Alhambra Resources Ltd.
TSX VENTURE : ALH

Alhambra Resources Ltd.

March 23, 2006 23:59 ET

Alhambra Resources Ltd. - RAB Drilling Leads to Significant New Gold Discoveries

CALGARY--(CCNMatthews - March 23) - Alhambra Resources Ltd. ("Alhambra" or the "Company") is pleased to announce the discovery of numerous gold anomalies in 3 areas located northeast and southwest of the Uzboy gold deposit.

During 2005, a Reverse Air Blast ("RAB") circulation drilling program was completed in an area measuring 20 kilometres ("kms") long by 5 kms wide. This is the first time that Alhambra has explored this area of the Uzboy Project. The area covered by the RAB program trends northeast - southwest and is centered on the Uzboy gold deposit. The locations of the areas of gold mineralization outlined by the RAB program are shown on the attached map (Figure 1).

Figure 1: http://files.newswire.ca/483/alhambramap323.doc

Mr. Elmer Stewart, President and COO of Alhambra stated, "We're delighted with the results obtained by the RAB drilling program. The anomalies suggest the presence of a significant number of unexplored mineralized zones in the same trend that hosts the Uzboy gold deposit. The discovery of these anomalies adjacent to our principal exploration target confirms our belief in the additional potential of the Uzboy Project. An exploration program designed to evaluate these anomalies consisting of RAB, KGK and diamond drilling as well as trenching, is planned in 2006."

Summary of Drilling Results

Area No. 1

The centre of this area is located 7 kms northeast of the Uzboy gold deposit and hosts 16 separate anomalies. The area covered by these anomalies is 6,000 metres ("m") by 2,500 m with gold values ranging from 0.10 to 3.03 g/t. The largest anomaly covers an area of 3,000 m by 700 m.

Area No. 2

This area is centered on the Uzboy gold deposit. It is 4 kms long by 2.5 kms wide and contains 2 significant anomalies. The first anomaly (Figure 1 - 2A) is interpreted to be the northeast extension of the Uzboy gold deposit and covers an area of 3 kms long by 1 km wide. The second anomaly (Figure 1 - 2B) trends northeast - southwest and is 3 kms long by 250 m wide. Gold values within these anomalies range from 0.10 to 0.75 g/t. This area correlates with the northeast zone that was identified in 2004.

Area No. 3

Area 3 is located 5 kms southwest of the Uzboy West gold deposit and contains several narrow linear anomalies. Gold values within this area ranges from 0.10 to 0.72 g/t.

Program Parameters

The RAB drilling program was completed on profiles at 500 m and 1,000 m spacing with hole locations at 50 m intervals along the profile. A total of 8,710 m of drilling was completed in 1,619 holes. The average depth of the holes was 5 m. The bottom of each hole was sampled over an interval of 1 m. A cutoff of greater than 0.10 g/t gold was used to define the surface dimensions of the anomalies.

Sampling Procedures

The samples weights ranged between 4 and 7 kilograms. Sample preparation and atomic absorption analysis was completed by Chemical and Analytical Laboratory Quartz LLP located in Stepnogorsk using the following procedure: samples were pulverized in a jaw crusher to -1 mm, 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 and spectral analysis and the balance is retained for future reference purposes. Chemical and Analytical Laboratory Quartz is certified in the Republic of Kazakhstan but does not have an International Standard Organization rating.

Quality Control

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 analysis.

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 programs completed within the Uzboy Project. Mr. Stewart has reviewed and verified the technical information contained in this news release.

Alhambra is a Canadian based international production and exploration company celebrating its fourth year of operations in the Republic of Kazakhstan. It is engaged in the exploration and development of gold properties and commenced gold production in late 2004.

Alhambra shares trade in Canada on The TSX Venture Exchange under the symbol ALH and in Germany on the Frankfurt Open Market under the symbol A4Y. The Company's website can be accessed at www.alhambraresources.com

The TSX Venture Exchange Inc. has neither approved nor disapproved the

information contained herein.

This news release 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.

Contact Information

  • Elmer B. Stewart
    President & Chief Operating Officer
    (403) 228-2855

    Ihor P. Wasylkiw
    Chief Information Officer
    (403) 508-4953

    Jim Clarke
    Investor Relations
    (888) 290-1335 (Toll Free)