Alder Resources Ltd. ("Alder" or the "Company") (TSX VENTURE:ALR) is pleased to provide results from initial trenching at the Tipispan porphyry copper-gold prospect within the Company's Rosita Project in northeast Nicaragua. Results include 3.85% copper ("Cu"), 0.38 grams per tonne gold ("g/t Au") and 51.73 g/t silver ("Ag") over 3.0 metres within a wide zone that included 1.65% Cu, 0.17 g/t Au and 23.25 g/t Ag over 8.3 metres. These results are from Trench 10 located 50 metres southeast of a former prospect pit sampled by Alder that returned 6.28% Cu, 0.74 g/t Au and 132.75 g/t Ag over 2.8 metres (Figure 1). Trench 11, located 50 metres southeast of Trench 10, returned 12.0 metres grading 0.22% Cu, 0.10 g/t Au and 1.64 g/t Ag. Collectively, copper mineralization has been observed in trenches over a 200 metre strike length and confirmed by assay results along 125 metres. Mineralization in the prospect pit was tested with a diamond drill hole by Calibre Mining in 2010 that intersected porphyry-style mineralization that returned 0.42% Cu, 0.02 g/t Au and 7.00 g/t Ag over 50.0 metres.
The Tipispan prospect is located within the Bambana area which is four kilometres northwest of the past producing Santa Rita pit and one kilometre northeast of the T3 zone (Figure 2) where trenching has returned up to 3.32% Cu, 0.22 g/t Au and 37.55 g/t Ag over 12.0 metres and drilling has returned up to 1.74% Cu and 16.64 g/t Ag over 18.0 metres in an exotic Cu-oxide zone. Ongoing trenching is designed to test the lateral extent of the mineralized zone (Figure 1) to the northwest of the prospect pit.
A second hole drilled by Calibre in this area returned 0.51% Cu, 0.25 g/t Au and 10.41 g/t Ag over 11.5 metres in a similarly mineralized and altered intrusive rock. This intercept is interpreted to occur along a northwest-trending mineralized zone located 200 metres southwest and parallel to the Tipispan prospect. Alder is targeting the source of these mineralized intrusions with a series of trenches and detailed soil sampling.
Company President and CEO, Joseph Arengi, states: "These results are highly encouraging in that the preliminary trenching at Tipispan has demonstrated shallow high grade Cu-Au-Ag mineralization, a greater lateral extent of porphyry-style mineralized intrusions and yet another Cu-Au-Ag zone on the Rosita Property. Our exploration efforts continue to add value to what we believe is a new porphyry copper district."
Bambana Porphyry Targets
In addition to the targets discussed above, an Induced Polarization geophysical survey completed earlier this year has identified a series of strong chargeability anomalies that conform to a circular feature interpreted from a magnetic survey. Chargeability anomalies suggest areas of disseminated sulphide mineralization that could represent porphyry-type exploration targets. In addition to the anomaly at T3, an 800 metre by 500 metre anomaly occurs in the north central part of the Bambana area and an approximate 1,500 metre by 1,000 metre anomaly has been delineated in the southeast corner of the Bambana area. The latter coincides with the Zopilote prospect, drilled in the 1960s, with reported historic reserves of 176,000 tonnes of oxide material grading 0.90% Cu and 79,000 tonnes of sulphide material grading 0.97% Cu (referenced in a map by A. Rivera, 1977).(1) Gold and silver values are not reported for this zone.
(1)This historical estimate was not prepared in accordance with currently accepted guidelines for the preparation of mineral resources and mineral reserves, does not comply with NI 43-101 and should not be relied upon. Although the historical estimate is relevant to recognizing potential, a qualified person, as such term is defined in NI 43-101, has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves and the Company is not treating the historical estimate as current mineral resources or mineral reserves.
Trenching is currently being carried out at Tipispan and El Rastro and soil sampling will be expanded to other prospective areas. Alder is following up on rock chip sampling that has returned up to 114.12 g/t Au at El Rastro, 12.33 g/t Au at Tipispan as well as seven other samples that returned values between 1.05 g/t Au and 6.90 g/t Au, mainly in the Bambana area.
Quality Assurance/Quality Control
Continuous horizontal chip samples are collected 0.2 metres above the trench floor from cleaned surfaces, collected into heavy gauge plastic bags, sealed on-site, then stored at Alder's Rosita field office until they can be transported by company or laboratory personnel to Inspectorate Exploration and Mining Services' sample preparation facility in Managua. There, pulps are prepared for shipping to Inspectorate's Analytical laboratory in Vancouver, where each sample is analyzed via 1 assay-tonne fire assay for gold and 30 element ICP (Inductively Coupled Plasma-atomic emission spectrometry) methods for copper, silver and 28 other elements. Alder has implemented an industry standard Quality Assurance/Quality Control program that includes the insertion of blanks into the sample stream.
Joseph Arengi, M. Sc., P. Geo., President and Chief Executive Officer of Alder and a qualified person as defined by NI 43-101, has reviewed and approved the scientific and technical content of this news release.
John Spurney, Vice President Exploration, has resigned his position effective October 31, 2012 for personal reasons. John's efforts in advancing the Rosita project are greatly appreciated and we wish John the best in his future endeavours.
The Company has appointed Mr. Michael McAllister as Manager, Investor Relations effective November 1, 2012. Mr. McAllister will be paid a base salary of $3,333 per month and may be granted stock options as part of his compensation. Mr. McAllister will not be engaged in any market making activities.
The Company has entered into an agreement with Castillian Resources Corp. with respect to Castillian's right to acquire a 60% interest in the Canadian Creek project. Pursuant to this agreement Castillian has paid to Alder $50,000 in cash and issued to Alder 5,000,000 common shares of Castillian in lieu of the 6,666,667 common shares that Castillian was required to issue to Alder under the terms of the original option agreement between Alder and Castillian.