Alacer's Exploration Update Highlighted by Thick Intersection at Çöpler Main Zone of 323m at 1.5g/t Gold

TORONTO, May 7, 2012 /CNW/ - Alacer Gold Corp. ("Alacer") [TSX:ASR, ASX:AQG] announces results from the recent exploration programs in Turkey and Australia.

Highlights - Çöpler Gold Mine

• Significant extensions to Çöpler's Main Zone continue to be discovered:
• Drillhole CDD296A returned 323m at 1.5g/t gold from surface, which is the thickest mineralized zone intersected at the Main Zone to date. The intersection adds over 100m to the depth extent of the Main Zone mineralization in this area.
• Near-surface northern extensions to the Main Zone on the western margin of the Çöpler Village include 65.8m at 1.9g/t gold and 112.2m at 1.3g/t gold.
• Depth extensions to the Southern Main Zone include 15.0m at 4.6g/t gold from 180.8m and 13.7m at 3.4g/t gold from 253.7m.
• Continuity of mineralization confirmed from east of the old Çöpler Village to the Manganese Zone.  Results include 37.7m at 3.0g/t gold from 93.7m in CDD340.
• Infill drilling on Main Zone continues to confirm the thickness of gold mineralization, with several holes intercepting higher grades than currently modeled. Results include 88.2m at 4.7g/t gold from 100.4m in CDD342 and 33.8m at 8.5g/t gold from 4.0m in CDD338.
• Infill drilling of Çöpler's Western Zone indicates additional near-surface, higher grade mineralization than currently modeled. Results include the best individual assay result returned at the Western Zone of 17m at 12.4g/t gold from surface in CRC858.

Highlights - Çöpler Regional Exploration

• Drilling has recommenced on the Karakartal porphyry gold-copper deposit, located 12km southeast of Çöpler.  Results are confirming the geometry and grade of the current Mineral Resource and include 228m at 0.60g/t gold, 0.27% copper from 27m in KDD042, and 182m at 0.62g/t gold, 0.30% copper from surface in KDD034.
• The first drillhole into a geochemical anomaly 800m west of the Karakartal deposit returned 10.9m at 2.0% copper, 15g/t silver, 1.7% zinc from 74m and 14.1m at 1.8% copper, 5g/t silver, 0.75% zinc from 95.4m in KDD044. Further high-quality anomalies in the prospective Çöpler District are planned to be drilled during 2012.

Highlights - Higginsville Exploration

• Drilling at the Corona Prospect has identified an area of strong gold mineralization centered on the high-grade intersections in VIND047, VIND049 and VIND076. Previously unpublished assays include 2.35m at 60.9g/t gold from 197.2m in VIND076.
• At the Chalice underground mine, drilling of a previously sparsely drilled area between the Atlas and Olympus Lodes has intersected thick high-grade mineralization outside of the current resource boundary, including 29.3m at 4.7g/t gold.

Highlights - South Kalgoorlie Exploration

• Drilling at Surprise, part of the SBS28 Complex, has confirmed continuity of high-grade mineralization up to 150m below the existing pit. New drilling results include 3.0m at 14.7g/t gold, 2.3m at 7.9g/t gold, 1.0m at 55.6g/t gold and 3.0m at 13.1g/t gold.

Edward Dowling, President and CEO of Alacer, stated "Drilling at Çöpler continues to demonstrate that we have yet to define the extent of this large gold deposit. We have recently commenced initial drilling of the area surrounding the old Çöpler village. This area has excellent potential as it has been a gap in drilling along the central northern portion of the Çöpler orebody.

In the Çöpler District, drilling of the Karakartal porphyry gold-copper deposit has confirmed the current Mineral Resource and also discovered copper-silver-zinc mineralization nearby.

In Australia, drilling at Corona, Chalice and SBS28 Complex have defined areas of higher-grade mineralization."

Çöpler Exploration

An updated Çöpler resource estimate was released on February 27, 2012 and an associated Technical Report was released April 12, 2012.  The total Measured and Indicated Resources¹ has increased to 148.9 million tonnes at a grade of 1.53g/t gold, containing a total of 7.3 million ounces (inclusive of reserves).   This Mineral Resource included data from drilling completed to September 3, 2011.

Approximately 25km of further drilling was completed from September to December 2011 and the results from this further drilling were published on January 24, 2012.  An additional 11,500m of drilling was completed during Q1 2012 is summarized in Figure 1 and is the subject of this release.

During Q1 2012, exploration activity at Çöpler focused on extending the down-dip extensions to the Main Zone and Manganese Zone and infilling the West Zone.  Eight surface drilling rigs are currently on site at Çöpler and are beginning to test the area in and around the old Çöpler village.

A further Çöpler Mineral Resource update is planned to be published in Q3 2012.

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¹ Measured Resources = 100.3 million tonnes at 1.68g/t gold, containing 5.42 million ounces and Indicated Resources = 48.6 million tonnes at 1.21g/t gold, containing 1.89 million ounces, as at December 31, 2011.

Main Zone Drilling

Drilling at the Main Zone has concentrated on testing depth extensions below the currently defined pit boundary and infill drilling to a minimum spacing of 50m by 50m.

CDD296A on section line 59,000E returned 323.0m at 1.5g/t gold from surface. This intersection is the thickest mineralized zone intersected at the Main Zone to date and adds over 100m to the depth extent on Main Zone on this section.

Additional extensions were returned from CDD290A (36.0m at 1.1g/t gold from 99m to end of hole) and CDD290B (39.3m at 2.5g/t gold from 237m) located 50m north of CDD296A, and CDD287A (32.9m at 1.8g/t gold from 82m), located a further 50m north. Further drilling is planned to test the depth extent of this mineralization at Main Zone.

Testing the Southern Main Zone continues to identify depth extensions to the Çöpler Deposit and results include:

The infill drill program is continuing on the Main Zone in order to provide additional data for the Çöpler Sulfide Feasibility Study. Drilling is targeted to bring the drill spacing down to less than 50m by 50m and provide an improved geological and grade estimation model for detailed mine planning and optimization. The majority of the infill drill results are confirming thicknesses of mineralization, but several holes are indicating significantly improved grades with the potential to add ounces to the current Mineral Resource.  Results include:

Old Çöpler Village Drilling

The relocation of all residents from the old Çöpler Village was completed in early 2012 and enabled drilling of this prospective area adjacent to the northern Main Zone to commence.

Initial drilling has commenced on the western margin of the village and has extended the Main Zone to the north.  All intersections are near the margin of the Çöpler Resource and remain open to the north. Results include:

A further 350m wide drilling 'gap' in and around the old Çöpler Village exists to the east of this drilling.   Drilling of this 'gap' will be completed in Q2 and Q3 2012.

Manganese Zone Drilling

Drilling is continuing to confirm the potential that exists at depth between the Manganese Zone and the untested Çöpler Village area to the west. A continuous zone of mineralization has been identified on the northeast dipping contact between the marble and underlying meta-sediments.  Further drilling is planned to determine the extent of this mineralization and results from drilling during Q1 2012 include:

CDD345 tested an IP anomaly south of the Manganese Pit and intersected a gossan containing 2.2m at 6.3g/t gold from 181.1m at the contact between marble and metasediment rock units. The presence of high-grade mineralization in a previously undrilled area is encouraging, with further drilling planned along strike to the east.

Three further deep diamond drillholes were completed to follow-up the previous intersection at depth in the Manganese Zone in CDD274 of 100.1m at 4.1g/t gold from 427.5m (see August 22, 2011 announcement). Results include:

This drilling has confirmed that mineralization continues down to 600m depth from surface and is still open at depth. Further deep drilling in this area will be undertaken following an evaluation of the above results.

Marble Zone Drilling

A program of angled RC drilling across the Marble Zone continued during Q1 2012.  The program has been designed ahead of mining to assist in better defining the resource boundaries and grade where previous drilling is dominantly vertical.  Results confirm that the Marble Contact Zone is much narrower, but significantly higher grade than the existing model.

Previously released results received early in the quarter include 87m at 11.8g/t gold from surface in CRC847, and 22m at 6.6g/t gold from 37m in CRC849.  True widths of these intersections are estimated at 70-80% of downhole width.

Western Zone Drilling

A program of RC drilling across the Western Zone was completed which was aimed at better defining the resource boundaries and grade prior to mining.

Near-surface, high-grade oxide mineralization was returned from several holes, significantly higher grade than the recently completed model.  CRC858 returned 17m at 12.4g/t gold from surface, the best intercept from the Western Zone to date. Results include:

Planned 2012 Çöpler Exploration

The Çöpler 2012 exploration budget is $10 million (2011: $8 million). The key objective of the Çöpler 2012 exploration program is to broadly determine the ultimate size potential of the Çöpler orebody and to better understand the controls on mineralization.

Diamond and RC drilling during 2012 will continue to complete infill drilling and test for depth and lateral extensions to known gold mineralization.

Çöpler Regional Exploration

Exploration of the Çöpler District is at an early stage due to the exploration effort being focused on the Çöpler deposit.  Drilling has recommenced at Karakartal for the first time since 2009.

Karakartal Drilling

Karakartal is a gold-rich porphyry copper deposit located approximately 12km southeast of Çöpler and held in a 50%/50% joint venture with Lidya Mining.  The current Indicated Resources are 13.8 million tonnes at 0.46g/t gold and 0.29% copper and Inferred Resources are 17.8 million tonnes at 0.32g/t gold and 0.22% copper (see August 25, 2009 announcement).

A diamond drilling program commenced during Q4 2011 at Karakartal which aims to:

• determine the scale and grade of a potentially higher grade core to the Karakartal porphyry,
• increase the size of the current resource; and
• identify shallow, high-grade oxide mineralization.

Three diamond drill rigs are again active at Karakartal after abnormally high snow falls and adverse winter conditions temporarily suspended drilling.  A total of 5,090m of drilling was completed during Q4 2011 and Q1 2012.

Drill results to date are confirming the continuity of the moderate gold-copper grades at Karakartal and the deposit has now been drilled over an 800m strike length and 100-250m width. Results include:

• 228m at 0.60g/t gold and 0.27% copper from 27m in KDD042, and
• 182m at 0.62g/t gold and 0.30% copper from surface in KDD034.

A single drillhole KDD044 located 800m west of the current Karakartal Resource tested a >400m long coincident copper-gold soil anomaly.  Drilling intersected visible copper skarn mineralization returning 10.9m at 2.0% copper, 15g/t silver, 1.7% zinc from 74.0m and 14.1m at 1.8% copper, 5g/t silver, 0.75% zinc from 95.4m. Further drilling is required to understand the extent and significance of the intersection.

Drilling is planned to continue at Karakartal over the summer of 2012.

Other Çöpler District Exploration

Following the melting of the winter snow, geological mapping will recommence across the Çöpler District in Q2 2012. Mapping will initially focus on the Yakuplu and North Karakartal areas where surface geochemical soil samples of up to 0.59g/t gold were returned during 2011. Subject to outcomes of mapping, further geochemical and geophysical surveys will be completed prior to drill testing of anomalies.

Higginsville Exploration

Exploration activity at Higginsville focused on Corona, the Higginsville Line of Lode Framework program, Challenge, Chalice and Sinclair Soak, and regional anomaly definition across Alacer's large Higginsville Tenure.

Corona

The high-grade Corona discovery announced on January 24, 2012 is located approximately 2.5km south of the Higginsville Processing Plant.  A total of 28 holes have been completed at Corona since the discovery hole (VIND047 which intersected 2.35m at 658g/t gold from 181.1m).

Gold mineralization at Corona is associated with a laminated quartz vein hosted within competent basalt, which underlies the moderately east-dipping Poseidon Thrust.  The laminated quartz vein is a 0.5 to 2.0m wide, steeply east-dipping, north-south striking vein that is continuous between 50 to 100m in strike and in excess of 300m in dip. The vein is part of a more extensive 2 to 10m wide shear zone defined by a strong shear fabric with associated tensional quartz vein arrays.

The Corona laminated quartz vein is a moderately laminated, shear controlled quartz vein with coarse visible gold occurring along the laminations. Accessory minerals include arsenopyrite and galena, although these are not closely associated with elevated gold grades as evident in similar laminated quartz lodes in the region (Two Boys, Athena, Vine and Artemis).  The accessory minerals appear to be indicative of lower grade gold mineralization, with the very high grade intercepts identified only by a significant amount of coarse free gold.   Significant coarse free gold is also associated with narrow (1-10cm) quartz tensional veins within the bounding shear zone to the laminated quartz vein.

A high-grade area is centered on the extremely high-grade intersections in VIND047, VIND049 and VIND076. The high variability in grade and the abundance of very coarse gold will need to be taken into account when estimating the resource for this laminated quartz vein. Assays received from Corona drilling to date are shown in the diagram below.

The Corona project will continue with ongoing geological and economic evaluations to assess development potential.

Chalice

Drilling has commenced from underground drill platforms in the Chalice Mine and is targeting the previously sparsely drilled area between Atlas and the deeper Olympus Lode.

This drilling followed up historical surface drillholes CHAD048 (11m at 6.2g/t gold) and WMD192 (27m at 3.0g/t gold) and has confirmed continuity of thick, high-grade mineralization outside the current Chalice Mineral Resource over a 100m strike extent and up to 80m dip extent.  Results from Q1 2012 drilling include:

• 29.3m at 4.7g/t gold in CHUG087
• 14.0m at 6.9g/t gold in CHUG088A
• 6.6m at 8.3g/t gold in CHUG095
• 9.0m at 2.7g/t gold in CHUG099
• 6.0m at 4.1g/t gold in CHUG152

This mineralization lies immediately in the hangingwall of the planned decline access to the Olympus Lode and may provide additional ore during 2013 from Chalice.

Other Higginsville Exploration

The Higginsville Framework drilling continued sporadically while the diamond drill rigs were redirected to Corona.  Drilling has recommenced focusing on the southern sections of the Higginsville Line of Lode.

Four diamond drill holes were completed on the salt lake at Sinclair Soak following up on a +600m aircore anomaly identified in 2011. Visible quartz-arsenopyrite mineralization was intersected in two holes.  Assay results are expected in early May.

Aircore and RAB drilling has been completed in the Challenge and Lake Cowan areas.  Several small scale regolith anomalies have been defined requiring follow up RC drilling.

South Kalgoorlie Exploration

South Kalgoorlie exploration during Q1 2012 was focused on testing for open-pit extensions at the Shirl-Barbara-Surprise-Pit28 ("SBS28") Complex. Drilling also continued at Mt Martin and the Peaceful Gift/Chief's Lode and Pernatty/TNT areas to the north of the HBJ Pit.

SBS28 Complex

Located near Coolgardie and 35km west of the Jubilee processing plant, the SBS28 Complex is a 3km-long mineralized zone that has been sporadically mined under fragmented ownership over the past 70 years.  The various styles of gold mineralization at the SBS28 Complex are indicative of a large system of mineralization.  The controls on mineralization are becoming better understood as drilling is progressively following up widespread, high-grade gold mineralization defined by previous drilling and mining.

Surprise is an old open pit and underground complex located near the northeast corner of the SBS28 complex. Historical production is estimated at 330,000 tonnes at 7.2g/t gold for 77,000 ounces. Wide-spaced drilling on an approximate 100m by 100m grid pattern has confirmed continuity of high-grade mineralization up to 150m below the existing pit.  Results include:

Assays correlate well with known lodes and interpreted geology and have confirmed the presence of two additional previously un-mined lodes.  A long section showing drill results are shown in Figure 9. Coarse visible gold has been identified in several of the high-grade intersections.

Excellent potential exists for further open pit and underground mining at Surprise.

Drilling at Barbara located near the northwestern corner of the SBS28 Complex returned encouraging results in a hangingwall position that has not previously been mined.  Further drilling is required to determine the significance of these intersections.

Other South Kalgoorlie Exploration

A large program of RC drilling has been completed at Mt Martin to enable better pit optimization prior to mining recommencing.

Positive results from drilling at Peaceful Gift/Chief's Lode and Pernatty/TNT areas to the north of the HBJ Pit  has warranted additional drill programs to commence before final resource estimates are updated.

Other Information

Technical Procedural Information

The information in this report which relates to Exploration Results and Mineral Resources is based on information compiled by Chris Newman, a full time employee of Alacer Gold Corp. and who is a Member of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists.  Mr Newman has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which is being undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and a qualified person pursuant to National Instrument 43-101 of the Canadian Securities Administration.  Mr Newman consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

Exploration drilling and sampling in Turkey utilized surface NQ2 diamond core and Reverse Circulation ("RC") drilling. RC cuttings were sampled on 1m intervals and core was sampled at geologically selected intervals ranging from 0.7m to 2.0m, but generally 1.0m as sawn half core or hand split if clay.  Drill samples were performed by ALS-Chemex in Vancouver, BC, Canada, for gold by Fire Assay off a 30 gram charge with an AA finish.  Quality Assurance/Quality Control included the insertion and continual monitoring of numerous standards and blanks into the sample stream, and the collection of duplicate samples at regular intervals within each batch.  Selected holes are also analysed for a 33-element four acid ICP—AES.  Exploration and drilling results are reported as drilled thicknesses. Drill composites were calculated using a cut-off of approximately 0.3g/t gold for oxide and 0.6g/t gold for sulfide.  No top cut was applied.

Exploration drilling and sampling in Australia utilized surface HQ and NQ2 diamond core, RC and aircore. Drill core was sawn half core and submitted for assaying. Dependent on the ore body geometry, core sample lengths were constrained by geology, alteration or structural boundaries and sample lengths varied between a minimum of 0.5m to a maximum of 1.3m. Reported results from RC samples were collected on 1m riffle split intervals and from 4m composite samples using aircore. At Higginsville, RC and diamond drill samples were assayed with fire assay with an AAS finish on 50g charges via Genalysis Laboratories in Kalgoorlie and Perth or by pulverise and leach (PAL1000B) with an AAS finish on 500 ‐ 750g charges at the Higginsville Intertek laboratory. Aircore samples were analysed via low-level aqua regia digestion at Ultratrace and SGS Laboratories in Perth. Internationally accepted standards and blanks were utilised to check on laboratory assay quality control. At South Kalgoorlie, samples were assayed with fire assay with an AAS finish on 50g charges via SGS Laboratories in Kalgoorlie. Blanks and assay pills were utilised to check on laboratory assay quality control. Exploration and drilling results are reported as drilled thicknesses. Drill composites were calculated using a cut‐off of approximately 0.8g/t gold. No top cut was applied.

Detailed Drillhole Data

Cautionary Statements

Except for statements of historical fact relating to Alacer, certain statements contained in this press release constitute forward-looking information, future oriented financial information, or financial outlooks (collectively "forward-looking information") within the meaning of Canadian securities laws. Forward‐looking information may be contained in this document and other public filings of Alacer.  Forward-looking information often relates to statements concerning Alacer's future outlook and anticipated events or results and, in some cases, can be identified by terminology such as "may", "will", "could", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "projects", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts.

Forward-looking information includes statements concerning, among other things, matters relating to proposed exploration, communications with local stakeholders and community relations, status of negotiations of joint ventures, commodity prices, mineral resources, mineral reserves, realization of mineral reserves, existence or realization of mineral resource estimates, the development approach, the timing and amount of future production, timing of studies and analyses, the timing of construction of proposed mines and process facilities, capital and operating expenditures, economic conditions, availability of sufficient financing, exploration plans and any and all other timing, exploration, development, operational, financial, budgetary, economic, legal, social, regulatory and political factors that may influence future events or conditions. Such forward‐looking information and statements are based on a number of material factors and assumptions, including, but not limited in any manner to, those disclosed in any other of Alacer's filings, and include exploration results and the ability to explore, the ultimate determination of mineral reserves, availability and final receipt of required approvals, titles, licenses and permits, sufficient working capital to develop and operate the mines, access to adequate services and supplies, commodity prices, ability to meet production targets, foreign currency exchange rates, interest rates, access to capital markets and associated cost of funds, availability of a qualified work force, ability to negotiate, finalize and execute relevant agreements, lack of social opposition to the mines, lack of legal challenges with respect to the property of Alacer and the ultimate ability to mine, process and sell mineral products on economically favorable terms. While we consider these factors and assumptions to be reasonable based on information currently available to us, they may prove to be incorrect.

You should not place undue reliance on forward-looking information and statements.  Forward-looking information and statements are only predictions based on our current expectations and our projections about future events.  Actual results may vary from such forward-looking information for a variety of reasons, including but not limited to risks and uncertainties disclosed in Alacer's filings at www.sedar.com and other unforeseen events or circumstances.  Other than as required by law, Alacer does not intend, and undertakes no obligation to update any forward‐looking information to reflect, among other things, new information or future events.

SOURCE ALACER GOLD CORP.

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