Malbex reports 67 metres grading 2.76 g/t gold and 14.8 g/t silver from Rojo Grande; extends resource envelope beyond previous limits

TORONTO, ONTARIO–(Marketwire – June 21, 2012) – Malbex Resources Inc. (TSX VENTURE:MBG) announces results for eleven diamond drillholes from the Rojo Grande deposit and other targets at its Del Carmen gold-silver project in San Juan province, Argentina. Hole DDHC-12-080 intersected 67 metres (m) of 2.76 grams per tonne (g/t) gold and 14.8 g/t silver outside the Rojo Grande inferred resource envelope, about 100 m from the nearest previous holes (038, 064) and over 150 m from hole 057A (109 m grading 2.0 g/t gold, Malbex press release 12 Jan 2012). This drillhole has expanded the mineralized envelope at Rojo Grande to the southwest where it remains open to the west and southwest. The 2011 resource envelope contained a pit-constrained inferred resource of 25.4 million tonnes grading 1.0 g/t gold and 13.3 g/t silver (NI43-101 compliant).

Within the existing resource envelope, drillhole DDHC-12-076 reported a 54-metre long, near surface intersection grading 0.42 g/t gold and 9.7 g/t silver with a second deeper higher-grade intersection of 23 metres grading 1.8 g/t gold and 2.1 g/t silver. Nearby drillhole DDHC-12-079 reported near surface intersections of 11 m at 0.70 g/t gold and 8 m at 1.33 g/t gold. Almost all gold-bearing intersections found at Rojo Grande over the past two years of drilling occur within a 200 metre thick horizontal zone that shows good continuity and may represent a paleo-boiling horizon. Deeper high grade structures have also been intersected in drilling that may represent feeder zones for the fluids that created the oxide mineralization encountered to date.

Metallurgical studies that were designed to test the amenability of the oxidized mineralization to heap leaching methods are expected to be completed in the next few weeks. These column tests have been extensive and have tested various grades of mineralization at various crush sizes. Preliminary results are encouraging and the Company expects to be able to release final results shortly.

Maps and sections related to this press release are available at www.malbex.ca/Projects/Del_Carmen.

"We're pleased to have demonstrated that the Rojo Grande deposit continues to the southwest of the resource envelope with a new zone of high-grade mineralization in hole 80" said Joe Hamilton, CEO. "This press release marks the end of our drill season at Del Carmen having completed 7,385 metres in 28 holes. This year's campaign has extended mineralization and proven continuity in the main Rojo Grande zone. We anticipate receipt of the second round of metallurgical testing in upcoming weeks and confirmation that good recoveries will be possible from the oxidized ore at Rojo Grande using heap leach technology at coarse crush sizes."

Del Carmen Concession – Other Exploration Drilling

Malbex also conducted exploration drilling on other prospective targets elsewhere on the Del Carmen property in the recently completed field season. Two drillholes at the Naciente Quebrada Pedregosa target were positioned to follow-up on the previously reported interval of 49 m grading 1.51 g/t gold (Malbex press release 19 April 2010). Step-out drillholes DDHC-12-81 and -83 encountered oxidized quartz-alunite alteration and silicification in dacite breccia with drill intersections of 9 m at 1.51 g/t gold and 5 m grading 1.31 g/t gold, respectively, the latter beginning at surface. This encouraging target is over 1000 m south of the Rojo Grande deposit, remains open and requires further exploration drilling.

A single drillhole (DDHC-12-77) tested the Cerro Frio target and returned 8 metres grading 1.08 g/t gold from 42 metre depth. This area is over 500 m from the northern end of the Cresta del Gallo target and was discovered as a 6 metre wide zone of silicified hydrothermal breccias and quartz veinlets with up to 11.8 g/t gold in trenching. This area requires further follow-up work.

The two latest drillholes to test the Ladera Sur Tortolas enargite veins were exceptionally wide step outs positioned 250 (DDHC-12-74) and 500 metres (DDHC-12-75) from known veins. While neither hole intersected enargite veins or other significant mineralization, hole 75 contained broad intervals of anomalous gold up to 76 metres long.

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 and contains the Rojo Grande deposit and numerous other targets based on outcropping gold-silver mineralization. The second, less exposed, high sulphidation epithermal system at Del Carmen Sur is some 5 km to the south.

The Del Carmen Norte hydrothermal system consists of a strongly altered, sub-horizontal sequence of andesitic volcanic rocks that are cut by numerous faults. Volcanic and/or hydrothermal breccias appear to be selectively silicified with mineralization hosted by silicification and quartz-alunite alteration between less favourable argillic (quartz-kaolinite) alteration in volcanic lithologies. Steep structures and the margin of dacite domes appear to have also strongly influenced hydrothermal fluid flow within the andesitic volcanic sequence. High-sulphidation alteration is therefore zoned outward from the combination of both lithological and structural controls.

Technical information

Diamond drillhole 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 (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 and one field duplicate. Samples of significant drill intercepts may be sent to two additional independent laboratories to verify gold and silver analyses when necessary. Metallic screen fire analyses for gold may also be run as 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 other purposes.

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.

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.

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.

Del Carmen results

Table 1 – Mineralized intercepts in the holes released today are tabulated below
Target Hole ID From
(m)
To
(m)
Length
(m)
Au
(g/t)
Ag
(g/t)
Au-EQ
(g/t)
Rojo Grande DDHC-12-076 6 60 54 0.42 9.7 0.58
includes 47 56 9 1.00 21.8 1.36
78 94 16 0.41 12.9 0.63
100 125 25 0.21 nsv 0.21
167 190 23 1.82 2.1 1.85
includes* 174 184 10 3.72 4.5 3.79
DDHC-12-078 15 48 33 0.27 7.8 0.40
includes 38 46 8 0.40 17.2 0.68
DDHC-12-079 19 30 11 0.70 1.7 0.73
35 43 8 1.33 nsv 1.33
DDHC-12-080 79 82 3 0.88 nsv 0.88
100 167 67 2.76 14.8 3.01
includes 116 123 7 2.25 34.5 2.83
and includes* 134 152 18 8.06 19.8 8.39
which includes 150 152 2 40.27 11.8 40.47
DDHC-12-082 23 48 25 0.55 2.3 0.58
57 65 8 0.78 1.1 0.79
DDHC-12-084* 27 29 2 2.19 nsv 2.19
62 94 29 0.61 0.5 0.62
includes 62 77 12 1.06 nsv 1.06
138 169 31 0.33 nsv 0.33
NQP DDHC-12-081* 178 187 9 1.51 nsv 1.51
DDHC-12-083 0 5 5 1.31 nsv 1.31
Cerro Frio DDHC-12-077* 42 50 8 1.08 nsv 1.08
Ladera Sur Tortólas DDHC-12-074 No significant results
DDHC-12-075 2 10 8 0.12 nsv 0.12
21 28 7 0.19 nsv 0.19
40 50 10 0.12 nsv 0.12
60 136 76 0.16 nsv 0.16
206 218 12 0.35 nsv 0.35
230 268 38 0.18 nsv 0.18
284 326 42 0.17 nsv 0.17
358 366 8 0.21 8.1 0.35
372 376 4 0.22 nsv 0.22
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. 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).

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

 

Malbex Resources Inc.
Joe Hamilton
CEO
(416) 628-0215
[email protected]
www.malbex.ca