Magellan Gold Corporation announced that its Peruvian Ninobamba exploration venture with Rio Silver Inc. has applied for a new 553-hectare concession, bringing its consolidated land package to 36.53 square kilometers (9,027 acres). One hole intersected 72 meters averaging 1.19 grams per tonne gold. Ninobamba is located in south-central Peru near infrastructure and with excellent access.

Title to the new concession is expected to be granted by the Peruvian Ministry in the first half of 2017. The main Ninobamba concession is located at the eastern end of the trend. Thirteen holes totaling 4,377 meters were drilled at Jorimina.

Six of these holes drilled in the Jorimina Central area encountered significant Au-Ag-Zn-Pb mineralization in an area 700 meters by 300 meters. Drill hole JOR-001 returned 72.3 meters averaging 1.19 g/t Au starting at a depth of 53 meters.