Alhambra Resources Ltd.
TSX VENTURE : ALH

Alhambra Resources Ltd.

February 23, 2011 08:00 ET

Alhambra Resources Ltd.: Exploration Drilling Update- More than 10,300 Metres Drilled in 4Q10

CALGARY, ALBERTA--(Marketwire - Feb. 23, 2011) - Alhambra Resources Ltd. (TSX VENTURE:ALH) ("Alhambra" or the "Corporation"), an international gold producer and explorer, announces today an update for the Corporation's fourth quarter 2010 drilling activities on its 100% owned Uzboy Project in Kazakhstan (see Figure 1).

HIGHLIGHTS

  • During the fourth quarter of 2010 more than 10,300 metres of core, RC and KGK drilling was completed at Uzboy, Shirotnaia, Dombraly and North Balusty,
  • Core drilling at Uzboy was focused on the delineation of additional oxide and sulphide gold mineralization,
  • Core and RC drilling conducted at Shirotnaia and Dombraly focused on determining the parameters of gold mineralization,
  • Core drilling at Uzboy and Shirotnaia continues.

EXPLORATION DRILLING UPDATE

1. Uzboy

Diamond core drilling was completed at Uzboy targeting shallow near surface oxide mineralization as an extension of the known oxide mineralization and continued at depth to test for additional sulphide gold mineralization. Twenty seven holes totaling 3,239 metres ("m") were drilled (see Figure 2). Numerous intervals of intense hydrothermal alteration, pervasive silicification, quartz veinlets and sulfide mineralization were intersected. The deeper holes confirmed the presence at depth of zones of strong sulphide mineralization. Assay results are pending.

2. Dombraly

At Dombraly, seven core holes totaling 1,995 m were completed in the fourth quarter (see Figure 3). These holes confirmed the continuation of previously established zones of hydrothermal alteration, quartz veining and pyritic mineralization to the north and south.

A reverse circulation ("RC") drilling program including the drilling of the waste pile, the open pit back fill material and the possible extension of oxide mineralization northward of the open pit was also completed. Assay results are pending.

Analytical results from two southernmost core holes have been received. The intervals of gold mineralization are shown in Table 1.

Table 1 – Dombraly Summary Core Drilling Results
DDH# Length Azimuth Dip From (m) To (m) Interval (m) Grade Au (g/t) Mineralization Type
DDH 15-02 120.10 270 -60 0.00 1.00 1.00 2.03 Oxide
        44.00 47.00 3.00 0.84 Transition
        103.00 105.00 2.00 1.85 Oxide
DDH 15-03 203.20 270 -60 75.00 77.00 2.00 0.76 Oxide

Assay results for 13 remaining core holes are pending.

3. Shirotnaia

At Shirotnaia, the second stage of the 43 RC hole (2,249 m) drilling program was completed (see Figure 4). Assay results are pending.

4. North Balusty

At North Balusty, a test line consisting of 51 hydro-core lift ("KGK") holes (2,018 m) was completed (see Figure 5). (see News Release dated November 29, 2010). Assay results are pending.

5. Zhanatobe

To date, only partial assay results from the 483 hole, (4,744 m) rotary air-blast ("RAB") Zhanatobe drilling program (see News Release dated November 29, 2010) have been received (see Figure 6). While the results of the RAB drilling program are encouraging, patchy anomalism ranging from 0.1 to 0.2 grams per tonne ("g/t") gold ("Au") occurs in both the Northern and Central areas. The most significant +0.2 g/t Au anomaly with a peak value of 0.51 g/t Au was intersected in the last drill line in the Northern area. Assay results from RAB holes drilled at the most promising silicified zone situated in the Central area are still pending.

6. Kerbay

Two core holes were drilled at Kerbay totaling 305 m (see Figure 7). Both holes intersected intervals of hydrothermal alteration in andesite and siltstone. DDK 110-01 intersected a weighted average gold grade of 0.20 g/t with a peak value of 0.36 g/t Au over a core interval from 99 to 108 m.

7. Vasilkovskoe East

The exploration program for Vasilkovskoe East included soil sampling at the Western and Akshasor locations and sporadic rock chip sampling at the Ivanovka location which is situated between the Western and Akshasor locations (see Figure 8).

The Akshasor area returned 25 samples with gold concentrations between 20 to 290 parts per billion ("ppb"). The maximum gold concentration was 0.29 g/t Au. Contouring the results at a +30 ppb contour generated both NW and NE oriented anomalies with dimensions of 550 m by 450 m. The gold anomalies although patchy, remain open to the southeast where sampling still has to be done. A geochemical signature consisting of Ag, As, Sb, Ba, Bi and Mo supports the gold anomaly and suggests the presence of an orogenic intrusion related (Vasilkovskoe style) mineralization.

The Western area returned one sample containing 20 ppb gold and a second sample containing 1.9 parts per million gold. Taking into account the very wide space between the individual samples, more soil/rock samples are planned to be taken in this area.

In the Ivanovka area 30 kilometres of geological traverses covering an area of 12.7 square kilometres ("km2") were done and 54 rock chip samples taken. A schematic geological map of the area was prepared which shows a favorable geological environment for sediment hosted gold mineralization.

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 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 as defined by National Instrument 43-101, and 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 pending assay results 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, timing to obtain assay results, 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 the figures associated with this release, please visit the following link: http://media3.marketwire.com/docs/n233alh1.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
    www.alhambraresources.com