Vancouver — Alhambra Resources (ALH-V, AHBRF-O) president Elmer Stewart says he is encouraged by the results of drilling to the northwest of the company’s Uzboy gold mine in Kazakhstan.
The Calgary-based company said drilling intersected 12.74 grams gold per tonne over 13.3 metres in one of two holes drilled recently.
Alhambra is targeting a mineralized zone located to the west of the Uzboy open-pit mine which is expected to produce about 20,000 oz. gold this year. That’s up from 14,800 oz. last year when production costs averaged US$267 per oz.
The company’s shares reacted to the results, rising 5 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 it has drilled so far this year.
The 13.3-metre intercept was from hole 29-11, which averaged 5.96 grams gold over 32.2 metres, starting from 168.7 metres below surface.
The Uzboy property was previously held by Cameco (CCO-T, CCJ-N), which walked away from the site in the late 1990s, when uranium prices were in a slump.
The project covers about 10,927 sq. km. 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 on the two deposits prior to 1997 intersected gold mineralization at depths of 280 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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