Alhambra Resources Ltd.

Alhambra Resources Ltd.

May 17, 2010 07:00 ET

Alhambra Announces Exploration Updates at Zhanatobe

CALGARY, ALBERTA--(Marketwire - May 17, 2010) - Alhambra Resources Ltd. (TSX VENTURE:ALH) ("Alhambra" or the "Corporation") is pleased to provide an exploration update at its 100% owned Zhanatobe project area ("Zhanatobe"). Zhanatobe is one of Alhambra's 2010 early stage exploration targets within the Corporation's 100% owned, 2.7 million acre, Uzboy Project located in north central Kazakhstan (see Figure 1). Zhanatobe is located within the Mamay block approximately 90 kilometres ("kms") southeast of Alhambra's Uzboy gold deposit and 40 kms northwest of the city of Stepnogorsk, Alhambra's Kazakhstan operating base.

Zhanatobe is underlain by Middle Ordovician volcano-sediment sequence, truncated by several intrusion complexes of Late Ordovician to Devonian age. There are several multi-million ounce Orogenic deposits in the district that are genetically related to the same Late Ordovician intrusive complex. Zhanatobe's gold mineralization is represented by the small effectively mined out Zhanatobe deposit (see Figure 2) belonging also to the Orogenic intrusion related mineralization style.

Mapping and surface rock chip sampling carried out in 2009 have outlined two zones measuring 12 kms by 3 kms and 10 kms by 2 kms with a high density of anomalous gold concentrations (above 70 parts per billion gold ("ppb Au")) in volcano-sediment rocks. There are several clusters of higher (+0.1 grams per tonne ("g/t") Au) grade rock chip samples inside both anomalous zones as two of them, the Northern and Central Areas (see Figure 2 and 3), look the most prospective, demonstrating not only high peak grades (34.4 g/t and 11.5 g/t Au respectively) but also consistent spatial distribution of the rock samples graded more than 0.1 g/t Au. As established by geological mapping, most of the anomalous samples are related to sets of quartz veins and silicification zones, some of them up to 520 metres ("m") long and 180 m wide. Fragments of opaline-jarosite silica cap were also mapped in the Central Area. They could indicate the presence of additional, epithermal style gold mineralization, which is supported by elevated silver grades.

The objective of the 2010 exploration program at Zhanatobe is to determine the shape and size of the gold mineralization as well as the grade consistency. Drilling will be done in phases, allowing for the evaluation of analytical data before proceeding with the next phase of the program. Approximately 15 lines of rotary air-blast ("RAB") drilling amounting to 465 drill holes are anticipated to be completed in the second half of 2010 in both the Northern and Central Areas of Zhanatobe. Given positive results, this will be followed up with additional reverse circulation ("RC") drilling.

A full project description for Zhanatobe including geological setting, history and drilling results will be made available via the Corporation's website under the tab "Uzboy Project – Project Summaries".


Alhambra is a Canadian based international exploration and gold production corporation celebrating its eighth year of operations in the Republic of Kazakhstan. Alhambra holds exploration and exploitation rights to a 2.7 million acre (11,000 km2), 100% owned, license called the Uzboy Project, located in the prolific Charsk Gold Belt which hosts numerous world-class gold deposits. Over 100 mineral targets, including 5 advanced exploration areas are contained within the Uzboy Project.

Alhambra common shares trade in Canada on The TSX Venture Exchange under the symbol ALH, in the United States on the Over-The-Counter Market under the symbol AHBRF and in Germany on the Frankfurt Open Market under the symbol A4Y. The Corporation's website can be accessed at

Elmer B. Stewart, MSc. P. Geol., a technical consultant, is the Corporation's nominated Qualified Person. Mr. Stewart has reviewed the technical information contained in this news release.

Forward-Looking Statements

Certain statements contained in this news release constitute "forward-looking statements" as such term is used in applicable Canadian and US securities laws. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. In particular, statements concerning the anticipated exploration drilling program and other factors and events described in this news release should be viewed as forward-looking statements to the extent that they involve estimates thereof. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans, "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and should be viewed as "forward-looking statements". Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, costs and timing of exploration, availability of capital to fund exploration; political, social and other risks inherent in carrying on business in a foreign jurisdiction, the effects of a recessionary economy and such other business risks as discussed herein and other publicly filed disclosure documents. Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could vary or differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release.

Forward looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Corporation undertakes no obligation to update forward-looking statements and if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.

This news release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. When used herein, words such as "intended" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on assumptions by and information available to the Corporation. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Actual results may differ materially from those currently anticipated. The forward-looking statements contained herein are expressly qualified by this cautionary statement.

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Contact Information

  • Alhambra Resources Ltd.
    Ihor P. Wasylkiw
    VP & Chief Information Officer
    +1 (403) 508-4953
    Alhambra Resources Ltd.
    John J. Komarnicki
    Chairman & CEO
    +1 (403) 228-2855