Malaga Inc. (malaga)
Toronto Stock Exchange (TSX)
MONTREAL, Nov. 30 /CNW Telbec/ - Malaga Inc. (TSX:MLG) is pleased to report the first step in the upgrading of its Huaura tungsten plant at Pasto Bueno in Peru is on schedule. Additionally the rated production capacity is now 400 tpd (as compared to 250 tpd during the first nine months of 2009) - an increase of 60%.
An entirely new section of the plant has been built from scratch. This section includes a new ore crushing circuit, coarse and fine ore chutes as well as a new jig separator area. The recently added area of the plant has been linked to the mine using an improved ore supply line including electrical hopper cars that deliver the tungsten ore more efficiently to the ore chutes and the primary ore crushing circuit. An additional access road for heavy duty ore delivery trucks has also been built.
During the last few days, the new section of the plant has been successfully tested at 375 tpd and some fine adjustments are being made. During the coming months, Malaga will continue to upgrade the plant in order to reach its target capacity of 500 tpd. Management expects during the ongoing upgrading process, the plant will run below its nominal 400 tpd capacity at a rate of 325-350 tpd.
The new 600 kW hydroelectric plant commissioned in 2009 and the power line linking Pasto Bueno to the national grid will cover the current and future energy requirements for both the tungsten mine and the Huaura plant as production capacity is increased over the coming months.
Pierre Monet, Malaga's Vice-President and CFO, commented at the Montreal Investment Conference (November 6-7, 2009) "the company's gross operating margin will improve as significant production cost savings will be made when the Huaura plants's capacity reaches 500 tonnes per day and more income will be generated. This in turn will generate profitability".
ABOUT MALAGA INC.
Malaga Inc. is America's leading producer of tungsten ore and owns the only operating tungsten mine in the Americas. Current tungsten concentrate production is approximately 5,000 MTUs per month and is expected to double by 2010. 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., (778) 574-2806, firstname.lastname@example.org; Follow Malaga's updates at: http://twitter.com/MalagaInc; Follow Malaga's blog at: http://malagainc.blogspot.com/