Alhambra Resources Ltd.
TSX VENTURE : ALH
PINK SHEETS : AHBRF
FRANKFURT : A4Y

Alhambra Resources Ltd.

October 22, 2010 08:00 ET

Alhambra Begins Drilling Program at North Balusty

CALGARY, ALBERTA--(Marketwire - Oct. 22, 2010) - Alhambra Resources Ltd. (TSX VENTURE:ALH)(PINK SHEETS:AHBRF)(FRANKFURT:A4Y) ("Alhambra" or the "Corporation") is pleased to announce that it has begun its fall drilling program on its 100% owned North Balusty Project Area ("North Balusty") (see location map, Figure 1).

The objective of the 2010 exploration program at North Balusty is to check the origin of the gold anomalies established by trenching completed in 2005 and 2007 and to estimate the entire width of the mineralized zone.

Mr. John J. Komarnicki, Alhambra's Chairman and Chief Executive Officer stated, "Given the close proximity of North Balusty to our 2010 priority project area of Dombraly which is located only 7 kilometres away, we are excited about continuing our drilling program which will help us to understand the significant gold trend that extends from the gold mineralization exposed on the southern flank of our license area at Shirotnaia, through Kerbay, Dombraly, and up to the gold mineralization exposed at North Balusty."

The drilling program at North Balusty will consist of approximately 2,000 meters ("m") of hydro-core lift ("KGK") drilling focused on the most promising of three target areas (see Figure 2).

As a result of previously conducted exploration programs in 2005 through 2007, a 12.8 kilometre ("km") long and up to 2.5 km wide zone of gold anomalism in alluvium and saprolitic rocks was established. It consists of numerous wide individual anomalies ranging from several metres to tens of metres where the gold grade exceeds 0.1 grams per tonne gold ("g/t Au"). In three potential target areas the concentration of anomalies is higher and the gold grades reach 0.5 g/t in rotary air-blast ("RAB") holes. Trenching in the same areas have returned the best intercepts of 30 m @ 0.4 g/t Au, 9 m @ 0.76 g/t Au and 6 m @ 0.36 g/t Au.

Contingent on drill results, approximately 900 m of reverse circulation ("RC") holes are planned for 2011 with the objective to check possible mineralized zones established by KGK drilling.

Alhambra will announce the results of this drill program upon receipt and interpretation of drill assays.

As a part of Alhambra's 11,000 square kilometre ("km2"), mineral license, the Corporation controls at least 50 kms of a rapidly emerging significant gold trend that extends from the gold mineralization exposed at North Balusty in the north to Shirotnaia in the south and includes the Dombraly gold deposit and gold mineralization exposed at Kerbay (see Figure 3 and previous news releases made by Alhambra regarding Dombraly, Shirotnaia and Kerbay). This gold trend extends south of Alhambra's license and hosts the multi-million ounce Aksu and Quartzite Hills gold deposits held by KazakhGold Group Limited located approximately 3 kms southeast of Alhambra's Shirotnaia Project.

ABOUT NORTH BALUSTY

North Balusty is one of Alhambra's 2010 early stage exploration targets within the Corporation's 100% owned Uzboy Project located in north central Kazakhstan. North Balusty is located approximately 90 kms southeast of Alhambra's Uzboy gold deposit and 60 kms northwest of the city of Stepnogorsk, Alhambra's Kazakhstan operating base.

ABOUT ALHAMBRA

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 Northern Kazakhstan Metallogenic Province 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 Pink Sheets 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 www.alhambraresources.com.

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 or events described in this news release should be reviewed as forward-looking statements to the extent they involve estimates thereof.

Such forward looking statements including but without limitation, future investment decisions regarding securities of the Corporation 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, inability to outline the mineralization of the entire zone, a follow-up drill program, 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 events or results to differ materially from those described in forward-looking statements, there may be factors that cause actions, events or results not to be as anticipated, estimated of 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 should these beliefs, estimates and opinions or other circumstances change, except as required by applicable law. Investors are cautioned that such forward-looking statements involve risks and uncertainties. The forward-looking statements contained herein are expressly qualified by this cautionary statement.

To view the Figures associated with this press release, please visit the following link: http://media3.marketwire.com/docs/alh_10_22_2010_figures.pdf

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

Contact Information

  • Alhambra Resources Ltd.
    Ihor P. Wasylkiw
    VP & Chief Information Officer
    +1 (403) 508-4953
    or
    Alhambra Resources Ltd.
    John J. Komarnicki
    Chairman & CEO
    +1 (403) 228-2855
    +1 (403) 228-2865 (FAX)
    www.alhambraresources.com