Malbex Reports Additional Higher-Grade Mineralization at Del Carmen Norte, Including 46 m at 3.31 g/t Gold and 25.2 g/t Silver
TORONTO, ONTARIO -- (Marketwire) -- 03/25/11 -- Malbex Resources Inc. (TSX VENTURE: MBG) today announced results from three drill holes, including additional higher-grade results, from the Rojo Grande target on the Company's Del Carmen gold-silver project in San Juan province, Argentina. Hole DDHC-11-046 was collared approximately 80 metres (m) southeast of hole DDHC-11-042 (103 m at 2.84 g/t gold, PR Feb. 22, 2011) and has expanded the higher-grade mineralization recently discovered in this part of the Rojo Grande silicified ledge. Two significant zones of mineralization were encountered in hole 46:
-- DDHC-11-046: 46 m at 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 at 5.51 g/t gold and 20.4 g/t silver
-- and including 34 m at 3.32 g/t gold and 17.6 g/t silver
The higher-grade zones at Rojo Grande occur in proximity to a dacite intrusion identified during the recent visit to the property by Dr. Richard Sillitoe, a consultant known for his expertise in epithermal and porphyry systems. While the core of the dacite intrusion is marked by barren quartz-kaolinite, the alteration grades outward into quartz-alunite alteration and silicification with hydrothermal brecciation and intense silicification affecting both the dacite margin and surrounding andesitic wall rocks. While mineralization is typically concentrated in the silicified rocks, powdery quartz-alunite altered rocks are mineralized locally at Rojo Grande.
The recent drilling has also extended the apparent depth of oxidation at Rojo Grande from surface to at least 220 m vertical depth, which is encouraging from a metallurgical standpoint. Preliminary metallurgical testing of core from Rojo Grande and Naciente Quebrada Pedregosa targets at Del Carmen Norte shows good potential for heap leach cyanidation treatment, with gold recoveries averaging 76.5% (PR Jan. 20, 2011).
'The results of holes 42 and 46 have improved our geologic model, and our ability to target higher-grade zones within the Rojo Grande ledge,' said Tim Warman, President and CEO. 'Rojo Grande is delivering everything we could ask for - consistent gold-silver mineralization with higher-grade, near-surface zones, generally shallow to non-existent overburden, encouraging metallurgy, and the structure remains open at depth and to the southwest. We're currently awaiting the results for the scissor hole (49) on this section in order to better understand the geometry of the higher-grade zones discovered in holes 42 and 46, and will be looking to infill this area before the end of the current drilling season.'
Holes DDHC-11-043 and -044A, were completed at the northeastern margin of the Rojo Grande target, close to where the silicified ledge is truncated by erosion, approximately 220 m northeast of holes DDHC-11-042 and -046. DDHC-11-043 intersected approximately 80 m of vuggy silica, silicification and minor quartz-alunite alteration that contained several short zones (4-12 m) with greater than 0.2 g/t gold, mainly associated with hydrothermal breccias. DDHC-11-044A passed through approximately 56 m of silicified dacite before entering quartz-kaolinite altered andesite. No significant mineralization was encountered in 44A.
With today's release, 12 holes totalling 2,264 m have been reported for the 2010/2011 field season at Del Carmen Norte (Figure 1). One drill rig continues to delineate the Rojo Grande target, which is still open at depth and to the southwest, while the second rig is attempting to test the controlled source audio-magneto-telluric (CSAMT) resistivity anomalies to the southwest of Rojo Grande at Cerro Amarillo. The drilling at Cerro Amarillo is proving challenging, and our drilling contractor is currently making a fourth attempt to reach the target depth of 500 m to test this large geophysical target.
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.
Del Carmen results
DDHC-11-043 (azimuth 300 degrees, dip 60 degrees) and DDHC-11-044A (azimuth 120 degrees, dip 60 degrees) were drilled from the northeasternmost platform at Rojo Grande (Figures 1 and 2) close to where the silicified ledge is truncated by erosion, approximately 220 m northeast of holes DDHC-11-042 and -046. Hole 43 passed through approximately 10 m of overburden before intersecting strongly silicified dacite porphyry with local bands of hydrothermal breccia and quartz-alunite alteration which are succeeded below by silicified andesitic volcanic breccias, flows and tuffs. Vuggy silica textures and variable degrees of hematite, goethite and jarosite coating fractures are observed in the silicified zone, which ends at about 85 m depth. The silicified rocks are succeeded by clay altered (quartz-kaolinite) andesite. The hole was stopped at 158.5 m after passing through a narrow fault zone currently interpreted to strike oblique to the section.
Although drilled from the same platform as 43, hole DDHC-11-044A struggled to pass through more than 27 m of overburden. This was the second attempt to drill to the southeast on the same platform. Hole 44 was aborted at 45 m due to drill difficulties. Hole 44A intersected silicified dacite porphyry similar to that in 43 and then passed through an approximately 20 m wide fault zone before entering quartz-kaolinite altered andesite at 58 m depth. The hole was terminated at 221 m in quartz-kaolinite altered andesite.
DDHC-11-046 (azimuth 330 degrees, dip 70 degrees) was collared about 80 m southeast of holes 42 and 40 (on the same section) to test for the continuation to the southeast of the high grades intersected in 42. Two significant intervals of mineralization are present. The upper begins effectively at surface (below 6 m of overburden) but due to locally poor recoveries, which includes 8.5 m of zero recovery, the most reliable interval begins at 18 m depth and consists of 46 m of silicified and quartz-alunite altered dacite porphyry grading 3.31 g/t gold and 25.2 g/t silver. The hole then enters a zone of quartz-kaolinite altered porphyry lacking mineralization, before re-entering quartz-alunite altered and silicified porphyry hosting a wide zone of gold-silver mineralization (132.65 m grading 2.1 g/t gold and 10.8 g/t silver). Discrete higher-grade intervals within the longer lower intercept include 23 m grading 5.51 g/t gold and 20.4 g/t silver and 34 m grading 3.32 g/t gold and 17.6 g/t silver. The hole was terminated at 238.65m within the mineralized zone after passing through a short fault zone.
Significant mineralized intercepts in the most recent holes are tabulated below.
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Length Gold Silver Au-EQ
Hole ID From To (m) (g/t) (g/t) (g/t) Notes
============================================================================
DDHC-11-043 10.00 13.00 3.00 0.12 5.2 0.20
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and 18.00 27.00 9.00 0.11 5.3 0.20
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and 60.00 64.00 4.00 0.27 5.0 0.36
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and 70.00 76.00 6.00 0.27 3.0 0.32
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and 81.00 93.00 12.00 0.20 4.8 0.28
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and 144.00 149.00 5.00 0.21 2.6 0.25
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DDHC-11-044A no significant intercepts
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DDHC-11-046 18.00 64.00 46.00 3.31 25.2 3.73 Excludes 8.55 m of
no recovery from
9.45 m to 18 m
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and 106.00 238.65 132.65 2.10 10.8 2.28 to end of hole
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including 122.00 145.00 23.00 5.51 20.4 5.85 1 g/t gold cutoff
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including 156.00 190.00 34.00 3.32 17.6 3.61 1 g/t gold cutoff
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Mineralized intercepts are based on a 0.1 g/t gold cutoff (except where
noted above), with no more than 3 m of internal dilution.
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 date to reliably calculate true widths for the mineralized intercepts tabulated above.
About Del Carmen Norte and 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 shallow-dipping 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 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 8.78 g/t silver
-- and 24 m grading 0.90 g/t gold and 13.25 g/t silver
-- DDHC-10-039: 86 m grading 0.77 g/t gold and 9.3 g/t silver
-- DDHC-10-040: 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-10-042: 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
Mineralization at Rojo Grande is generally hosted by vuggy silica and massive silicification with red-brown staining due to fine-grained hematite, goethite and jarosite as disseminations and veinlets. 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 appears to be preferentially associated with a probable subvolcanic dacite porphyry and its brecciated margins.
About the Del Carmen work program
The 147 km(2) 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 km(2). 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 silicification hosting mineralization sandwiched between less favourable argillic altered volcanic layers. Steep faults have 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 on silicification. Controlled source audio-magneto-telluric surveying (CSAMT) in the previous field campaign 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 other styles of silicification, and enargite-bearing quartz veins on surface were drill tested in the 2009/2010 field campaign. The current drilling campaign at Del Carmen Norte is focused on defining the extent of gold-silver mineralization at Rojo Grande, testing CSAMT resistivity anomalies (including the large anomaly between Rojo Grande and Cerro Amarillo), and following up on encouraging initial drill results from Naciente Quebrada Pedregosa south of 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 (greater than 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 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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Contacts:
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