CALGARY, ALBERTA--(CCNMatthews - Jan. 19, 2006) - Alhambra Resources Ltd. (TSX VENTURE:ALH) ("Alhambra" or the "Company") is pleased to announce the results of its 2005 test mining and leaching program completed on the oxide gold mineralization within the Uzboy West zone. The Uzboy gold project is 100% owned by Alhambra and is located in north central Kazakhstan.
The Company believes that the results of the test program demonstrate that leaching can be conducted on a year round basis. Highlights are as follows: - Gold recovered since commencement in December 2004 is approximately 14.8 thousand troy ounces ("tr. oz.") - Material stacked on the leach pads as of December 31, 2005 was 776.7 thousand tonnes with an average gold grade of 1.48 grams/tonne ("g/t").
Gold Recovery
The gold recovered from the test leaching program is made up of approximately 12.5 thousand tr. oz. of gold sold and 2.3 thousand tr. oz. of gold precipitated on resin and at the refinery. The cash received from gold sales was US$ 5.7 million. It is anticipated that the 2.3 thousand tr. oz. of gold on resin and at the refinery will be sold during the first quarter of 2006. The test program cost was approximately US$ 3.9 million.
Test Leaching
The heap leach test commenced in December 2004. As of December 31, 2005, a total of 776.7 thousand tonnes of material at an average grade of 1.48 g/t gold containing approximately 37.0 thousand tr. oz. of gold were stacked of which 660.9 thousand tonnes were under test leaching.
Due to the stacking of additional material on test heap #1 during 2005, the percentage gold recovery to date from test heap #1 is approximately 45%. Based on bottle roll and column leach test results, the gold recovery for the test heaps is expected to be 70%. The estimated daily gold recovery (on December 31, 2005) from test heaps #1 and #2 was 68 tr. oz.. The estimated gold recovered per day is expected to increase when leaching of the additional 115.8 thousand tonnes commences. At that time a total of 776.7 thousand tonnes will be under test leaching. During 2005, a third leach pad and the foundation for a fourth leach pad were constructed at the Uzboy site.
Test Mining
In 2005, the ratio of waste tonnes to the tonnes of material stacked for test leaching from the Uzboy West zone is estimated at 1.57. Depending on the analytical results, this material could also be stacked on the test heaps for leaching.
The onsite operations at the Uzboy gold project are supervised by senior mining, metallurgical and geological personnel employed by Saga Creek Gold Company LLP. Saga Creek is a wholly owned subsidiary of Alhambra.
A report on the testing program is being prepared by GEOS LLP., a certified independent geological consulting group in Kazakhstan and is anticipated to be completed by the end of January, 2006. This report will be submitted to the State Committee for Reserves ("GKZ") for review. If the report is accepted by the GKZ, then the Uzboy oxide project would be considered in commercial production under Kazakhstani law.
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 exploration company celebrating its fourth year of operations in the Republic of Kazakhstan. It is engaged in the exploration and development of gold properties.
Alhambra shares trade in Canada on The TSX Venture Exchange under the symbol ALH. The Company's website can be accessed at www.alhambraresources.com
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Alhambra Resources Ltd.
Elmer B. Stewart
President & Chief Operating Officer
(403) 228-2855
Alhambra Resources Ltd.
Ihor P. Wasylkiw
Chief Information Officer
(403) 508-4953
Alhambra Resources Ltd.
Jim Clarke
Investor Relations
(888) 290-1335 (Toll Free)
