Amarillo Gold Updates Resource Model, Files Technical Report for Mara Rosa Project, Brazil

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).

Table 1: AEFS September 2016 Resource Estimate*:

Category

Tonnes

Grade g/t

Ounces

Measured

8,877,000

1.98

563,700

 

Indicated

13,149,000

 

1.53

646,500

 

Total M & I

22,026,000

1.71

1,210,200

Inferred

7,119,000

1.26

287,700

*Note: Reported mineral resources are not reserves and do not have demonstrated economic viability.

Buddy Doyle CEO and President comments, “With the final technical report to support the new resource statement completed, the Company will now commence a re-statement of the PFS. Once that is done, the company then plans to start a Bankable Feasibility study based on the PFS (Bankable means a study designed to cover all the details required to secure debt to build the mine). These studies will occur concurrently with all the other aspects of reaching the decision to mine and the permission to build (LI), which includes, continuous environmental monitoring, social interaction planning, and surface rights acquisition.“

Keith Whitehouse is the independent Qualified Person (QP) for this resource statement with over thirty years experience and a Member of the AusIMM and Certified Professional (Geology). He has reviewed and approved the content of this News Release. The 43-101 technical report will be delivered and filed on SEDAR within the next 40 days.

The Qualified person for the Company is Frank Baker, a metallurgist with over 30 years experience, he is a member of the AusIMM and IOM3.

About Amarillo Gold Corp.

Amarillo Gold Corp. is focused on acquisition, discovery, and definition of gold resources in Brazil. It is the Company’s policy to strive to do this in a sustainable, safe way using best practices whilst benefiting our shareholders and the communities we work in. The Company’s principal projects are the Mara Rosa Project in the state of Goias, and the Lavras do Sul Project in the state of Rio Grande do Sul.  The Posse Deposit at Mara Rosa contains 8.887MT @ 1.98 g/t Au Measured, 13.149MT @1.53 g/t Au Indicated and 7.119MT @ 1.26 g/t Au Inferred. (A NI 43-101 resource as independently determined by Australian Exploration Field Services Pty. Keith Whitehouse QP July 2016).  The Mara Rosa Gold Project has received a positive economic assessment from a Pre-Feasibility study and Amarillo has obtained the LP, the first stage of a three stage permitting process. The Posse Deposit was successfully mined by Western Mining Corporation (WMC) during the 1990s (mined areas are excluded from the above-stated resource figures), and is located in an area of excellent infrastructure: approximately 35 km NE of Yamana’s Chapada open pit Cu-Au operation, some 80 km NE of Yamana’s Pilar Au project (in feasibility), 95 km NW of Votorantim’s Niquelandia Ni laterite mine, 105 km from NE of Serra Grande’s underground Au mine, and 105 km NNW of Anglo American’s Ni laterite project at Barro Alto.

The Lavras do Sul Project is an advanced exploration stage property (190 sq. km.) comprising of more than 19 prospects centered on historic gold workings, with encouraging gold mineralization discovered and defined by more than 16,000 meters of drilling. The initial resource estimate at the Butia prospect reported 215,000 ounces of gold Indicated from 6.4 MT at 1.05 g/t Au, and 308,000 ounces of gold Inferred from 12.9 MT at 0.74 g/t Au using a 0.3 g/t cut-off grade in a NI 43-101 resource as independently determined by Atticus Consulting in 2010, Anthony Amberg, QP. Lavras do Sul is also located near excellent infrastructure. The Company also has a portfolio of earlier stage projects and all properties under Amarillo’s management are located in areas of good infrastructure and mining-friendly communities.

ON BEHALF OF THE BOARD OF DIRECTORS

AMARILLO GOLD CORP.

 

Per: “Buddy Doyle”

Buddy Doyle, President

Contacts:

Buddy Doyle

+ 1-604-689-1799 (Canada)

+1-604-760-0325 (Cell)

+55-31-3261-5974 (Brazil)

Or Scott Elderidge

+1-604-722-5381

info@amarillogold.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

FORWARD LOOKING STATEMENTS:-

This news release contains Forward Looking Statements regarding our intentions and plans. Forward looking statements in this news release include plans to move ahead with the work required to obtain the LI. Various factors may prevent or delay our plans, including but not limited to, the ability to raise funds, contractor availability and performance, weather, access, mineral prices and success and failure of the exploration and development carried out at various stages of the program. Permission from the Government and community is also required to proceed with future mining production. We may not be able to fulfill our obligations under the proposed gold loan and we may be unable to raise sufficient financing to carry out our plans. Readers should review risk factors applicable to junior mining exploration companies generally to understand the variety of risks that can affect the Company. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements whether as a result of new information or future events or otherwise, except as may be required by law.