News
Jan 21, 2010First Use of the Code - Magma Energy Awarded Pellado Geothermal Property in Chile
This is the first use of The Canadian Geothermal Code for Public Reporting and CanGEA is so pleased that the code is already being utilized by big players in the geothermal industry. Brian Toohey, Canadian Reporting Code Committee Member & Business Development Coordinator, had this to say, “Magma Energy Corp. and Sinclair Knight Mertz have now set the standard for the Canadian Geothermal Energy Industry. With the use of the Code, Magma demonstrates its support of transparent and consistent reporting of geothermal information. We hope that all companies involved with CanGEA will adopt the Code as Magma has for both benchmarking purposes and to increase investor confidence in geothermal reporting. I’d also like to acknowledge Sinclair Knight Mertz for understanding the importance of being a Qualified Person under the Code which ensures competence in third party evaluations.”
Report Estimates 320 Megawatt Inferred Resource at Pellado and Adjoining Maule Property
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 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.
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.
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