CALGARY, May 15 /CNW/ - Alhambra Resources Ltd. ("Alhambra" or the
"Corporation") is pleased to announce that the Ministry of Energy and Mineral
Resources of the Republic of Kazakhstan, the Committee for Geology and Subsoil
Use and the State Commission on Reserves of Minerals has approved a 750,000
tonne large scale semi-industrial test (a "bulk test") on the oxide gold
mineralization from the Dombraly zone. The Dombraly zone is located in the
Sary-Arka License (with serial number MG No. 1029-D) approximately
80 kilometres to the southeast of the Uzboy gold deposit. The Uzboy gold
deposit is located in the Uzboy License (with serial number MG No. 719DD).
These two licenses make up the Uzboy Project.
Large scale semi-industrial tests are a fundamental part of the
exploration process in the Republic of Kazakhstan and are completed to gain
information related to percentage gold recovery and other information for the
mineralized zone under exploration.
Additional exploration including diamond drilling and the "bulk test" are
planned on the oxide zone of gold mineralization at the former Dombraly open
pit mine. The potential target in the oxide zone at Dombraly that is the focus
of the proposed exploration program could range from 5 to 7 million tonnes
with gold grades ranging from 1.40 grams per tonne ("g/t") to 1.80 g/t.
The above potential quantities and grades of the exploration target are
conceptual in nature. To date there has been insufficient exploration to
define a mineral resource. It is uncertain if further exploration will result
in the target being delineated as a mineral resource.
The basis for the potential quantity and grade of the exploration target
is:a) the results from the historical and current exploration and previous
mining information,
b) based on the diamond drilling completed in 2005, the oxide portion of
the gold mineralization extends to a depth of 100 metres ("m") below
surface, has a minimum strike length of 400 m and is open along
strike to the north and south, and
c) the average grade of all channel samples collected from the waste
pile produced as a result of the previous mining activities at this
former open pit mine.Historical and Current Exploration
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The Dombraly zone was explored from 1969 to 1972 by surface and
underground exploration methods. Open pit mining of the upper portion of the
oxidized part of the deposit to a depth of 60 m occurred between 1985 and
1988. Alhambra commenced exploration at Dombraly in 2005 (see News Releases
dated June 27, 2005 and October 18, 2005). A summary of the Historical and
Current exploration activities is set out below:-------------------------------------------------------------------------
Activity Units Historical Current
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Diamond Drilling metres 3,786 2,394
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Trenching linear metres 1,840 3,657
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RAB Drilling metres 0 2,712
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Shafts linear metres 32 0
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Drifts & Crosscuts linear metres 720 0
-------------------------------------------------------------------------The Dombraly deposit is located approximately 60 kilometres north of the
city of Stepnogorsk, Kazakhstan. Stepnogorsk is Alhambra's operating base for
its 100% owned Uzboy heap leach mine in north central Kazakhstan. The "bulk
test" is planned on both the in-situ oxide gold mineralization and includes
what is referred to as a "waste pile" produced by the former open pit mining
activities. Trenching at 20 m intervals and continuous channel sampling along
the walls of the trenches in the waste pile was completed. The gold grades of
the channel samples ranged from 0.10 g/t to 47.8 g/t. The average grade of all
channel samples collected was 1.18 g/t gold based on a 0.10 g/t gold cutoff.
Regional and Local Geology
--------------------------
The Dombraly zone is located within the NNW trending Dombralinskaya fault
zone, a regional scale structure in this part of Kazakhstan. To the north of
the Dombraly deposit is the Kimerly gold-polymetallic mineral showing and the
South Balusti quartz-lode gold deposits. A number of gold showings are located
south of the Dombraly zone.
The gold mineralization at Dombraly is oxidized to a depth of
approximately 100 m. The oxide zone is underlain by a transitional zone which
in turn is underlain by sulphide gold mineralization. The gold mineralization
is hosted in volcanogenic and sedimentary rocks of Upper Ordovician age. These
rocks show varying degrees of alteration ranging from propylitization on the
margins to hydromica (sericite)-chlorite-quartz and sericite-quartz
metasomatites in the central part of the mineralized zone. The metasomatites
are composed of fragments of brecciated rocks with streaks of fine quartz and
veins and impregnations of sulphides.
Sulphide gold mineralization occurs below the oxide zone at Dombraly. The
sulphide gold mineralization has been intersected at a depth of 260 m below
surface, has a minimum strike length of 400 m and is open below the 260 m
depth and along strike to the north and south.
Metallurgical Test Work - Oxide Gold Mineralization
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Bottle roll and column leach tests on the oxide gold mineralization from
the Dombraly deposit were completed by Kazmechanobr, located in Almaty,
Kazakhstan. The results of the work completed by Kazmechanobr were previously
announced in a News Release dated June 27, 2005. A summary of the information
contained in that News Release is as follows:a) the column test indicates that the oxide gold mineralization is
suitable for processing using heap leach method;
b) the expected gold recovery from agglomerated oxide gold
mineralization crushed to minus 50 mm is estimated to be 74%; and
c) reagent consumption is estimated to be 0.485 kilograms of cyanide
consumed per tonne of material leached.Other Studies Completed
-----------------------
In 2005, hydrogeological, topographical and geotechnical studies were
completed as part of the exploration program completed on the Dombraly
deposit. The topographic survey showed that the area around the Dombraly
deposit is flat with an average rise in elevation of 3 m over a distance of
1,000 m. The hydrogeological study indicated that sufficient ground water
exists to support a large scale semi-industrial test and the geotechnical
study indicated the bedrock has sufficient strength to support the foundations
of a gold recovery plant and camp.
Future Activities
-----------------
In order to complete the bulk test, Alhambra needs to construct:a) a gold recovery plant capable of leaching a minimum of 750,000 tonnes
of oxide gold mineralization per year,
b) leach pads,
c) a camp including sleeping quarters,
d) dining and sanitation facilities,
e) a power line to provide electricity,
f) fuel and reagent storage areas, and
g) improve the existing road to the site.An application has been made to obtain a mining allotment over the
Dombraly zone. On receipt of the mining allotment, an application will be made
to the local Kazakh administrative authorities to acquire a surface lease on
which to construct the leach pads, gold recovery plant and camp facilities.
The infrastructure to complete the bulk test has to comply in all
respects to the standards set by the government of Kazakhstan and be designed
and approved by an engineering company certified by the government of
Kazakhstan. It is expected that Kazmechanobr, the same company that designed
Alhambra's Uzboy heap leach mine, will be contracted to complete the project
design and engineering documents. On completion of this work, Kazmechanobr
will advise the estimated cost of the infrastructure related to the bulk test.
Drilling and Trenching Procedures
---------------------------------
The diamond drilling completed by Alhambra in 2005 used a 76 mm diameter
core on 40 m spaced profiles over a strike length of 240 m. A total of 2,394 m
in 10 diamond drill holes was completed by Alhambra in 2005. The depth of the
drilling ranged from 160 m to 240 m depth below surface. Sample intervals were
selected based on lithologies, intensity of alteration and style of
mineralization. In general, the sample interval and sample weight averaged one
metre and 2.0 kilograms respectively.
The trenching program completed on the waste pile generated by the former
mining operation was completed along 40 m spaced profiles to a depth of 1.5 m.
The length of the trenches completed along the top of the waste pile ranged
from 125 m to 265 m. The trenches were mapped and sampled at one-metre
intervals over the entire length of each trench. The channel samples were
taken at the bottom of the trench and represent a channel that averaged
approximately 10 centimetres wide by 5 centimetres deep. Sample weights ranged
between four and seven kilograms.
Sample preparation was completed by Chemical and Analytical Laboratory
Quartz LLP located in Stepnogorsk using the following procedure: core and
trench samples were pulverized in a jaw crusher to minus 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 analysis and the balance
is retained for fire assaying and reference purposes. Chemical and Analytical
Laboratory Quartz laboratory in Stepnogorsk is certified in the Republic of
Kazakhstan but does not have an International Standard Organization ("ISO")
rating and is independent of Alhambra.
Quality Control
---------------
Alhambra follows a rigorous Quality Assurance/Quality Control program
consisting of inserting certain gold standards, blanks and sample duplicates
into the sample stream submitted to the laboratory for analysis.
Elmer B. Stewart, MSc. P. Geol., a Director of Alhambra, is the
Corporation's nominated Qualified Person has reviewed and verified the
technical information contained in this news release.
About Alhambra
--------------
Alhambra is a Canadian based gold exploration and production corporation
engaged in the exploration of and production from its 100% owned Uzboy
Project. Alhambra is currently in its sixth year of operations in the Republic
of Kazakhstan.
Alhambra common shares trade on The TSX Venture Exchange under the symbol
ALH and in Germany on the Frankfurt Open Market under the symbol A4Y. The
Corporation'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 forward-looking statements and forward-looking
information within the meaning of United States Private Litigation Reform Act
and applicable Canadian securities laws including but not limited to comments
regarding the timing and content of upcoming work programs, potential mineral
recovery processes, timing and availability of permitting. Forward-looking
information includes disclosure regarding possible future events, conditions
or results of operations that is based on assumptions and courses of action,
and therefore, involves inherent risks and uncertainties. Sentences and
phrases containing words such as "plan", "expect", "estimate", "will", and
"interpret", and the negative of these words, or variations of them, or
comparable terminology that does not relate strictly to current or historical
facts, are all indicative of forward-looking information and statements. For
any forward looking information given, management has assumed that the
analytical results it has received are reliable and the metallurgical testing
methodologies applied are consistent with industry standards. Although
management has a reasonable basis for the conclusions drawn, actual results
may differ materially from those currently anticipated in such statements. For
such statements, we claim the safe harbor for future.
For further information: Ihor P. Wasylkiw, Chief Information Officer,
(403) 508-4953; Jim Clarke, Investor Relations, (888) 290-1335 (Toll Free)
