Malbex Reports 104 Metres at 1.96 g/t Gold and 25.2 g/t Silver at Rojo Grande; and a New, Near-Surface Gold Zone at Cerro Amarillo
TORONTO, ONTARIO -- (Marketwire) -- 06/06/11 -- Malbex Resources Inc. (TSX VENTURE: MBG) today announced results for four drill holes on the Company's Del Carmen gold-silver project in San Juan province, Argentina. Three holes have expanded and infilled the central portion of Rojo Grande target, while the fourth hole intersected a new zone of near-surface mineralization on the northern flank of Cerro Amarillo (Figures 1 and 2).
Highlights include:
Cerro Amarillo
-- DDHC-11-053: 27 metres (m) at 0.55 grams per tonne (g/t) gold and 2.0
g/t silver
-- including 13 m at 0.85 g/t gold and 2.0 g/t silver.
Rojo Grande
-- DDHC-11-054: 18.7 m at 0.79 g/t gold and 7.8 g/t silver
-- and 62.9 m at 0.80 g/t gold and 11.4 g/t silver
-- DDHC-11-055: 104 m at 1.96 g/t gold and 25.2 g/t silver
-- including 58 m at 2.95 g/t gold and 35.0 g/t silver
-- and 67 m at 0.51 g/t gold and 1.5 g/t silver
-- DDHC-11-056: 14 m at 2.89 g/t gold and 45.4 g/t silver
-- and 42 m at 1.10 g/t gold and 4.0 g/t silver
Hole 53 was drilled on section with previous holes (41, 45, 48 and 51) testing the large resistivity anomaly underlying and flanking the area of outcropping steam-heated alteration at Cerro Amarillo. The mineralized intercept in hole 53 is associated with dacite and vuggy silica alteration that occur approximately 100 m higher in elevation than at Rojo Grande. The discovery of this new, separate zone of mineralization west of Rojo Grande suggests the potential of further discoveries in the Del Carmen Norte alteration system in the next drilling campaign.
At Rojo Grande, hole 54 is an infill hole collared midway between holes 40 and 42 (the latter with 103 m grading 2.84 g/t gold and 6.4 g/t silver) and holes 37 and 39 (the latter with 86 m grading 0.77 g/t gold and 9.3 g/t silver).
Hole 55 was designed to test the system below hole 32 (142.15 m grading 0.88 g/t gold and 13.7 g/t silver) which was lost in mineralization at the end of the 2009/2010 field season. Hole 55 confirmed the continuation of the upper zone of gold-silver mineralization with an intercept of 104 m at 1.96 g/t gold and 25.2 g/t silver, and also identified a lower zone of mineralization hosted principally in quartz-alunite alteration (67 m grading 0.51 g/t gold and 1.5 g/t silver). This latter intercept demonstrates continuity of approximately 200 m in strike of the lower zone of mineralized quartz alunite alteration seen in hole 46 (132.65 m grading 2.10 g/t gold and 10.8 g/t silver).
Hole 56 was drilled on the same section as previously reported holes 40, 42 46, 47 and 49, and has confirmed the geometry of mineralization and alteration zonation around the dacite porphyry dome and intersected the lower zone of mineralization in mixed quartz-alunite and silicification seen in holes 46 and 52.
'We're very pleased by the discovery of a new zone of mineralization at Cerro Amarillo,' said Tim Warman, President & CEO. 'While the four previously announced holes from Cerro Amarillo showed some encouraging alteration and pathfinder elements, today's announcement of hole 53 is exactly what we were looking for - near-surface, oxidized gold mineralization, similar to our Rojo Grande discovery, which continues to be expanded and infilled with today's other drill holes. We're looking forward to following up with more drilling at Del Carmen Norte in the coming field season. In the meantime, work has already begun on our first resource estimate for the Rojo Grande area.'
Mineralization at Rojo Grande is centred on 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 andesite wall rocks. While mineralization is typically concentrated in the upper zone of silicified rocks, the underlying mixed zone of typical and powdery quartz-alunite alteration and silicification are mineralized locally, most notably in holes 46, 49 and 52 and now also in holes 55 and 56 (Figures 3 and 4).
Malbex completed 25 holes for 5,538 m in the 2010/2011 field season at Del Carmen Norte. With today's release, all holes have now been reported (Figure 1). The drilling program has been suspended for the Andean winter and field operations will resume at Del Carmen in October. The Company has initiated mineral resource calculations of the Rojo Grande target by a third party consultancy. 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 www.malbex.ca/Projects/Del_Carmen.
Del Carmen Results
Rojo Grande
DDHC-11-054 (vertical) was drilled to extend the high grades found in holes 42 and 46 to the northeast. The hole passed through vuggy silica and hydrothermal breccia with several scattered low grade zones (e.g. 15 m grading 0.16 g/t gold) before intersecting 18.7 m grading 0.79 g/t gold (64-82.7 m depth). This mineralization ends with 4.3 m of no recovery. Silicification continues at depth and hosts 62.9 m grading 0.80 g/t gold and 11.4 g/t silver that continues to the end of hole (abandoned prematurely). This lower zone includes two higher grade intervals, 11 m at 1.46 g/t gold and 12.9 g/t silver (116-127 m) and 26 m grading 1.04 g/t gold and 14.4 g/t silver (135-161 m) (Figure 3).
DDHC-11-055 (vertical) was collared approximately 100 m northwest of hole 32 (Figure 2). Mineralization and silicification started at surface with an intercept of 104 m grading 1.96 g/t gold and 25.2 g/t silver, including 58 m grading 2.95 g/t gold and 35.0 g/t silver (42-100 m). As well, a deeper intercept of 67 m at 0.51 g/t gold and 1.5 g/t silver (143-210 m) extends a zone of mineralized quartz-alunite westward for approximately 200 m from holes 46, 49, 52 and 54. The zone is also extended at depth by hole 55 (Figure 4).
DDHC-11-056 (azimuth 150 degrees , dip 60 degrees ) was collared on the same platform as holes 40 and 42 to infill between high grade intervals in hole 42 (29 m grading 9.61 g/t gold and 10.1 g/t silver within 103 m at 2.84 g/t gold and 6.4 g/t silver) and hole 46 (46 m grading 3.31 g/t gold and 25.2 g/t silver). Hole 56 confirms the near-surface higher grades in silicification (14 m at 2.89 g/t gold and 45.4 g/t silver at 56-70 m depth) as seen in holes 42 and 46 and the lower zone of mineralization (42 m at 1.10 g/t gold and 6.3 g/t silver) reported previously in hole 46 and 49 (132.65 @ 2.10 g/t gold and 10.8 g/t silver and 65 m at 0.59 g/t gold and 6.2 g/t silver, respectively) (see PR of 25 March and 11 May 2011) (Figure 4).
Cerro Amarillo
DDHC-11-053 (vertical) was collared near an outcrop of strongly silicified dacite porphyry exposed during road and platform construction and represents the northernmost test of the resistivity anomaly (Figure 5). The hole intersected two near-surface intervals of gold oxide mineralization within quartz-alunite and vuggy silica alteration; 12 m at 0.31 g/t gold (17-29 m) and 27 m of 0.55 g/t gold (35-62 m). Silver values are low in both intervals. The mineralized intercepts in Hole 53 occur at roughly 4,900 m elevation, approximately 100 m higher in elevation than mineralization at Rojo Grande, which typically occurs below 4,800 m. The vertical separation suggests the mineralization in hole 53 is new zone of dacite-hosted silicification, separate from that identified at Rojo Grande.
Del Carmen Results
Mineralized intercepts in the most recent holes are tabulated below.
===========================================================================
length Au Ag Au-EQ
target hole ID from to (m) (g/t) (g/t) (g/t)
===========================================================================
Cerro
Amarillo DDHC-11-053 17.00 29.00 12.00 0.31 1.3 0.33
and 35.00 62.00 27.00 0.55 2.0 0.59
which includes 40.00 53.00 13.00 0.85 2.0 0.88
===========================================================================
Rojo
Grande DDHC-11-054 64.00 82.70 18.70 0.79 7.8 0.92
and 109.00 171.90 62.90 0.80 11.4 0.99
which includes 116.00 127.00 11.00 1.46 12.9 1.67
and 135.00 161.00 26.00 1.04 14.4 1.28
=================================================================
DDHC-11-055 1.00 105.00 104.00 1.96 25.2 2.38
which includes 42.00 100.00 58.00 2.95 35.0 3.54
and 143.00 210.00 67.00 0.51 1.5 0.54
which includes 183.00 193.00 10.00 0.89 2.5 0.93
and 213.00 225.00 12.00 0.37 1.9 0.41
=================================================================
DDHC-11-056 7.00 46.00 39.00 0.23 5.7 0.33
and 56.00 70.00 14.00 2.89 45.4 3.64
and 105.00 147.00 42.00 1.10 4.0 1.16
which includes 128.00 141.00 13.00 2.12 6.3 2.22
and 164.00 174.00 10.00 0.42 0.3 0.42
and 189.00 198.00 9.00 0.31 1.2 0.33
===========================================================================
Mineralized intercepts are based on a 0.1 g/t gold cutoff 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 and assuming 100% metallurgical recovery. Abbreviations include
metres (m) and grams per tonne (g/t).
---------------------------------------------------------------------------
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
-- 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
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 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 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. Controlled source audio-magneto-telluric (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 (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