Alhambra Resources Ltd.

Alhambra Resources Ltd.

March 21, 2005 06:00 ET

Alhambra Commences US$3.5 Million Exploration Program at Uzboy


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ALHAMBRA RESOURCES LTD.

TSX VENTURE SYMBOL: ALH

MARCH 21, 2005 - 06:00 ET

Alhambra Commences US$3.5 Million Exploration Program
at Uzboy

CALGARY, ALBERTA--(CCNMatthews - March 21, 2005) - Alhambra Resources
Ltd. (TSX VENTURE:ALH) is pleased to announce that following the
successful completion of its financings outlined in news releases dated
February 25th, and February 28th 2005, it has commenced a US$3.5 million
exploration program on its 100% owned Uzboy Gold Project located in
north central Kazakhstan. The proposed exploration program includes a
minimum of 15,000 metres of diamond drilling, 33,000 metres of reverse
air blast circulation drilling and 50,000 cubic metres of trenching.
Alhambra's licenses cover approximately 2,700,000 acres and are located
between the Vasilkovoskya gold deposit to the northwest and the Aksu
gold deposit to the southeast.

The 2005 exploration program will focus on the Uzboy, Dombraly,
Kerby-Shirtonaia and Stepniak areas located within the Uzboy Gold
Project. Fifty of the previously located 110 gold showings defined by
historical exploration conducted by Soviet exploration groups occur
within these areas that cover approximately 20% of Alhambra's total area
held pursuant to the licenses. The Corporation has not attempted to
either confirm or verify the historical exploration results for the gold
showings previously outlined in Uzboy Gold Project. In addition, none of
the historical exploration results have been reviewed by an independent
Qualified Person, nor has any of this historical information been
audited by an independent Qualified Person, and this information may not
conform to the Canadian Institute of Mining and Metallurgy and petroleum
("CIMM") standard of reporting pursuant to the requirements under
national Instrument 43-101. Approximately 250 kilometres of strike
length of three regional scale mineralized trends occurs within the
project area. The Vasilkovoskya gold deposit is located approximately 10
kilometres west of the project and is hosted in the east-west striking
Shatskaya trend that crosses the northern part of the Uzboy project. The
north-south striking Aksu-Bailusti trend crosses the east side of the
property and hosts the Aksu gold deposits which are located
approximately three kilometres south of the Uzboy project. The third
trend referred to as the Atnsor tend crosses the property in the
vicinity of the Stepniak mine, a former gold producer. As set out in the
preliminary assessment report prepared by ACA Howe International Limited
dated March 31, 2003, the Stepniak mine is reported to have been
previously mined to a depth of 400 metres and 25 tonnes (approximately
800,000 ozs) of gold.

The Uzboy area comprises the Uzboy West, Uzboy East and the Northeast
zones of gold mineralization that occur within an area that measures
approximately 1,600 metres long by 600 metres wide and 17 additional
gold showings defined by historical exploration that occur over a
horizontal distance of 20 kilometres. The main objective of the 2005
exploration program is to diamond drill the primary gold mineralization
that occurs below the oxide gold mineralization in the Uzboy west and
Uzboy east zones. The work completed by Alhambra since 2002, was focused
on the oxidized portion of the mineralization in the Uzboy West and
Uzboy East zones. This work has outlined the surface dimensions of the
Uzboy west zone over a horizontal distance of 450 metres along strike
and ranges from 80 metres wide in the northeast end to 150 metres wide
on the southwest end. Similarly, the Uzboy east zone has been defined on
surface over a distance of 900 metres and ranges in width from 70 to 150
metres. A minimum of 10,000 metres of diamond drilling are planned for
the Uzboy west and Uzboy east zones.

The Dombraly area is located within the north-south striking
Aksu-Bailusti mineral trend that hosts the Aksu gold deposits located
approximately 3 kilometres south of the Uzboy Gold Project. The primary
area for exploration in this area is the former Dombraly open pit mine
and the 1,700 metre long area north and south of the existing open pit.
Diamond drilling and column leach tests on the oxide gold mineralization
exposed in the open pit are planned in 2005. Exploration is also planned
within a 10 kilometre radius of the Dombraly open pit.

The Kerby-Shirtonaia area is also located within the north-south
striking Aksu-Bailusti mineral trend. At Kerby, historical exploration
has outlined multiple gold in soil anomalies that occur within an area
that measures (at a 0.3 g/t cutoff contour) approximately 4,000 metres
long by 250 metres wide. At Shirtonaia, historical exploration
consisting of trenching, reverse air blast circulation drilling and soil
sampling has outlined a zone of gold mineralization that measures
approximately 1,500 metres long and 50 metres wide. Trenching, reverse
air blast circulation drilling and KKK drilling are planned in these
areas to define potential targets for diamond drilling.

In the Stepniak area, preliminary exploration consisting of trenching
and reverse air blast circulation drilling is planned on 22 gold
showings previously defined by historical exploration located in the
area around the former Stepnyak gold mine to outline potential targets
for diamond drilling.

Diamond drilling results will be reported on an ongoing basis.

Elmer B. Stewart, MSc. P. Geol., President of Alhambra, is the Company's
nominated Qualified Person responsible for monitoring the supervision
and quality control of the exploration programs completed on the Uzboy
Property. Mr. Stewart has reviewed and verified the technical
information contained in this news release.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Alhambra Resources Ltd.
    Elmer B. Stewart
    President & Chief Operating Officer
    (403) 228-2855
    or
    Alhambra Resources Ltd.
    Jim Clarke
    Investor Relations
    Toll Free: 1-888-290-1335
    The TSX Venture Exchange Inc. has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this news release.