Malbex Resources Inc.
TSX VENTURE : MBG

Malbex Resources Inc.

November 01, 2011 09:00 ET

Malbex Exploration Update

TORONTO, ONTARIO--(Marketwire - Nov. 1, 2011) - Malbex Resources Inc. (TSX VENTURE:MBG) today provided an exploration update for the fiscal year ended September 30, 2011.

"We are very pleased with the progress of our exploration to date at Del Carmen," commented Tim Warman, President and CEO. "Our ratio of metres drilled to ounces discovered at Rojo Grande is among the best in the industry. This coming field season, we are aiming to continue that record by showing significant growth in the Rojo Grande near-surface, oxide resource and discovering additional gold zones in the 9 km2 Del Carmen Norte alteration system. Given that Rojo Grande covers less than 5% of the overall alteration system, the potential for expansion is substantial."

Mr. Warman added, "Our camp set-up is nearing completion at Del Carmen and we expect to mobilize our field crew and begin the exploration program of diamond drilling, geophysical surveying and geological mapping shortly."

Fiscal 2011 Highlights:

  • September 2011: Release of the first-ever in-pit mineral resource for the Rojo Grande target on our flagship Del Carmen project, consisting of 25.4 million tonnes of inferred resources grading 1.0 g/t gold and 13.3 g/t silver for 816,600 contained ounces of gold and 10.9 million contained ounces of silver

  • August 2011: Option agreement to earn up to 75% of the undrilled Grace high sulphidation epithermal gold project in Peru, which can be explored during the Del Carmen off-season

  • May 2011: Closing of a $15 million equity financing

  • April 2011: Completion of the 2010/2011 exploration program at Del Carmen, including 5,538 metres in 25 holes of diamond drilling. In addition to long intervals of continuous gold-silver mineralization at Rojo Grande such as hole 52 (with 267 m averaging 2.05 g/t gold and 29.3 g/t silver), high grade intercepts such as hole 42 (5 m at 48.34 g/t gold and 15.4 g/t silver) and hole 52 (34 m at 8.31 g/t gold and 70.1 g/t silver) were obtained

  • January 2011: Release of positive Phase 1 (bottle roll) metallurgical test results, including average gold recovery of 76.5% demonstrating amenability of the Del Carmen Norte mineralization to low-cost heap leaching methods, similar to that used at Barrick's Veladero mine

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