Magna Terra Minerals Inc. announced the commencement of drilling on the Luna Roja Project in Santa Cruz Province, Argentina. The Luna Roja Project is 100% owned by Magna Terra. The Project is located on the northern edge of the Deseado Massif, approximately 75 km to the NW of the new Don Nicolas mine and 30 km to the N-NW the Las Calandrias project (New Dimension Resources). Luna Roja is a low sulphidation Au/Ag project with significant potential for vein and breccia hosted high grade mineralization as well as manto style disseminated mineralization between the base of extrusive rhyolite domes and the palaeosurface of the underlying andesites. Significant work was undertaken in the drill targeting process which, includes 360 rock chip and float samples including saw cut channels and an additional 741 trench samples, 711 of which are channel samples with the remaining 30 being selective. There are 715 soil samples and 17.6 line km of IP. Nine holes constituting approximately 1,100 m of drilling are planned for this first phase program. The principal target concept is centered on resistive and chargeable IP anomalies associated with a N-NW striking structural corridor comprising a 3 km extension of semi continuous low sulphidation Au and Ag veinlets and breccias. The target area is divided into three target zones which, from South to North, the company terms, Cruz del Sur, Orion, and Estrella del Norte. The first target is Cruz del Sur and is comprised of two main elements. Firstly, a zone of structurally controlled hydrothermal breccias and silicification along the “Via Lactea fault” and secondly, the top of a strong chargeable IP anomaly which the company believes represents a mineralized manto. The Orion targets, DDH_004 through 6, are conceptually similar to Cruz del Sur but with some significant differences. Figures 6 and 7 illustrate the West to East cross sections along Northings 4760050 and 4760200 respectively. The Via Lactea fault is shown over 150 m to the West of the chargeable and resistive anomalies and subsequently the surface mineralization is less than at Cruz del Sur. However, the IP chargeable and resistivity anomalies become shallower and stronger to the north. The top and base of the anomalies are visible in the sections which illustrate targets between 40 and 100 m thick with resistivity between 1,000 and 5,000 ohms and chargeability between 20 and 27 mV/V. The Estrella del Norte target is the site of gold-bearing quartz veins and stockworks. While there appears to be an overall N-NW structural control to mineralization, the orientation of individual mineralized structures varies considerably. The longest axis of mineralization is N-NW and constitutes over 550 m of strike length. The mineralization is generally hosted in irregularly distributed stockworks of chalcedonic quartz veinlets and hydrothermal breccias. Channel samples in stock works run up to 5 ppm over 2 meters.