March Tuesday 24th, Vancouver, B.C., – Amarillo Gold Corp. (TSX-V AGC) (“Amarillo” or the “Company”) is pleased to announce results from its drilling program of the Posse gold resource at its Mara Rosa project in the state of Goias in central Brazil. This series of 14 holes adds 3,292 metres of drilling to the 21,647m of drilling already completed at Posse to total 24,939 metres. The results of this drilling are summarized in the Table 1 below.
In March 2008 Amarillo announced a preliminary economic assessment on the deposit which indicated robust economics at gold prices better than $650/ounce. This drilling followed on from that work and was designed primarily to fill in 50 metre or greater gaps in the Posse ore block model below the $800/oz open pit shell developed from this scoping study. Positive results beneath this shell have the potential to widen the shell to incorporate these results next time the ore body is modeled, thus adding ounces to the resource. Other holes were targeted to infill data gaps within the shell, the best intersection being in hole MRP-0002 which intersected 60 metres (est. true width 42.4m) at 2.19 g/t Au. All of the 14 drill holes hit mineralization and the information gathered by this drilling will allow for more certainty in the next ore resource/reserve estimate.
Figure 1, depicts the location of the drill holes in relation to the Posse Pits and previous drill collars. Please follow this link to view the release with image:- www.amarillogold.com
Table 2 is also provided to show the influence of higher grade intervals, it lists all the returned grades of 5 g/t Au.
Drill holes MRP0001 and 0002 drilled in the core of the the deposit and return typical results for this part of the orebody. Drillholes MRP0003 to MRP0008 were drilled in the zone between the old North and South pits. Any gold found in this area has the potential to expand the $800/ounce open pit shell which shallows in this area. Drillholes MRP0009, MRP0010 and MRP0013 were drilled to the south and below the open pit shell and the gold found in these holes is encouraging. Drill MRP009 intercepted a post mineralized diabase dyke that cuts the orebody North to South, future ore modeling will incorporate the effects of this dyke, which constitutes a minor barren zone. The remaining holes, MRP0011, MRP0012 and MRP0014 were drilled below the shell on the periphery of the plunge of the main orebody.
The Company also conducted a review of the geology of the deposit by re-logging key historic drill holes. This work recognized two main ore types that can be split into hanging wall or foot wall. Samples of these ore types have been collected for an extensive metallurgical testing program which the Company plans to undertake as the first phase of a 43-101 compliant prefeasibility study.
TABLE 1: Drill Results from Partial Posse Infill Program
|Hole No.||Total Depth (m)||Azimuth
|From (m)||To (m)||Interval (m)||True Interval
|MRP0001||191.95||0 / -90||138.8||180.0||41.2||29.1||1.97|
|MRP0002||164.67||0 / -90||97.0||157.0||60.0||42.4||2.19|
|MRP0003||182.02||0 / -90||103.6||116.0||12.4||8.8||1.43|
|MRP0004||209.25||0 / -90||0.0||6.0||6.0||6.0**||0.35|
|MRP0005||210.90||0 / -90||0.0||11.0||11.0||11.0**||0.31|
|MRP0006||220.30||0 / -90||0.0||7.5||7.5||7.5**||0.74|
|MRP0007||170.45||0 / -90||58.0||63.0||5.0||3.5||0.52|
|MRP0008||204.35||0 / -90||0.0||9.0||9.0||9.0**||0.39|
|MRP0009||211.63||0 / -90||115.9||121.0||5.1||3.6||1.03|
|MRP0010||182.13||0 / -90||99.9||119.0||19.1||13.5||2.00|
|MRP0011||342.38||0 / -90||292.0||308.0||16.0||11.3||1.30|
|MPR0012||330.45||0 / -90||224.5||230.0||5.5||3.9||1.00|
|MRP0013||310.73||0 / -90||187.0||223.0||36.0||25.5||1.14|
|MRP0014||361.34||0 / -90||242.0||270.0||28.0||19.8||0.76|
Notes: All drill hole samples shown here consist of split NQ diamond drill core. The samples were sent to Acme Laboratories in Goiania, Brazil, and Vancouver, Canada. Gold is determined using fire assay using 50g aliquots with an ICP finish; if the grade is higher than 10 ppm a gravimetric method is used. For drill holes 10 to 14 only ICP gold was determined in order to lower costs, as previous work shows the ICP average within 5% of the fire assays results. All samples are subject to a chain of custody and are submitted with standards and blanks to check the assay results. The laboratories also use internal standards and repeat analysis. For the results reported in this release all the standards, blanks and repeats delivered acceptable results. Intercepts were calculated using a minimum of a 0.5 g/t cut off where any one sample point lies within a 5m intersectio
n averaging at least 0.5 g/t Au. * *For surface intersections, all of which are in oxides, a 0.3 g/t Au cut-off is used.
Table 2 High Grade Intercepts (>5.0g/t)
|Hole No.||From (metres)||To (metres)||Interval (metres)||True Interval (metres)||Grade (g/t Au)|
Amarillo Gold Corp. is a company focused on the acquisition, definition and discovery of gold resources in Brazil. Its principal projects are the Mara Rosa project in the state of Goiás and the Lavras do Sul project in the state of Rio Grande do Sul. The Posse Deposit at Mara Rosa was found by an independent 43-101 compliant preliminary economic assessment study carried out by CCIC to contain 1.18 million ounces applying a cut-off grade of 0.5 g/t Au (643,000 ounces indicated @ 1.48 g/t Au, 538,000 ounces inferred @ 1.26 g/t Au). The Company also has a portfolio of earlier stage projects. All properties under Amarillo’s management are located in areas of good infrastructure and robust community support.
Forward Looking Statements
This news release contains Forward Looking Statements regarding our intentions and plans. Various factors may prevent or delay our plans, including but not limited to, 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. Readers should review risk factors applicable to junior mining exploration companies generally to understand the variety of risks that can affect the Company.
ON BEHALF OF THE BOARD OF DIRECTORS
AMARILLO GOLD CORP.
Per: “Buddy Doyle”
Buddy Doyle, President
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.