Malbex Resources

Malbex signed an option agreement in August 2011 with Lara Exploration Ltd. to earn up to a 75% interest in the Grace high sulphidation gold project in southern Peru. The early-stage Grace project consists of eight concessions covering 5,800 hectares in the southern part of Ayacucho Region (two of the concessions were acquired just prior to the option agreement and are shown in the updated map showing 8 concessions covered by option agreement at right). Prospecting, mapping and incomplete surface geochemical surveying by Lara have identified a 6 kilometre by up to 1.5 kilometre high-sulphidation-style alteration zone that has never been tested by drilling.

Our first year of exploration will consist of comprehensive geochemical surveying, geological mapping and geophysical surveying to identify drill targets.

Reconnaissance mapping and sampling by Lara have outlined extensive areas of well-preserved high-sulphidation epithermal alteration with locally anomalous gold, silver and epithermal pathfinder elements including arsenic, antimony and mercury. The geology of the area consists of andesitic volcaniclastic rocks cut by siliceous hydrothermal breccia bodies within wide halos of quartz-alunite and quartz-kaolinite alteration. The hydrothermal centres appear to be oriented along north-south and northwest-southeast structural trends. Numerous small-scale mines are found in the district, and the Grace project is immediately adjacent to the Apumayo project, currently being drilled by Minera Andina de Exploraciones S.A.C. The Grace project is located at an altitude between 3,900 and 4,200 metres, and will be explored mainly during the southern hemisphere winter and break in exploration at our flagship Del Carmen project in Argentina.