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Alhambra Resources Discovers Two New High Grade Gold Mineralization Zones at Shirotnaia

Alhambra Resources Ltd. (TSX VENTURE:ALH) announces that its diamond drilling program at Shirotnaia has resulted in the discovery of two new zones of higher grade gold mineralization.

The Shirotnaia zone ("Shirotnaia") is located within its 100% owned Uzboy Project in Kazakhstan and is immediately adjacent to the Aksu and Quartzite Hills gold deposits currently being mined by KazakhGold Group Limited ("KazakhGold").

HIGHLIGHTS

  • Diamond Drill Hole ("DDH") 100-02 intersected 4.32 grams per tonne ("g/t") gold over an interval of 36.0 metres ("m") including a higher grade interval of 16.80 g/t gold over 9.0 m
  • DDH 32-02 intersected 2.13 g/t gold over an interval of 20 m
  • Broad intervals of anomalous gold concentrations (for +0.10 g/t) were intersected in all nine drill holes

DRILLING PROGRAM

The drilling program consisted of nine holes totaling 1,141 m. The objective of this drilling program was to test the depth extension of the large gold anomaly previously outlined by the 2008 Rotary Air blast ("RAB") drilling program. Two significant widths of high grade gold mineralization were encountered within a large area of lower grade gold mineralization, suggesting the probable continuation of the high grades to depth as is usual for this style of mineralization. In fact, previous RAB drilling programs completed in Shirotnaia identified a large gold anomaly and significant gold mineralization with a high peak gold grade of up to 51.6 g/t (see news release dated March 4, 2010).

The nine wide spaced DDHs confirmed the presence of two NE striking zones of hydrothermal alteration (quartz-sericite-chlorite-carbonate) that hosts numerous zones of significant (> 0.10 g/t) gold mineralization in each drill hole. The weighted average grade of the significant intervals of gold mineralization was estimated using a 0.20 g/t cutoff. The host lithologies are interbedded andesite volcanic and volcaniclastic rocks cut by andesite and diorite dikes as well as NE and NW striking faults. The mineralization and alteration at Shirotnaia is typical of orogenic volcano-sediment style of gold mineralization that is both structurally and lithologically controlled. The mineralized zones remain open along strike and at depth.

An in-fill reverse circulation ("RC") drilling program consisting of 43 holes totaling 2,250 m has also been completed at Shirotnaia to further enhance and understand the geometry of the large zone of anomalous gold mineralization previously outlined at Shirotnaia. Assay results for these samples are still pending.

"These very encouraging results continue to support our interpretation that the three zones of gold mineralization discovered at Shirotnaia have the potential to be the northern extension of the multi-million ounce Aksu and Quartzite Hills gold deposits located immediately south of Shirotnaia," stated Mr. John J. Komarnicki, Alhambra's Chairman and Chief Executive Officer. "In our opinion, the combination of the hydrothermal alterations and distinct zones of widespread gold mineralization supports an extensive exploration program in 2011 consisting of diamond drilling and reverse circulation drilling which will be focused on further defining both the potential and dimensions of Shirotnaia."

The 2011 exploration program for Shirotnaia will be finalized when all of the assay results from the 2010 program have been analyzed and interpreted.

The weighted average grade of the mineralized interval in DDH 100-02 from 43.0 m to 79.0 m is strongly influenced by the following sample results; from 49.0 m to 50.0 m of 24.0 g/t, from 50.0 m to 51.0 m of 77.7 g/t, from 55.0 m to 56.0 m of 10.6 g/t and from 56.0 to 57.0 m of 19.8 g/t gold.

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 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 Stewart 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 and verified the technical information contained in this news release.

Source: Alhambra Resources Ltd.

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