Malaga to recieve 2.5 MillionMalaga Inc. to receive US$ 2.5 million from recycling copper-silver rich mine tailings from Pasto Bueno.
Montreal, Quebec, February 3, 2010 – Malaga Inc. (TSX:MLG) is pleased to announce that it has found a technique to recycle the Copper(Cu)/Silver(Ag) rich mine tailings produced at its Pasto Bueno mine as a by-product during processing of tungsten ore. During the next 6 months, more than 5,000 tonnes of this tailing will be recycled generating more than US$ 2.5 million.
During 2009, Malaga invested in a small pilot plant in order study the feasibility of concentrating the mine tailings produced at Pasto Bueno. The goal was to produce a saleable tailing concentrate. After solving several problems, the company succeeded in producing a tailing concentrate enriched Cu and Ag and low enough in impurities to allow commercial extraction of the Cu and Ag content.
Malaga has now signed an agreement with a Peruvian company to process the enriched tailings and expects to receive more than US$ 2.5 million during the next 6 months. After disposing of the mine tailings that accumulated during its first 3 years of operations, Malaga expects to produce 300-400 tonnes of tailing concentrates per month. This amount will increase during 2010 as Malaga increases its rate of production producing a steady additional cash flow from recycling.
Malaga President and CEO, Jean Martineau commented, "We are pleased to have found a technical novel solution for the recycling of our mine tailings that initially appeared to be very difficult to recycle. Thanks to our in house metallurgical engineers, Malaga is able to increase its operational cash flow and act in an environmentally responsible manner.”
Tungsten Outlook for 2010
Pierre Monet, Malaga’s CFOalso commented on the tungsten market at the beginning of 2010. “We are delighted to see that the price of tungsten, as we expected, has increased both inside China and on the world market. Indeed, since the 15th of January 2010, the price of APT (Ammonium Paratungstate)has increased three times (in two $5 steps and one $2 step) from US$185 to reach US$197 per MTU. We expect that this tendency will continue, although more gradually, throughout 2010 and that Malaga as its production increases at Pasto Bueno will be in a much stronger position as the leading producer of tungsten ore in the Americas.”
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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 MTUs per month and is expected to increase to above 9,000 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 13.5%.
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.
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.
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