Alhambra Resources Ltd.
TSX VENTURE : ALH

Alhambra Resources Ltd.

October 18, 2005 06:00 ET

Alhambra Plans to Conduct Advanced Exploration at Dombraly Zone

CALGARY, ALBERTA--(CCNMatthews - Oct. 18, 2005) - Alhambra Resources Ltd. (TSX VENTURE:ALH) is pleased to provide preliminary results on nine diamond drill holes ("DDH") completed below the bottom of the former Dombraly open pit mine located within the Uzboy gold project in north central Kazakhstan.

The diamond drilling has confirmed the historical exploration data related to oxide and primary gold mineralization that remained in the Dombraly deposit after completion of the previous mining activities. Historical information indicates that the Dombraly deposit was mined to a depth of 60 metres utilizing a 3.0 g/t gold cutoff grade. The drilling completed in 2005 demonstrated that the oxide zone extends to an average depth of 120 metres and that primary gold mineralization extends to depth below the zone of oxidization. Additional diamond drilling is required to define the vertical and horizontal limits of the zone of primary gold mineralization.

The results of the diamond drilling included in this news release and the metallurgical test work (see news release dated June 27th, 2005) will be included in a detailed technical report (the "Report") prepared by an independent geological engineering company certified by the Government of Kazakhstan in compliance with the requirements of the Republic of Kazakhstan. This Report is expected to be completed in December 2005 and submitted to the relevant government authorities to support an application to obtain a mining allotment covering the former Dombraly open pit mine and surrounding area. Subject to the review and approval of the Report by the relevant Kazakhstan government authorities and receipt of a mining allotment, an advanced exploration program including the commencement of a large scale "semi-industrial" mining and heap leach test as required under laws of the Republic of Kazakhstan is planned for the Dombraly zone in 2006.

The results presented below are based on atomic absorption analysis. Fire assaying of samples from within the mineralized intervals will also be completed. Highlights are as follows:

The weighted average grade (using a 0.2 g/t cutoff) of the mineralized core intervals completed under the Dombraly Deposit are outlined below.



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Average Mineral-
DDH # Dip Azimuth Section From To Interval Grade ization
(m) (m) (m) g/t
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DDH-16-01 -60 270 16 0 35 35 1.75 Oxide
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70 92 22 4.79 Oxide
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DDH-16-02 -60 270 16 128 138 10 8.65 Primary
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DDH 24-01 -60 270 24 133 136 3 9.26 Oxide
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153 165 12 0.79 Transition
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DDH-28-01 -60 270 28 115 134 19 2.41 Oxide
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DDH 32-01 -60 270 32 Not
Drilled
---------------------------------------------------------------------
DDH-32-02 -60 270 32 128 137.7 9.7 4.93 Oxide
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DDH-32-03 -60 270 32 179 183 4 2.69 Primary
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DDH 40-01 -60 270 40 168 182 14 0.97 Primary
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DDH 40-02 -60 270 251 278 27 5.07 Primary
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DDH 40-03 -60 270 315 327 12 2.35 Primary
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The locations of the diamond drill holes reported in this new release are shown in Figure -1. The mineralized zone has been tested by diamond drilling over a horizontal distance of 240 metres and to a maximum depth of 260 metres on section 40. A preliminary interpretation of the drilling results indicates that the mineralized zone plunges to the north and is open along strike to the north and south and down dip. The primary gold mineralization occurs in white metasomatic altered rocks characterized by coarse grained disseminated pyrite.

The length of the mineralized interval in DDH-32-02 is open at depth. Additional sampling is being completed to close this interval.

Sampling Procedures:

Sample preparation and atomic absorption analysis was completed by Chemical and Analytical Laboratory Quartz LLP located in Stepnogorsk using the following procedure: core samples were pulverized in a jaw crusher to minus 1mm, mixed and split into two 0.75 kilogram sub-samples. One sub-sample is ground to - 200 mesh and the other sub-sample is retained for reference purposes. A 10 gram sample of the -200 mesh material is used for atomic absorption analysis and the balance is retained for fire assaying and reference purposes. Chemical and Analytical Laboratory Quartz is certified in the Republic of Kazakhstan but does not have an International Standard Organization rating.

Alhambra follows a rigorous Quality Assurance/Quality Control program consisting of inserting standards, blanks and duplicates into the sample stream submitted to the laboratory for fire assay.

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.

This document contains statements about expected or anticipated results that are forward looking in nature and, as a result, are subject to certain risks and uncertainties, such as technical issues, new legislation, competitive and general economic factors and conditions, uncertainties resulting from potential delays, changes in plans, the occurrence of unexpected events and the Corporation's capability to execute and implement its future plans. Actual results may differ materially from those projected by management. For such statements, we claim the safe harbor for future looking statements within the meaning of the Private Securities Legislation Reform Act of 1995.

Click the link below to see the 2005 Diamond Drill Holes Locations - Dombraly Zone

http://www.ccnmatthews.com/docs/almap.pdf

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • 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