Alhambra Resources Ltd. (TSX VENTURE:ALH) ("Alhambra" or the "Corporation"), an
international gold explorer and producer, announces that the Corporation has
received the results of an initial independent National Instrument 43-101("NI
43-101") gold resource estimate (the "Estimate") for Alhambra's 100% owned
Shirotnaia Gold Project ("Shirotnaia"). Shirotnaia is one of three advanced
exploration project areas Alhambra is exploring within its 9,800 square
kilometre ("km2") (2.4 million acre) Uzboy Gold Project located in north central
Kazakhstan (see location map, Figure 1).
The Estimate was prepared by ACA Howe International UK ("ACA Howe") and
Micromine Consulting Services UK ("MCS"). The Estimate includes all exploration
data up to October 30, 2011. The final technical report will be filed within the
regulatory required 45 days on SEDAR at www.sedar.com and will be posted on the
Corporation's website.
Mr. John J. Komarnicki, Alhambra's Chairman and Chief Executive Officer stated,
"The initial NI 43-101 resource estimate of 421,000 ounces of gold at a cut-off
of 0.5 grams per tonne gold ("g/t Au") and a grade of 1.03 g/t Au certainly
supports our confidence that this is just the beginning of our understanding of
a potentially very extensive and complex deposit. The 2010/11 drilling program
attempted to define the limits of this large deposit. The drilling results
identified thirteen mineralized domains which remain open along strike and
depth. The higher grade lodes which are now known to exist, and whose
contribution to the average grade has been greatly diluted in the current
estimate by the lower grade blocks, will be followed up with focused and closer
spaced drilling in 2012 with the objective of increasing resources and gold
grade."
HIGHLIGHTS
-- The Estimate represents the maiden NI 43-101 gold resource estimate for
Shirotnaia,
-- 645,000 ounces ("ozs") of Inferred mineral resources contained in 34.6
million tonnes grading 0.58 g/t Au have been identified (see Table 1),
-- An additional 71,000 ozs of Indicated mineral resources contained in 2.9
million tonnes grading 0.76 g/t Au were identified (see Table 1).
The Estimate, as summarized in Table 1, includes the results of 73 diamond drill
holes (9,597 metres ("m") and 43 reverse circulation ("RC") holes (2,249 m). Due
to the timing of the Estimate, it does not incorporate the analytical results
for three diamond drill holes (489 m) from the 2011 drilling program.
RESOURCE ESTIMATE HIGHLIGHTS
The reader's attention is drawn to the following Canadian Institute of Mining
and Metallurgy ("CIM") definitions:
'Inferred Mineral Resource' is that part of a Mineral Resource for which
quantity and grade or quality can be estimated on the basis of geological
evidence and limited sampling and reasonably assumed, but not verified,
geological and grade continuity. The estimate is based on limited information
and sampling gathered through appropriate techniques from locations such as
outcrops, trenches, pits, workings and drill holes.
An 'Indicated Mineral Resource' is that part of a Mineral Resource for which
quantity, grade or quality, densities, shape and physical characteristics, can
be estimated with a level of confidence sufficient to allow the appropriate
application of technical and economic parameters, to support mine planning and
evaluation of the economic viability of the deposit. The estimate is based on
detailed and reliable exploration and testing information gathered through
appropriate techniques from locations such as outcrops, trenches, pits, workings
and drill holes that are spaced closely enough for geological and grade
continuity to be reasonably assumed.
NI 43-101 requires it to be stated that mineral resources that are not mineral
reserves do not have demonstrated economic viability.
The Estimate was prepared by ACA Howe and MCS and has an effective date of
January 9, 2012. Contributors to the preparation of the Estimate included Mr.
J.N. Hogg MSc., MAIG, Senior Geologist with MCS and Mr. L. McGarry BSc., FGS,
Geologist with ACA Howe. Inputs for economic cut-off calculations for resource
reporting were prepared by Mr. B. S. Brady, P.Eng., Senior Associate Mining
Engineer with ACA Howe, in consultation with his senior colleagues.
At Shirotnaia, mineralization occurs within three main east-northeast trending
structural zones, namely North, Central and South.
In the North zone corridor, resources are defined within discreet steep
northeast dipping structures in four sub-zones over a 2.0 kilometre ("km")
strike length, to maximum depth of approximately 200 metres below surface
("mbs"). Mineralized zones are open along strike and at depth, with evidence of
continuation of mineralization indicated by trench and shallow rotary air-blast
drilling ("RAB") drilling. Within the 2.0 km strike length a 400 m section
between northwest and northeast domains remains untested, offering significant
potential for further immediate resources.
In the Central zone, resources are defined within discreet moderate to steep
northeast dipping structures over a 1.2 km strike length, to a maximum depth of
approximately 200 mbs. Mineralization is open along strike and at depth, with
evidence of continued mineralization indicated from trenching and shallow RAB
drilling.
In the South zone, resources are defined within shallow northeast dipping
structures in three sub-zones over a 1.1 km strike length to a maximum depth of
approximately 150 mbs. Mineralization remains open along strike and at depth. An
untested area of 300 m strike length between west and east mineralized domains
offers significant immediate resource potential.
The in-situ gold mineralization at Shirotnaia is hosted in a sequence of mostly
andesitic volcanic and volcaniclastic rocks with rare sediment horizons. There
is an oxidized zone to an average depth from surface of about 20 m and a
transition zone about 16 m thick below that, underlain by primary gold
mineralization. Due to the various styles of gold mineralization, ACA Howe
estimated natural cut-off grades for the oxide and primary styles of gold
mineralization.
Table 1 - Shirotnaia Resource Estimate
(using natural cut-off grades of 0.1 g/t Au for oxide material and 0.2 g/t Au
for transitional and primary material types respectively):
----------------------------------------------------------------------------
Resource Category Tonnes Grade (g/t Au) Ounces
----------------------------------------------------------------------------
Indicated 2,900,000 0.76 71,000
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Inferred 34,577,000 0.58 645,000
----------------------------------------------------------------------------
ACA Howe and MCS completed studies according to NI 43-101 and best practice
guidelines. Resource modeling and estimations being completed used the industry
accepted Micromine 2012, 3d modeling software package.
Indicated category resources are reported to be contained in oxide, transitional
and primary material. Of the 645,000 ozs in the Inferred resource category,
137,000 ozs (21%) are reported to be contained in the oxide material. Primary
material accounts for 414,000 ozs (64%) while the remaining 93,000 ozs (15%) is
transitional material.
Shirotnaia mineralization comprises multiple structurally and lithologically
controlled mineralized zones. Thirteen mineralized in-situ domains were modeled
for this Estimate each comprising oxide, transitional and primary material
types.
For this Estimate, grade interpolation was performed using the inverse distance
weighted method. Resources are reported using an economic marginal cut-off,
determined by use of simple block revenue factor methodology and a two year
trailing average gold input price.
Tables 2 and 3 as noted below set out the Shirotnaia Estimate for oxide,
transitional and primary gold material types by category and material type as
reported by ACA Howe and MCS at block revenue calculated cut-offs and selected
cut-off of 0.5 g/t Au.
Table 2 - Shirotnaia Resource Estimate
(using cut-off grades of 0.1 g/t Au for oxide material and 0.2 g/t Au for
transitional and primary material types respectively):
----------------------------------------------------------------------------
Shirotnaia In Situ Total Resource by Category and Material Type
----------------------------------------------------------------------------
CUT-OFF (1) MATERIAL CLASS (2) Density Volume Tonnes
---------------------------------
t/m3 x 1000 m3 x 1000 t
----------------------------------------------------------------------------
0.10 g/t Oxide Indicated 2.43 223 534
-------------------------------------------------
Inferred 2.37 3,702 8,790
----------------------------------------------------------------------------
0.20 g/t Transitional Indicated 2.65 2 6
-------------------------------------------------
Inferred 2.64 1,519 3,988
----------------------------------------------------------------------------
0.20 g/t Primary Indicated 2.57 914 2,359
-------------------------------------------------
Inferred 2.58 8,450 21,799
----------------------------------------------------------------------------
Total Indicated 2.54 1,140 2,900
----------------------------------------------------------------------------
Inferred 2.53 13,670 34,577
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Shirotnaia In Situ Total Resource by Category and Material Type
----------------------------------------------------------------------------
CUT-OFF (1) MATERIAL CLASS (2) Au (3) Au Au
---------------------------------
g/t g Oz
----------------------------------------------------------------------------
0.10 g/t Oxide Indicated 0.61 327,000 11,000
-------------------------------------------------
Inferred 0.49 4,268,000 137,000
----------------------------------------------------------------------------
0.20 g/t Transitional Indicated 0.39 2,000 100
-------------------------------------------------
Inferred 0.73 2,899,000 93,000
----------------------------------------------------------------------------
0.20 g/t Primary Indicated 0.79 1,866,000 60,000
-------------------------------------------------
Inferred 0.59 12,892,000 414,000
----------------------------------------------------------------------------
Total Indicated 0.76 2,196,000 71,000
----------------------------------------------------------------------------
Inferred 0.58 20,058,000 645,000
----------------------------------------------------------------------------
(1) Cut-off value used here represents economic cut-off determined from block
revenue factor calculation methodology and input gold price of US$1,401/oz.
(2) Class represents resource category under CIM and JORC reporting guidelines.
(3) Top cuts of 10 g/t Au and 6 g/t Au have been applied to North E1 (OX&PR),
Central 3 and Central 3 (OX), Central 4 (TR), South E1 (OX) gold assay data
respectively. A top cut of 15 g/t applied to domain North E2 (PR) gold assay
data.
ACA Howe and MCS reported resources using economically derived cut-off grades
from simple block revenue factor methodology. Cut-off grades used for reporting
are 0.1 g/t Au for oxide material, and 0.2 g/t Au for transitional and primary
material types respectively.
Inputs for oxide material are based upon actual mining cost data from Alhambra's
nearby 100% owned Uzboy open pit operation audited by ACA Howe, and estimated
costs for transitional and primary material taken from recent Preliminary
Economic Assessment ("PEA") studies undertaken on Uzboy.
Key input data for cut-off calculation include:
-- Gold price - US$1,401/oz
-- Mining Method - open pit
-- Oxide processing method - heap leach
-- Transitional and primary processing method - gravity carbon in leach
("CIL")
-- Recovery - Oxide 70%; Transitional/Primary 85%
-- Oxide mining cost - US$1.00/tonne (waste dump and pit
infill)/US$1.70/tonne (in-situ)
-- Transitional and Primary mining costs - US$1.95/tonne
-- Processing costs - US$3.85/tonne (oxide), US$6.47/tonne (transitional
and primary)
Table 3 - Shirotnaia Resource Estimate
(reported at a 0.5 g/t Au cut-off):
----------------------------------------------------------------------------
CUT-OFF MATERIAL CLASS Tonnes Au Au Au
----------------------------------------
t g/t g Oz
----------------------------------------------------------------------------
0.5 Oxide Indicated 248,000 0.94 233,000 7,000
----------------------------------------------------
Inferred 2,462,000 1.00 2,451,000 79,000
----------------------------------------------------------------------------
0.5 Transitional Indicated - 0.00 - -
----------------------------------------------------
Inferred 1,864,000 1.21 2,248,000 72,000
----------------------------------------------------------------------------
0.5 Primary Indicated 1,184,000 1.23 1,457,000 47,000
----------------------------------------------------
Inferred 8,361,000 1.01 8,413,000 270,000
----------------------------------------------------------------------------
0.5 TOTAL Indicated 1,432,000 1.18 1,690,000 54,000
----------------------------------------------------
Inferred 12,687,000 1.03 13,112,000 421,000
----------------------------------------------------------------------------
Based on the geological model, exploration grid, search ellipsoid ranges,
composite sizes and mining method, the data used in the Estimate was block
modeled with a block size of 10 m x 10 m x 10 m for the in-situ mineralization
and sub-blocking to 2 m x 2 m x 2 m was performed to achieve accuracy along
domain wireframe boundaries.
Following statistical analysis of domain input Au sample data, top cuts of 5 g/t
Au were applied to three mineralized domains, 10 g/t Au to three mineralized
domains and 15 g/t Au to one mineralized domain. Input sample data were
composited to 1 m intervals for all zones.
As of January 31, 2012 the gold mineralization at Shirotnaia remains open to the
north, northeast and southwest as well as at depth.
Saga Creek Gold Corporation LLP ("Saga Creek"), a 100% owned subsidiary of the
Corporation, is responsible for the exploration activities conducted on
Shirotnaia. Saga Creek employs approximately 320 people in its exploration and
mining related activities and contributes significantly to the local economy.
Mr. J.N. Hogg, MSc., MAIG, Senior Geologist and Qualified Person with MCS and
Mr. J.G. Langlands, BSc, FGS, FIMMM, CEng., Principal Geologist and Qualified
Person with ACA Howe, have reviewed and approve the technical information
contained in this news release. 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.
(i) United States investors are advised that current Mineral Resources are not
current Mineral Reserves and do not have demonstrated economic viability. All
figures are rounded to reflect the relative accuracy of the estimate and in
keeping with "best practice principles".
ABOUT ALHAMBRA
Alhambra is a Canadian based international exploration and gold production
corporation with 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 areas, are contained
within the Uzboy Project. The total reported NI 43-101 resources of Alhambra's
three advanced exploration project areas amount to 700,000 ozs measured, 368,500
ozs indicated and 1,367,700 ozs inferred.
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.
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, there is no certainty that the
additional assays from the 2011 drilling program or future drill programs or the
formalizing next steps will identify additional 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
differentfrom any future results, performance or achievements expressed or
implied by such forward-looking statements. Such risks and other factors
include, among others, identifying additional resources, availability of capital
to fund exploration 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.
Figure 1 - Uzboy Project - Location Map
To view the figure associated with this press release, please visit the
following link:
http://media3.marketwire.com/docs/alhambrafig1.jpg
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