Malbex Resources Inc.
TSX VENTURE : MBG

Malbex Resources Inc.

March 02, 2012 09:05 ET

Malbex Drilling Continues to Expand Rojo Grande

TORONTO, ONTARIO--(Marketwire - March 2, 2012) - Malbex Resources Inc. (TSX VENTURE:MBG) announced today results from five diamond drill holes from the Rojo Grande zone at its Del Carmen gold-silver project in San Juan province, Argentina. Three of the five holes encountered lower-grade oxide gold-silver mineralization beyond the current inferred mineral resource, and will likely expand the resource envelope to the southwest and the northwest. In particular, hole DDHC-12-063 encountered 157.5 metres grading 0.42 g/t gold and 7.7 g/t silver about 40 metres to the northwest of the nearest intersection defining the current resource envelope.

Results from the five holes released today include:

- DDHC-11-059: 14 m (17-31m) at 0.22 g/t gold and 6.8 g/t silver
- and 20 m (134.5-154.5m*) at 0.12 g/t gold and 12.7 g/t silver
- DDHC-11-060: 64 m (126-190 m) at 0.26 g/t gold
- including 5 m (128-133 m) at 1.42 g/t gold
- and 60 m (269-329 m) at 0.33 g/t gold and 3.87 g/t silver
- including 9 m (304-313 m) at 0.92 g/t gold and 12.0 g/t silver
- DDHC-12-062: 29 m (68-97 m) at 0.24 g/t gold and 5.0 g/t silver
- and 38 m (111-149 m) at 0.37 g/t gold and 10.4 g/t silver
- including 10 m (137-147 m) at 0.89 g/t gold and 16.9 g/t silver
- DDHC-12-063: 9 m (28-37 m) at 0.42 g/t gold and 3.9 g/t silver
- and 16 m (53-69 m) at 0.39 g/t gold and 3.5 g/t silver
- and 157.5 m (73-230.5 m*) at 0.42 g/t gold and 7.7 g/t silver
- including 9 m (119-128 m) at 1.22 g/t gold and 8.7 g/t silver
*end of hole

"One of our goals this season was to increase the size of the inferred mineral resource at Rojo Grande, and the step-out drilling to date has been encouraging in that regard, encountering a mix of higher grade material as seen in hole 57A, and the lower grade material found in holes 59, 60 and 63," said Tim Warman, President and CEO. "Drill testing of other promising targets at Del Carmen is also well underway, including Brecha Limite, Cerro Martita, Ladera Sur and a new zone between Brecha Limite and Cerro Amarillo. Also among the targets being tested is a potential porphyry target seen at depth beneath Rojo Grande on the recent geophysical survey. Results will be released over the coming weeks as they are received and interpreted."

Vertical holes 59, 61, 62 and 63 tested the northwest side of the Rojo Grande resource with holes 61 and 63 drilled outside the resource envelope. Hole 59 passed near the bottom of older hole 40 within the resource; both holes ended in mineralization. Hole 63 is located approximately 50 m northwest of hole 59 and contains three intervals that total 182.5 m, including 157.5 m grading 0.42 g/t gold and 7.7 g/t silver from 73 m to the end of the hole, entirely hosted in powdery quartz-alunite alteration. Previous holes drilled approximately 120 m to the southeast (holes 42 and 46) also ended in mineralization. It is noteworthy that hole 63 ends in mineralization below the 4600 m elevation, comparable to that achieved in nearby hole 52 from last year's campaign (267 m @ 2.05 g/t gold and 29.3 g/t silver). Vertical hole 60 is collared about 400 m to the south of 63, about 100 m south of the nearest older drill hole intersection (hole 34) used to define the resource envelope and 50 m southeast of hole 57A (109 m @ 2.05 g/t gold and 7.3 g/t silver). The Rojo Grande deposit remains open to the south, to the north, to the northwest and at depth.

Click the following link to view maps and sections related to the current press release. Or access further information on the Del Carmen project at www.malbex.ca/Projects/Del_Carmen.

Del Carmen results

Table 1 Mineralized intercepts in the most recent holes are tabulated below

Hole ID From (m) To (m) Length (m) Au (g/t) Ag (g/t)
DDHC-11-059 17.0 31.0 14.0 0.22 6.8
and 134.5 154.5 20.0 0.12 12.7
DDHC-11-060 126.0 190.0 64.0 0.26 nsv
and 258.0 264.0 6.0 0.52 14.6
and 269.0 329.0 60.0 0.33 3.87
DDHC-11-061 - - - nsv nsv
DDHC-12-062 68.0 97.0 29.0 0.24 5.0
and 111.0 149.0 38.0 0.37 10.4
including 137.0 147.0 10.0 0.89 16.9
DDHC-12-063 28.0 37.0 9.0 0.42 3.9
and 53.0 69.0 16.0 0.39 3.5
and 73.0 230.5 157.5 0.42 7.7
Length-weighted intervals are based on a 0.1 g/t gold lower cutoff with up to 3 continuous metres of internal dilution, except for * intervals which satisfy a 1 g/t gold lower cutoff. There are insufficient data to calculate true widths.
Abbreviations: metres (m), grams per tonne (g/t), no significant values (nsv).

About Rojo Grande

The Rojo Grande deposit has the following characteristics:

  • Disseminated very fine-grained mineralization
    • hosted in silicified breccias and quartz-alunite alteration
    • hosted by both altered andesite and dacite;
  • Inferred resource of 25.4 million tonnes grading of 1.0 g/t gold and 13.3 g/t silver;
  • Shallow, commonly commences within 20 metres of the surface;
  • Oxidized, with preliminary metallurgical testing showing the resource is amenable to low-cost heap leach processing similar to Veladero ore;
  • Remains open at depth, to the south, north and northwest.

About Del Carmen Norte

The 151 km2 Del Carmen concession package is located near the southern end of the El Indio Gold Belt, and hosts two high sulphidation epithermal gold-silver alteration systems. The Del Carmen Norte hydrothermal alteration system covers approximately 9 km2. The second, less exposed, high sulphidation epithermal system at Del Carmen Sur is some 5 km to the south.

Del Carmen Norte consists of a strongly altered, sub-horizontal sequence of andesitic volcanic rocks that are cut by numerous faults. Volcanic breccias appear to be selectively silicified with mineralization hosted by silicification and quartz-alunite alteration between less favourable argillic (quartz-kaolinite) altered volcanic lithologies. Steep structures and the margin of dacite domes appear to have also strongly influenced hydrothermal fluid flow within the volcanic sequence. High-sulphidation alteration is therefore zoned outward from the combination of both lithological and structural controls.

Technical information

Diamond drill hole samples consist of core that is sawn in half by electric saw on site. Core samples are sealed in new plastic bags, which are inserted into rice sacks for transport by Malbex personal or commercial trucking service to ALS Global prep lab in Mendoza. All samples are crushed and pulped and powders sent by ALS to one of their laboratories (typically La Serena, Chile, Lima, Peru or North Vancouver, Canada). Fire assay for gold is conducted on 30 gram (g) pulps with atomic absorption finish. Over limits (>10 g/t gold) are fire assayed with gravimetric finish. In addition, all samples receive multi-element analysis including silver by ICP after aqua regia digestion and mercury by cold vapour atomic absorption.

Malbex's quality assurance-quality control (QA-QC) program consists of the insertion in every 21 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 an additional QA-QC check on high grade intercepts as deemed necessary. The half core remaining after sampling is stored in a Malbex-run facility in San Juan 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 with projects in Argentina and Peru. In April 2010, Malbex made a near-surface, gold-silver oxide discovery at Del Carmen, its lead project in Argentina. Released in September 2011, the first-ever National Instrument 43-101-compliant, inferred mineral resource estimate for the Rojo Grande zone at Del Carmen measured 25.4 million tonnes grading 1.00 g/t gold and 13.3 g/t silver for 816,600 ounces of contained gold and 10.9 million ounces of contained silver. The Del Carmen project is located in the El Indio Gold Belt, which contains more than 35 million ounces of gold in current reserves and past production, including Barrick's Veladero mine and Pascua-Lama project. 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 information includes, but is not limited to, statements about strategic plans, spending commitments, future operations, results of exploration, anticipated financial results, future work programs, capital expenditures and objectives. Forward-looking information is 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 information, including the risks identified in the Company's annual information form under the heading "Risk Factors". There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, 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
    ir@malbex.ca

    Malbex Resources Inc.
    Marla Gale
    VP Investor Relations
    (416) 628-0215
    ir@malbex.ca
    www.malbex.ca