Alhambra Resources Ltd.
TSX VENTURE : ALH

Alhambra Resources Ltd.

February 28, 2011 08:00 ET

Alhambra Resources Ltd. Announces 2011 Corporate Objectives-Plans to Expand Exploration and Production

CALGARY, ALBERTA--(Marketwire - Feb. 28, 2011) - Alhambra Resources Ltd. (TSX VENTURE:ALH) ("Alhambra" or the "Corporation"), an international gold producer and explorer, announces a number of key 2011 objectives for the Corporation's mining operations located in north central Kazakhstan.

HIGHLIGHTS

  • Increase current NI 43-101 compliant resources,
  • Increase economic value,
  • Significantly expand the exploration program,
  • Advance numerous other early stage exploration projects,
  • Improve operational efficiencies,
  • Finalize the possibility of dual listing Alhambra's common shares on an Asian stock exchange.

"2010 was a very busy year for us", stated John J. Komarnicki, Alhambra's Chairman and CEO. "We re-initiated an aggressive drilling program targeting six of our project areas. Our mining operations were thoroughly reviewed with specific recommendations made which we believe will lead to increased efficiency in 2011. We completed our 2010 drilling program and are currently drilling at Uzboy and Shirotnaia. We will finalize our 2011 exploration program once all of our 2010 drill samples have been assayed and interpreted. An updated resource report is planned for completion by the end of March. We also expect two additional new resource reports to be delivered by year end 2011. Increasing resources and ramping up production continue to be our cornerstones for growth through 2011."

DETAILS - 2011 CORPORATE OBJECTIVES

  • Increase current NI 43-101 compliant resources. By year end 2011, Alhambra anticipates it will have three National Instrument ("NI") 43-101 compliant resource reports for its projects, the Uzboy gold deposit ("Uzboy"), Dombraly and Shirotnaia. Currently, a NI 43-101 resource report exists for Uzboy. Alhambra anticipates that by March 31, 2011, the Uzboy resource report will be updated by Alhambra's independent geological consultants, ACA Howe International Ltd. ("Howe"). It is anticipated that new NI 43-101 resource reports for Dombraly and Shirotnaia will be completed in the second half of 2011.
  • Increase economic value. A Preliminary Economic Assessment (i.e. Scoping Study) dated December 10, 2009, based on Alhambra's NI 43-101 resource report dated June 2, 2008, having an effective date of December 31, 2007, valued the resources at Uzboy at a gold price of US$850/oz. This Scoping Study, being updated by Howe, will be based on the updated Uzboy NI 43-101 resource report with a valuation based on current gold prices. The updated Scoping Study is anticipated to be completed by March 31, 2011.
  • Expand the exploration program. Alhambra anticipates implementing an exploration program, subject to sufficient cash flow and suitable financing, which could range from two to three times larger than the exploration program completed in 2010. Drilling will be focused on the three advanced exploration areas of Uzboy, Dombraly and Shirotnaia, as well as the four early stage exploration areas of Kerbay, North Balusty, Zhanatobe and Vasilkovskoe East.
  • Advance numerous other early stage exploration projects. In addition to Alhambra's advanced and early stage exploration areas, the Corporation has an inventory of approximately 100 other gold targets. These gold targets are areas of anticipated high potential. It is anticipated that a number of these targets will be assessed further in 2011.
  • Improve operational efficiencies. In 2010, a number of operational recommendations were made regarding changes to Alhambra's mining operations. This is anticipated to lead to increased efficiency in gold recovery in 2011. These operational recommendations include placing emitters on side slopes to decease inventory of gold as well as re-leaching rested older areas of the heaps, heating the leach pad solution for longer periods of time to reduce the impact of freezing, and crushing the harder deeper ores to improve leach recovery.
  • Finalize the possibility of dual listing Alhambra's common shares on an Asian stock exchange. In early November 2010, Alhambra executed an engagement letter with CITIC Securities Corporate Finance (HK) Limited ("CITIC") to act as the Corporation's financial advisor and to assess the feasibility of seeking a dual listing of Alhambra's common shares on an Asian stock exchange. CITIC continues to assess this situation.

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 gold targets, including five advanced exploration plays 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 that Alhambra will be successful in having various projects completed in 2011 leading to increased resources, increased economic value and improved operating efficiencies, availability of capital to fund an expanded exploration 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, availability of capital to fund an expanded exploration program; political, social and other risks inherent in carrying on business in a foreign jurisdiction, 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.

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
    www.alhambraresources.com