Alhambra Resources Ltd.
TSX VENTURE : ALH

Alhambra Resources Ltd.

January 05, 2011 08:00 ET

Alhambra Resources Ltd.: Two New Zones of High Grade Gold Mineralization Discovered at Shirotnaia -Additional Assays Pending

CALGARY, ALBERTA--(Marketwire - Jan. 5, 2011) - Alhambra Resources Ltd. (TSX VENTURE:ALH) ("Alhambra" or the "Corporation") announces that its diamond drilling program at Shirotnaia has resulted in the discovery of two new zones of higher grade gold mineralization. The Shirotnaia zone ("Shirotnaia") is located within its 100% owned Uzboy Project in Kazakhstan (see location map, Figure 1) and is immediately adjacent to the Aksu and Quartzite Hills gold deposits currently being mined by KazakhGold Group Limited ("KazakhGold").

HIGHLIGHTS

  • Diamond Drill Hole ("DDH") 100-02 intersected 4.32 grams per tonne ("g/t") gold over an interval of 36.0 metres ("m") including a higher grade interval of 16.80 g/t gold over 9.0 m
  • DDH 32-02 intersected 2.13 g/t gold over an interval of 20 m
  • Broad intervals of anomalous gold concentrations (for +0.10 g/t) were intersected in all nine drill holes

DRILLING PROGRAM

The drilling program consisted of nine holes totaling 1,141 m (see Figure 2). The objective of this drilling program was to test the depth extension of the large gold anomaly previously outlined by the 2008 Rotary Air blast ("RAB") drilling program. Two significant widths of high grade gold mineralization were encountered within a large area of lower grade gold mineralization, suggesting the probable continuation of the high grades to depth as is usual for this style of mineralization. In fact, previous RAB drilling programs completed in Shirotnaia 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).

The nine wide spaced DDHs confirmed the presence of two NE striking zones of hydrothermal alteration (quartz-sericite-chlorite-carbonate) that hosts numerous zones of significant (> 0.10 g/t) gold mineralization in each drill hole. The weighted average grade of the significant intervals of gold mineralization was estimated using a 0.20 g/t cutoff. The host lithologies are interbedded andesite volcanic and volcaniclastic rocks cut by andesite and diorite dikes as well as NE and NW striking faults. The mineralization and alteration at Shirotnaia is typical of orogenic volcano-sediment style of gold mineralization that is both structurally and lithologically controlled. The mineralized zones remain open along strike and at depth. 

An in-fill reverse circulation ("RC") drilling program consisting of 43 holes totaling 2,250 m has also been completed at Shirotnaia to further enhance and understand the geometry of the large zone of anomalous gold mineralization previously outlined at Shirotnaia. Assay results for these samples are still pending.

"These very encouraging results continue to support our interpretation that the three zones of gold mineralization discovered at Shirotnaia have the potential to be the northern extension of the multi-million ounce Aksu and Quartzite Hills gold deposits located immediately south of Shirotnaia," stated Mr. John J. Komarnicki, Alhambra's Chairman and Chief Executive Officer. "In our opinion, the combination of the hydrothermal alterations and distinct zones of widespread gold mineralization supports an extensive exploration program in 2011 consisting of diamond drilling and reverse circulation drilling which will be focused on further defining both the potential and dimensions of Shirotnaia."

The 2011 exploration program for Shirotnaia will be finalized when all of the assay results from the 2010 program have been analyzed and interpreted. 

Table 1 – Summary Drilling Results

Zone Section DDH# Length Azimuth Dip From
(m)
To
(m)
Interval (m) Grade Au (g/t) Mineralization Type
South Zone 28 DDH 28-04 150.0 330 -60 0.0 1.2 1.2 0.63 Oxide
          4.1 9.1 5.0 1.53 Oxide
          14.5 15.8 1.3 0.43 Transition
          18.8 35.7 16.9 0.28 Transition
          41.2 43.6 2.4 0.36 Transition
          47.3 57.6 10.3 0.73 Transition
32 DDH 32-02 170.9 150 -60 0.0 12.0 12.0 0.32 Oxide
          15.0 18.0 3.0 1.01 Oxide
          44.0 49.0 5.0 0.24 Transition
          54.0 74.0 20.0 2.13 Transition
        including 54.0 59.0 5.0 3.53 Transition
NE Extension 72 DDH 72-01 106.5 150 -60 22.0 28.0 6.0 0.28 Oxide
          66.0 105.0 39.0 0.30 Sulphide
        including 91.0 105.0 14.0 0.45 Sulphide
  DDH 72-02 104.0 150 -60 41.0 45.0 4.0 0.28 Sulphide
          64.0 77.0 13.0 0.31 Sulphide
          94.0 104.0 10.0 0.49 Sulphide (EOH)
  DDH 72-03 107.0 150 -60 4.0 9.0 5.0 0.56 Oxide
          53.0 60.0 7.0 0.29 Sulphide
          73.0 82.0 9.0 0.22 Sulphide
          91.0 97.0 6.0 0.26 Sulphide
          102.0 104.0 2.0 0.36 Sulphide
  DDH 72-04 100.0 330 -60 22.0 42.0 20.0 0.26 Transition
          45.0 53.0 8.0 0.27 Sulphide
100 DDH 100-01 101.0 150 -60 18.0 31.0 13.0 0.36 Transition
          52.0 57.0 5.0 0.42 Sulphide
  DDH 100-02 150.9 150 -60 43.0 79.0 36.0 4.32 Sulphide
        including 49.0 58.0 9.0 16.80 Sulphide
          93.0 96.0 3.0 0.44 Sulphide
  DDH 100-03 150.2 150 -60 13.0 18.0 5.0 0.33 Sulphide
          22.0 35.0 13.0 0.55 Sulphide
          41.0 47.0 6.0 0.30 Sulphide
          69.0 85.0 16.0 0.41 Sulphide

The intervals set out in the above table are not true widths and the assay results are uncut.

The weighted average grade of the mineralized interval in DDH 100-02 from 43.0 m to 79.0 m is strongly influenced by the following sample results; from 49.0 m to 50.0 m of 24.0 g/t, from 50.0 m to 51.0 m of 77.7 g/t, from 55.0 m to 56.0 m of 10.6 g/t and from 56.0 to 57.0 m of 19.8 g/t gold.

DIAMOND DRILLING AND SAMPLING PROCEDURES

An NQ diamond drilling core barrel was utilized and average core recovery was 99%. The core was split by the drilling contractor under the supervision of the Corporation's geologists with one half used for sampling and another half left for references. Every meter of core was sampled and the exact borders of the sampling interval were determined according to the lithological contacts. The average sample weight was 2 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, 2.7 million acre, 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 2.7 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.

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 exploration 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, lack of certainty that additional drilling will extend the mineralized intersection mentioned in this news release 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, the effects of a recessionary economy 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, please visit the following link: http://media3.marketwire.com/docs/alhambra-fig1.pdf

To view Figure 2 - Shirotnaia 2007 and 2010 Diamond Drilling Results, please visit the following link: http://media3.marketwire.com/docs/alhambra-fig2.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