Alhambra Resources Ltd TSXV:ALH announced results from the Uzboy gold project in north-central Kazakhstan. Assays include
2.82 g/t gold over 22.9 metres (including 3.51 g/t over 18 metres)
0.97 g/t over 29 metres (including 11.4 g/t over 1 metre)
1.53 g/t over 41.9 metres (including 31.7 g/t over 1 metre)
3.31 g/t over 8.2 metres
1.16 g/t over 6 metres
0.95 g/t over 46 metres (including 2.16 g/t over 8 metres)
The Uzboy deposit has an NI 43-101 mineral resource estimate of 975,500 ounces gold in the measured and indicated categories, and 421,700 ounces inferred.
VP and Chief Information Officer Ihor Wasylkiw tells ResourceClips.com, “Alhambra has a very, very large position in Kazakhstan, called the Uzboy project. The Uzboy project itself is a 2.4-million-acre property or 9,800-square kilometres. I think it’s in the neighbourhood of about 10 or 12 times the size of New York City. So, it’s a large area, and within that we have 100 areas where we have gold. Of those 100 areas, we have been focused on six to eight of them. Of those six to eight, three are advanced project areas. Of those three, one—namely the Uzboy gold deposit—has an actual operating mine and has a current 43-101 resource report.
What these holes have shown us and have confirmed is that indeed there is a significant down-dip extension—Ihor Wasylkiw
“The main objective that we have at Uzboy is to continue delineation drilling to further expand and enhance the 43-101 resource report. The last one was done in December 2007. The assay results that we just announced are but a small fraction of a program that we had been doing since 2010, which carried over into 2011. We did a 42-core-hole program, of which we had these seven outstanding deep holes that we weren’t able yet to get out into the public domain.
“We’re very excited about these results for numerous reasons,” Wasylkiw continues. “One of the big objectives of this program with these deep holes was to step out from where we had been drilling to get a better understanding of a deeper down-dip plunge that we had seen in the gold mineralization. What these holes have shown us and have confirmed is that indeed there is a significant down-dip extension. As a result of this drilling, we’ve extended that extension by more than 50% vertically. Some of the intercepts that we’ve had tell us that there is a lot of interesting upside opportunity and potential there, because we’ve had multiple intervals of mineralization. This is the last piece of the puzzle that our independent geological consultants, ACA Howe, needed in order to be able to update our resource report.
“Not only are they generating an updated resource report, but they’re also generating an updated preliminary economic assessment. Along with the old resource report, the scoping study that was done is again a number of years old, and it was done at $850-per-ounce gold. We all know that that’s quite an old number. Given the time that our consultants have indicated that they will need to update the resource estimate and to complete the updated PEA, that will be a 1Q 2012 releasable item.
“We have been for a number of years and currently are mining the top-layer oxide,” Wasylkiw adds. “In the last scoping study, ACA Howe indicated that at that time we would—by implementing a new grind/flotation-type facility—be able to significantly increase our production to approximately 200,000 to 250,000 ounces of gold a year. In order to be able to achieve that, a new facility would have to be built. At the time [of the original PEA] the facility costs were in the neighbourhood of $80 million. To build a facility such as that, not only do you need the capital, but it’s going to take time. The [original] timeline was in and around a minimum of 24 months, but probably pushing 30 to 34 months. But in order to be able to progress with that we have to get from our consultants the updated resource and the updated PEA, because that will help with timelines and the next steps.
“We’re very excited about the project. We have one of the largest contiguous properties in the world, so the opportunities are huge. The challenge we have is to be able to focus only on a few projects to grow those resources. Because we all know that once you hit a critical mass of around two- to three-million ounces of resources, that’s when you become a somebody. And right now we’re at 1.5 million ounces—so we’re not technically there yet, but we will be in 1Q 2012. So we’re excited about the opportunities, and we’re excited about the growth prospects.”
Wasylkiw concludes, “The bottom line is that we are significantly undervalued. And for any people that are GARP (growth-at-a-reasonable-price) investors, I don’t believe that they can ignore us, looking at the compelling valuation.”
View Company Profile
John J Komarnicki
or Ihor P Wasylkiw
VP/Chief Information Officer
by Ted Niles