Pasto Bueno: Drilling Reveals New Tungsten Mineralized Zones



    Malaga Inc. (Malaga)
    Symbol: MLG
    Toronto Stock Exchange

    MONTREAL, Nov. 13 /CNW Telbec/ - Malaga Inc. (TSX: MLG) is pleased to
report that recent drilling data from its Pasto Bueno property confirms the
presence of new tungsten (WO3) mineralized zones. According to Alonso Sanchez,
Malaga's chief geologist "these results are very encouraging since they
support the idea that most of the tungsten mineralization at Pasto Bueno is to
be found within the intrusive body itself."
    He further states that the findings are particularly significant since:
1) the data suggests that mineralization extends from the currently exploited
Huaura zone right across a north-south 1,100 meters transect, to the
previously mined Maria Ofelia zone, located on the other side of the mountain;
and 2) the data shows that WO3 mineralized structures extend from the
peripheral zones right into the core of the intrusive body. This result had
never been demonstrated before and is very important since previously it was
thought that tungsten-mineralized zones at Pasto Bueno were only located at
the lithological contact zone - the interface between the intrusive body and
the overlying rock.
    Current tungsten mining and processing operations at Pasto Bueno are
located in the Huaura zone and the main vein that is being mined is the
Consuelo vein. Current mining operations at Pasto Bueno were restarted in
October 2006.

    Drilling Results

    The 2007 drilling campaign at Pasto Bueno began in May 2007 and 4 holes
have been completed representing a total length of 1,733 meters. The primary
objective of the 2007 drilling campaign was to investigate possible extensions
of the known areas of tungsten mineralization: a) in the Pt-2 area located
between the Huaura zone and Maria Ofelia sector located 1,100 meters to the
south on the other side of the mountain; and b) to demonstrate that WO3
mineralized structures extend from the periphery right into the core of the
intrusive body.

    Hole HHD1

    The first drill hole was laid approximately 600 meters south of the
current Huaura mining operation site. The drill pad was located at a height
that is equivalent to the Level 9 shaft at Huaura, and is 500 meters north of
the Maria Ofelia zone.
    The hole was drilled to a depth of 400.05 meters. It crossed a first
vein, thought to be an extension of the main Consuelo vein, at a depth of
230.1 meters. This intersection measured 1.63 meters with an average grade of
3.12% WO3 over 1.24 meters. The second intersection occurred at a depth of
271.75 meters, where it crossed the Consuelo Vein over 5.23 meters with an
average grade of 0.43 % WO3 over 1.38 meters.

    Hole HHD2

    This second drill hole was laid 850 meters south of Huaura and 250 meters
north of the Maria Ofelia zone. The drilling pad was located at a height
equivalent to Huaura Level 11.
    The total length of this drill hole was 364.15 meters. The first
intersection occurred at a depth of 203.38 meters crossing the Consuelo Vein
over 1.17 meters with an average grade of 0.11% WO3.
    A second intersect occurred at a depth of 324.85 meters, where a
secondary vein named "Consuelo Piso" was encountered with an average grade of
0.14% WO3 over 1.60 meters.

    Hole HHD3

    This third hole (277.7 meters long) was drilled below the former mining
zone of Maria Ofelia.
    The first intersection occurred at a depth of 169.95 meters where it
crossed the Consuelo Piso vein, and contained 0.01% WO3 over 1.25 meters. A
second intersect occurred at a depth of 196.42 meters crossing the Consuelo
vein which is also referred to as the Maria Ofelia vein in this zone. The
intersect had a average grade of 0.03% WO3 over 1.58 meters.

    Hole HHD4

    The fourth drill hole (691.7 meters long) was laid 600 meters south of
Huaura and 500 north of the Maria Ofelia zone.
    Once again, the Consuelo Vein was intersected at a depth of 460.45 meters
with a width of 1.73 meters. An average grade of 0.80% WO3 over 1.50 meters
was found within this intersect.

    
    -------------------------------------------------------------------------
                                        Minera-
                                         lized
    Drill Hole   Intersect   Structure   Width    WO3     Cu      Ag      Zn
    -------------------------------------------------------------------------
                (depth in m)  Width (m)    (m)      %      %  (oz/tn)      %
                -----------   ---------    ---
    -------------------------------------------------------------------------
    HHD1-1    230.10 - 232.40     1.63   1.24    3.12   0.22    0.26    0.07
    -------------------------------------------------------------------------
    HHD1-2    271.75 - 279.15     5.23   1.38    0.43    0.1    0.46    0.24
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    HHD2-1    203.38 - 204.55     1.17   1.17    0.11  Trace    0.13    0.01
    -------------------------------------------------------------------------
    HHD2-2    324.85 - 344.50     1.60   1.60    0.14   0.03    0.05    0.11
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    HHD3-1    169.95 - 171.20     1.25   1.25    0.01  Trace    0.02   Trace
    -------------------------------------------------------------------------
    HHD3-2    196.42 - 198.00     1.58   1.58    0.03   0.05    0.15    0.01
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    HHD4      460.45 - 462.90     1.73   1.50    0.80   0.20    0.84    0.43
    -------------------------------------------------------------------------

    In conclusion, the above drilling results confirm that tungsten
mineralization:

    - Extends from the currently exploited Huaura zone right across the
      north-south transect to the previously mined Maria Ofelia zone.
    - Is found deep within the intrusive body and not only in the surface
      areas as was previously thought. This would suggest that significant
      tungsten mineralization at Pasto Bueno is present in the mineralized
      structures found within the intrusive body itself.
    

    Furthermore, it should be underlined that with respect to the drilling
data at Pasto Bueno, it is important to bear in mind that the mineralized
structures are quite erratic (for instance WO3-rich zones adjacent to
WO3-depleted zones and pinch and swell structures and lenses are commonly
encountered). Exact quantification of WO3 resources by drilling alone is
therefore quite difficult and exploratory excavation work is also necessary.
    Malaga also wishes to report on new exploratory excavation work at the
Pasto Bueno mine site, in the Huaura sector, located some 600 meters north
from the drilling campaign area. The work consists of excavating new
underground drifts, access crosscuts and vertical chimneys in order to further
the exploration of levels 11 and 12 of the mine which are located within the
intrusive body. A series of 57 samples were taken from three tungsten-bearing
veins (Consuelo, Alonso and Maria Luisa) that were intersected in various
points by the newly excavated areas. These tungsten-bearing zones can be
readily visually identified on the walls of the newly excavated underground
accesses. Tungsten grades ranged from 0.45% to 8.02% WO3 and the average grade
for all 57 samples was 2.15%. Since all of the samples were taken from within
the intrusive body this study clearly demonstrates that WO3 mineralization
occurs within the intrusive rock, which opens new potential for
mineralization.
    The current drilling campaign is ongoing and further drill results will
be announced by way of press release, as soon as available.
    All chemical analyses were done by ALS CHEMEX laboratories in Lima and
samples for tungsten was analysed by the ME-XRF-10 method.
    Ivan Quiroz, General Manager and Director, is a mining engineer and
metallurgist, and a member of the Collegio de Ingenieros del Peru. He is the
"Qualified Person" and is responsible for the technical information contained
in this press release. Thus, Mr. Quiroz can testify to the precision and
exactitude of the data and the mining and geological knowledge of the Pasto
Bueno property as required by National Instrument 43-101 and its annexes with
respect to the reporting and content of this press release.

    ABOUT MALAGA INC.

    Malaga Inc. is a tungsten mining company that uses modern, efficient and
productive mining technology. The Company is committed to growth, through
increasing its tungsten concentrate production, continuing the exploration of
the Pasto Bueno property, and through strategic acquisitions. It also seeks
diverse growth opportunities such as developing the hydroelectric potential of
the Pasto Bueno property, through Hidropesac S.A., in which the Company holds
44%.

    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.




For further information:

For further information: Jean Martineau, President & CEO, Malaga Inc.,
(514) 288-3224; Christina Lalli, Investor Relations, Malaga Inc., (514)
288-3224 ext. 224; Renmark Financial Communications Inc.: Barbara Komorowski:
bkomorowski@renmarkfinancial.com; Eric Saint-Pierre:
estpierre@renmarkfinancial.com, (514) 939-3989, Fax: (514) 939-3717,
www.renmarkfinancial.com

Organization Profile

MALAGA INC.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890