Malbex Resources Inc.

Malbex Resources Inc.

May 11, 2011 09:05 ET

Malbex Reports Best Drill Results to Date: 267 Metres at 2.05 g/t Gold and 29.3 g/t Silver

TORONTO, ONTARIO--(Marketwire - May 11, 2011) - Malbex Resources Inc. (TSX VENTURE:MBG) today announced results for eight drill holes on the Company's Del Carmen gold-silver project in San Juan province, Argentina. Four holes infilled and expanded the Rojo Grande target, with hole DDHC-11-052 containing the longest interval of mineralization discovered to date. Highlights from the Rojo Grande holes include:

  • DDHC-11-047: 17 metres (m) at 2.72 grams per tonne (g/t) gold and 71.0 g/t silver
  • DDHC-11-049: 82 m at 0.71 g/t gold and 9.4 g/t silver
  • DDHC-11-052: 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

Hole 52 was a step-out hole collared about 50 m west of the long intervals of mineralization previously reported from holes 42 and 46 at Rojo Grande (103 m grading 2.84 g/t gold and 6.4 g/t silver, and 132.65 m grading 2.10 g/t gold and 10.8 g/t silver, respectively). This new hole confirms the zone of higher grade mineralization extending to at least 100 m from holes 42 and 46 to hole 35 (49 m at 1.41 g/t gold and 3.2 g/t silver, including 8 m at 7.08 g/t gold and 11.6 g/t silver). It also extends the vertical depth of gold-silver oxide mineralization at Rojo Grande to 280 m from surface.

Holes 47 and 49 were drilled on the same section as previously reported holes 40, 42 and 46, and expand the horizontal width of mineralization on this section to approximately 200 m. Hole 47 also confirms the zone of shallow, higher grade mineralization seen in hole 46.

The other four holes reported today encountered scattered low grades within favourable alteration (widespread quartz-alunite, local silicification) in the large controlled source audio-magneto-telluric (CSAMT) resistivity anomaly at the Cerro Amarillo target (Figures 1 and 2).

"Rojo Grande is looking better with every drill hole," said Tim Warman, President and CEO. "Based on last season's results, we started this season viewing Rojo Grande as a relatively homogenous zone of oxide mineralization grading 0.5 to 1 g/t gold over long intervals. But about 25% of the holes reported this season have exceeded those expectations, moving us closer to our goal of defining an economic deposit at Rojo Grande. The continuity and grade of mineralization in hole 52 expands the higher-grade zone in this sector of Rojo Grande in strike length and vertical depth. It also confirms the potential for economic mineralization to be hosted in quartz-alunite alteration beneath the outcropping silicified ledge."

The higher-grade zones at Rojo Grande occur proximal to a dacite quartz porphyry intrusion, in vuggy silica, massive silicification and variably silicified and commonly powdery quartz-alunite alteration. The massive core of the dacite dome is characterized by barren quartz-kaolinite alteration, and the alteration grades outward (up, down, to the north and to the west) into quartz-alunite and then into silicification with hydrothermal brecciation and intense silicification affecting both dacite and the surrounding andesitic wall rocks. While mineralization is typically concentrated in the upper zone of silicified rocks, the underlying powdery quartz-alunite alteration and lower silicification are mineralized locally, most notably in holes 46, 49 and 52 (Figures 3 and 4).

At Cerro Amarillo, holes DDHC-11-041, -045, -048 and -051 span over 600 m in a northwest direction with hole 51 lying about 220 m southwest of westernmost hole 50 at Rojo Grande (Figure 1). Silicification and quartz-alunite alteration increase in these four holes toward the northwest and Rojo Grande. The best intercept (25 m grading 0.50 g/t gold in hole 48) occurs in probable diatreme breccia above dacite porphyry (Figure 5). While the mineralization encountered to date at Cerro Amarillo is low in grade and relatively narrow, the abundance of favourable silicification and quartz-alunite alteration, the levels of pathfinder elements such as antimony and mercury, and the extent of low grade mineralization, all increase toward the Rojo Grande silicified ledge. Silver concentrations are consistently low.

Malbex completed 25 holes for 5,538 m in the 2010/2011 field season at Del Carmen Norte. With today's release, 21 holes for 4,648.65 m have been reported (Figure 1). The drilling program has been suspended for the Andean winter and field operations will resume in October. The outstanding drill results should be released by the end of May 2011 after which time the Company will initiate mineral resource calculations for the Rojo Grande target. Release of the resource calculation is anticipated later this year.

Click the following links to view maps and sections and assay table showing all drill results to date from Del Carmen Norte. Or access further information on Del Carmen at

Del Carmen results

Rojo Grande holes

DDHC-11-047 (azimuth 150°, dip 70°) was drilled from the same platform as hole 46 but in the opposite direction (Figures 1 and 2). Hole 47 passed through approximately 21 m of overburden and disaggregated rock before coring strongly silicified dacite porphyry. The uppermost 17 m grades 2.72 g/t gold and 71.0 g/t silver. Below this, the alteration style of the dacite changes to quartz-alunite and then to quartz-kaolinite before returning to varying silicification, quartz-alunite and quartz-kaolinite alteration. The hole entered quartz-kaolinite altered andesitic volcanic rocks at about 180 m and the hole was ended at 222 m (Figure 3).

DDHC-11-049 (azimuth 330°, dip 70°) is the northernmost collared hole at Rojo Grande (Figure 2) and was drilled as a scissor hole to confirm grades in holes 42 and 46. The hole passed through 6 m of overburden before intersecting about 100 m of vuggy silica and hydrothermal breccia. This upper silicification is succeeded by powdery quartz-alunite alteration and then the return to silicification at similar elevations as in holes 40, 42 and 46 (Figure 3). Two broad zones of mineralization (82 m at 0.71 g/t gold and 65 m at 0.59 g/t gold) confirm and extend those in other holes in this sector.

DDHC-11-050 (vertical) was collared on the same platform as holes 36 and 38, the westernmost holes drilled to date at Rojo Grande (Figure 2). Near surface mineralization in hole 50 consisted of 4 m at 0.87 g/t gold (30-34 m) and 15 m at 0.18 g/t gold (62-77 m) with the upper intercept hosted in dacite porphyry (Figure 6). While widths of silicification, quartz-alunite alteration, and mineralised intercepts all decrease to the northwest, the Rojo Grande target remains open to the south toward Cerro Amarillo (Figure 2).

DDHC-11-052 (vertical) was collared roughly midway between the cross sections shown in Figure 3 and the section with holes 19, 20 and 31 (see Press Release (PR) of 31 May 2010) (Figure 4). The interval in hole 52 (267 m grading 2.05 g/t gold and 29.3 g/t silver) extends continuously from the upper silicified ledge into variably silicified and locally powdery quartz-alunite alteration before re-entering silicification. Although commonly obscured by the intensity of alteration, dacite is the predominant host lithology. Hole 52 not only confirms and extends to the west the higher grades in holes 42 and 46 but also the mineralization reported previously in hole 35 to the south (see PR of 8 Feb 2011). This hole expands the known vertical extent of mineralization and favourable alteration to approximately 280 m. The volume of dacite porphyry has been increased, and the presence of gold mineralization in quartz-alunite altered rocks and in the lower zone of silicification confirmed. All are factors interpreted to increase the potential volume of mineralization at Rojo Grande.

Cerro Amarillo holes (Figure 5)

DDHC-11-041 (vertical) was collared on CSAMT survey line 1800 near the centre of the large resistivity anomaly beneath Cerro Amarillo (see PR of 23 Sept 2010). The hole passed through a thick sequence of un-oxidized quartz-kaolinite altered diatreme breccia, before passing abruptly into oxidized quartz-alunite altered diatreme breccia at approximately 220 m depth with minor mineralization at the contact (5 m at 0.16 g/t gold). The hole was lost at a depth of 283.5 m.

DDHC-11-045 (azimuth 330°, dip 60°) was also collared on CSAMT line 1800 approximately 200 m southeast of hole 41. The hole passed through approximately 146 m of un-oxidized and weakly altered, probable intrusive andesite porphyry before entering quartz-kaolinite altered diatreme breccia. At a depth of 238 m the hole encountered approximately 19 m of weakly altered andesite porphyry before crossing back into diatreme breccia rocks. The alteration style changed to quartz-alunite below the andesite porphyry dike, and continued in oxidized quartz-alunite altered diatreme breccia until the hole was lost at 368.5 m depth, again failing to reach the 500 m target depth.

DDHC-11-048 (vertical) was collared approximately 200 m northwest of hole 41. The hole passed through a thick sequence of diatreme and subordinate hydrothermal breccias showing widespread quartz-alunite alteration and localized silicification and quartz-kaolinite alteration. Below approximately 210 m, the quartz-alunite alteration intensified with local development of strong silicification and vuggy silica. The best intercept is 25 m grading 0.50 g/t gold (294-319 m) within a larger zone of elevated antimony and mercury above dacite porphyry between 350 and 400 m depth. The hole ended in quartz-kaolinite altered andesite at 425 m.

DDHC-11-051 (vertical) was collared approximately 260 m north-northwest of hole 48 and 220 m southwest of hole 50. The hole entered volcanic breccia below diatreme breccia and the entire hole is characterized by quartz-alunite alteration and variable silicification with scattered intervals of low-grade mineralization over almost 200 m (181-372 m), which includes 11 m grading 0.63 g/t gold. The hole was terminated at 380 m due to drilling problems.

Del Carmen Results

Mineralized intercepts in the most recent holes are tabulated below.

targethole IDfromtolength
Cerro AmarilloDDHC-11-041142.0144.
Rojo GrandeDDHC-11-04721.
which includes44.
Mineralized intercepts are based on a 0.1 g/t gold cutoff with no more than 3 m of internal dilution.
Intervals shown in italics are not plotted on the cross sections.
Gold-equivalent (Au-EQ) values are calculated using 60 g/t silver = 1 g/t gold (based on the 3-year average gold:silver price ratio) and assuming 100% metallurgical recovery. Abbreviations include metres (m) and grams per tonne (g/t).

There has been insufficient drilling to reliably calculate true widths for the mineralized intercepts tabulated above but thicknesses in vertical holes appear to closely represent the true vertical thickness of mineralization and alteration.

About Rojo Grande

Rojo Grande consists of prominent reddish weathering silicified outcrops on the northern flank of the massif of high-sulphidation hydrothermal alteration at Del Carmen Norte. Silicified outcrops combined with geophysical data identify a sub-horizontal northeast-southwest striking, near-surface silicified ledge at Rojo Grande measuring approximately 800 m long by up to 300 m wide. Previous significant intersections at Rojo Grande include:

2009/2010 Field Season

  • DDHC-10-017: 41 m grading 1.18 g/t gold and 31.2 g/t silver
  • DDHC-10-018: 15 m grading 1.07 g/t gold and 27.3 g/t silver
  • DDHC-10-020: 124.5 m grading 0.57 g/t gold and 8.8 g/t silver
  • DDHC-10-031: 35 m grading 0.94 g/t gold and 13.0 g/t silver
  • DDHC-10-032: 142.15 m grading 0.88 g/t gold and 13.7 g/t silver
    • including 40.15 m grading 1.45 g/t gold and 19.6 g/t silver

2010/2011 Field Season

  • DDHC-10-033: 70 m grading 0.46 g/t gold and 12.8 g/t silver
  • DDHC-10-034: 73 m grading 0.74 g/t gold and 17.4 g/t silver
    • including 16 m grading 0.97 g/t gold and 20.0 g/t silver
  • DDHC-10-035: 49 m grading 1.41 g/t gold and 3.2 g/t silver
    • including 8 m grading 7.08 g/t gold and 11.6 g/t silver
  • DDHC-10-038: 22 m grading 0.41 g/t gold and 8.8 g/t silver
    • and 24 m grading 0.90 g/t gold and 13.3 g/t silver
  • DDHC-10-039: 86 m grading 0.77 g/t gold and 9.3 g/t silver
  • DDHC-11-040: 19 m grading 0.70 g/t gold and 4.1 g/t silver
    • including 10 m grading 1.14 g/t gold and 5.1 g/t silver
  • DDHC-11-042: 103 m grading 2.84 g/t gold and 6.4 g/t silver
    • including 29 m grading 9.61 g/t gold and 10.1 g/t silver
    • with 5 m grading 48.34 g/t gold and 15.4 g/t silver
  • DDHC-11-046: 46 m grading 3.31 g/t gold and 25.2 g/t silver
    • and 132.65 m grading 2.10 g/t gold and 10.8 g/t silver

Mineralization at Rojo Grande is generally hosted by vuggy silica, massive silicification, and quartz-alunite alteration with variable degrees of red-brown staining due to fine-grained hematite, goethite and jarosite as disseminations and veinlets. Sulphide minerals are typically absent from the known zones of mineralization. Extensive oxidation of the high-sulphidation mineralization at Rojo Grande is confirmed by preliminary metallurgical testing (PR of 20 Jan 2011). The silicified outcrops at Rojo Grande are interpreted to be part of a sub-horizontal ledge (sheet) formed by silicification and quartz-alunite alteration of andesitic and dacitic breccias within the strongly advanced argillic (kaolinite) to argillic (illite) altered tuffs and fine-grained flows that dominate the andesitic volcanic sequence. The silicification and especially the higher grades of gold-silver mineralization appear to be preferentially associated with the brecciated margins of a probable subvolcanic dacite porphyry dome.

About the Del Carmen work program

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

Del Carmen Norte consists of a strongly altered, sub-horizontal sequence of andesitic volcanic rocks that is cut by numerous faults. Volcanic breccias appear to be selectively silicified with mineralization hosted by silicification and quartz-alunite alteration between less favourable argillic altered volcanic layers. Steep faults 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. CSAMT surveying in the 2009/2010 field season identified elevated resistivity coincident with silicified rocks at Rojo Grande. Other larger CSAMT resistivity anomalies to the southwest are directly associated with steam-heated siliceous alteration at high elevations at Cerro Amarillo but continue to the depth limits of detection of the survey (roughly 500 m vertically).

In addition to Rojo Grande, other zones of vuggy silica and enargite-bearing quartz veins on surface were drill tested in the 2009/2010 field campaign. The 2010/2011 drilling campaign at Del Carmen Norte focused on defining the extent of gold-silver mineralization at Rojo Grande and on testing CSAMT resistivity anomalies, especially the large anomaly at Cerro Amarillo.

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 or North Vancouver, BC). 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 20 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 regularly on discovered mineralization as an additional QA-QC check. 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. 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, including Barrick's Veladero and Pascua-Lama gold deposits. For more information, please visit

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.

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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