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Glossary of Terms:

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z


Ag - chemical symbol for silver

Agglomeration - A method of concentrating valuable minerals based on their adhesion properties.

Alteration - changes in the chemical or mineralogical composition of a rock, generally produced by weathering or hydrothermal solutions

Andesite - a variety of volcanic rock

Anomalous - value of a given element that is deemed to be above the background or normal value

Anticline - an inverted "U" shaped fold or structure in stratified rocks with the oldest rocks in the centre

Assay - To analyze the proportions of metals in an ore; to test an ore or mineral for composition, purity, weight, or other properties of commercial interest.

Au - chemical symbol for gold

Backfill - Waste material used to fill the void created by mining an orebody.

Base metal - non-ferrous, non-precious metal, including copper, lead and zinc

Bench - Horizontal steps/increments mined as an open pit progresses deeper.

By-product - A secondary metal or mineral product recovered in the milling process such as copper and silver.

Capitalization - A financial term used to describe the value financial markets put on a company. Determined by multiplying the number of outstanding shares of a company by the current stock price.

Category C1 - Kazakhstani reserve category, where blocks are delineated by mine workings above and below

Category C2 - Kazakhstani reserve category, extrapolated from category C1, but with more complex geology or limited mine workings

Concentrate - A very fine, powder-like product containing the valuable ore mineral from which most of the waste mineral has been eliminated.

Contained ounces - Represents ounces in the ground before reduction of ounces not able to be recovered by the applicable metallurgical process.

Core Drilling - The process of obtaining cylindrical rock samples by means of annular-shaped rock-cutting bits rotated by a borehole-drilling machine

Core sample - A cylinder sample generally 1-5" in diameter drilled out of an area to determine the geologic and chemical analysis of the overburden and coal.

Cu - chemical symbol for copper

Cyanidation - A method of extracting gold or silver by dissolving it in a weak cyanide solution.

Deposit - an anomalous occurrence of a specific mineral or minerals within the Earth's crust

Diamond drill - A rotary type of rock drill that cuts a core of rock that is recovered in long cylindrical sections, two cm or more in diameter.

Diamond drilling - drilling method which obtains a cylindrical core of rock by drilling with an annular bit set with diamonds

Dilution - The effect of waste or low-grade ore being included unavoidably in the mined ore, lowering the recovered grade.

Diorite - an intrusive igneous rock with a mixture of dark and light minerals

Dip - inclination of a geological feature/rock from the horizontal (perpendicular to strike)

Disseminated - fine grained material scattered quite evenly throughout the rock

Dorè - unrefined gold, usually in bar form and consisting primarily of gold with smaller amounts of other base metals, which will be further refined to high purity gold bullion

Epithermal - a hydrothermal ore deposit formed at lower temperatures (50-200 ºC) and depths (1 km)

Exploration - Prospecting, sampling, mapping, diamond-drilling and other work involved in searching for ore.

Fault - a fracture in a rock along which there has been relative displacement

Feasibility study - a detailed study of the economics of a project based on technical calculations and specific mine de02/06/2008nce to justify a decision on construction

Fire assay - assaying method commonly used for the determination of precious metal content

Flexure - a fold or bend in rock strata

Flotation - a mineral processing method used to concentrate the economic minerals from the ore prior to further processing

Footwall - the underlying side of a fault, ore body or mine working

g - gram

Geochemical prospecting - technique, which measures the content of specific metals in soils and rocks, geochemical sampling defines anomalies for further testing

Geophysical prospecting - technique which measures the physical properties (chargeability, resistivity, magnetism etc) of rocks and define anomalies for further testing

Geotechnical - diamond drilling targeted and utilized specifically for the collection of information used for mine stability purposes.

Grade - The amount of metal in each tonne of ore, expressed as troy ounces per tonne or grams per tonne for precious metals and as a percentage for most other metals.

  • Cut-off grade: the minimum metal grade at which an orebody can be economically mined (used in the calculation of ore reserves).
  • Recovered grade: actual metal content of ore determined after processing.
  • Reserve grade: estimated metal content of an orebody, based on reserve calculations.
Granite - medium-to coarse-grained igneous rock usually light-coloured

g/t - unit of grade for precious metals: grams per tonne (= parts per million)

Heap leaching - A process whereby gold is extracted by "heaping" broken ore on sloping impermeable pads and continually applying to the heaps a weak cyanide solution which dissolves the contained gold. The gold-laden solution is then collected for gold recovery and recycled to the heaps.

High grade - Rich ore. Refers to selective mining of the best ore in a deposit.

Hydro-core lift drilling (KGK) - a Soviet style reverse circulation drilling technique which uses water to lift the core sample from the bottom of the hole to surface.

Hydrothermal - the name given to geological processes associated with heated or relating to heat derived from within the Earth, commonly related to igneous intrusions

In-fill Drilling - any method of drilling intervals between existing holes, used to provide greater geological detail and to help establish reserve estimates.

In-situ - in place

Intrusion - body of igneous rock that invades older rocks

London Inter Bank Offering Rate (LIBOR) - this is the daily reference rate based on the interest rates at which banks offer to lend unsecured funds to other banks in the London wholesale money market (or interbank market).

Lower Ordovician - a period of geologic time spanning from 425 to 500 million years ago and a system of rocks

Massive sulphide - relatively dense, fine grained, sometimes bedded, sulphide mineralization, commonly lens-shaped and stratiform, i.e. restricted to a particular geologic horizon

Metallurgical test - studies pertaining to the production, purification and properties of metals and their extraction

Mineral Reserves & Resources

Standard - Proven and Probable Mineral Reserves and Measured, Indicated and Inferred Mineral Resources have been estimated in accordance with the definitions of these terms adopted by the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") in November 2005 and incorporated in National Instrument 43-101, "Standards of Disclosure for Mineral Projects" ("NI 43-101"), by Canadian securities regulatory authorities. Mineral Resources are reported separately from and do not include that portion of the Mineral Resources that is classified as Mineral Reserves. That portion of Mineral Resource which is not classified as Mineral Reserve does not have demonstrated economic value.

Definitions - The CIM Definition standards on Mineral Resources and Mineral Reserves provide as follows:

A Mineral Resource is a concentration or occurrence of diamonds, natural solid inorganic material, or natural solid fossilized organic material including base and precious metals and industrial minerals in or on the earth's crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge.

An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.

An Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed.

A Measured Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape, and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geological and grade continuity.

A Mineral Reserve is the economically mineable part of a Measured or Indicated Mineral Resource demonstrated by at least a Preliminary Feasibility Study. This Study must include adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified. A Mineral Reserve includes diluting materials and allowances for losses that may occur when the material is mined.

A Probable Mineral Reserve is the economically mineable part of an Indicated and, in some circumstances, a Measured Mineral Resource demonstrated by at least a Preliminary Feasibility Study. This Study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified.

A Proven Mineral Reserve is the economically mineable part of a Measured Mineral Resource demonstrated by at least a Preliminary Feasibility Study. This Study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting, that economic extraction is justified.


Mineralized material - Mineralized material is the projection of mineralization in rock based on geological evidence and assumed continuity. It may or may not be supported by sampling but is supported by geological, geochemical, geophysical or other data. This material may or may not have economically recoverable mineralization.

Minable reserves - Ore reserves that are known to be extractable using a given mining plan.

Open pit - A mine where the minerals are mined entirely from the surface.

Ore - Rock, generally containing metallic and non-metallic minerals that can be mined and processed at a profit.

Orebody - A sufficiently large amount of ore that can be mined economically

Ounces - Troy ounces of a fineness of 999.9 parts per 1,000 parts.

Oxidized - a soft, weathered rock having undergone a chemical reaction with oxygen by oxidation of such elements as sulphur, iron and carbon

Oxide ore - Mineralized rock in which some of the original minerals have been oxidized. Oxidation tends to make the ore more amenable to cyanide solutions so that minute particles of gold will be readily dissolved.

Paleozoic - the first three eras of the Paleozoic, spanning 570 to 428 million years ago

Reclamation - The process by which lands disturbed as a result of mining activity are reclaimed back to a beneficial land use. Reclamation activity includes the removal of buildings, equipment, machinery and other physical remnants of mining, closure of tailings impoundments, leach pads and other mine features, and contouring, covering and re-vegetation of waste rock piles and other disturbed areas.

Recovery - A term used in process metallurgy to indicate the proportion of valuable material obtained in the processing of an ore. It is generally stated as a percentage of valuable metal in the ore that is recovered compared to the total valuable metal present in the ore.

Refining - The final stage of metal production in which impurities are removed from the molten metal.

Reverse Air Blast drilling (RAB) - drilling that produces rock chips rather than core. The chips are forced by air to surface through a double-walled drill pipe and are collected for examination.

Royalty - An amount of money paid at regular intervals by the lessee or operator of an exploration or mining property to the owner of the ground. Generally, it will be based on a certain amount per tonne or a percentage of the total production or profits. Also, the fee paid for the right to use a patented process.

Skarn - Name for the metamorphic rocks surrounding an igneous intrusive where it comes in contact with a limestone or dolostone formation.

Strike length - The longest horizontal dimension of an orebody or zone of mineralization.

Sulphide - metalliferous minerals formed with sulphur and often iron

Stockpile - Broken ore heaped on surface or prepared areas underground, pending treatment or shipment.

Tailings - The material that remains after all economically and technically recoverable precious metals have been removed from the ore during processing.

Trenching - a means of exposing and sampling near-surface geology by digging a trench

Vein - A fissure, fault or crack in a rock filled by minerals that have traveled upwards from some deep source.

Volcanic - pertaining to igneous rocks which have been erupted from volcanoes

Weathering - degradation of rocks at the Earth's surface by climatic forces


Investor Relations

If you have any questions or comments about Alhambra's Investor Relations program, please contact:

Ihor Wasylkiw, Vice President & CIO
Tel: +1 (403) 508-4953
Fax: +1 (403) 228-2865
e-mail: ir@alhambraresources.com