Amarillo Completes First Drill Hole: San Antonio Project
Amarillo Gold Corp. ("Amarillo", "the Company") (NEX:AGC.H) is pleased to announce it has completed the first drill hole on its San Antonio Project in Goias State, Brazil. The drilling is aimed at testing the down dip extent of gold materialization exploited in the past by artisanal mining. The mineralization consists of quartz veins, silicification and argillic alteration enriched in the elements Au, Ag, Cu, As, Bi and controlled by a conjugate set of SE-NW and SW-NE structures. The mineralization is hosted in Proterzoic aged metamorphosed sediments of the Brasiliano orogeny. The main artisan workings occur in two structural, anticlinal domes, and appear to be predominantly hosted in specific rock type, a carbonate rich meta-phyllite. Rock chip samples taken from the exposed faces within the artisanal workings have returned numerous greater than 1g/t gold values, with x, m being some of the better numbers.
The first drill hole completed by Amarillo targeted the SE-NW structure, beneath the largest artisanal working. The hole was completed at 94.6m and was drilled at minus 70 degrees dip. The drill hole intersected various altered carbonate phyllites through-out.
The next drill hole, which has already commenced, will target the SW-NE trending structure. A further 2 holes are planned, one testing mineralization on the SW-NE structure in a second dome to the south and the other testing the eastern limb of the main anticline.
Once the drilling is completed, the core will be transported to our rock preparation laboratory at Mara Rosa and the core will be split and sent for assay.
Within a 25km radius of the San Antonio Project several other artisanal gold workings in similar geological settings to San Antonio have been identified and these will be evaluated by mapping and sampling. These workings are contained within the 20,000 hectare land package held by Amarillo in the area.
The San Antonio Project is an option with Phelps Dodge, where Amarillo can earn 51% by spending $US250,000 on exploration and drilling 1000m. If Phelps Dodge elect not to participate at that stage, Amarillo can earn up to 100% with Phelps Dodge reducing to a royalty by spending $US 750,000 within 6 years.
This new release was written by Buddy Doyle a geologist of 22 years exploration and development experience and a member of the AUSIMM and is a qualified person as defined in section 1.2 of NI 43-101. Buddy Doyle is the President of the Company and recently spent 5 days physically on the project. The project is being supervised by Rick Brown, a geologist of 30 years experience and the onsite geologist, Luiz Fornazzari Neto a Brazilian geologist of 10 years experience.