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Alhambra outlines gold targets in northern Kazakhstan

on April 17, 2012 discovery

Gravity and magnetic surveys on the Uzboy gold exploration project in northern Kazakhstan have identified 18 new targets for Alhambra Resources.

The Calgary-based company recently completed1,360 sq. km2 of phase-one ground gravity and high-resolution magnetic surveys on the Dombraly-Shirotnaia gold trend, the sight of two past-producing mines.

The magnetic and gravity surveys were conducted by Azimut Energy Services, a leading supplier of geophysical services in Eastern Europe. The surveys were interpreted by consulting mineral exploration geophysicist Kuncho Kunchev based in Bulgaria.

During the processing of the gravity and magnetic data, Geosoft databases and grids were calculated and used to sketch magnetic and gravity lineaments, anomalies for further interpretation and target generation. Using the lineament intersections and magnetite destruction patterns as the major criteria, 60 targets were picked up, and of the 60 targets identified, 18 were categorized as primary exploration targets.

For further prioritizing of these targets the interpreted survey results were overlaid with the ASTER anomalies and known gold showings from the Soviet era. As a result five first priority exploration targets for immediate follow up were identified. Most of them mark new areas of interest that have not been known before.

Meanwhile, Alhambra has received and filed the final technical report related to the initial independent National Instrument 43-101 gold resource estimate for the Shirotnaia deposit.

The report identifies an inferred mineral resource of 645,000 oz. contained in 34.6 million tonnes grading 0.58 gram gold per tonne, as well as an indicated resource of 71,000 oz. contained in 2.9 million tonnes at 0.76 gram per tonne. (These estimates do not include results from 489 metres of diamond drilling in 2011; nor do they include results from 489 metres of drilling completed to date in 2012.)

At Shirotnaia, a total of 4,740 metres of both diamond and reverse-circulation drilling is planned for the remainder of 2012, though the program could be expanded pending results.

Also, soil sampling and reverse-circulation drilling will test the gold potential of the five high-priority targets identified.

The Dombraly-Shirotnaia gold trend is in the southeastern portion of Alhambra’s wholly owned 9,800-km2 Uzboy project. Early-stage exploration by the company identified significantexploration upside. The area known as Shirotnaia is considered a potential extension to the Aksu and Quartzite Hills gold deposits held by KazakhGold Group Ltd., whereas Dombraly is the site of an abandoned but undepleted Soviet gold mine.

Early exploration also identified gold mineralization in the areas known as North Balusty, Kontaktovy, Kerbay and Zhusaly. These targets form an emerging gold trend of at least 50 km extending from Shirotnaia in the south to North Balusty in the north, Alhambra states in a release.

The recent 1,360-km2program of gravity and magnetic surveys was preceded by a 290-km2 survey in 2008, also carried out by Azimut. According to Alhambra, results to date confirm that the area has even more gold potential than originally anticipated.

Further surveys in 2012 will potentially cover the remainder of the company's 9,800-km2 license area.

Source: Alhambra Resources