11:09 | Lima, Feb. 08 (ANDINA).
Canadian-based Malaga Inc. announced the discovery of a new high grade tungsten zone located at depth under the old Pasto Bueno mine (Ancash) in the Consuzo sector.
In 2010, Malaga carried out a small scale drilling scoping study at Pasto Bueno. One of the drill holes in this campaign, HDD 02 10, has led to the discovery of a new high grade deep zone in the Consuzo sector grading 1.83% WO3 over a width of 1.03 meters.
Last year, Malaga also successfully partially reopened the old mine at Consuzo and has extracted more than 1,000 tonnes at an average grade of 1.5% WO3, from this zone.
This part of the Pasto Bueno mine was the main mining focal point in the 1970s when a 1,000 ton/day plant was operated. The most important mineralized structure in this zone is the Loreto vein.
Located in granitic rock, its composition varies from quartz monzonite to granodiorite. Its average thickness varies from 2 to 10 meters and the historic production from this vein has been 1.95 million tonnes of mineral grading 0.95% WO3.
Malaga said it will continue to refurbish and explore the old Consuzo zone particularly in view of the new high grade zone that has been discovered which demonstrates that there is still a very high potential for new resources deeper down at Consuzo.
In 2010, the scoping drilling study consisted of four (4) diamond drill holes and 4 short range exploration drills (less than 50 meters long) adding up to respectively 1,737.85 meters and 131,6 meters of drilling.
Drill hole HDD 02 10 was drilled to test whether tungsten mineralization could be found under the old Consuzo mine. The drill hole 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.
The tungsten content was analysed in Lima and an intersect containing 1.83% WO3 over a width of 1.03 meter was found. This is a very exciting result since it demonstrates that high grade tungsten veins can be found at depth close to the old Consuzo mine.
In addition, three drill holes were analysed, two drill holes in the Huayllapon sector and one in the Huaura zone.
In Huayllapon, drill hole HDD 01 10 IM intersected the Santa Isabel vein and found 0.34% WO3 over a width of 0.42 meters and drill hole HDD 02 10 IM intersected the Chabuca vein at level 12 and found within a 2.39 meter intersect a thinner mineralised part 0.28 meters wide with 0.15% WO3.
These rather low values illustrate one of the difficulties of drilling at the Pasto Bueno mine since values can be erratic and the veins subject to pinch and swell.
In the Huaura zone, one drill hole HDD 01 10 confirmed the economic mineralization of the Consuelo Split vein (3.63% WO3 over a width of 0.36 meters) and also led to the discovery of a new vein at depth named the Sorpresa vein where a 2.35 meter intersect was found to contain 0.81% WO3 over a 0.15 meter wide segment.
Finally, four (4) short range drill holes (less than 50 meters long) were drilled in the Maria Ofelia zone. The most significant result was 0.65% WO3 over a width of 0.36 meters. These short range drill holes will be used by the company to further define the pattern of mineralization in this zone.
Pierre Monet, Malaga's new President said he was very pleased to see that, in 2010, 2 out of 4 drill holes were very successful and have opened up new areas with a high potential for the discovery and extension of Pasto Bueno's tungsten resources.
"Looking forward to 2011, I am confident that we will discover new areas of WO3 mineralisation thanks to our exploration program and that this will enable Malaga to significantly increase its known tungsten resources at Pasto Bueno," he said.
At present there are 79 known tungsten mineralized veins including the newly discovered Sorpresa vein on the Pasto Bueno property of which 6 are in production, he added.
Malaga Inc. owns and operates a mine in Peru and is one of the few companies outside of China that produces tungsten. It's 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. Malaga also owns 10% of Dynacor Gold Mines.
(END) LVT/LVT
Published: 2/8/2011