Alhambra Resources Ltd.
TSX VENTURE : ALH

Alhambra Resources Ltd.

April 28, 2011 08:00 ET

Alhambra Resources Ltd. Announces Drilling Results Expand Shirotnaia Gold Mineralization

CALGARY, ALBERTA--(Marketwire - April 28, 2011) - Alhambra Resources Ltd. (TSX VENTURE:ALH) ("Alhambra" or the "Corporation"), an international gold producer and explorer, announces reverse circulation ("RC") drilling results from its 100% owned advanced exploration drilling target at the Shirotnaia project area ("Shirotnaia"). The recent 43 hole RC drilling program has expanded the 2007/2010 core drilling defined area of gold mineralization and has provided new priority targets for immediate core drilling follow-up.

Prior to 2010, previous drilling at Shirotnaia had identified a large gold anomaly and significant gold mineralization with a high peak gold grade of up to 51.6 g/t (see news release dated March 4, 2010). In addition, two significant widths of higher-grade gold mineralization were encountered within a large area of lower grade gold mineralization, suggesting the probable continuation of the higher-grades to depth typical of this orogenic style of mineralization. Core drilling reported in January, 2011 (see News Release dated January 5, 2011) yielded very encouraging results both in widths and gold grade.

Shirotnaia is located within Alhambra's 100% owned Uzboy Project in Kazakhstan (see location map, Figure 1) and is immediately adjacent to the world-class Aksu and Quartzite Hills gold deposits currently being mined by KazakhGold Group Limited ("KazakhGold").

HIGHLIGHTS

--  The successful RC drilling program confirmed the presence of gold
    mineralization outside the boundaries of that previously known, 
--  Broad intervals of anomalous gold concentrations (for +0.15 g/t) were
    intersected in 34 of 43 holes drilled, 
--  Petrological studies indicate this is the top of the mineralized system
    and higher-grades are anticipated at depth, 
--  A link was established between previous successful core drilling
    programs which proved the existence of at least one continuous and
    significant higher-grade mineralized zone. 

DRILLING PROGRAM

The RC drilling program completed consisted of 43 holes totaling 2,250 metres ("m"), averaging 52 m (see Figure 2). The objective of this program was to drill the north-east extension of the mineralization, thus furthering the understanding of the geometry of the large zone of anomalous gold mineralization. This program provided new targets for further core drilling. However, to ensure sample quality where high groundwater flows were encountered, the RC holes were drilled generally shallower than planned.

Many wide, low grade, zones of oxide gold mineralization were encountered by the RC drilling program. Petrological studies indicate that this is the very top of the mineralized system. Furthermore, in this district, hypogene gold grades are typically higher than the surface supergene grades. Hence, higher grades of gold mineralization are anticipated at depth, in planned future follow-up drilling programs. A link was also established between the successful 2007 and the 2010 core drilling programs which proved the existence of at least one continuous 1,000 m long by 15-30 m wide higher-grade mineralized zone.

A completed geochemical study from results of fire assay and inductivity coupled plasma ("ICP") analyses of the 323 samples, taken from diamond drill holes DDH 32-02 and DDH 100-02 drilled in 2010 at Shirotnaia, concluded that:

--  The hydrothermal process in the area was developed in three major stages
    but gold was mostly concentrated at the latest one, producing typical
    epizonal orogenic style mineralization including concentrated Au, Ag,
    Pb, Sb, Hg and less Zn. Sulfides and sulfosalts are associated with
    silicification. 
--  Mesothermal and epithermal style alterations at the same level implies
    telescoping of the alteration zones suggesting a long-lived hydrothermal
    system typical of world class districts. 
--  The Hg, Sb and gold association suggests a very high level of the
    hydrothermal system and possible preservation of most of the
    mineralization. 
Table 1 - Summary Shirotnaia RC Drilling Results                            
----------------------------------------------------------------------------
                                                                     Minera-
                                                      Inter-   Grade   liza-
                            Azi-         From     To     val      Au    tion
Section RCH#     Length     muth  Dip     (m)    (m)     (m)   (g/t)    Type
----------------------------------------------------------------------------
        RCS                                                                 
86      86-05        44      150  60     9.00  18.00    9.00    0.30   Oxide
----------------------------------------------------------------------------
        RCS                                                                 
        86-06        56      150  60    16.00  17.00    1.00    2.58   Oxide
----------------------------------------------------------------------------
        RCS                                                          Transi-
100     100-01      147      150  60    29.00  35.00    6.00    0.46    tion
----------------------------------------------------------------------------
                                                                      Sulfi-
                                       110.00 119.00    9.00    0.63      de
----------------------------------------------------------------------------
        RCS                                                                 
        100-02       39      150  60    19.00  27.00    8.00    0.27   Oxide
----------------------------------------------------------------------------
        RCS                                                                 
        100-03       44      150  60    11.00  26.00   15.00    0.26   Oxide
----------------------------------------------------------------------------
        RCS                                                                 
120     120-02       33      150  60     9.00  19.00   10.00    0.33   Oxide
----------------------------------------------------------------------------
        RCS                                                          Transi-
        120-04       42      150  60    35.00  42.00    7.00    0.42    tion
----------------------------------------------------------------------------
        RCS                                                                 
        120-06       50      150  60    14.00  20.00    6.00    0.51   Oxide
----------------------------------------------------------------------------
        RCS                                                          Transi-
        120-07       45      150  60    15.00  45.00   30.00    0.21    tion
----------------------------------------------------------------------------
                       including        15.00  18.00    3.00    0.64   Oxide
----------------------------------------------------------------------------
        RCS                                                                 
        120-08       48      150  60     5.00  21.00   16.00    0.22   Oxide
----------------------------------------------------------------------------
        RCS                                                                 
86      86-01        31      150  60    20.00  25.00    5.00    0.28   Oxide
----------------------------------------------------------------------------
        RCS                                                          Transi-
        86-02        57      150  60    31.00  52.00   21.00    0.21    tion
----------------------------------------------------------------------------
        RCS                                                          Transi-
        86-04        61      150  60    26.00  35.00    9.00    0.18    tion
----------------------------------------------------------------------------
        RCS                                                                 
72      72-02        65      150  60     0.00  14.00   14.00    0.45   Oxide
----------------------------------------------------------------------------
                       including        10.00  13.00    3.00    1.33   Oxide
----------------------------------------------------------------------------
                                                                     Transi-
                                        39.00  65.00   26.00    0.41    tion
----------------------------------------------------------------------------
        RCS                                                          Transi-
        72-03        76      150  60    26.00  39.00   13.00    0.30    tion
----------------------------------------------------------------------------
        RCS                                                          Transi-
        72-05        52      150  60    42.00  52.00   10.00    0.20    tion
----------------------------------------------------------------------------
        RCS                                                                 
60      60-01        43      150  60     0.00   7.00    7.00    0.20   Oxide
----------------------------------------------------------------------------
        RCS                                                                 
        60-02        31      150  60     0.00  16.00   16.00    1.23   Oxide
----------------------------------------------------------------------------
        RCS                                                                 
56      56-01        31      150  60    20.00  24.00    4.00    0.32   Oxide
----------------------------------------------------------------------------
        RCS                                                                 
        56-04        46      150  60    15.00  29.00   14.00    0.20   Oxide
----------------------------------------------------------------------------
        RCS                                                          Transi-
        56-05        73      150  60    25.00  35.00   10.00    0.17    tion
----------------------------------------------------------------------------
        RCS                                                                 
42      42-02        44      150  60    14.00  21.00    7.00    0.20   Oxide
----------------------------------------------------------------------------
        RCS                                                                 
        42-04        52      150  60     0.00   6.00    6.00    0.28   Oxide
----------------------------------------------------------------------------
                                                                     Transi-
                                        16.00  33.00   17.00    0.18    tion
----------------------------------------------------------------------------
        RCS                                                                 
36      36-01        30      150  60    20.00  27.00    7.00    0.43   Oxide
----------------------------------------------------------------------------
        RCS                                                                 
24      24-01        28      150  60     3.00   8.00    5.00    0.38   Oxide
----------------------------------------------------------------------------
                                        11.00  15.00    4.00    0.58   Oxide
----------------------------------------------------------------------------
                                        19.00  22.00    3.00    0.55   Oxide
----------------------------------------------------------------------------
        RCS                                                                 
4       04-01        35      150  60     2.00  15.00   13.00    0.42   Oxide
----------------------------------------------------------------------------
        RCS                                                                 
12      12-01        22      330  60     5.00  13.00    8.00    0.47   Oxide
----------------------------------------------------------------------------
The intervals set out in the above table are not true widths and the assay  
results are uncut.                                                          

The drill results at Shirotnaia support the interpretation that the three zones of gold mineralization are the northern extension of the multi-million ounce Aksu and Quartzite Hills deposits. The combination of the hydrothermal alteration style and distinct zones of widespread gold mineralization supports a significantly expanded exploration program in 2011.

Upon completion of the planned 2011 drilling program, Alhambra anticipates that a National Instrument ("NI") 43-101 resource report will be completed for Shirotnaia by year-end 2011.

REVERSE CIRCULATION DRILLING AND SAMPLING PROCEDURES

Standard RC drilling technique was utilized and sample recovery was excellent. The rock chips coming to the cyclone through dual tube were split using a riffle splitter by the drilling contractor under the supervision of the Corporation's geologists. Every meter of hole was sampled. The average sample weight was 5 kilograms.

Sample preparation was completed by Stewart Assay and Environmental Laboratories located in Kyrgyzstan using the following procedure: samples were crushed to minus 2 mm, mixed and split into two 200 gram sub-samples. One sub-sample was pulverized to - 200 mesh and the other sub-sample was retained for reference purposes. A 30 gram sample of the -200 mesh material was used for fire assay atomic absorption finish. Stewart Assay and Environmental Laboratories is independent of Alhambra and does have an International Standard Organization ("ISO") 17025 accreditation.

QUALITY ASSSURANCE QUALITY CONTROL

The Kyrgyzstan Stewart Assay and Environmental Laboratories, as a part of Stewart Group, have stringent quality assurance and quality control ("QA/QC") procedures. Alhambra also follows a rigorous QA/QC program consisting of inserting standards, blanks and duplicates into the sample stream submitted to the laboratory for analysis to ensure that the sampling and analysis of all samples is conducted in accordance with the best possible practices.

Elmer B. Stewart, MSc. P. Geol., a technical consultant, is the Corporation's nominated Qualified Person as defined by National Instrument 43-101, and has reviewed and verified the technical information contained in this news release.

ABOUT SHIROTNAIA

Shirotnaia is one of Alhambra's 2011 advanced drilling targets within the Corporation's 100% owned, 2.4 million acre (9,800 km2), Uzboy Project located in north central Kazakhstan. The Shirotnaia gold discovery is located approximately 3 kilometres ("kms") northeast of the KazakhGold Group Limited ("KazakhGold") mining allotment which hosts the Aksu and Quartzite Hills gold deposits having reported resources of approximately 15 million ounces(1). The large target area of Shirotnaia, as indicated by gold soil anomaly, measures approximately 3.4 kms by 1.5 kms and is contained within the even larger original target area of 10.0 kms by 2.0 kms which remains to be explored by more modern methods. More details about the project geology and the previous exploration results are available on the Corporation's website.

(1) As per KazakhGold's Annual Report & Accounts for the period January 1 to
December 31, 2006                                                           

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 2.4 million acre (9,800 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 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.

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 2011 exploration drilling program, higher grades of gold mineralization anticipated at depth 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, lack of certainty that additional drilling will result in higher grades of gold mineralization at depth or that additional drilling will locate additional gold mineralization, timing to complete the drilling program, availability of capital to fund exploration; 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.

To view Figure 1 "Uzboy Project" and Figure 2 "Shirotnaia 2010 Reverse Circulation Drilling Results", please visit the following link:

http://media3.marketwire.com/docs/alh_fgs_428.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

    Alhambra Resources Ltd.
    John J. Komarnicki
    Chairman & CEO
    +1 (403) 228-2855
    www.alhambraresources.com