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The Dombraly 2011 Core Drill Program Discovers New Zones of Gold Mineralization and Significantly Extends and Upgrades Other Mineralized Zones

24.04.2012  |  Marketwired
CALGARY, April 24, 2012 - Alhambra Resources Ltd. (TSX VENTURE: ALH) (PINKSHEETS: AHBRF) (FRANKFURT: A4Y) ("Alhambra" or the "Corporation") announces that its core drilling program at the Dombraly gold deposit ("Dombraly") has resulted in the discovery of two new zones of higher grade gold mineralization and has extended the known areas of gold mineralization both north and south. Dombraly is located within its 100% owned Uzboy Project in Kazakhstan (see location map, Figure 1).


HIGHLIGHTS

- At least five known zones of gold mineralization have been significantly extended or the mineralization in these zones has been upgraded in terms of both grade and width, the best mineralized intervals being 17.29 g/t over 3.9 m, 4.40 g/t over 14.1 m and 3.57 g/t Au over 14.7 m,

- Two new zones (i.e. lenses) of gold mineralization have been discovered, one being a northern extension of the hanging wall mineralized lens 1 (see Figure 3) with a maximum grade of 9.95 grams per tonne gold ("g/t Au") over 1.5 metres ("m"), and the second being two new foot wall zones situated below the main mineralized zone with maximum grades of 1.66 g/t Au over 8.2 m and 1.18 g/t Au over 4.0 m.

"These drill results continue to support our interpretation that the gold mineralization at Dombraly has the potential to increase significantly," stated Mr. John J. Komarnicki, Alhambra's Chairman and Chief Executive Officer. "In our opinion, the discovery of these new zones of gold mineralization combined with the significant extension of previously known mineralization supports an initial 2012 Dombraly exploration program of seven core drill holes (2,200 m) which will be focused on further defining the upside potential of Dombraly."


DRILLING PROGRAM

The 2011 drilling program consisted of 32 core holes (5,528 m) of which 28 core holes (4,938 m) were drilled in the central part of Dombraly and 4 scout holes (590 m) were drilled far beyond its southern edge southward of the low grade stockpile (see Figure 2).

The objective of the 28 core hole drilling program was to allow further re-classification of historical Soviet resources ultimately leading to an updated National Instrument ("NI") 43-101 compliant resource estimate and to further define the extent and continuity of the gold mineralization at Dombraly. The objective of the 4 scout hole drill program was to check the main tectonic zone which had been recognized as a main gold mineralization controlling structure and to check the weak gold anomaly established there by the 2010 rotary air-blast ("RAB") drilling program.

The 28 core hole program has been successful as the program has discovered two new zones of gold mineralization and further extended the known areas of at least five known zones of gold mineralization. Table 1 summarizes the results of the holes drilled in the central part of the deposit. The 4 scout hole program did not encounter gold mineralization.

A newly discovered northern extension of the hanging wall (situated above the main mineralization zone) mineralized lens 1 (between hole DP 44-26 and hole DDD 52-01 and taking into account holes DDD 48-03 and DDD 48-04 drilled in 2010) has been identified as being about 120 m long and 1.5 to 20.8 m wide remaining open to the north. The average gold grades in different intercepts of this mineralization range from 0.77 g/t over 20.8 m to 9.95 g/t over 1.5 m. At the same time the known southern part of lens 1 has been significantly upgraded when hole DP 40-25 discovered its uppermost (closest to the surface) part which was displaced by a fault (see Figure 4). The thickness (along the hole) of this new oxide mineralization is 14.7 m with an average gold grade of 3.57 g/t.

Drill hole DP 28-21 has discovered a new, uplifted, faulted part of mineralized lens 2 at the hanging wall of the main zone of gold mineralization. This new mineralized part is about 65 m along the dip and 14.1 m thick (along the hole) with an average grade of 4.40 g/t Au in transitional material. This hole has also extended the main zone of gold mineralization and lens 3 by about 40 m along the dip and confirmed the presence of lens 1 at depth (see Figure 3).

Two new foot wall mineralized lenses, situated below the main mineralization zone, have been discovered by hole DP 12-07. The lenses demonstrated significant width (4.0 m at 1.18 g/t Au and 8.2 m at 1.66 g/t Au) along the hole of transitional mineralization and remain open along strike in a northerly direction.

Three of four mineralized zones identified in 2010 on the southern edge of the deposit have now been extended by at least 60 m. One of these zones containing oxide mineralization, and intersected by hole DDD 21-02, consists of several subzones forming probably a tectonic duplex with a width of 50 m. Average grades in these subzones reach 1.52 g/t Au over 3.0 m (not true width). All zones remain open to the south.

Drill hole DP 24-18 (located immediately south of DP 28-21), extended lens 2 by 65 m along the dip. Drill hole DP-10, located 200 m farther to the south, after an interval of relatively low grades, returned 0.91 g/t Au over 14.3 m at a depth of about 140 m along the lens dip. Hole DP 04-02 intercepted and further extended lens 2, showing several mineralized intervals, the best being 2.01 g/t Au over 9.0 m in oxide material, and confirmed the continuity of gold mineralization in this direction.


Table 1 - Summary Dombraly Drilling Results

Section 	DDH# 	From (m) 	To (m) 	Interval (m) 	Grade Au (g/t) 		Mineralization Type
21 DDD 21-01 NSR
DDD 21-02 76.1 90.4 14.3 0.40 In Situ Oxide
including 76.1 77.1 1.0 2.78 In Situ Oxide
102.5 110.3 7.8 0.86 In Situ Oxide
including 102.5 106.3 3.8 1.26 In Situ Oxide
118.3 127.3 9.0 0.74 In Situ Oxide
including 123.3 126.3 3.0 1.52 In Situ Oxide
DDD 21-03 94.3 96.2 1.9 1.06 In Situ Sulphide
DDD 21-04 NSR
11 DDD 11-01 NSR
4 DP 04-01 126.4 130.4 4.0 0.42 In Situ Sulphide
271.0 272.8 1.8 0.62 In Situ Sulphide
DP 04-02 20.0 29.0 9.0 2.01 In Situ Oxide
including 20.0 21.0 1.0 13.30 In Situ Oxide
33.0 38.0 5.0 0.43 In Situ Oxide
107.0 107.8 0.8 1.97 In Situ Sulphide
DP 04-03 0.0 10.3 10.3 1.35 Pit Infill
53.4 59.4 6.0 1.50 In Situ Oxide
DP 04-04 10.4 14.4 4.0 0.54 In Situ Oxide
8 DDD 08-01 NSR
DP 08-05 0.0 8.9 8.9 0.60 Pit Infill
29.5 37.5 8.0 0.81 In Situ Transition
including 35.5 37.5 2.0 2.63 In Situ Transition
DP 08-06 104.0 110.0 6.0 0.53 In Situ Sulphide
12 DP 12-07 0.0 17.0 17.0 1.02 Pit Infill
56.6 67.6 11.0 0.64 In Situ Transition
including 59.6 63.6 4.0 1.18 In Situ Transition
74.3 82.5 8.2 1.66 In Situ Transition
DP 12-08 0.0 55.6 55.6 0.56 Pit Infill
DP 12-09 10.2 14.2 4.0 0.64 In Situ Oxide
82.4 88.0 5.6 0.57 In Situ Oxide
116.7 117.5 0.8 4.75 In Situ Sulphide
154.8 159.0 4.2 0.84 In Situ Sulphide
DP 12-10 150.2 164.5 14.3 0.91 In Situ Sulphide
211.2 214.2 3.0 3.33 In Situ Sulphide
16 DP 16-11 0.0 27.7 27.7 0.55 Pit Infill
50.2 51.2 1.0 1.64 In Situ Oxide
77.3 79.3 2.0 0.94 In Situ Oxide
90.5 91.5 1.0 5.26 In Situ Sulphide
DP 16-12 0.0 47.3 47.3 0.80 Pit Infill
63.6 70.8 7.2 0.37 In Situ Oxide
114.6 119.6 5.0 1.52 In Situ Transition
including 116.6 119.6 3.0 2.35 In Situ Transition
DP 16-13 0.0 14.8 14.8 1.16 Pit Infill
85.4 88.8 3.4 2.45 In Situ Sulphide
93.8 105.3 11.5 2.48 In Situ Sulphide
DP 16-14 139.2 141.2 2.0 1.23 In Situ Sulphide
24 DP 24-18 171.0 172.0 1.0 1.20 In Situ Sulphide
178.0 181.9 3.9 17.29 In Situ Sulphide
including 179.6 180.2 0.6 111.00 In Situ Sulphide
198.0 201.4 3.4 0.76 In Situ Sulphide
28 DP 28-21 99.8 103.0 3.2 1.87 In Situ Oxide
118.6 132.7 14.1 4.40 In Situ Transition
including 122.6 131.7 9.1 6.34 In Situ Transition
147.0 149.0 2.0 15.48 In Situ Transition
186.0 190.0 4.0 2.48 In Situ Sulphide
40 DP 40-25 35.8 37.8 2.0 1.32 In Situ Oxide
43.8 58.5 14.7 3.57 In Situ Oxide
including 43.8 49.3 5.5 2.16 In Situ Oxide
and including 53.5 58.5 5.0 7.91 In Situ Oxide
125.1 131.8 6.7 1.68 In Situ Oxide
including 127.1 130.8 3.7 2.71 In Situ Oxide
44 DP 44-26 183.0 203.8 20.8 0.77 In Situ Sulphide
including 183.0 185.0 2.0 1.51 In Situ Sulphide
and including 196.0 200.0 4.0 1.53 In Situ Sulphide
and including 201.8 202.8 1.0 1.64 In Situ Sulphide
DP 44-27 97.9 99.4 1.5 9.95 In Situ Sulphide
DP 44-28 NSR
52 DDD 52-01 312.5 322.0 9.5 1.07 In Situ Sulphide
including 316.5 319.5 3.0 2.21 In Situ Sulphide
DDD 52-02 NSR


The intervals set out in the above table are not true widths and the assay results are uncut. The cut-off grade used is 0.2 g/t Au and the maximum internal waste is 2.0 m.

The Corporation anticipates that the presence of numerous new significant mineralized lenses, especially in the hanging wall of the Main zone, should lead to a significant increase of resources, as compared to the resources estimated in the maiden NI 43-101 for Dombraly (as noted at the end of this news release).


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 2.4 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 the worldwide ALS 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 DOMBRALY

Dombraly is one of Alhambra's 2012 advanced drilling targets within the Corporation's 100% owned, 2.4 million acre, Uzboy Project located in north central Kazakhstan. Dombraly is located approximately 90 kilometres ("kms") southeast of Alhambra's Uzboy gold deposit and 60 kms north of the city of Stepnagorsk, Alhambra's Kazakhstan operating base. It is a former producing open pit gold mine.


ABOUT ALHAMBRA

Alhambra is a Canadian based international exploration and gold production corporation with NI 43-101 resources as noted below:

Measured (M) Indicated (I) M + I Inferred
Project Grade Grade Grade Grade
Tonnes (g/t) Ounces Tonnes (g/t) Ounces Tonnes (g/t) Ounces Tonnes (g/t) Ounces

Uzboy (1) 14,317,200 1.52 700,000 7,009,500 1.22 275,500 21,326,700 1.42 975,500 11,258,200 1.17 421,700
Dombraly (2) - - 559,000 1.22 22,000 559,000 1.22 22,000 9,317,000 1.01 301,000
Shirotnaia (3) - - 2,900,000 0.76 71,000 2,900,000 0.76 71,000 34,577,000 0.58 645,000
TOTAL 14,317,200 1.52 700,000 10,468,500 1.09 368,500 24,785,700 1.34 1,068,500 55,152,200 0.77 1,367,700

(1) Effective as of Dec 31/09 as per ACA Howe per news release dated Apr 8/08 at a 0.40 g/t cut-off

(2) Effective as of Nov 27/11 as per ACA Howe per news release dated Feb 7/12 using natural cut-off grades of 0.13 g/t, 0.1 g/t and 0.2 g/t for the low grade stockpile, pit infill and in-situ mineralized zones respectively.

(3) Effective as of Jan 9/12 as per ACA Howe per news release dated Feb 28/12 using cut-off grades of 0.1 g/t for oxide material and 0.2 g/t for transitional and primary mineralized zones respectively.

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 areas, 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 successful re-classification of Soviet resources into NI 43-101 resources, 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 drill results will successfully re-classify Soviet resources into NI 43-101 resources, 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 the figures associated with this press release, please visit the following link: http://media3.marketwire.com/docs/423alh.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
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