VANCOUVER, BRITISH COLUMBIA--(Marketwire -
Jan. 20, 2010) - Magma Energy Corp. (TSX:MXY) announces
that it has been awarded the 100,000 hectare Pellado property, 300 km south of
Santiago, by the Government of Chile. Pellado adjoins the Maule property upon which
Magma previously reported a 140 megawatt ("MW") Inferred Resource.
Slim hole drilling and a
magnetotelluric geophysical program carried out by Magma in 2009 discovered a
large heat anomaly (the "Mariposa
Geothermal Resource") that straddles the Pellado and Maule properties. Magma's consultant,
Sinclair Knight Mertz ("SKM"), estimates that Mariposa contains an Inferred
Resource of 320 MW of electrical generation capacity, including the previously
reported 140 MW Inferred Resource. In July 2009, Magma submitted a geothermal
development plan for a 50 MW power project at the Maule property, approval of
which is pending.
Magma is currently completing a 13 km access
road that will enable additional drilling to commence in February, 2010. The
US$15 million 2010 exploration program will include two wells on each of the
Pellado and, when granted, Maule properties, plus related work.
Ross Beaty, Magma Energy's Chairman and CEO,
commented, "Award of the Pellado property now allows Magma to aggressively
explore and develop the Mariposa Geothermal Resource. This major geothermal
discovery by our outstanding Chilean exploration team increases Magma's
attributable geothermal resources to 784 MW, in addition to Magma's producing
reserves of 86 MW. This is a great start to what I expect will be another
successful year of large scale geothermal discovery and development for Magma."
About Magma Energy Corp:
Magma
Energy Corp. is a geothermal power company which operates, develops, explores
and acquires geothermal energy projects. We have an extensive portfolio of
properties throughout the western United States, Iceland and Latin America,
including one operating power plant in Nevada and an interest in two other
operating power plants in Iceland.
About the resource estimate:
The resource estimate has been prepared in
accordance with The Canadian Geothermal Code for Public Reporting (the "Code")
2010 Edition, published by the Canadian Geothermal Energy Association. The
report was prepared by Philip James White who is responsible for its content.
Dr. White, a Senior Geologist with SKM, is a "Qualified Person" under the Code,
a member of the Society of Economic Geologists and is independent of Magma.
CAUTIONARY NOTE REGARDING
FORWARD-LOOKING STATEMENTS AND INFORMATION
This news release contains
certain "forward-looking information" within the meaning of Canadian securities
laws, which may include, but is not limited to, statements with respect to
future events or future performance, management's expectations regarding exploration
and development activities at Magma's Laguna del Maule and Pellado properties
and estimates of geothermal reservoir size and temperature, geothermal
resources, recoverable geothermal energy or energy generation capacities. Such
forward-looking information reflects management's current beliefs and is based
on information currently available to management.
A number of known and unknown
risks, uncertainties and other factors, may cause our actual results or
performance to materially differ from any future results or performance
expressed or implied by the forward-looking information. The forward-looking
information is based upon what management believes to be reasonable
assumptions, including, but not limited to, assumptions about: the success and
timely completion of planned exploration and expansion programs, the growth
rate in net electricity consumption; support and demand for non-hydroelectric
renewables; government initiatives to support the development of renewable
energy generation; the accuracy of reserve estimation methodology and analysis
used to estimate the quantity of potentially recoverable thermal energy;
geological, geophysical, geochemical and other conditions at our properties;
the reliability of technical data, including extrapolated temperature gradient,
geophysical and geochemical surveys and geothermometer calculations; capital
expenditure estimates; availability of capital to fund exploration, development
and expansion programs; and general economic conditions. Forward-looking information
and statements are also based upon the assumption that none of the identified
risk factors that could cause actual results to differ materially from the
forward-looking information and statements will occur.
There can be no assurance that
the forward-looking information will prove to be accurate, as actual results
and future events could differ materially from those anticipated in such
information. Accordingly, prospective investors should not place undue reliance
on forward-looking information. Other than as required by applicable securities
laws, we assume no obligation to update or revise such forward-looking
information to reflect new events or circumstances.