Amarillo Gold Corp. Receives Final Independent Mineral Resource Estimate Report for the Mara Rosa Project, Goias, Brazil.
Amarillo Gold Corp. (TSX-V: AGC) (“Amarillo” or the “Company”) has received the final report (the “Report”) regarding the Independent Mineral Resource Estimate (the “Resource Estimate”) for its 100% owned Mara Rosa project, located 320 km northwest of the national capital of Brasilia, Brazil. Amarillo previously released the results of this Resource Estimate on March 5th 2007, pending the completion of this Report.
The Mara Rosa Project is a greenstone belt shear hosted mesothermal gold mineralized system located near the village of Mara Rosa in the state of Goias. The Report was prepared by Caracle Creek International Consulting Inc. (“CCIC”) of Sudbury, Ontario.
The Report details the procedures underlying the Resource Estimate, and includes all the elements required by the 43-101 Standard. The Report is now publicly available on SEDAR, www.sedar.com, and it has also been posted on the Company’s website, www.amarillogold.com.
The Resource Estimate released on March 5th is repeated below. It was calculated using 0.5 and 1.0 g Au/t block cut-offs, and capping gold grades at 30 g Au/t. The Resource Estimate extends to a maximum of 380 metres below surface; however approximately 70% of tonnage lies within 200 metres of surface.
Inferred Mineral Resource Estimate
0.5 g Au/t cut-off
Contained ounces Au
1.0 g Au/t cut-off
Contained ounces Au
The foregoing Resource Estimate was calculated using ordinary Kreiging methods and conforms to the National Instrument 43-101 Standards of Disclosure for Mineral Projects. The Resource Estimate was generated using a data base of 194 historic drill holes and 28 drill holes completed by Amarillo in 2006. The Resource Estimate is not a Mineral Reserve and, as such, does not demonstrate economic viability. The Resource Estimate was prepared by Qualified Person, Iain Kelso, P.Geo. Details of the Resource Estimate are contained in a report produced in accordance with the guidelines set out in National Instrument 43-101, companion policy NI43-101CP and Form 43-101F1.
Amarillo now plans to move the project forward by initiating an aggressive exploration program. Quoting from the 43-101 report:
“CCIC has reviewed Amarillo’s proposed exploration program for Mara Rosa and believes the concept is properly conceived and justified. The opinion of CCIC is that the character of the Mara Rosa Property, the Posse deposit and the Mineral Resource Estimate it represents, and the potential for developing new mineral targets and expanding current Mineral Resources are of sufficient merit to justify further exploration on the Property. An exploration program with a budget of CAD$2,250,000 is proposed to further examine the Property.”
A portion of the proceeds from the recently announced private placement (News Release April 27th) will be used to fund this program.
ON BEHALF OF THE BOARD OF DIRECTORS
AMARILLO GOLD CORP.
Buddy Doyle, President
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.