Malaga boosts tungsten reserves in Peru (March 05, 2010)

Malaga Inc. (MLG-T) has boosted its tungsten reserves and resources at the Pasto Bueno mine in northern Peru by 72% and 280% respectively.

Pasto Bueno has 169,427 tonnes of proven and probable reserves with an average tungsten grade of 0.70%.

In the measured and indicated category the deposit contains 398,845 tonnes with an average grade of 0.76%, and has 1.82 million tonnes grading an average of 0.70% in the inferred category.

Last year Malaga drilled more than 3,051 meters and the updated technical report now includes detailed sampling of veins exposed in drifts and chimneys and long sections of eight veins. A total of 78 known veins exist on the property.

Malaga is the only publicly traded tungsten producer in the Americas, and the company’s president and chief executive notes that Pasto Bueno is keeping up with demand “by not only replacing what we mined in 2009 but also securing additional years of production.”

Martineau added in a statement: “Given the current recovery in the tungsten price and indications that China’s demand is rising, Malaga is poised to benefit from strong market demand.”

At presstime Malaga was trading at 12¢ per share. Over the last 52 weeks, the junior has traded in a range of 8.5¢-19¢ per share and has 147.7 million shares outstanding.