Alder Resources Ltd.

Alder Resources Ltd.

November 03, 2011 08:00 ET

Alder Recovers Significant Historic Drill Data for Santa Rita Pit and Announces Extension of November 2011 Warrants

Historic Intercepts include 2.95% Cu, 0.34 g/t Au and 35.3 g/t Ag over 18.3 metres and 2.27% Cu, 0.21 g/t Au and 30.8 g/t Ag over 16.7 metres

TORONTO, ONTARIO--(Marketwire - Nov. 3, 2011) - Alder Resources Ltd. ("Alder") (TSX VENTURE:ALR) is pleased to announce that significant historic diamond drill intercept data for the Santa Rita pit located on the Rosita D concession has been recovered from archives at the government mines library in Managua, Nicaragua. The drill results are displayed as assay intercepts on a series of ore reserve sections in a report titled "La Luz Mines Limited, Rosita Mines, Nicaragua C.A., Ore Reserves" dated October 1, 1969 and written by M. J. Knuckey, the Chief Geologist at the time. Some of the better results include the following:

  • 1.15% Cu, 0.48 g/t Au over 19.8 metres
  • 1.01% Cu over 42.1 metres
  • 2.95% Cu, 0.34 g/t Au, 35.31 g/t Ag over 18.3 metres
  • 1.34% Cu over 31.0 metres
  • 2.27% Cu, 0.21 g/t Au, 30.85 g/t Ag over 16.7 metres

This new information reflects only those intercepts that are considered to have a very high probability of lying outside the historic pit boundary. The sections cover a strike length of 380 metres and mineralized intercepts occur over a vertical height of 175 metres. The sections show that the mineralization is open at depth and along strike. It should be noted that the drill logs for these holes are not available and the analytical method utilized for the core samples is unknown. Alder will twin several of these holes to test the reproducibility of the results. Alder has not yet done sufficient work to verify these historic drill results and does not intend to use this information for purposes other than planning and prioritizing exploration targets. A summary of the drill results are appended at the end of this press release as Schedule "A".

A description of the Rosita Mine operation published in a CIM Bulletin in August 1973 stated that the mine was put on a salvage basis with mining scheduled to be completed to the -19.8 metre elevation. Mining was carried out intermittently by subsequent owners, but accurate historic information has not been located. On this basis, Alder assumes the base of the pit is 30.5 metres below ground level, which is at 30.5 metres.

Joseph Arengi, President and Chief Executive Officer of Alder, stated: "Much of the early data from mining operations and subsequent exploration at Rosita has been lost or destroyed. The only information available before this discovery were plan maps of the Santa Rita and R-13 pits that illustrated assay values and drill lengths. La Luz Mines was a subsidiary of Falconbridge Nickel Mines and the work is considered to be of high quality and reliable. Finding a document like the La Luz Mines report is a major step forward in identifying high priority drill targets with a high degree of confidence."

Alder has entered into an option agreement with Calibre Mining Corp. ("Calibre") (TSX VENTURE:CXB) to acquire a 65% interest in the Rosita D concession (as disclosed in a press release issued by Alder on August 22, 2011), which hosts the historic open pit Santa Rita copper-gold-silver deposit from which 5.37 million tonnes of ore grading 2.06% Cu, 0.93 g/t Au, and 15.08 g/t Ag was extracted. The mine closed in 1975 due to low copper prices. Alder management believes that a substantial amount of Cu-Au-Ag mineralization lies both below and adjacent to the Santa Rita pit. Recent work carried out by Calibre returned trench intercepts of 1.06 g/t Au, 0.96% Cu and 9.33 g/t Ag over 12.0 metres and 3.26% Cu, 55.82 g/t Ag and 0.15 g/t Au over 8.30 metres. Historic drill intercepts from the R-13 zone, located 500 metres east of the Rosita deposit, reportedly returned up to 7.2% Cu, 0.44 g/t Au and 76.8 g/t Ag over 10.5 metres. This zone is open to depth and along strike.

The Bambana prospect, located four kilometres northwest of the Santa Rita open pit, returned intercepts of up to 0.43% Cu over 42.0 metres and 0.51% Cu and 0.25 g/t Au over 11.5 metres in two diamond drill holes completed by Calibre in 2010. A review of this area by Alder identified copper porphyry-style alteration and sulphide mineralization.

Alder has also received results from several due diligence samples collected in September 2011. These results are summarized below and confirm the presence of significant copper, gold and silver mineralization in dump material and in bench faces at the Santa Rita pit as well as at the Bambana prospect.

Area Rock Type Type Cu % Au g/t Ag g/t
Bambana pit Altered intrusive Composite grab 3.09 0.435 74.4
Bambana trench Altered intrusive Composite grab 0.02 1.345 11.7
Santa Rita pit central bench Skarn sulphides Composite grab 1.31 2.685 24.9
Santa Rita pit NW bench Andesite with sulphides Composite grab 0.01 0.058 <0.1
Santa Rita pit NE bench Marble skarn Composite grab 5.42 0.172 102.5
Santa Rita pit N Dump Waste 1m vertical channel 0.64 0.689 5.9
Santa Rita pit SE Dump Waste 1m vertical channel 0.45 2.014 4.3

Alder has begun a work program of trenching at the Bambana area and systematic detailed vertical channel sampling of the dumps. As stated in a press release dated October 20, 2011, Alder's first priority will be to validate the historic Cu-Au mineral resources on the property. The initial work program includes an evaluation of the mineralized dumps by trenching and reverse circulation drilling, testing high priority targets around the old Santa Rita and R-13 pits, trenching and drilling at Bambana and a reinterpretation of the geophysical data. Alder plans to use the results of this initial work to develop an aggressive drill program that will be designed to lead to a resource estimate.

Extension of Warrants

Alder also announced that it has extended the term of 6,030,666 common share purchase warrants (the "Warrants") that were issued as part of an offering which closed on November 25, 2009. Each Warrant is exercisable for one common share in the capital of Alder at an exercise price of $0.25 and was previously set to expire on November 25, 2011. Alder has received TSX Venture Exchange approval to extend the expiry date of the Warrants to June 30, 2012.

Qualified Person

Joseph Arengi, M. Sc., P. Geo., President and Chief Executive Officer of Alder and a qualified person under NI 43-101, has reviewed and approved the scientific and technical information in this press release.

About Alder Resources Ltd.

Alder is a resource company focused on the development of gold and base metal projects throughout Latin America. Current projects include the recently announced Rosita project in Nicaragua located 275 km northeast of Managua and the La Montanita gold property 40 km northeast of Medellin. Alder will continue to build its property position with strategic acquisitions.

Alder Resources Ltd.

Joseph Arengi, President & CEO

Cautionary Note Regarding Forward-looking Information

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding the effect of the historic drill results on the Company's understanding of the project, potential mineralization, reserve and resource determination, exploration results and future plans. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Alder, as the case may be, to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; risks associated with operation in foreign jurisdictions; ability to successfully integrate the purchased properties; foreign operations risks; and other risks inherent in the mining industry. Although Alder has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward- looking information. Alder does not undertake to update any forward-looking information, except in accordance with applicable securities laws.



Section Hole ID Angle %Cu Au gpt Ag gpt True Width(m) Ele. (m)
18.7 NQ-17 -45 0.45 29.1 51.8
R-101 -66 0.41 37.7 85.4
18.8 NQ-11B -51 1.15 0.48 19.8 30.5
R-168 -45 0.86 8.0 62.5
18.9 NQ-14 -45 0.56 31.4 48.8
19.0 NQ-3 -67 0.60 12.8 64.0
NQ-12 -61 0.54 24.4 189.0
R-167 -45 1.19 15.2 100.6
19.1 R-99 90 0.35 15.2 121.9
19.2 NQ-1 -47 1.01 42.1 67.1
NQ-2 90 0.87 18.3 137.2
NQ-5 -69 0.63 21.3 109.7
19.3 R-72 90 2.95 0.34 35.31 18.3 89.9
R-74 90 1.05 12.2 140.2
R-77 90 0.39 4.6 161.6
19.4 NQ-7 -51 1.34 31.0 57.9
NQ-10 -59 0.84 4.6 164.6
2.27 0.21 30.85 16.7 204.3
R-58 -59 0.82 6.4 39.6
19.5 NQ-19 -61 0.54 10.7 70.1

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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