TSX:MLG Malaga Inc. owns and operates the only tungsten mine in South America and the 2nd largest in the Americas. The Pasto Bueno tungsten mine was purchased in 2005 by Malaga which has since invested more than 7.5 million dollars to restart tungsten production. Malaga produces one of the highest quality tungsten concentrates available in the world due to its very low content of impurities. Malaga trades on the Toronto Stock Exchange ( MLG.TO), is a pure tungsten play and is one of the only two publicly traded tungsten producing companies outside of China.
Since the end of November, the team at the Pasto Bueno mine has been working with the newly installed equipment; at this point there is a bin with a malfunctioning vibrator. The Company has ordered a new vibrator from Lima. It is expected to arrive at the plant before the 3rd week of December. In the interim and to remedy this temporary glitch with the vibrator, a full-time crew member has begun to manually monitor the ore through to assure there is no blocking of rock in the bin.
The bin that is temporarily being operated manually certainly is not affecting the team's productivity. I am pleased to report the production rate is continuing to increase to 350-375 tonnes per day (tpd). You will note this is an added 25 to 50 tpd from my last update on November 30, 2009.
In Peru there are three levels of mine operating status. A small miner has a production rate of under 250 tpd. However, Peruvian authorities permit miners to produce up to 50% more than the 250 tpd in order to produce within the small producer status. A medium size producer is one with 375 tpd to well over 1000 tpd. If a mining company wishes to increase its production rate over 375 tpd, then the company must apply for a medium size producer licence. As you know from our last press release published on November 30, Malaga's production capacity at Pasto Bueno is 400 tpd. It is the Company's intent to increase production to 500 tpd, therefore, has already begun the process of applying for a medium producer licence. Malaga is currently producing just under 375 tpd.
Your Company which started out producing tungsten concentrate at 50 tpd is on schedule and growing into the higher level of medium producer status or over 375 tpd with an impressive growth rate of over 7 times in less than 4 years. Management expects to receive its medium producer licence by the time the plant is able to increase its capacity to 500 tpd or in spring/summer of 2010.
Most importantly, at 500 tpd... Malaga claims the title as the single largest profitable tungsten producer in the Americas.
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