Amarillo Announces Drilling Results Update at Mara Rosa

TORONTO, Sept. 10, 2018 (GLOBE NEWSWIRE) -- Amarillo Gold Corporation (“Amarillo” or the “Company”) (TSX.V: AGC; OTCQB: AGCBF) is pleased to announce drilling results from its first 11 holes of the planned 10,000 m drill program on its flagship Mara Rosa Project which commenced on May 23, 2018.

Highlights:

  • 1.57 Au g/t over 18 metres from 214 to 231¹ metres in Hole 18P047
  • 1.57 Au g/t over 10 metres from 206 to 216 metres in Hole 18P056
  • 1.29 Au g/t over 13 metres from 189 to 202 metres in Hole 18P057
    ¹Drill core lengths and true widths are indicated in Table 1 below

In May 2018, the Company commenced a 10,000m drill program at Mara Rosa which included 7,000m of core drilling and 3,000 m of RC drilling designed to convert the existing 310K ounces from inferred resources to indicated resources and to explore additional targets along the 12km long Posse trend. A total of 2,617m from 11 diamond drill holes have been completed to date using three drills. Drilling focused on the northeast end of the pit which has previously been identified as the low strip, shallow end of the ore body. "These infill drill results confirm the gold deposit grade continuity and thickness and are expected to contribute positive economic ounces to our indicated resources," said Mike Mutchler, CEO of Amarillo Gold. "We are now working on 16 additional drill holes downdip in the south end of the pit after which we will move the drills to the southwest for 4 planned step-out drill holes in the fall."

Table 1: Drill Hole Assay Results

Drill Hole From (m) To (m) Core Length (m) True Width (m) Grade Au (g/t)
18P047 194 205 11 9.9 0.56
18P047 213 231 18 17.4 1.57
18P048 176 178 2 1.7 2.29
18P048 201 215 14 12.9 0.97
18P049 196 209 13 11.2 0.57
18P050 189 201 12 8.6 0.48
18P051 218 222 4 3.7 0.98
18P052 191 202 11 7.9 0.57
18P052 206 212 6 5.7 1.33
18P053 199.5 205.5 6 4.6 0.70
18P054 160 164 4 3.3 0.44
18P055 180 190 10 8.6 0.66
18P055 208 210 2 1.9 1.66
18P056 206 216 10 8.2 1.57
18P057 189 202 13 9.8 1.29
18P057 213 221 8 4.5 0.81
18P057 231 233 2 1.4 0.81

Notes to Table 1
Samples of split NQ size core, sampled at 1m intervals, assayed by fire assay at ALS Laboratories an ISO registered laboratory.
Blank, repeat assays, and standards were used and all returned results within compliance.
Gold intervals calculated using a 0.35 g/t cut-off. Intervals of up to 5m below cut-off included for continuity.
Assays greater than 10 g/t cut to 10 g/t. Grades quoted to two decimal places.
Samples followed a chain of custody protocol.

 

Table 2: Drill Hole Parameters

Drill Hole Easting (m) Northing (m) Length (m) Azimuth/Dip
18P047 696794 8454791 252.8 140°/-61.8
18P048 696845 8454837 250.8 140°/-58.6
18P049 696897 8454865 242.1 140°/-70.1
18P050 696910 8454884 250.4 140°/-69
18P051 696823 8454837 243.6 144°/-59.9
18P052 696772 8454764 225.63 140°/-60
18P053 696929 8454905 242.1 140°/-70
18P054 696970 8454932 198.7 140°/-59.9
18P055 696821 8454803 222.9 140°/-61
18P056 696861 8454873 235.9 140°/-57.4
18P057 696622 8454494 252 140°/-88

Drill hole co-ordinates use WGS84 Zone 22 S

 

ABOUT AMARILLO

Amarillo is developing an open pit gold resource at its Mara Rosa Project in the mining friendly jurisdiction of Goias State in Brazil. An Updated Pre-Feasibility Study (NI 43-101 technical report) for the Mara Rosa Project was filed on SEDAR on May 4, 2017. The Mara Rosa Project was awarded its main (LP) permit which provides the social and environment permission to mine. Amarillo is progressing toward obtaining an installation permit (LI). The Posse Deposit at the Mara Rosa Project contains 540,567 ounces of gold in the Proven category from 9.27MT at 1.81 g/t Au, and 456,968 ounces in the Probable category from 9.74MT at 1.46 g/t Au, for total Reserves of 997,536 ounces from 19.01 MT at 1.63 g/t Au. In addition to the Mara Rosa Project, Amarillo has an advanced exploration project with excellent grades at Lavras do Sul, Brazil. A Mineral Resource Estimate Study (NI 43-101 technical report) for Lavras do Sul was filed on SEDAR on October 4, 2010. The Lavras do Sul Project is an advanced exploration stage property (190 sq. km.) comprising of more than 22 prospects centered on historic gold workings. The initial resource estimate at the Butia prospect reported 215,000 ounces of gold in the Indicated category from 6.4 MT at 1.05 g/t Au, and 308,000 ounces of gold in the Inferred category from 12.9 MT at 0.74 g/t Au using a 0.3 g/t cut-off grade. Both projects have excellent nearby infrastructure.

Mike Mutchler, President and Chief Executive Officer of the Company, is a Qualified Person as defined by NI 43-101 guidelines, and has reviewed and approved the scientific and technical disclosure in this news release.

For further information, please contact:

Mike Mutchler
President & CEO
416-294-0736
mike.mutchler@amarillogold.com

or

Karen Mate
External Communications
416-230-6454
karen.mate@amarillogold.com

 

32 Richmond St. East
Suite 201 Toronto, ON
Canada, M5C 1P1
Website: www.amarillogold.com

Neither the 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 the Company’s current expectations regarding future events, including with respect to the Company’s business, operations and condition, management’s objectives, strategies, beliefs and intentions. Various factors may prevent or delay our plans, including but not limited to, the trading price of the Common Shares, certain lenders not advancing funds as required, 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. Readers should review the Company’s ongoing quarterly and annual filings, as well as any other additional documentation comprising the Company’s public disclosure record, for additional information on risks and uncertainties relating to these forward-looking statements. Readers should also review the risk factors applicable to junior mining exploration companies generally to better 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 me be required by law.