What investor doesn't wish he had bought into Microsoft or Apple or Google or Berkshire Hathaway when it was trading for just pennies? The climb in stock prices would assure any investor that they were set for life. Getting in on the ground floor of any investment always provides legendary stories between investors. The real challenge is finding those interesting investing stories and acting on them.

MetalsNews has recently met with a very compelling resource company with an experienced management team and a clear, impressive outline for success. Investors should take a look at Malbex Resources Inc. and see if it's an investment that might work for them. Malbex is recently listed on the Toronto Stock Exchange (TSX-V: MBG) and is a junior exploration company with gold properties in Argentina.

We had an opportunity to speak to Tim Warman, President and CEO of Malbex. "I'm a geologist with 20 years of experience in the industry. I've worked all over the world – Africa, Europe, South America and North America. Most recently I was the VP of Corporate Development at Aurelian Resources, which made a tremendous discovery in Ecuador. We sold the company to Kinross for $1.2 billion… and now Malbex is my next project," said Mr. Warman. He has worked in most phases of the mining industry, from exploration to development.

"Malbex is a relatively new company that just listed on the exchange in October of last year," said Mr. Warman. In spite of being newly listed, they have many of the advantages that a far more seasoned company would enjoy. The first advantage is a strong management team of industry veterans:

Mr. Warman is joined on the management team by other well-seasoned industry veterans. Derrick Weyrauch, CFO, is a Chartered Accountant and has 19 years of experience in international finance, including work with resource companies like Gabriel Resources. Peter Stewart, Vice President of Exploration, is an economic geologist with over two and a half decades of industry experience with companies like Aurelian Resources and Kinross Gold. He has worked all over the world and has a PhD from the University of Western Ontario. Bruno Caciagli, Country Manager for Malbex San Juan S.A., and Marla Gale, Vice President of Investor Relations, both joined Malbex from Aurelian Resources. "What sets us apart," said Mr. Warman "is the depth of the experience on our management and board. A lot of the management team at Malbex came from Aurelian Resources. We stuck together because we liked working together and we wanted to repeat the success story that we had with Aurelian."

The second advantage that this "new" company enjoys, which other newer companies do not, is their well-placed properties, located on the western border of Argentina in the El Indio Gold Belt. Del Carmen is their flagship project in the area, and the one they are most actively working. They also own two other projects: Despoblados and Arroyo de los Amarillos. All three projects are 100% owned by Malbex.

"We are looking for gold deposits in Argentina, along the border between Argentina and Chile. That's where Barrick has their really large mines. They have current deposits hosting 17.8 million ounces and 12 million ounces of gold, and have already produced another 6 and a half million ounces from two El Indio Gold Belt mines. We're right in that belt with one of the best land positions on the Argentinean side. We're looking for large bulk tonnage, relatively low grade deposits," said Mr. Warman.

They are still in the early stages of operation, related Mr. Warman, but they are hopeful of positive findings in the near future: "This has been our first season of drilling. We've drilled about 5,000 meters on our flagship property. We've had some very good results from our drilling on that property."

What helps in their efforts now – and will continue to be a benefit to the company – is the jurisdiction where they are working, which has developed infrastructure and will help to ease production costs. "We're in an area that has some good infrastructure. Barrick has built up a lot of infrastructure. It's very easy to get to; you can drive there in 4 hours. There's abundant water so you don't have some of the water issues like you do in Peru and Chile. Power is coming into the area. So a lot of the infrastructure challenges are met. Our goal is just to find something."

Like every other company, they face challenges but they are meeting these challenges with an aggressive, business-growth plan. Mr. Warman explained: "One of the issues we have, working up in the Andes, is the winter: Once winter sets in, in May, we're out of the field until about early October. It's a quiet period and our geologists are looking for something to do. So we are looking to acquire additional projects that can be worked year-around in mining-friendly jurisdictions. "

Their short term plan is to keep drilling. "This season we spent approximately $6 million on exploration," said Mr. Warman. "We're going to spend about $6 million next season. At the end of second quarter, we had about $3 million in cash so we'll need to go back to the market before we go back in the field in the coming season, which will begin in October of this year.” Malbex closed a $12.6 million over-subscribed financing following our interview with Mr. Warman so they are well-funded for the next season.

Mr. Warman summed up the opportunity that Malbex has as a company; before highlighting the opportunity Malbex offers to investors. Of Malbex he said: "We think we have some excellent properties in a very prospective belt. We're in an excellent jurisdiction. Argentina's San Juan province is very pro-mining. We've got very strong government support." And for investors he concluded: "It's an early stage company. It's very reasonably priced. Our market cap is in the $20 million range so the stock is cheap, we think. It's essentially a bet on a seasoned management team with some very good properties and a great jurisdiction."

Reference

www.malbex.ca

372 Bay Street

Suite 901

Toronto, ON

M5H 2W9