of $1.03 in late December after the company announced the intercept of broad, high-grade platinum group minerals from initial drilling into its Thunder Bay North anomaly in Ontario, Canada. Thunder Bay sits 50km southwest of the major Lac des Iles palladium-platinum mine.

Today's announcement of assays from the second hole drilled at Thunder Bay revealed another broad intercept of PGM mineralisation, but at grades lower than those recorded in the discovery hole, which returned 10.5m at 2.8 grams per tonne PGM.

The hole announced today returned 12.7m at 0.4gpt and 18.2m at 0.33gpt, with the zones separated by a 4.7m interval of unmineralised granite.

The second hole was drilled at the southern end of Thunder Bay North anomaly, about 1km south of the first drill hole.

Magma managing director Keith Watkins told MiningNews.net the lower grades in the second hole had been expected, with the result confirming the anomaly was mineralised at both ends. Two holes to be drilled later this month will test the central portions of the 1km-long structure.

"We did flag in earlier announcements that we were expecting anomalous values of platinum-palladium-gold, rather than multi-grams per tonne values," Watkins said.

"It has come back at better than expected values.

"Given we were 1km away from the first hole, we've confirmed there is mineralisation at the southern end of the anomaly."

According to Magma, the mineralisation from the second hole was within the same host rock as the original discovery hole.

Watkins said the results indicate the intrusion intercepted by drilling is the likely source of the strongly mineralised boulders found on the shores of Current Lake, which sits on top of the anomaly. Those boulders have returned grades of up to 9.4gpt PGM.

"While it is clearly early days and there is much work to do, the tonnage potential of a system of this scale would be significant and justifies intensive follow-up drilling programs during 2007," Watkins said.

Magma is earning a 100% interest in Thunder Bay North, subject to a 3% net smelter royalty.

The company will also drill a hole into the Beaver Lake anomaly near Thunder Bay, a "bullseye" target that has been modelled as a pipe-like structure.

After opening at 80c this morning, shares in Magma then lost 13c just before midday.