Amarillo Gold Corp. (TSX-V: AGC)(“Amarillo” or the “Company”) is pleased to announce that it has mobilized 2 drill rigs and drilling has started at its Mara Rosa project in Goias State, Brazil, 320km by road NNW of Brasilia, the nation’s capital..
The Mara Rosa project was recently shown to have a significant gold resource at the Posse Deposit in an independent 43-101 compliant study completed by Hugo Hoogvliet, an independent consultant, and Australian Exploration Field Services Pty Ltd. (“AEFS”), Bendigo, Australia. Table 1 summarizes the geological resource estimate based on a 0.5 g/t Au cut-off grade. Results from a preliminary economic analysis of the deposit are also very encouraging (the study can be downloaded from the company’s website at www.Amarillogold.com). Amarillo has decided to commence a pre-feasibility study on the Posse deposit and results from this drilling program are a key component of this study.
Table 1. Deposit Gold Resource Estimate based on a 0.5g/t gold cut-off grade.
|Cut-off||Category||Tonnes||Grade||Contained Gold Oz|
The main objectives of this minimum 5,000 metre HQ diameter diamond drill program are:
- Converting indicated and inferred gold resources into proven and probable gold reserves for the $US1,000/oz open pit design through infill and closer density drilling where required;
- Collecting oriented geotechnical data to allow for optimization of pit slope design;
- Collecting metallurgic samples;
- Supplying samples for acid drainage and other environmental impact studies.
The Company has decided to mobilize 2 drill rigs to the project to accelerate time lines.
This press release was authored by Buddy Doyle (B. App. Sc.), a member of the AusIMM, with 28 years experience and a qualified person in compliance with National Instrument 43-101.
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 contains 623,000 ounces indicated from 11.9MTonnes @ 1.62 g/t Au and 451,000 ounces inferred from 10.1MTonnes @ 1.38 g/t Au at a 0.5g/t cut-off grade, 43-101 compliant resource as independently determined by AEFS. The project is in the economic evaluation stage. The Posse deposit was successfully mined by WMC during the 1990’s (mined areas are excluded from the above resource figures) and is located in an area of excellent infrastructure. It is located some 35 km NE of Yamana’s Chapada open pit Cu-Au operation, 105 km NE of Serra Grande’s underground Au mine, 105 km NNW of Anglo American’s nickel laterite project (in construction), 95 km NW of Votarintim’s Niquelandia nickel laterite mine and approximately 60 kms NE of Yamana’s Pilar Au project (in feasibility). Grid power to the site was established during the previous open pit mining operation and the Serra da Mesa hydro-electric dam lies 35 km to the east.
The Lavras do Sul project is in the advanced exploration stage with over 16,000m of drilling with encouraging gold mineralization being discovered and defined, also in an area of excellent infrastructure. The company has commissioned an initial resource estimate at the Butia prospect, and it was reported to contain 215,000 ounces of indicated from 6.4MT @ 1.05 g/t Au and 308,000 ounces of inferred from 12.9MT @ 0.74 g/t Au at a 0.3 g/t cut-off. 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.
ON BEHALF OF THE BOARD OF DIRECTORS
AMARILLO GOLD CORP.
Per: “Buddy Doyle”
Buddy Doyle, President
Amarillo Gold Corp.
+ 1-604-689 1799 (Canada)
+55-31-3261 5974 (Brazil)
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. 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