Alhambra Resources Ltd. - Operational Updates
Calgary, Canada (ots/PRNewswire)
Alhambra Resources Ltd.
("Alhambra" or the "Company") is pleased to provide a number of
operational updates on its Uzboy Project located in north central
Kazakhstan. These updates include:- Resin stripping plant construction
- Uzboy drilling program
- Mamay drilling program
- Gold production
1. RESIN STRIPPING PLANT CONSTRUCTION
The start-up of Alhambra's resin stripping plant commenced on September 25, 2006. Commissioning of this plant is ongoing and is expected to be completed by the end of October 2006.
The stripping plant provides Alhambra with total control of its
gold production activities while reducing cash operating costs. The
estimated savings in operating costs of the resin stripping plant is
US$30 per ounce ("/oz") based on producing 25,000 ounces ("oz") of
gold per year. This amounts to a savings in excess of 40% relative
to the current resin stripping operating cost of US$72/oz paid to an
independent third party.The resin stripping plant is located in the city of Stepnogorsk,
approximately 200 kilometres ("kms") southwest of the Uzboy heap
leach mine . Stepnogorsk is the operations base for Saga Creek Gold
Company, Alhambra's wholly owned Kazakhstan operating subsidiary.2. UZBOY DRILLING PROGRAM
Summary Exploration Results
The drilling completed on the Uzboy gold deposit in 2006 is designed to test the down dip and strike extension of the gold mineralization intersected in 2005.
To date, a total of 45 diamond drill holes ("DDH") have been
completed. Twenty-two DDH have been reported previously and
analytical results for 7 new DDH are being reported in this release.
The results for the remaining 16 DDH will be reported once the
results have been received and analyzed. The results from the 7 DDH
being reported continue to extend the limits of the Uzboy gold
deposit.Diamond drilling on the East zone continues to intersect multiple intervals of oxide and primary gold mineralization. The West zone is comprised of two areas of mineralization. One area is located on the northwest side of the zone and the second area is located on the southeast side of the zone. The analytical results indicate that the gold mineralization in the southeast area is continuous to the southwest and appears to be pinching out at depth. See Figure 1 for the 2006 drill hole locations. To view Figure 1, please use the following link:
http://files.newswire.ca/483/Uzboy_West_Zone.doc
West Zone Drill Results
DDH 49-3 was drilled to test the area above the mineralization intersected in DDH 49-4 (see News Release dated September 13, 2006). This hole intersected a substantially wider interval of primary gold mineralization than DDH 49-4. The average gold grade in both holes is similar. Two drill holes, DDH 49-2 and DDH 49-1, were completed to test the gold mineralization above the mineralized intersection in DDH 49-3. Results for these holes are pending. The mineralization on this section is interpreted to be an extension of the mineralized interval intersected in DDH 45-2 (3.76 g/t gold over 50.0 metres see News Release dated September 9 , 2005). The mineralization appears to be open along strike to the southwest toward Section 51.
DDH 45-10 intersected primary gold mineralization over an interval
of 6.0 metres ("m"). DDH 45-10 was drilled to test the down dip
extension of the mineralized interval in DDH 45-2. The width of the
mineralized interval in DDH 45-10 suggests that the mineralization
is pinching out at depth.East Zone Drill Results
Diamond drilling on Section 62 (see Figure 2. To view Figure 2, please use the following link: http://files.newswire.ca/483/Uzboy_West_Zone.doc) was completed to test the down dip and strike extension of the oxide gold mineralization exposed in the East zone open pit. The drilling completed on Section 2 was to test the strike extension of the mineralization intersected on Section 10 (see News Release dated September 13, 2006).
Multiple intersections of both oxide and primary gold mineralization were intersected on Section 2 in DDH 2-1 and DDH 2-2. The holes are interpreted to have intersected the strike extension of the mineralization on Section 10 located 80 m to the northeast.
The three holes completed on section 62 tested the strike extension of mineralization intersected on Section 66 located 40 m to the northeast (see News Release dated September 13, 2006). The upper mineralized intervals in DDH 62-4 and DDH 62-5 are interpreted to be the strike extension of the new zone of oxide and primary gold mineralization (see News Release dated September 13, 2006) intersected in DDH 66-4 and DDH 66-5 located 40 m to the northeast. A trenching program between Sections 2 and 82 (800 m of strike length) is planned to trace the surface exposure of the oxide gold mineralization in these holes in order to better locate future diamond drill hole locations.
Detailed Exploration Results
The weighted average grade (using a 0.2 g/t cutoff and not corrected to true width) of the mineralized intervals based on atomic absorption analysis for the seven diamond drill holes from the Uzboy gold deposit are outlined below.
DDH Hole From To Interval Grade
Zone Section No. Length Azimuth Dip (m) (m) (m) (Au g/t)
West 49 49-3 195 136 -60 120 142.70 22.70 3.48
45 45-10 160 136 -60 106 112.00 6.00 2.39
East 2 2-1 130.5 314 -60 13.00 21.00 8.00 0.82
64.00 78.50 14.50 1.44
96.20 130.50 34.30 1.58
2 2-2 170 315 -60 4.00 19.00 15.00 1.03
52.00 58.00 6.00 4.17
79.00 107.00 28.00 0.43
145.00 157.00 12.00 1.68
62 62-3 256 285.5 -60 120.00 136.00 16.00 1.88
62-4 270 316 -60 8.00 56.00 48.00 1.14
114.00 123.00 9.00 3.95
146.50 152.50 6.00 5.34
158.00 213.00 55.00 0.46
219.00 226.00 7.00 1.62
62-5 315 315 -60 69.00 91.00 22.00 0.79
161.00 169.00 8.00 1.06
188.50 191.50 3.00 3.123. MAMAY DRILLING PROGRAM
Due to the positive trenching results reported in a News Release dated September 6, 2006, a diamond drilling program has commenced to test the gold-silver mineralization in the Mamay area. This mineralization occurs within an area measuring 1,000 m by 200 m as outlined by surface trenching programs completed in 2005 and 2006 (see News Release dated September 6, 2006). The drilling (17 holes for 2,400 m) is planned between Sections 61 and 133; a strike length of 720 m and to a depth of approximately 120 m below surface. The Mamay area is underlain by a series of metasomatically altered sediments and andesite intruded by granite and granodiorite. The core samples will be analyzed for copper-zinc-lead-gold-silver.
4. GOLD PRODUCTION
Gold production from the Uzboy heap leach mine is expected to be approximately 20,000 oz in 2006, 20% lower than originally projected. Replacement of the former drill and blast contractor delayed mining and stacking operations resulting in a lower number of tonnes of ore being stacked for leaching. For the nine months ended September 30, 2006, approximately 11,700 oz of gold was sold. As of September 30, 2006, the Company had approximately 20,000 oz of recoverable gold in various stages of processing for sale.
Diamond Drilling and Sampling Procedures
The diamond drilling is completed using a 76 mm diameter core barrel. Core recovery was estimated to be greater than 97%. After cutting with a diamond saw, one half of the core is collected for sample preparation and analysis and the other half is retained for future reference. Sample intervals are selected based on lithology and intensity of alteration. The sample interval and sample weight averaged one-meter and 1.9 kilograms respectively. Sample preparation was completed by Chemical and Analytical Laboratory Quartz LLP located in Stepnogorsk using the following procedure: core samples are pulverized in a jaw crusher to minus 1mm, 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 rating.
Quality Control
Alhambra follows a rigorous Quality Assurance/Quality Control program consisting of inserting standards, blanks and duplicates into the sample stream submitted to the laboratory for analysis.
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 on the Uzboy property. Mr. Stewart has reviewed and verified the technical information contained in this news release.
Alhambra is a Canadian based international production and exploration company celebrating its fifth year of operations in the Republic of Kazakhstan.
Alhambra shares trade in Canada on The TSX Venture Exchange under the symbol ALH and in Germany on the Frankfurt Open Market under the symbol A4Y. The Company'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 statements about expected or anticipated results that are forward looking in nature and, as a result, are subject to certain risks and uncertainties, such as technical issues, new legislation, competitive and general economic factors and conditions, uncertainties resulting from potential delays, changes in plans, the occurrence of unexpected events and the Corporation's capability to execute and implement its future plans. Actual results may differ materially from those projected by management. For such statements, we claim the safe harbor for future looking statements within the meaning of the Private Securities Legislation Reform Act of 1995.
Contact:
For further information: Elmer B. Stewart, President & Chief
Operating
Officer, +1-(403)-228-2855; Ihor P. Wasylkiw, Chief Information
Officer,+1-(403) -508-4953; Jim Clarke, Investor Relations,
+1-888-290-1335 (Toll Free)/ (ALH.)
CO: Alhambra Resources Ltd.