The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from CNW Group

MAGMA ENERGY AWARDED ITS FIRST GEOTHERMAL CONCESSIONS IN PERU

Thursday, April 14, 2011

MAGMA ENERGY AWARDED ITS FIRST GEOTHERMAL CONCESSIONS IN PERU15:56 EDT Thursday, April 14, 2011VANCOUVER, April 14 /CNW/ - Magma Energy Corp. (TSX: MXY) is pleased to announce that it has been awarded two geothermal exploration concessions in Peru, known as Crucero and Loriscota. These concessions cover 37,400 hectares of land in southern Peru and are underlain by young volcanic rocks with numerous hot springs and other promising indicators of large geothermal systems.During 2011, Magma will conduct geological, geochemical, and geophysical work to advance each concession´s potential for geothermal power production.  Magma expects to receive additional Peruvian geothermal concessions during the year.Dr. Catherine  Hickson, Magma´s Chief Geologist and Vice-President Exploration, said, "I am very pleased we have received these long-awaited concessions and can now begin active fieldwork. Peru has promising geology for world-class geothermal systems and I hope we can replicate in Peru the success we have experienced to date in our Chilean projects."About Magma Energy Corp.Magma Energy Corp. is a global 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.CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS AND INFORMATIONThis 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, 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.            For further information: Anders Kruus, Vice President, Corporate Relations Magma Energy Corp. Phone: 604.646.1882 Email: akruus@magmaenergycorp.com