Amarillo Gold Corp. (NEX:AGC.H)(“Amarillo or the Company”) announces that the first phase drill program at the San Antonio project in the Goias State, Brazil has been completed and that the core has been logged and split and samples sent off for assay. The drilling was focused on artesanal mining workings located about 50km east of the municipality of Minacu. The workings are now largely abandoned. The previous miners extracted gold from structurally controlled siliceous zones and quartz veins with disjoint pods of sulphide (pyrite, arsenopyrite, chalcopyrite), hosted in stratiform metamorphosed calcareous shales of Proterozoic age. The miners followed these veins to depth using shafts and adits. The gold was extracted by crushing, gravity separation and amalgam. There are no records of the amount of gold extracted.
The drilling conducted by Amarillo was designed to test the down dip extent of the mineralization that was exploited by the artisans. Four drill holes where completed totaling 416m. Three of these intersected zones of, silification, quartz veins, stockworks and sulphide zones similar to the material exploited by the artisans. In total 207 split core samples and 47 soil and rock chip samples where sent to ALS laboratories in Vancouver, Canada. Assays are awaited.
The San Antonio project is on option from Phelps Dodge Do Brasil Mineracao LTDA. (“Phelps Dodge”). Amarillo can earn 50% by completing 1000m of drilling and spending $US250,000 on the property within the first two years of the option. The agreement with Phelps Dodge also allows for Amarillo to earn up to 100% ownership, by spending $US250,000 a year during years 3, 4 and 5, and producing a feasibility study by the end of year 6. In such a case Phelps Dodge would retain a 2% NSR.