Malbex Resources Inc.
TSX VENTURE : MBG

Malbex Resources Inc.

May 30, 2012 08:55 ET

Malbex Q2 Update

TORONTO, ONTARIO--(Marketwire - May 30, 2012) - Malbex Resources Inc. (TSX VENTURE:MBG) has filed its interim financial statements and MD&A for the three and six months ended March 31, 2012 on SEDAR (www.sedar.com). The documents are also available at www.malbex.ca/Investors/Reports.

"With our fieldwork at the Del Carmen project completed, we are shifting our geological team to our other lower altitude projects," said Tim Warman, President and CEO. "Over the coming months we expect to announce the remaining 11 drill holes from Del Carmen, the results from advanced metallurgical testing of the Rojo Grande deposit, progress on our search for a partner for Del Carmen and exploration results from our other projects. In response to the severe downturn in the financing market for junior explorers, we have made some adjustments to our plans, such as seeking to joint venture Del Carmen in order to maximize our investment in exploration at our lower-cost projects in Peru and Argentina."

Recent highlights:

  • Completion of the 2011-2012 field season at the Del Carmen project that included:

    • 7,385 metres (m) of core drilling in 281 holes that tested Rojo Grande and seven other targets at Del Carmen Norte; assays for 17 holes have been released to the date of this discussion including 10 after the quarter ended 31 March 2012 (Press release dated 24 April 2012); results are pending for 11 holes

  • Significant results from the Rojo Grande deposit are:

    • Hole 57A with 109 m grading 2.05 grams per tonne (g/t) gold and 7.3 g/t silver

    • Hole 63 that ended in mineralization of 157.5 m grading 0.42 g/t gold and 7.7 g/t silver

    • Hole 64 with 61 m grading 0.30 g/t gold and 14 m at 0.52 g/t gold

    • Hole 73 with 15 m grading 3.87 g/t gold and 4.3 g/t silver and 54.3 m grading 0.18 g/t gold and 2.3 g/t silver

  • Significant results at other targets are:

    • Hole 65 at Lion King with 18 m grading 1.10 g/t gold and 19.5 g/t silver, including 3 m grading 5.66 g/t gold and 76.6 g/t silver

    • Hole 68 at Cerro San Pablo with 19 m grading 0.46 g/t gold and 3.8 g/t silver

    • Hole 72 at Ladera Sur Tortolas with 6 m grading 1.25 g/t gold and 30.6 g/t silver

  • Completion of option agreements to acquire new exploration projects in Argentina:

    • Quebrada Seca Cu-Au porphyry project in Catamarca province

    • Chalchalero Cu-Au porphyry project in La Rioja province

  • The establishment of a dedicated legal, management and community social relations team in Peru to negotiate community agreements for the Wayra (formerly Grace) project

  • March 31, 2012: Working capital of $5.8 million and cash-on-hand of $6.7 million compared with working capital of $15.8 million and cash-on-hand of $16.1 million at September 30, 2011

  • Subsequent to the end of the quarter, Malbex announced several management and board changes. Malbex founder and director, Joe Hamilton, has been appointed CEO effective June 1st, while Frank L. Davis, also a Malbex founder, has joined the Board of Directors. The Company's outgoing CEO, Tim Warman, and its VP Investor Relations, Marla Gale, have resigned effective May 31st. Tim Warman and Patrick F.N. Anderson have also stepped down from the Board with immediate effect.

During the current quarter, there are approximately 20 million common share purchase warrants due to expire on June 21, 2012. Each warrant is exercisable into one common share for consideration of $0.40.

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 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 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.

1 This total does not include hole 57 which was re-drilled as hole 57A after being lost in mineralization.

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