Malaga Inc.

Malaga Inc.

November 09, 2011 07:00 ET

Result From Malaga Drilling Come Up Better Than Previously Announced

MONTREAL, QUEBEC--(Marketwire - Nov. 9, 2011) - Malaga Inc. ("MLG") (TSX:MLG)(OTCQX:MLGAF), one of the few tungsten producers outside of China, today announced that subsequent to an internal verification, the drill results for HDD 05-11 (see press release of October 18, 2011) were analysed by another laboratory (ALS Chemex), and re-analysed by the initial laboratory (ACME labs in Vancouver) and they both concluded that the core actually assayed for much higher tungsten grades than previously announced. The corrected results are as follows:

Drills Intersection Interval WO3 Au Cu Ag
Id From/To (m) Length (m) (%) (g/t) (%) (oz/t)
HDD-05-11 43.2 – 45.4 2.2 0.08 0.03 0.01 <0.02
HDD-05-11 - 1 45.4 – 47.8 2.4 4.04 0.61 0.42 <0.02
HDD-05-11 - 2 47.8 – 48.9 1.1 0.04 0.01 0.02 <0.02

"We are very pleased with these results as they confirm our expectations for the high grade tungsten content of the mantos in the south of the Pasto Bueno mine. Furthermore we will continue to perform enhanced quality controls both internally and with our suppliers of laboratory assays", commented Pierre Monet, President of Malaga.

As indicated in the previous press release, the channel samples from the outcrop were assayed for gold, given the interesting gold content in the drill hole HDD-05-11-1. The best results were obtained in Manto Gossan where a sample had 2.2 g/t Au and 5 of the 10 samples showed content above 0.13 g/t Au. In addition, one sample from Manto Maciste showed 0.8 g/t Au. These results are in line with the results of HDD-05-11 and confirm the presence of potential gold content. Moving forward, all samples will be assayed for gold and other metals to determine their potential.

"In my opinion, the presence of gold and of copper in chalcopyrite, together with tungsten, is very interesting as we continue exploring the mantos to find more and possibly higher concentrations of gold and copper. We are exploring for a skarn at depth, at the contact between limestone-slate and intrusive and this could prove more and more interesting, given the presence of these three important metals: tungsten, gold and copper", said Alonso Sanchez, Chief Geologist of Malaga.

This Press Release has been read and approved by Alonso Sanchez, P. Eng. and Chief Geologist for Malaga Inc. He acts as the qualified person ("QP") for the Company and is a geologist affiliated with the American Institute of Professional Geologists (AIPG).

About Malaga

Malaga Inc. owns and operates a mine in Peru and is one of the few publicly-traded producers of tungsten outside of China. Malaga is a low cost producer due to its gravimetric ore concentration process and the availability of hydroelectric power at its Pasto Bueno property. Malaga's production capacity represents approximately 15% of the tungsten available for sale outside of China. The Company plans to increase production and continue to explore the property to develop its reserves and resources.

Forward-looking statements

Certain statements in the foregoing may constitute forward-looking statements which involve known and unknown risks, uncertainties and other factors that may cause Malaga's actual results, performance or achievements or industry results to be materially different from any future result, performance or achievement expressed or implied by such forward-looking statements. The information provided reflects management's current expectations regarding future events and performance as of the date of this news release.

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Contact Information

  • Jean Martineau
    Chairman of the Board and Chief Executive Officer
    Malaga Inc.
    514 288-3224

    Pierre Monet
    Malaga Inc.
    514 288-3224

    Nicole Blanchard
    Corporate Strategy and Investor Relations
    Sun International Communications
    450 973-6600