Malbex Resources Inc.
TSX VENTURE : MBG

Malbex Resources Inc.

May 25, 2011 09:10 ET

Malbex Q2 Update

TORONTO, ONTARIO--(Marketwire - May 25, 2011) -Malbex Resources Inc. (TSX VENTURE:MBG) has filed its interim financial statements and MD&A for the three and six months ended March 31, 2011 on SEDAR (www.sedar.com).

"We're extremely pleased with the results from the recently completed drill program at Del Carmen Norte," said Tim Warman, President and CEO. "We've outlined a significant body of shallow, oxide-hosted gold-silver mineralization at Rojo Grande, and should now have sufficient data to compile an initial resource estimate."

Mr. Warman continued, "With proceeds from our recent $15 million financing in hand, we have begun planning for a much larger drill season at Del Carmen beginning in October of this year. Our goal will be to expand Rojo Grande, which is still open to the southwest and at depth, while also drilling numerous other targets on the 9km2 Del Carmen Norte alteration system. Additionally, we plan to continue our exploration of the second alteration system, Del Carmen Sur, following up on some promising sampling results from the previous field season."

Q2 and recent highlights:
  • Drilling at the flagship Del Carmen project began in November 2010 and ended in late April 2011. Assays for the 2010/2011 field season have been reported for 21 holes (4,648.65 m) to date
  • Significant results released since the Q1 report, all from the Rojo Grande target at Del Carmen Norte, include:
    • hole 46 – 46 m of 3.31 g/t gold and 25.2 g/t silver
      • and 132.65 m at 2.10 g/t gold and 10.8 g/t silver
      • including 23 m of 5.51 g/t gold and 20.4 g/t silver
      • and including 34 m of 3.32 g/t gold and 17.6 g/t silver
    • hole 47 – 17 m of 2.72 g/t gold and 71.0 g/t silver
    • hole 49 – 82 m of 0.71 g/t gold and 9.4 g/t silver
      • and 65 m of 0.59 g/t gold and 6.2 g/t silver
    • hole 52 – 267 m at 2.05 g/t gold and 29.3 g/t silver
      • including 16 m at 4.38 g/t gold and 14.2 g/t silver
      • and including 21 m at 4.41 g/t gold and 78.5 g/t silver
      • and including 34 m at 8.31 g/t gold and 70.1 g/t silver
  • Closing of a bought deal equity financing for gross proceeds of $15 million on May 9, 2011
  • Working capital of $5.5 million and cash-on-hand of $6.7 million at March 31, 2011 compared with working capital of $11.3 million and cash-on-hand of $11.6 million at September 30, 2010

Click the following links to view maps and sections and a complete assay table showing all drill results to date from Del Carmen Norte. Or access further information on Del Carmen at www.malbex.ca/Projects/Del_Carmen.

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 35 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 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