CALGARY, ALBERTA--(Marketwire - June 6, 2011) - Alhambra Resources Ltd. (News - Market indicators) ("Alhambra" or the "Corporation"), an international gold explorer and producer, announces its preliminary 35,700 metre ("m"), 2011 exploration drill program related to its Uzboy Project located in north central Kazakhstan. The Uzboy Project covers 9,800 square kilometres ("km2") (2.4 million acres). Over 100 mineral targets are contained within the Uzboy Project.
Stated John J. Komarnicki, Alhambra's Chairman and CEO, "At this time, we are introducing a preliminary exploration drilling program for 2011. While we are still awaiting more than 4,600 drill assay results from our 2010 drilling program which was pushed well into 2011, our 2011 drilling program commenced in February 2011. Hence, as the remaining 2010 assays are received, we will be in a position to further reassess our capital budget and targets for the remainder of 2011. However, 2011 will indeed be a year in which we will continue to focus on drilling and increasing our resource base."
OVERVIEW
As drill assay results for the 2010 drilling program continue to be received and press released, Alhambra continues to refine its anticipated development and exploration program for 2011. At this stage, the Corporation's preliminary 2011 capital budget is US$7.5 million, subject to sufficient cash flow and suitable financing.
The Corporation anticipates that its preliminary 2011 drilling program (excluding planned metereage for Uzboy) will total approximately 35,700 m, up 31% versus the 27,265 m of exploration drilling completed in 2010 (see news release dated May 3, 2011).
Alhambra currently has over 100 mineral targets within its Uzboy Project license area of which three (the Uzboy Gold Deposit ("Uzboy"), Dombraly and Shirotnaia) are categorized as advanced exploration areas (see Figure 1). As a result of a planned remote sensing survey to be conducted over the entire license area and an extensive regional gravity survey which Alhambra anticipates will be conducted prior to year-end 2011, the number of mineral targets is anticipated to increase.
In 2011, the Corporation anticipates drilling to be focused on its three advanced exploration areas. In addition, Alhambra anticipates drilling a number of its early stage exploration areas, including, but not limited to Zhanatobe, Vasilkovskoe East, Kerbay, North Balusty, Stepnyak, Zhusaly, and Kontaktovy.
As a part of Alhambra's 9,800 km2 mineral license located within the Central Asia-Chinese Altayshan Gold Belt traversing northern Kazakhstan, the Corporation controls at least 50 kilometres ("kms") of a rapidly emerging significant gold trend. This trend extends from the gold mineralization exposed at North Balusty in the north to Shirotnaia in the south and includes the Dombraly gold deposit and gold mineralization exposed at Kerbay with additional exploration focus to commence on Zhusaly and Kontaktovy (see Figure 1). This gold trend extends south of Alhambra's license and hosts the multi-million ounce Aksu and Quartzite Hills gold deposits held by KazakhGold Group Limited located 3 kms southeast of Alhambra's Shirotnaia Project.
UZBOY GOLD DEPOSIT
Since approximately 3,000 drill samples from the 2010 Uzboy drill program have yet to be assayed, a final drilling program has not been formalized at this time.
However, it is anticipated that an extensive exploration program will be conducted at Uzboy to follow-up on the successful 2010 drilling program. This includes drilling to further delineate additional oxide and sulphide gold mineralization along strike and depth. More core drilling is planned at the NE and SW flanks of East Uzboy as well as at the SW flank of West Uzboy. Details such as exact hole positions and their depths will be determined when all the 2010 assay results are received.
DOMBRALY
Alhambra will conduct core and reverse-circulation ("RC") drilling programs at Dombraly which will be focused on collecting additional data to allow for the calculation of a Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") compliant National Instrument ("NI") 43-101 resource estimation by year-end 2011. This will include drilling along strike to expand the length of the zone of gold mineralization as it is still open at strike as well as infill drilling to prove the historical data about the mineralization width and grades under and around the open pit.
The anticipated 2011 drilling program at Dombraly will consist of approximately 6,400 m of core and RC drill holes. Holes will be drilled at the northern flank of the Dombraly main zone of gold mineralization with the objective of extending the deep sulphide mineralization to the north and to check for shallow oxide mineralization, while other holes will be drilled just south of the known zones where the gold mineralization is open-ended and will continue to aid in outlining the possible continuation of gold mineralization there. The remaining holes will check the parameters of the mineralization under and around the open pit.
SHIROTNAIA
The anticipated 2011 drilling program at Shirotnaia will consist of approximately 7,100 m of core and RC drilling.
Core drilling, which began in May, is the second stage of the drilling program following-up on the 2010 program. It is anticipated that this program will consist of 45 holes totaling approximately 5,800 m. The objective of the second stage of core drilling is to collect enough information for the NI 43-101 compliant resource estimation from the four gold mineralization zones outlined following the new interpretation of the previous drilling results (see News Releases dated January 5 and April 28, 2011).
A third stage RC drilling program is anticipated to be conducted in follow-up to a successful 2010 drilling program which confirmed the presence of gold mineralization for at least another 550 m of strike length to the northeast. It is anticipated that the RC program will consist of 33 holes totaling approximately 1,300 m. Alhambra anticipates that this program could result in the expansion of the mineralization area in northern and north-eastern directions.
ZHANATOBE
The 2010 rotary air-blast ("RAB") drilling program at Zhanatobe lead to encouraging geological results and a gold anomaly outlined by drilling which will be further investigated via the 2011 drilling program. It is anticipated that the 2011 exploration drilling program at Zhanatobe will consist of approximately 11,800 m of core, RC and RAB drilling.
Another objective of this drilling program is to upgrade Zhanatobe to an advanced exploration level from early stage exploration, and to check the western, eastern and southern parts of the project area demonstrating rock chip gold anomalies that weren't drilled in 2010.
STEPNYAK
The Stepnyak intrusion-related orogenic style gold deposit is represented by several systems of quartz veins that were subject to underground mining from 1907 to 1977. Apart from the quartz veins that are significantly mined out, there are also linear zones of intensive hydrothermal alterations and related disseminated bulk gold mineralization in the area. The zones that haven't been mined are the primary targets for the 2011 exploration program.
Four lines of RC holes totaling approximately 2,400 m are anticipated to be drilled where the previous rock sampling and RAB drilling established gold anomalism. It is anticipated that this drilling will focus on identifying new zones of gold mineralization that have yet to be mined.
VASILKOVSKOE EAST
Vasilkovskoe East is a 600 km2 project area located on the western section of Alhambra's license area. In follow-up to a highly prospective soil anomaly established in 2010 on an area called Akshasor, the 2011 anticipated drilling program will consist of 1,700 m of core and RC drilling on this anomaly.
In addition, it is anticipated that a regional soil sampling will be conducted in promising geological areas.
KERBAY
Two scout diamond holes were drilled on the NW and SW parts of the Kerbay area in 2010 to check historical drilling results. Both holes intercepted interesting intervals of hydrothermal alterations in andesite and siltstone but the assay results did not indicate significant mineralization.
It is planned to continue exploration at Kerbay with RC drilling in the NE part of the area where trench anomalies exist (the best is 12 m @ 1.27 grams per tonne gold) and which wasn't tested in 2010. The small exploration program here will include approximately 500 m of drilling.
NORTH BALUSTY
The exploration activity at North Balusty will be determined by the results of the 2010 hydro-core lift ("KGK") drilling which are still pending. It is anticipated that the 2011 drilling program will consist of approximately 5,800 m of RC drilling.
ZHUSALY and KONTAKTOVY
Exploration will commence in 2011 on two early stage exploration prospects called Zhusaly and Kontaktovy (see Figure 1). They are located along the main mineralization trend starting from the Aksu deposit, northward through Shirotnaia and Dombraly. Zhusaly is situated 6 kilometres ("kms") NE of Shirotnaia and Kontaktovy is situated 12 kms south of Dombraly.
It is anticipated that a soil sampling program will be conducted. Given success in identifying significant gold anomalies, the Corporation then plans to further check this mineralization with a limited RC drilling program.
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 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. Mr. Stewart 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, availability of capital to fund the anticipated 2011 programs, 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, availability of capital to fund exploration and production development projects; 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 Figure 1 - Uzboy Project - Location map, please visit the following link: http://media3.marketwire.com/docs/606alh_fig1.pdf
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