Malaga Inc. (malaga)
Toronto Stock Exchange (TSX)
MONTREAL, Jan. 28 /CNW Telbec/ - Malaga Inc. (TSX:MLG) is pleased to provide an operations update on the Pasto Bueno Project as well as an outlook and strategy for the Company in 2010.
Malaga President and CEO, Jean Martineau commented, "We are gearing up for a positive year as we believe tungsten to be increasingly in the spotlight in 2010. The world's strengthening economy and China's increasing demand for the metal under its economic stimulus program is working to buttress the strength in the price of tungsten. With the improving global economy, demand for tungsten in the western world will increase as China continues to increase its tungsten imports. During the 2nd week of January 2010, the price of tungsten in China increased by 3%. Within this overall context and as our production at Pasto Bueno increases, Malaga will be in a strong position to profit from what we believe will be an upswing in the tungsten market going forward."
Malaga plans to make its mark as Americas' consistent and growing producer of tungsten. We are pleased to report that the expansion program at the Pasto Bueno mine is on schedule and that the company's rate of production has increased from 250 tonnes per day (tpd) to just under 375 tpd. The Company is on schedule to attain Malaga's 500 tpd target by mid-2010.
Outlook for 2010
In 2010, Malaga, along with its Swiss partner Emerging Power Developers (EPD), will make a decision on developing a 2nd hydroelectric plant on the Pelagatos River, which runs directly through the Pasto Bueno property. The additional plant if developed will not only lower Malaga's operating costs by covering all of the mine's future power needs, but it will also generate additional electricity that may be sold to the national power grid and thus increasing its revenues.
Malaga's exploration team, led by Alonso Sanchez, plans to increase the level of exploration activities (surface, geophysical and drilling) by placing emphasis on the 25 major structures within the 77 known veins. In the late first quarter or early second quarter, Malaga expects to announce the progression of a small producer status to a medium producer status.
The three primary areas of focus for Malaga in 2010 are: exploration - to increase the company's reserves, investing in the Pasto Bueno plant and mine - to further increase production capacity from 375 tonnes per day to 500 tonnes per day and working with EPD - to develop a 2nd hydroelectric plant.
The company anticipates that it will be cash flow positive at the beginning of Q2 and profitable before year-end. Thereafter, Malaga is forecasting an increase in tungsten concentrate production to 700 tpd in the course of 2011.
ABOUT MALAGA INC.
Malaga Inc. is the Americas' leading producer of tungsten ore and owns the only operating tungsten mine in the Americas. Current tungsten concentrate production is approximately 7,500 metric ton units (MTUs) per month and is expected to increase to 9,500 MTUs, in the near future. Malaga also seeks diverse growth opportunities such as developing the hydroelectric potential of its Pasto Bueno property, through Hidropesac, in which the Company holds 44%, as well as through its holding in Dynacor Gold Mines Inc., in which the Company owns 13.3%.
The Company's shares trade on the Toronto Stock Exchange (TSX:MLG). Malaga is currently the only publicly traded tungsten producing company outside of China. Updates and information on Malaga are available at its Web site www.malaga.ca.
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.
SOURCE MALAGA INC.
For further information: For further information: Jean Martineau, President & CEO, Malaga Inc., (514) 288-3224; Dale Nejmeldeen, Investor Relations, Malaga Inc., (514) 288-3224, (778) 574-2806, firstname.lastname@example.org