Amarillo Gold Corp. (TSX-V: AGC) (“Amarillo”) is pleased to announce that the 43-101 technical report to support the new resource model for the Posse deposit, Mara Rosa project, Goias, Brazil has been received. The report is now available for review on SEDAR and our website. Keith Whitehouse, the principal of Australian Exploration Field Services Ltd, (“AEFS”) calculated the new resource estimate at a 0.5 g/t cutoff as listed below in Table 1. It varies slightly (12,500 more ounces into the measured category), from the resource stated in the late July news release. Whilst completing the report, the author, double checked the calculations and made minor adjustments.
A positive Preliminary Feasibility Study (“PFS”, Jan 2012), was based on the 2011 resource. This gave reasonable expectations the deposit could be economically mined using an open pit based on a $US1100 per ounce gold price. Since this time, the resource has improved (reported here), as has the gold price. Exchange rates are more favorable, and the company has recently obtained the LP (Preliminary License, the conditional acceptance of the project by the state environmental authority, see NR dated May 9th).