Malbex Resources Inc.
TSX VENTURE : MBG

Malbex Resources Inc.

January 20, 2012 10:32 ET

Malbex Geophysical Survey Identifies New Targets at Del Carmen Norte

TORONTO, ONTARIO--(Marketwire - Jan. 20, 2012) - Malbex Resources Inc. (TSX VENTURE:MBG) announced today that preliminary results from the Titan 24 induced polarization/resistivity survey (DCIP) currently underway at Del Carmen Norte have identified several promising new drill targets, as well as the potential to expand the inferred resource at the Rojo Grande deposit (see the figures and maps that accompany this press release). The partial survey results received to date clearly show that the silicified rocks hosting the gold-silver oxide mineralization at Rojo Grande are characterized by a shallow, sub-horizontal high resistivity / low chargeability anomaly that extends well beyond the current resource envelope and the area drilled to date.

Another notable result from the survey is a coincident high resistivity / high chargeability anomaly below the Rojo Grande mineralization which is consistent with the presence of gold-copper porphyry style mineralization (strong silicification with disseminated sulphides) at depth. The potential for porphyry gold-copper mineralization beneath the high-sulphidation epithermal mineralization at Rojo Grande had been suggested previously by the presence of porphyry-style banded quartz veinlets observed in drill core (PR of June 24, 2010). The deeper porphyry-style anomaly is quite extensive, with widths across individual sections of up to 1.5 kilometres. The anomaly is visible on each of the 200 metre spaced lines surveyed to date between 2000N and 3000N. Drilling beneath Rojo Grande is planned to test whether this deeper anomaly is in fact related to porphyry-style gold-copper mineralization.

"Although we're still awaiting data from more than half of the planned survey area, the results we've received to date are truly exciting," said Tim Warman, President and CEO. "In addition to the significantly larger Rojo Grande anomaly and another shallow anomaly at the Brecha Límite target, the potential for an underlying gold-copper porphyry is something we're very eager to drill test this season."

Quantec Geoscience began the Titan 24 deep-penetrating DCIP survey of the Del Carmen Norte alteration system in December. The Titan 24 method has greater depth of imaging (up to 700 m) and typically provides enhanced resolution compared to conventional IP surveying, and measures both chargeability and resistivity rather than only resistivity as in CSAMT survey methods. Information in the form of plan maps and vertical sections has been received for five lines totalling approximately 19.1 line-kilometres of the contracted 42 line-kilometre survey. Surveying resumed after the end of year holidays and the survey of the entire visible hydrothermal alteration zone (on 200 m spaced lines) is expected to be completed before the end of January 2012. The survey is part of the approximately $8 million exploration program at Del Carmen Norte, which also includes diamond drilling with two rigs, geological mapping and surface rock sampling, and detailed metallurgical (column leach) testing.

Two rigs are currently active at Del Carmen Norte to test for extensions of the Rojo Grande deposit and to determine whether the Titan combined high resistivity - chargeability anomalies are associated with sulphidic epithermal or gold-copper porphyry style mineralization. Drilling and weather conditions have proved challenging to date this season, and Malbex is currently looking at adding a third drill rig to improve production.

Members of the Malbex management team will available at Booth 1510 in the Cambridge Resource Investment Conference in Vancouver on 22 and 23 January in Vancouver, BC to discuss the results to date from Rojo Grande, which includes hole 11-057 with 109 metres grading 2.05 g/t gold and 7.3 g/t silver outside the mineralized envelope of the inferred resource (PR 12 January 2012), the preliminary geophysical images and our plans for the Del Carmen project.

View further information on the Del Carmen project at www.malbex.ca/Projects/Del_Carmen.

Del Carmen

The Rojo Grande deposit has the following known features:

  • consists of disseminated very fine-grained mineralization that is:
    • shallow, commonly commences within 20 metres of the surface, on the shoulder of a mountain
    • hosted principally in silicified breccias but also occurs locally in quartz-alunite alteration
    • hosted by both altered andesite and dacite
    • forms an inferred resource of 25.4 million tonnes grading 1.0 g/t gold and 13.3 g/t silver (0.3 g/t gold-equivalent lower cutoff) containing 816,000 ounces of gold and 10.9 million ounces of silver;
    • is oxidized, with preliminary metallurgical testing showing it is amenable to low-cost heap leach processing similar to Veladero ore;
  • Remains open at depth, to the southwest, and possibly to the 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

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

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