Vancouver – Alhambra Resources (ALH-V) president Elmer Stewart says he is encouraged by the results of drilling to the northwest of its Uzboy gold mine in Kazakhstan.
The Calgary-based company said drilling intersected 12.74 grams gold per tonne over 13.3 metres in core from one of two holes which were released yesterday.
Alhambra is targeting a mineralized zone located to the west of its Uzboy open pit mine which is expected to produce about 20,000 ozs. of gold this year. That’s up from 14,800 ozs. last year when production costs averaged US$267 per oz.
“We are excited about these results,” said Mr. Stewart.
The company’s shares reacted to the results, rising 5 cents to $1.71 on trading volume of about 69,000.
While Alhambra has a pair of drills working on the property, it issued a statement yesterday saying the two holes are the best which it has drilled so far in 2006.
The 13.3-metre intercept was from hole 29-11, which averaged 5.96 grams gold over 32.2 metres at a depth of 168.70 to 201 metres.
The Uzboy property was previous held by Cameco (CCO-T, CCJ-N), which walked away from the site in the late 1990s, when the uranium prices were in a slump.
The project covers approximately 2.7 million acres of land. Alhambra’s primary focus is disseminated style gold mineralization such as that currently being explored in the Uzboy West and Uzboy East deposits.
Previous drilling prior to 1997 on the two deposits intersected gold mineralization at depths of 280 metres and 200 metres respectively.
The project was extensively explored when Kazakhstan was part of the former Soviet Union.
This resulted in the location of 110 significant exploration targets, including two dormant gold mines that have been previously exploited.
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