(All amounts in US dollars and all MW according to the Geothermal Reporting Code)
Vancouver, B.C., Canada, June 16, 2010 -- Magma Energy Corp. (TSX: MXY) is pleased to provide an exploration update on our properties in Chile and Peru. In Chile, Magma has an exploitation permit enabling development of a 50 MW geothermal operation on the 4,000 hectare Laguna de Maule (Maule) property. Maule adjoins the 100,000 hectare Pellado property and together these properties encompass the Mariposa Geothermal Reservoir upon which Magma previously reported a 320 MW Inferred Resource.
Mariposa slim hole drilling in 2009 resulted in discovery well, MP-01. Magma recently completed MP-02 to a depth of nearly 900 meters and encountered temperatures and zones of permeability indicating a high quality geothermal resource. Data from MP-01 and MP-02 will be integrated to further develop the Mariposa reservoir model. MP-02 is located at the edge of the Mariposa Reservoir and was drilled first due to road access limitations at the time.
Drilling is about to begin at MP-03, located in the heart of the Mariposa Reservoir, with a target depth of 1,500 meters. An all-season 25 km access road now connects the future drilling pads MP-04 and MP-05 to the current exploration activities. Magma's Icelandic experts have assisted in designing the drilling program for MP-02 through MP-05. The Mariposa development budget is $15 million; costs to date are $8.5 million.
In Peru, a four person exploration team will be performing a field campaign beginning in late June. The work will focus on surface geological and geophysical work, as preparation for a drilling campaign in 2011.
Dr. Catherine Hickson, Magma's Vice President Exploration and Chief Geologist commented, "We are fortunate to have such high quality geothermal land in Latin America coupled with an experienced team to develop projects. Magma is well positioned to become a leading power producer in this area."
Please visit the link, http://www.magmaenergycorp.com/s/Projects, to view our photo and video gallery of Mariposa.
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 two in Iceland.
For further information please contact:
Alison Thompson, Vice President, Corporate Relations
Magma Energy Corp.
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 Latin American 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.