Amarillo Gold Corporation: Phase 1 Drilling at Mara Rosa Gold Project, Brazil, Underway
Amarillo Gold Corporation (TSX VENTURE:AGC) announces that the first phase drilling program of 1,250-meters of diamond drilling at its 100% owned Mara Rosa Gold Project is underway. The program is designed to enhance the "open pittable" higher grade gold zones defined by previous drilling programs. These programs were conducted by the project's prior owners, mainly Western Mining Corp. and a subsidiary of BHP. (refer to company news release Aug 25, 2005). The project is located in Goias State of Brazil in an area of good infrastructure a few kilometres from the rural village of Mara Rosa. As announced in an earlier press release, Amarillo has successfully acquired the Mara Rosa Gold Project from Denver based Metallica Resources Inc. The project encompasses 45,385 hectares within 3 mining leases and 19 exploration permits.
The initial drilling phase will consist of 11 drill holes all of which are targeted within and across the known Posse Gold deposit and its possible extensions. It is expected the 3-4 holes will be completed prior to the Christmas break with the remainder being finished early in the new year. Further drilling in the new year is planned based on the results of this first round.
Amarillo has commissioned South American Management S.A., "SAMSA" an independent geological and mining consulting group based out of Santiago, Chile, to complete a resource estimate for the Posse Gold deposit. This resource will be compiled from the historic database of more than 190 drill holes. A National Instrument 43-101 compliant report stating the mineral resource at Posse based on the historic data is expected to be completed early in the new year. This report will be updated when the assays for the drill program now underway are returned.
Preliminary, studies related to this report suggest that mineralisation above 150m depth below surface will be economically accessible by open pit methods and the majority of the drill holes will be focused on enhancing the resource in this zone. A number of the other holes will target geochemistry and structure testing for new shallow mineralisation in the vicinity.
Amarillo is a precious metals exploration and development company whose main asset is the Mara Rosa Gold Project in Brazil. The Company's qualified person for the Mara Rosa Gold Project under the guidelines of the Canadian National Instrument 43-101 is Mr. Buddy Doyle, MAUSIMM.