CALGARY, April 11 /CNW/ - Alhambra Resources Ltd. (TSX-V: ALH)
("Alhambra" or the "Corporation") is pleased to announce that the updated
independent National Instrument 43-101 ("NI 43-101") compliant mineral
resource estimate obtained by the Corporation has significantly expanded the
gold resource contained for its 100% owned Uzboy gold deposit in north central
Kazakhstan. The updated resource estimate is based on drilling completed to
December 31, 2006.
Highlights of the Study
At a 0.20 grams per tonne ("g/t") gold cutoff:
- Measured and Indicated gold resource increased by 77% from 507,329
ounces ("ozs") to 896,250 ozs
- Inferred gold resource increased by 292% from 134,903 ozs to
"We are extremely pleased that the updated resource estimate has
significantly increased the size of the Uzboy gold deposit," said Elmer B.
Stewart, President and Chief Operating Officer for Alhambra, and "the new
resource estimate for Uzboy continues to demonstrate the potential of the
Uzboy gold deposit."
Alhambra's 2007 exploration program will focus on expanding the Uzboy
gold deposit and on up-grading the Inferred resource to the Measured and
Indicated resource categories. A minimum diamond drilling program of
19,000 meters for the Uzboy gold deposit commenced in January 2007.
Once completed, the entire NI 43-101 compliant technical report of the
resource estimate will be filed on SEDAR.
Uzboy Gold Deposit Resource Estimate
The new resource estimate for the Uzboy gold deposit completed by ACA
Howe International Limited ("Howe"), the Corporation's independent geological
consultants, has an effective date of December 31, 2006. The resource estimate
was completed at various cutoff grades ranging from 0.0 g/t to 5.0 g/t gold.
The Measured and Indicated resources and the Inferred resource category
for the Uzboy gold deposit set out in Table 1 (at a 0.20 g/t cutoff) complies
with the resource definitions of the Canadian Institute of Mining and
Metallurgy ("CIMM") and NI 43-101 Standards of Disclosure for Mineral
Table 1 - Summary of the Howe Resource Estimate at 0.20 g/t Cutoff
Resource Category Tonnes Grade (g/t) Ounces
Measured + Indicated 27,463,445 1.02 896,250
Inferred 22,512,850 0.73 528,827
(1) Measured and Indicated resources include previously reported oxide
reserves. Mineral resources that are not mineral reserves do not have
demonstrated economic viability. See "Cautionary Note Concerning
Reserve and Resource Estimates".
(2) Rounding differences may occur. The updated resource estimate set out
above was based on a 3D geologic model and wireframe restricted block
model that integrated the exploration work on the Uzboy gold deposit.
Block model gold grade was estimated using 1-meter-long drill hole
composites and ordinary kriging methods. High-grade outlier values
were capped at 22 g/t gold prior to compositing based on a review of
distribution table analysis (histograms, cum frequency plots), and
data decomposition analysis.
The oxide component included in Table 1 is Measured and Indicated
resources of 5.79 million tonnes at a gold grade of 0.98 g/t containing
182,280 ozs of gold and an Inferred resource of 10.36 million tonnes at a gold
grade of 0.66 g/t containing 219,227 ozs of gold.
Alhambra's independent geological consultants, Howe, are also preparing a
proven and probable reserve estimate for the oxide portion of the Uzboy gold
deposit. This report will be made available once completed and received.
A Preliminary Assessment (economic scoping study) is planned based on the
updated resource estimate and receipt of ongoing metallurgical testing to
optimize gold recovery from the primary gold mineralization in the Uzboy gold
deposit. It is expected that the Preliminary Assessment will include
recommendations related to the preparation of a pre-feasibility study on the
primary gold mineralization.
The 2006 drill program and sampling protocol was completed under the
supervision of Elmer B. Stewart, President and Chief Operating Officer for
Alhambra who is a Qualified Person as defined by NI 43-101. A rigorous quality
control and quality assurance protocol was used during the drilling program,
including blank, duplicate and reference samples with each batch of assays.
All drill core samples were analyzed by atomic absorption and fire assay at
Centregeoanalit Laboratories in Karaganda, Kazakhstan. Centregeoanalit
Laboratories do not have an International Standards Organization ("ISO")
rating. Check sample selected by Howe were fire assayed at OMAC Laboratories
Ltd., County Galway, Ireland. The resource estimate was completed under the
supervision of James Hogg MAIG, of Howe who is a Qualified Person as defined
by NI 43-101. The technical information contained in this press release was
verified by Elmer B. Stewart P.Geo., President and Chief Operating Officer for
Alhambra and a Qualified Person as defined by NI 43-101.
About the Uzboy Project
The Uzboy Project covers 2.7 million acres in the Charsk Gold Belt, a
regional gold belt that crosses northern Kazakhstan. Three mineralized trends
cross the Uzboy Project. These trends host the Vasilkovskoe, Aksu and Stepnyak
deposits with corresponding reported gold resources of 11.0 million,
15.0 million and 0.8 million ozs, respectively. Vasilkovskoe and Aksu are
currently in production while the Stepnyak deposit was mined out in 1981.
The Vasilkovskoe and Aksu gold deposits are immediately adjacent to the
Uzboy Project while the Stepnyak deposit occurs within the Uzboy Project. The
Uzboy gold deposit and the Shirotnaia, Dombraly and Mamay zones (see
previously released diamond drilling results for these zones) are located
within the Uzboy Project in the mineral trends that host the Vasilkovskoe,
Aksu and Stepnyak gold deposits. A total of 125 gold targets occur within the
mineral trends located within the Uzboy Project.
The Uzboy gold deposit has been on test production from the oxide zone
since December 2004 and on commercial production since June 2006. The
Corporation forecasts 2007 gold production at 25,000 ozs.
Alhambra is a Canadian based gold exploration and production company
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
Alhambra shares trades 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.
Cautionary Note Concerning Reserve and Resource Estimates
This press release and other information released by Alhambra uses the
terms "resources", "measured resources", "indicated resources" and "inferred
resources". United States investors are advised that, while such terms are
recognized and required by Canadian securities laws, the United States
Securities and Exchange Commission (the "SEC") does not recognize them. Under
United States standards, mineralization may not be classified as a "reserve"
unless the determination has been made that the mineralization could be
economically and legally produced or extracted at the time a reserve
determination is made. Mineral resources that are not mineral reserves do not
have demonstrated economic viability.
United States investors are cautioned not to assume that all or any part
of measured or indicated resources will ever be converted into reserves.
Inferred resources are in addition to measured and indicated resources.
Inferred resources have a great amount of uncertainty as to their existence
and as to whether they can be mined economically. It cannot be assumed that
all or any part of an inferred resource will ever be upgraded to a higher
category. United States investors are cautioned not to assume that all or any
part of an inferred resource exist, or that it can be mined economically.
NI 43-101 is a rule developed by the Canadian Securities Administrators,
which established standards for all public disclosure an issuer makes of
scientific and technical information concerning mineral projects. Unless
otherwise indicated, all resource estimates contained in this press release or
released by Alhambra in the future, have been or will be prepared in
accordance with NI 43-101 and the CIMM and Petroleum Classification System.
The requirements of NI 43-101 are not the same as those of the SEC.
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
The TSX Venture Exchange Inc. has neither approved nor disapproved the
information contained herein.
This press release includes certain "forward-looking statements" within
the meaning of the United States Private Securities Litigation Reform Act of
1995. All statements, other than statements of historical fact, included
herein, including without limitation, statements regarding potential
mineralization, exploration results and timing and future plans, actions,
objectives and achievements of Alhambra, are forward-looking statements.
Resource estimates also are forward-looking statements as they constitute
certain estimates and assumptions as to the mineralization that would be
encountered if a deposit is developed and mined. Forward-looking statements
involve various risks and uncertainties. There can be no assurance that such
statements will prove to be accurate, and actual results and future events
could differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ materially
from Alhambra's expectations include fluctuations in gold prices and currency
exchange rates; uncertainties relating to interpretation of drill results and
the geology, continuity and grade of mineral deposits, the possibility of
adverse developments in the financial markets generally, and other risks and
uncertainties disclosed under the heading "Cautionary Note Concerning Reserve
and Resource Estimates" and in other information released by Alhambra and
filed with the appropriate regulatory agencies.
For further information:
For further 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)