Malbex Resources Inc.
TSX VENTURE : MBG

Malbex Resources Inc.

March 31, 2010 11:42 ET

Malbex Intersects High Grade Ag-Cu-Au Veins at Two Drill Targets; Surface Sampling Identifies New Prospect at Del Carmen Norte

TORONTO, ONTARIO--(Marketwire - March 31, 2010) - Malbex Resources Inc. (TSX VENTURE:MBG) announced results today from eight drill holes at the Brecha Límite Norte and Ladera Sur de las Tortólas drill targets located within the Del Carmen Norte area of the Company's Del Carmen gold-silver project in San Juan province, Argentina. Malbex also reported new surface sample results from the Quebrada Pedregosa prospect, where 20 of 27 samples returned greater than 1 gram per tonne (g/t) gold (Au).

The eight drill holes released today are the first to test the Brecha Límite Norte and Ladera Sur de las Tortólas targets. Brecha Límite Norte is located along the Argentina-Chile border in a zone of quartz-alunite alteration approximately 500 m north of the Brecha Límite prospect where Malbex previously intersected 35 m grading 2.2 g/t Au and 42.9 g/t Ag (news release of February 17, 2010) (Figure 1). Two of five holes at Brecha Límite Norte intersected high grade Ag-Cu-Au enargite veins within broad zones of silicification and hydrothermal brecciation (Fig. 2). Click here to view maps and figures associated with today's news.

  • DDHC-10-015: 3 m grading 369 g/t silver (Ag), 2.46% copper (Cu) and 2.60 g/t Au, including 1 m with 807 g/t Ag, 6.66% Cu and 5.52 g/t Au
  • DDHC-10-016: 5 m grading 218 g/t Ag, 2.06% Cu and 0.53 g/t Au, including 1 m with 1050 g/t Ag, 10.1% Cu and 1.49 g/t Au).

The two holes confirm that enargite bearing mineralized zones first defined by nearby surface sampling continue vertically to a depth of at least 55 m (Figure 6).

The Ladera Sur de las Tortólas prospect consists of outcropping high grade Au-Ag-Cu mineralization in narrow quartz veins and silicified structures (up to 46.7 g/t Au, 2670 g/t Ag and 21.1% Cu over 0.5-1.0 m chip intervals) approximately 700-1,000 m northeast of Brecha Límite Norte (Fig. 1). Two of the three holes at Ladera Sur de las Tortólas intersected Ag-Cu-Au mineralization (Fig. 3).

  • DDHC-10-011: 18 m grading 26.7 g/t Ag, 0.27% Cu and 0.35 g/t Au, including 2 m grading 201 g/t Ag, 2.13% Cu and 1.77 g/t Au
  • DDHC-10-012: 1 m grading 175 g/t Ag, 0.68% Cu and 2.78 g/t Au below a 35 m long zone grading 0.42 g/t Au and 5.8 g/t Ag

"Our drilling has already encountered significant mineralisation beneath surface showings at three distinct areas within the very large Del Carmen Norte system," said Tim Warman, President and CEO. "As we continue our systematic exploration program, we are gaining a better understanding of the structure and formation of this system and the best ways to target mineralization. With today's update, we have released 16 of the 27 holes drilled so far, with results still to come from one of our more prospective targets – Naciente Quebrada Pedregosa – which contains the highest grade surface gold samples collected from the property to date."

Del Carmen, the Company's flagship project, is located near the southern end of the El Indio Gold Belt. The scale of the Del Carmen Norte hydrothermal system, and distances between the prospects discovered there to date is most evident when Malbex drill holes are plotted on the satellite image of the area (Fig. 5). In addition to Del Carmen, Malbex is also actively exploring the Despoblados and Los Amarillos gold-silver projects approximately 70 km north in the El Indio Gold Belt.

Del Carmen Geology and Work Program

Del Carmen Norte is a large high sulphidation epithermal gold-silver system that covers approximately 9 km2 in the northern half of the 147 km2 concession package. In addition to the ongoing diamond drilling, mapping and sampling program, magnetometer surveying was completed at Del Carmen Norte in January and controlled source audio-magneto-telluric surveying (CSAMT) is planned to commence in April once the field crew completes the survey at the Despoblados project. CSAMT surveying is employed to identify zones of enhanced resistivity due to hydrothermal silicification within high sulphidation epithermal systems and will aid in identifying buried targets.

A second, less exposed, high sulphidation epithermal system occurs at Del Carmen Sur some 5 km to the south. Geological mapping, sampling and trenching at Del Carmen Sur has been ongoing since early December and significant rock chip sample results from Del Carmen Sur will be released as they become available (March 5, 2010 news release).

Del Carmen Norte Drill Results

Brecha Límite Norte consists of vuggy silica and quartz-alunite alteration with higher gold, silver and copper grades on surface (33.3 g/t Au, 1430 g/t Ag and 19.0% Cu over 0.5-2.0 m chip intervals) than at Brecha Límite. The mineralization typically also has elevated arsenic and antimony, which is interpreted to indicate the presence of enargite and other sulfosalt minerals. Holes DDHC-10-009, -010 and -014 were drilled toward the northwest beneath outcropping vuggy silica and quartz-alunite alteration, whereas the two hole fan of DDHC-10-015 and -016 was drilled toward the southeast due to the proximity of the collar to the Argentina-Chile border (Fig. 1). Although the Ag-Cu-Au previously sampled on surface near holes DDHC-10-009, -010 and -014 was not intersected, high grade, near vertical enargite veining was encountered in holes DDHC-10-015 and -016 (Fig. 6) and the five holes define northeast-trending mineralization (Figs. 1,2).

Structurally controlled bands of silicification with similar Ag-Cu-Au mineralization exposed in trenches at Ladera Sur de las Tortólas trend north-northeast and northwest. For this reason, hole DDHC-10-011 and -012 were drilled toward east-southeast and hole DDHC-10-013 toward southwest to test for mineralization in the subsurface in each structural direction (Figs. 1,3). Logging and assays confirm the occurrence of enargite-bearing mineralization in the north-northeast direction. This mineralized structure may have also been intersected in the upper part of hole DDHC-10-013, albeit without significant copper (6 m grading 0.98 g/t Au, 13.1 g/t Ag and 0.0147% Cu) (Fig. 3).

The mineralized intercepts from Brecha Límite Norte and Ladera Sur de las Tortólas are tabulated below.

Hole ID from to Length (m) Au (g/t) Ag (g/t) Cu (ppm) Cu % Target
DDHC-10-009 136 140 4 0.20 31.1 40   Brecha Límite Norte
DDHC-10-009 170 177 7 0.17 2.8 16   Brecha Límite Norte
DDHC-10-010 61 67 6 0.43 16.8 279   Brecha Límite Norte
DDHC-10-011 9 27 18 0.35 26.7 2740   Ladera Sur Tortólas
Includes 23 25 2 1.77 201.0 21375 2.13 Ladera Sur Tortólas
DDHC-10-011 31 41 10 0.18 5.4 83   Ladera Sur Tortólas
DDHC-10-011 59 65 6 0.20 1.7 55   Ladera Sur Tortólas
DDHC-10-011 71 79 8 0.19 3.5 152   Ladera Sur Tortólas
DDHC-10-012 4 39 35 0.42 5.8 49   Ladera Sur Tortólas
DDHC-10-012 91 92 1 2.78 175.0 6760 0.68 Ladera Sur Tortólas
DDHC-10-013 26 32 6 0.98 13.1 147   Ladera Sur Tortólas
DDHC-10-013 87 89 2 0.24 15.7 272   Ladera Sur Tortólas
DDHC-10-014 73 75 2 0.43 6.5 26   Brecha Límite Norte
DDHC-10-014 88 90 2 0.56 13.7 23   Brecha Límite Norte
DDHC-10-015 29 32 3 2.60 368.7 24621 2.46 Brecha Límite Norte
Includes 30 31 1 5.52 807.0 66600 6.66 Brecha Límite Norte
DDHC-10-016 56 61 5 0.53 217.7 20556 2.06 Brecha Límite Norte
Includes 57 58 1 1.49 1050.0 101000 10.1 Brecha Límite Norte

There has been insufficient drilling to date to reliably calculate true widths for the mineralized intercepts noted above.

Del Carmen Norte Surface Sample Results

Recent sampling by Malbex geologists returned very encouraging results from northeast-trending veins and silicified bands (30°to 60° strike) at Quebrada Pedregosa (Fig. 4). Twenty of 27 samples are reported with greater than (>) 1 g/t Au, five of which have > 10 g/t Au (10.35, 11.95, 15.25, 31.2 and 33.8). The sequence of samples spans more than 200 m and mapping found extensive silicification in this area. The highest grade samples are situated about 350 m northeast of similar high grade samples at the Naciente Quebrada Pedregosa prospect, the site of current drilling. Assays are pending for the four holes completed at Naciente Quebrada Pedregosa, where multiple zones of moderate to strong silicification have been intersected. The drill has been moved to test the Quebrada Pedregosa prospect. Drill results are also pending from the Rojo Grande prospect, approximately midway between Ladera Sur de las Tortólas and Naciente Quebrada Pedregosa (Fig. 5).

Technical Information

Diamond drill hole samples consist of HQ-3 (6.11 cm diameter) core that is sawn in half by electric saw on site. Malbex's quality assurance-quality control (QA-QC) program consists of the insertion in every 20 samples of at least one certified standard of known gold content, one blank (sample known to consist of very low levels of gold to ensure adequate cleaning of the sample preparation equipment between samples) and one field duplicate. Samples of significant drill intercepts will be sent to two additional independent laboratories to verify gold and silver analyses when necessary. Metallic screen fire analyses for gold will also be run regularly on discovered mineralization as an additional QA-QC check. The half core remaining after sampling is stored on site for verification and reference purposes.

Peter Stewart, PhD, Vice-President Exploration of Malbex Resources Inc., is a Professional Geoscientist in the Province of Ontario, and is the Qualified Person as defined by NI 43-101 responsible for the technical information presented in this news release.

About Malbex

Malbex Resources Inc. is a gold exploration company led by experienced management and directors. Malbex holds an indirect 100% interest in three exploration projects in Argentina's El Indio Gold Belt, which hosts over 40 million ounces of gold in past production and current reserves. Two of the projects are in close proximity to Barrick's Veladero and Pascua-Lama gold deposits. For more information, please visit www.malbex.ca.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Malbex Resources Inc.
    Tim Warman
    President and Chief Executive Officer
    (416) 628-0215
    or
    Malbex Resources Inc.
    Marla Gale
    VP Investor Relations
    (416) 628-0215
    ir@malbex.ca