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 km2 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 km2. 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.
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 (>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.
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.
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