Alhambra Resources Ltd.
TSX VENTURE : ALH

Alhambra Resources Ltd.

August 26, 2011 18:37 ET

Alhambra Resources Ltd.: KGK Drilling at North Balusty Discovers Gold Mineralized Corridors

CALGARY, ALBERTA--(Marketwire - Aug. 26, 2011) - Alhambra Resources Ltd. (TSX VENTURE:ALH) ("Alhambra" or the "Corporation"), an international gold producer and explorer, announces that a hydro-core lift ("KGK") drilling program completed in 2010 at its 100% owned North Balusty project area ("North Balusty") (see Figure 1) has led to the discovery of gold mineralized corridors.

HIGHLIGHTS

  • Drilling has discovered gold mineralized corridors with an indicated length of 1,600 metres ("m"),
  • Gold grades range from 0.13 to 10.91 grams per tonne gold ("g/t Au"),
  • The mineralized corridors range in widths from 440 to 520 m with individual mineralized zones ranging in thickness from 2 to 8 m,
  • An expanded second phase of reverse circulation ("RC") drilling is planned with the objective of determining the exact shape of the mineralization and its continuation to depth.

DRILLING PROGRAM SUMMARY

The objective of the 2010 exploration program at North Balusty was to determine the source of a 12.8 kilometre ("km") by 2.5 km zone of gold anomalism in alluvium and saprolitic rocks as established by trenching in prior years and to estimate the width of the mineralized zone.

It was not known whether this gold anomalism was produced by a very big zone of low grade mineralization, a broad low grade of aureole of a deposit, or was just a set of transported anomalies in reworked saprolite and alluvium. To test this anomalism, one 2.5 km long line including 51 KGK holes totaling 2,018 m was completed. The holes ranged in depth from 7 to 79 m, averaging approximately 40 m (see Figure 2). The samples were taken at 2 m intervals over the entire length of each hole which amounted to 988 samples. Drill results confirmed that a hard rock (lode) gold mineralization is indeed present in North Balusty.

DRILLING RESULTS

Fourteen of 51 KGK holes showed gold anomalism in one or several 2 m long samples. The most significant drill intercepts are shown in Table 1. Spatial distribution of the anomalous holes and the anomalous samples along the hole indicate that the North Balusty target is a set of in-situ gold mineralized zones. The mineralized corridors have been estimated to range from 440 to 520 m in width while the individual zones range in thickness from 2 to 8 m. This is not representative of true width as the drill line was perpendicular to the anomalous zone.

It appears that the main mineralized corridor (demonstrating a peak gold grade of 10.91 g/t Au) is related to the 7.5 km long by 80 to 160 m wide zone of eruptive breccia as identified by geological mapping. In particular, the highest gold grades coincide with the 1,500 to 1,600 m long NNE orientated splays of this zone. This trend is considered, by a number of independent prominent scientists, to be very prospective for high grade gold mineralization in the region. A second mineralized corridor is developed along a contact zone between agglomerate tuff and tuffaceous sandstones and the set of the NW striking faults following this contact. The gold values here vary from 0.13 to 0.9 g/t. Relations between the gold anomalism and the geological settings appear to indicate an epithermal, rather than orogenic style, mineralization.

Table 1 – North Balusty KGK Drilling Results

KGKH# Length From (m ) To (m ) Interval (m ) Grade Au (g/t )
BG44808 66.00 37.00 39.00 2.00 0.31
BG44809 56.00 19.00 23.00 4.00 0.37
53.00 56.00 3.00 0.35
BG44820 72.00 51.00 59.00 8.00 0.26
BG44823 52.00 11.00 15.00 4.00 4.13
BG44813 72.00 61.00 69.00 8.00 0.41
BG44828 43.00 5.00 9.00 4.00 0.30
27.00 31.00 4.00 0.33
BG44833 42.50 33.00 37.00 4.00 5.51
including 33.00 35.00 2.00 10.91
BG44829 35.00 25.00 27.00 2.00 0.33

As a result of the successful KGK drilling program, Alhambra is currently reviewing an expanded second phase 42 hole, 6,300 m RC Drilling program at North Balusty. The objective of this second phase drilling program is to determine the exact shape of the mineralization and its continuation to depth. This anticipated program would include two RC drill lines, 50 m apart of the original KGK line.

DRILLING AND SAMPLING PROCEDURES

Hydro-core lift drilling is a system designed to drill holes for geochemical sampling and geological mapping of cover sediments and basement rocks. This method was developed in the Former Soviet Union and is in general similar to 'wet' RC drilling. It is used in the early phases of mineral exploration for a quick assessment of relatively large areas. In KGK drilling, system rocks are cut by hard alloy crown bits and the cut chips and drill mud are delivered through a dual rod by pump to the surface where the material is filtered out and collected.

The drilled KGK holes had a 9.2 centimeter diameter. The cuttings from the interval sampled in each hole were mechanically split into two samples. The samples selected for analysis were placed in a cloth bag and weighed at the drill site. The weight of the samples ranged between 2 and 5 kilograms. Based on sample weight, the recovery from the holes is estimated to be between 90 to 100%.

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 with atomic absorption finish. Stewart Assay and Environmental Laboratories is independent of Alhambra and has 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 the technical information contained in this news release.

ABOUT NORTH BALUSTY

North Balusty is one of Alhambra's 2011 early stage exploration targets within the Corporation's 100% owned Uzboy Project located in north central Kazakhstan. North Balusty is located approximately 90 kms southeast of Alhambra's Uzboy gold deposit and 70 kms northwest of the City of Stepnogorsk, Alhambra's Kazakhstan operating base.

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 three 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 expanded reverse circulation drilling 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, actual results of the drilling program, the availability of capital to fund future exploration programs; 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 Figures 1 and 2, please visit the following link: http://media3.marketwire.com/docs/826alh_map.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