Malaga Announces a $1.5 Million Diamond Drilling Campaign in the Consuzo Zone at Its Pasto Bueno Tungsten Mine
Published : May 31, 2011
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Keywords :   China | Diamond | Market | Peru | Tungsten |

MONTREAL, QUEBEC--(Marketwire - May 31, 2011) - Malaga Inc. (News - Market indicators) is pleased to announce that the Company has begun its previously announced $1.5 million drilling campaign on its 100% owned Pasto Bueno property (see Press Release dated February 7th, 2011). The drilling campaign began in early May and Malaga intends to drill 12 short and long range holes for a total of 6,300 meters. The two main objectives are: 1) to explore the deeper extensions of the Loreto vein; and 2) to explore in depth for the first time the four Manto structures in the southern part of the property.

The Consuzo Zone

This older zone of the Pasto Bueno mine was the main mining area in the 1970s when a 1,000 tonne/day plant was in operation. The most important mineralized structure in this zone is the Loreto vein, located in granitic rock. Its composition varies from quartz monzonite to granodiorite and the average thickness varies from 2 to 10 meters. The historic production from this vein was estimated to be 1.95 million tonnes of mineral grading 0.95% WO3. 

2010 Exploration Results

In 2010, Malaga partially reopened the old mine at the Consuzo zone and extracted more than 1,000 tonnes at an average grade of 1.5% WO3. Malaga also drilled an exploratory hole HDD 02 10 in this zone which was 390.8 meters long and intersected the northern extension of the Loreto vein, 250 meters below the level corresponding to the Pelagatos river which runs alongside the old Consuzo mine and plant. This hole intersected a section containing 1.83% WO3 over a width of 1.03 meter (see Press Release dated February 7th, 2011).

2011 Drilling Campaign

The data from the above-mentioned 2010 exploratory drill hole demonstrated that high-grade tungsten veins can be found at depth close to the old Consuzo mine. The Company thus decided to further explore this area and is currently drilling two long range drill holes.

Immediately after drilling these two holes the Company will start drilling the four manto structures: Maciste, Gossan, Candelaria and Santa. Malaga plans to drill 10 holes adding up to a total of 4,900 meters in these very promising structures. The Manto Santa is particularly interesting since it is the thickest manto structure and a channel sample taken in 2010 found a grade of 1.17% WO3 over 6.8 meters. It will be one of the focal exploration points during the 2011 drilling campaign that should be completed by the end of the year.

All drilling results will be reported as soon as they are available. 

Pierre Monet, Malaga's President recently commented that "Malaga is gearing up for an active exploration year in 2011. The Company will explore both the Consuzo area and four very promising mantos in the southern part of the property, which were not accesible until now. In order to be able to explore and drill the mantos, Malaga has built 6.5 km of roads over the last 12 months. Heavy drilling equipment needed to start the drilling campaign can now be readily brought on site.

I am very confident that we will discover new areas of WO3 mineralization during our 2011 exploration program and that this will enable Malaga to significantly increase its tungsten resources at Pasto Bueno. At present there are 79 known tungsten mineralized veins including the newly discovered Sorpresa vein on the Pasto Bueno property, of which only four are in production.

Finally, the Company will invest $ 3 to 4 million in 2011 in ongoing underground development work in the Huaura and Huayllapon sectors that are currently being mined. The objective of this underground development is to replenish the mined reserves and define new additional reserves and resources.

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 to the American Institute of Professional Geologists (AIPG).

Map showing the Consuzo zone and the 4 Manto structures that are the targets of the 2011 drilling campaign available at the following address: http://media3.marketwire.com/docs/MLG_Pasto_Bueno_0531.pdf

ABOUT MALAGA

Malaga Inc. owns and operates a mine in Peru and is one of the few companies outside of China that produces tungsten. Malaga is a low cost producer due to the availability of hydroelectric power at its Pasto Bueno property in Peru and has a current production capacity of 500 tpd. Future plans are to increase production and thoroughly explore the property to increase reserves and resources. 

FORWARD-LOOKING INFORMATION

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



Malaga Inc.
Jean Martineau,
Exec.Chairman and CEO
514-288-3224
or
Pierre Monet,
President
514-288-3224
or
Investor Relations Nicole Blanchard
Sun International Communications
Nicole.blanchard@isuncomm.com
450-973-6600
Data and Statistics for these countries : China | Peru | All
Gold and Silver Prices for these countries : China | Peru | All

Malaga Inc.

PRODUCER
CODE : MLG.TO
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Malaga is a gold and tungsten producing company based in Canada.

Malaga holds various exploration projects in Peru.

Its main asset in production is PASTO BUENO in Peru.

Malaga is listed in Canada and in United States of America. Its market capitalisation is CA$ 918 375 as of today (US$ 881 456, € 674 490).

Its stock quote reached its highest recent level on June 20, 2008 at CA$ 0.49, and its lowest recent point on July 15, 2013 at CA$ 0.01.

Malaga has 183 675 000 shares outstanding.

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Annual reports of Malaga Inc.
2007 Annual Report
Nominations of Malaga Inc.
12/2/2011Announces Appointment of Pierre Monet as President and Chief...
6/23/2011Appoints Three New Board Members
7/8/2008appoints Paul Cregheur to the Board of Directors
6/26/2008appoints three new Directors
12/20/2007Appoints a new board member
Financials of Malaga Inc.
4/3/2013Publishes Year-End Results
8/22/2008Q2 2008 financial results and outlook for 2008
4/14/2008Reports its year end financial results for 2007
11/15/2007reports net earnings in its third quarter 2007
8/16/2007Reports $6,749,432 revenue from the sale of gold and tungste...
5/23/2007reports sales of $2.3 million of tungsten concentrate for th...
4/13/2007files its audited consolidated financial statements and anno...
Project news of Malaga Inc.
5/31/2011(Pasto Bueno)Announces a $1.5 Million Diamond Drilling Campaign in the Co...
4/24/2008(Pasto Bueno) Pasto Bueno: Commissioning of the first phase of the Pasto ...
3/3/2008(Pasto Bueno)discovers new tungsten mineralized vein structures at Pasto ...
11/13/2007(Pasto Bueno) Pasto Bueno: Drilling Reveals New Tungsten Mineralized Zone...
5/15/2007(Pasto Bueno)commercial production begins at the Pasto Bueno mine
Corporate news of Malaga Inc.
6/6/2013Files a Notice of Intention to Make a Proposal Under the Ban...
5/21/2013Publishes Q1 Results
4/9/2013Sells Its Hydro Electric Power Plant
11/9/2012Update on Mining Operations
11/9/2012Update on Mining Operations
10/22/2012(Pasto Bueno)Pasto Bueno Process Plant in Care and Maintenance
10/22/2012(Pasto Bueno)Pasto Bueno Process Plant in Care and Maintenance
8/15/2012Announces Its Q2 Results
5/9/2012Maintains Profitability and Generates Cashflow From Operatin...
4/17/2012to Recover Additional Tungsten From Its Tailings Pond
3/28/2012Improves Profitability and Generates a Net Income of $5.6M a...
2/27/2012(Pasto Bueno)Increases Its Resources by More Than 140% and Its Reserves b...
2/16/2012to Build New Hydroelectric Plant in Peru
1/9/2012(Pasto Bueno)Announces Appointment of Fernando Pajuelo Rincon as General ...
10/4/2011Joins OTCQX-"MLGAF"
8/15/2011Reports Financial Results for Second Quarter 2011: Generates...
6/17/2011Generates a Net Income of $0.8 Million and an EBITDA of $1.3...
5/20/2011Says it is Not Aware of Any Undisclosed Development That Wou...
4/11/2011Reports Record Sales of US $4.5 Million in the First Quarter...
3/31/2011Reports Income of $1.1 Million From Mining Activities
10/30/2007 Announces the Final Distribution Ratio of Dynacor Gold Mine...
9/26/2007senior management changes within the company
7/17/2007Change of corporate name and trading symbol (previously Dyna...
4/17/2007has 100% ownership of its Acari property in Peru
3/21/2007signs an engagement letter of up to CA$5 million with D&D Se...
2/20/2007To Spin Off Gold Assets To Shareholders
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