Amarillo Gold Corporation is advancing two gold projects in Brazil. Both are in mining-friendly states and have excellent nearby infrastructure.
The development stage Posse Gold Project on its Mara Rosa Property in Goiás State has a definitive feasibility study that supports an open pit mine and carbon-in-leach operation with dry stack tailings that has low capital and operating costs and a strong financial return.
It has gold resources of 1.2 million contained ounces, based on 32 million tonnes grading 1.1 grams per tonne (g/t) and gold reserves of 902,000 contained ounces, based on 24 million tonnes grading 1.18 g/t. The Company has a strong social license to operate. It has received the Preliminary License and a Protocol of Intent to build the Posse Gold Project was signed with the governor of the State of Goiás on May 25, 2020.
BUILDING BRAZIL’S NEXT
PROFITABLE GOLD MINE
Feasibility study summary
|Mine Life||10 years|
|Gold production (ounces) – years 1 to 4||102,000|
|Average annual gold production (ounces)||84,000|
|After-tax net present value 5%*||$183M|
|After-tax internal rate of return*||25%|
|Cash cost per ounce*||$706|
|All-in sustaining cost per ounce*||$738|
|After-tax pay back*||2.6 years|
|Initial capital cost||$145M|
*Assumes gold price of $1,400 per ounce and a Brazilian Real to U.S. dollar exchange rate of 4.2 to 1. All dollar amounts are in U.S. dollars.
Amarillo is also advancing the exploration stage Lavras do Sul Project in Rio Grande do Sul State. This highly prospective property has more than 22 targets centered on historic gold workings.