Malaga Inc.
TSX : MLG

Malaga Inc.

September 29, 2010 11:28 ET

Malaga: Corporate Update on Tungsten Production at Pasto Bueno, Peru

MONTREAL, QUEBEC--(Marketwire - Sept. 29, 2010) - Malaga Inc. ("MLG")(TSX:MLG) is pleased to report that it has received the last milling equipment it needs to process tungsten ore at a rate of 500 tpd at its Pasto Beuno mine in Peru. This production rate is now possible thanks to retooling and upgrading of the mill.

Since Malaga acquired the mine and mill in 2005, it has produced tungsten using equipment that had been there for many years. The processing capability was initially increased from 250 to 375 tpd through the complete renewal of the crushing circuit. In 2010, the addition of a rod mill, several new shaking tables and state-of-the-art control equipment further improved mill capacity and efficiency, which was recently tested at 480 tpd. A final, essential piece of equipment has now just been received after a delay of several months on the part of the supplier. This consists of high-performance magnets made from rare earths, with a magnetic field three times higher than traditional electromagnets. This latest piece of equipment, which will improve recovery rates and stabilize finishing line operations, will be installed within the coming days. Malaga will then be in a position to process 500 tpd of ore.

"We have reached an important milestone in our development with the increase in our ore milling capacity to 500 tpd, at a time when the APT price (the reference price for the sale of tungsten concentrate) has risen steadily since the beginning of 2010. The price has risen more than 56% from its low of 2009, to currently stand at $250 per MTU (metric tonne unit, or 10 kg) compared to $160/MTU. We plan to continue growing in 2011 toward a production rate of 750 tpd. We also expect to substantially step up exploration on certain high-potential areas of the property such as Consuzo and Huayllapon," said Jean Martineau, President and Chief Executive Officer of Malaga.

ABOUT MALAGA

Malaga Inc. owns the most important operating tungsten mine in the Americas. Malaga also seeks diverse growth opportunities such as developing the hydroelectric potential of its Pasto Bueno property, through Hidropesac a joint venture with EPD (Emerging Power Developers - a subsidiary of Stucky S.A a worldwide Swiss company specialized in hydroelectric projects) in which Malaga holds 49% and through its 13.4% participation in Dynacor Mines.

FORWARD-LOOKING INFORMATION

Certain statements in the foregoing may constitute forward-looking statements which involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Malaga or industry results to be materially different from any future result, performance or achievement expressed or implied by such forward-looking statements. These statements reflect management's current expectations regarding future events and operating performance as of the date of this news release.

Contact Information

  • Malaga Inc.
    Jean Martineau
    President & CEO
    514-288-3224
    or
    Sun International Communications
    Nicole Blanchard
    Corporate Strategy and Investor Relations
    450-973-6600