Malbex Resources Inc.
TSX VENTURE : MBG

Malbex Resources Inc.

April 25, 2012 08:50 ET

Malbex Reports Drill Results from Rojo Grande and Other Targets at Its Del Carmen Project

TORONTO, ONTARIO--(Marketwire - April 25, 2012) - Malbex Resources Inc. (TSX VENTURE:MBG) announced today results from ten diamond drill holes from the Rojo Grande deposit and other targets at its Del Carmen gold-silver project in San Juan province, Argentina. Most notably, hole DDHC-12-073 intersected 15 metres (m) of 3.87 grams per tonne (g/t) gold and 4.3 g/t silver of shallow oxide mineralization at Rojo Grande. Shallow oxide mineralization was also encountered at the Cerro San Pablo target about 500 m west of Rojo Grande in hole DDHC-12-68 (19 m at 0.46 g/t gold and 3.8 g/t silver). At the Lion King target, hole DDHC-12-65 intersected 18 m of 1.10 g/t gold and 19.5 g/t silver about 700 m southeast of Rojo Grande. Hole DDHC-12-072 undercut previous holes at the Ladera Sur Tortolas target over one kilometre north of Rojo Grande, and intersected enargite veining (6 m grading 1.25 g/t gold and 30.6 g/t silver) beneath veins previously reported in DDHC-10-012 and -013.

Results from the holes released today include:

DDHC-12-064: 61 m (101-162m) at 0.30 g/t gold
o and 14 m (170-184m) at 0.52 g/t gold
DDHC-12-065: 18 m (306-324 m) at 1.10 g/t gold and 19.5 g/t silver
o including 3 m (320-323 m) at 5.66 g/t gold and 76.6 g/t silver
DDHC-12-068: 19 m (10-29 m) at 0.46 g/t gold and 3.8 g/t silver
DDHC-12-072: 6 m (126-132 m) at 1.25 g/t gold and 30.6 g/t silver
DDHC-12-073: 15 m (63-78 m) at 3.87 g/t gold and 4.3 g/t silver
o and 54.3 m (90-144.3** m) at 0.18 g/t gold and 2.3 g/t silver
**end of hole

"We're quite pleased to have found yet another higher grade gold zone at the Rojo Grande deposit, and to have intersected gold-silver mineralization at three other targets within the Del Carmen Norte alteration system," said Tim Warman, President and CEO. "We've just reached the end of our drill season at Del Carmen, having drilled 7,385 metres in 28 holes. Results for 11 holes are still pending, including six at Rojo Grande and five holes at three other targets."

Mr. Warman added, "With completion of the field season at Del Carmen, our geologists will begin to focus on our new projects in Peru and Argentina with the aim of advancing them to a drill-ready stage by the end of September. Having advanced the Del Carmen project from grassroots to inferred resource in just two drill seasons, we feel the time is right to bring in a partner for this project and focus on lower-cost, year-round exploration at our other projects. We are currently in discussions with several gold producers to joint venture Del Carmen for next season. A recent report by the world-renowned geological consultant, Dr. Richard Sillitoe, affirms our belief in the economic potential of Rojo Grande and the exploration prospectivity of the Del Carmen Norte alteration system."

Dr. Sillitoe, a prominent expert on epithermal and porphyry copper-gold, recently examined drill core from the Rojo Grande deposit and other prospects (Lion King and Naciente Quebrada Pedregosa). His most recent report builds on his previous two reports (2010 and 2011) regarding the Del Carmen Norte alteration system. The April 2012 report affirms the exploration potential of the Del Carmen Norte alteration system based on the size (1000 m strike, up to 250 m vertical extent), deep oxidation (>250 m) and fortuitous exposure of Rojo Grande. The latter highlights the potential for other siliceous ledges concealed beneath zones of barren alteration. He confirms the interpretation of Malbex geologists that sizeable volumes of diatreme breccia occur at Del Carmen Norte, including acting as host to gold mineralization at Lion King (hole 65). The Naciente Quebrada Pedregosa prospect is characterized by gold mineralization hosted in a series of quartz-alunite altered subvertical structures (e.g. hole 23 with four intervals with >1 g/t gold including 16 m at 2.64 g/t and 49 m at 1.11 g/t). The possible coalescence of multiple mineralized structures in this sector constitutes another possible bulk-mineable target at Del Carmen Norte, in his view.

Vertical holes 64 and 67 tested for continuity of the Rojo Grande resource, about 100 metres and 200 metres, respectively, to the southwest of previously released hole 57A (109 m grading 2.05 g/t gold). Both encountered lower grade mineralization. Hole 67 was lost in mineralization due to drilling problems. Vertical holes 69 and 73 tested near the northwestern margin of Rojo Grande. Hole 73 intersected higher grade gold mineralization (15 m grading 3.87 g/t gold) and an underlying interval of lower-grade mineralization (0.2 g/t) near the ends of previous holes 19 (27 m at 0.27 g/t gold and 6.4 g/t silver), and 20 (124.5 m at 0.57 g/t gold and 8.8 g/t silver). Hole 69 was drilled approximately 100 m beyond the northwest margin of the current resource envelope, but did not encounter significant mineralization.

The Cerro San Pablo target consists of outcropping quartz-alunite alteration and vertical hole 68 was collared west of and 100-150 m higher in elevation than holes at Rojo Grande, about 250 m northwest of previous hole 53 (which had 27 m grading 0.55 g/t gold from 35 m). Hole 68 intersected gold-silver oxide mineralization beginning at a depth of 10 m (19 m at 0.46 g/t gold and 3.8 g/t silver).

Vertical holes 70 and 71 tested near-surface resistivity highs defined in the recently completed induced polarization Titan survey about 200 m east of the Rojo Grande resource envelope and between the Brecha Limite and Brecha Limite Norte targets near the Chilean border, respectively. Each intersected shallow zones of moderate silicification with low gold values.

Hole 72 was collared about 100 m west of previous hole 12 at the Ladera Sur Tortolas target and drilled easterly at -55 degrees for 314 m to test beneath enargite veining intersected in hole 12 and nearby hole 13. Hole 72 intersected 6 m grading 1.25 g/t gold and 30.6 g/t silver, similar to 6 m @ 0.98 g/t gold and 13.1 g/t silver in hole 13.

Click the following link to view maps and sections related to the current press release, including the latest report by Dr. R. Sillitoe - www.malbex.ca/Projects/Del_Carmen.

Del Carmen results

Table 1 - Mineralized intercepts in the most recent holes are tabulated below
Hole ID From (m) To (m) Length (m) Au (g/t) Ag (g/t)Au-EQ (g/t)
Rojo Grande
DDHC-12-064 83 94 11 0.26 nsvnsv
and 101 162 61 0.30 1.80.33
and 170 184 14 0.52 nsvnsv
and 204 231 27 0.37 1.70.40
DDHC-12-067** 168 183 15 0.29 2.70.34
DDHC-11-069 no significant intercepts
DDHC-11-073 63 78 15 3.87 4.33.94
Including* 63 67 4 9.07 5.29.16
and including* 70 73 3 6.10 4.66.18
and 90 144.3 54.3 0.18 2.30.22
Lion King
DDHC-12-065 306 324 18 1.10 19.51.43
including* 320 323 3 5.66 76.66.94
and 334 354 20 0.61 4.90.69
including* 335 340 5 1.11 12.71.32
and 374 382 8 0.41 nsvnsv
DDHC-12-066 84 86 2 0.49 16.70.77
and 136 140 4 0.47 31.50.99
and 405.5 407.0 1.5 0.58 34.41.15
Cerro San Pablo
DDHC-12-068 10 29 19 0.46 3.80.52
including 14 21 7 0.79 7.00.91
and 181 183 2 0.42 160.73.09
Geophysical targets
DDHC-11-070 (Filo Martita) no significant intercepts
DDHC-11-071 (Brecha Limite) 20 34 14 0.22 1.80.25
and 133 156 23 0.20 3.00.25
Ladera Sur Tortolas
DDHC-11-072* 22 24 2 1.07 1.51.10
and* 126 132 6 1.25 30.61.76
Intercepts are based on a 0.1 g/t Au cutoff, with up to 3 continuous metres of internal dilution. Those marked with an asterisk (*) are based on a 1.0 g/t Au cutoff. Those marked **ended in mineralization. Gold-equivalent (Au-EQ) values are calculated using 60 g/t Ag = 1 g/t Au and assuming 100% metallurgical recovery. There are insufficient data to calculate true widths of the intercepts. Abbreviations: gold (Au), silver (Ag), metres (m), grams per tonne (g/t) and no significant values (nsv).
About Rojo Grande
The Rojo Grande deposit has the following characteristics:
  • Disseminated very fine-grained mineralization that is
    • hosted in silicified breccias and quartz-alunite alteration;
    • hosted by both altered andesite and dacite;
    • shallow, commonly outcrops or commences within 20 metres of the surface; and
    • oxidized, with metallurgical testing showing the resource is amenable to low-cost heap leach processing.
  • Contains a pit-constrained inferred resource of 25.4 million tonnes grading 1.0 g/t gold and 13.3 g/t silver.

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

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, Lima, Peru or North Vancouver, Canada). 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 concentrations are determined by cold vapour atomic absorption.

Malbex's quality assurance-quality control (QA-QC) program consists of the insertion in every 21 samples of 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 an additional QA-QC check on high grade intercepts as deemed necessary. 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 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.

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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
    ir@malbex.ca
    www.malbex.ca