Amarillo Gold Discovers New Gold Zones at Lavras do Sul in Brazil, 55m @2.06 g/t Au and 36m @ 1.05 g/t Au

Amarillo Gold Corp. (TSX-V: AGC) (“Amarillo” or the “Company”) is pleased to announce the final round of drill results from the current drilling program at the Butia prospect, which is part of the Lavras do Sul project in Rio Grande do Sul, Brazil.  Amarillo previously reported the Butia prospect contained an indicated resource of 215,000 ounces of gold from 6.4 MT @ 1.05 g/t Au, and 308,000 ounces of gold inferred resource from 12.9 MT @ 0.74 g/t Au, using a 0.3 g/t cut-off grade, NI 43-101 compliant, as independently determined by Atticus Consulting, August 2010.  This resource forms a mineralized zone centred on the old workings named Bloco Butia.  Numerous other workings of various sizes occur in the area, and they are all hosted by a 1.75km by 0.8km alteration zone. It is this alteration zone that defines what is known as the Butia prospect.  The prospect is one of another 19 prospects that make up the Lavras do Sul project. The project encompasses a gold rush district that was exploited by artisanal miners from the 1780’s to the 1930’s.

This drilling program is designed to define and expand the known resource at Bloco Butia through infill drilling, and by targeting new mineralization by drilling beneath nearby artisanal workings within the Butia prospect area.

Assays results from the final 12 holes of this 23 hole program have been received and the gold intercepts are reported in Table 1 below.

Nine of the drill holes reported were exploration holes that targeted artisanal workings. These efforts were successful in locating two new gold zones at Boa Vista, 100m south of the Butia resource and Sao Clemente 250m to the southeast.

Drill hole LDH-220 intersected 55m @ 2.06 g/t Au from 137.5m depth at the Boa Vista workings. The gold is associated with intense alkaline alteration forming episyenite. This intercept lines up well with gold mineralization previously reported (see NR June 20, 2012) that expanded the known gold mineralisation at Butia resource to the south. If this new gold intercept connects to the main Butia gold resource mineralization it may expand the gold system a further 100m south. More drilling is required to confirm this interpretation.

Drill holes LDH-217 (36m @ 1.05 g/t Au from 87.5m depth) and LDH-219 (multiple intercepts see Table 1), were drilled beneath the Sao Clemente gold workings. The holes were drilled 100m apart and have defined a new gold mineralized zone 250m to the SW of the Butia resource.

Drill holes LDH 222 to LDH 224 were drilled to infill and confirm the known resource and are described as follows.

LDH-222 returned 54m @ 1.28 g/t Au from 33m depth  between sections 1 and 2.

LDH-223 returned 100m @ 1.85 g/t Au from 85m depth intersecting the higher grade zone between sections 4 and 5.

Amarillo has now drilled 11 holes into the higher grade zone, with each consistently yielding greater than 100 gram-metres intercepts, which demonstrates good continuity.

LDH-224 returned 4.7m @15.46 g/t Au form 4.3m depth from the western edge of the resource and confirmed near surface mineralization drilled previously. The first 4.3m of this drill hole was not sampled initially, but has now been submitted for assay.

In total Amarillo has now drilled 20,245 metres from 70 holes at the Butia prospect.

TABLE 1. Drill results

Hole No. Total Depth (metres) Azimuth /Dip From (metres) To    (metres) Width (metres) Grade      (g/t Au)
LDH-213  350.20 20° -60° No significant intersections
LDH-214 321.20  200° -60° No significant intersections
LDH-215  329.90 200° -60° 124.0 130.0 6.0 0.29
LDH-216 338.50  20° -60° No significant intersections
LDH-217  385.00 20° -60° 87.5 123.5 36.0 1.05
LDH-218  343.70 20° -60° No significant intersections
LDH-219    388.30 20° -60° 32.0 44.0 12.0 0.69
Including 33.0 34.0 1.0 6.14
51.0 61.0 10.0 0.64
152.5 153.5 1.0 1.02
LDH-220 397.30 20° -60° 83.0 85.0 2.0 1.37
98.0 118.0 20.0 0.70
137.0 192.0 55.0 2.06
Including 173.0 174.0 1.0 37.00
Including 187.0 191.0 4.0 10.50
203.0 215.0 12.0 12.25
Including 208.0 210.0 2.0 46.25
235.0 252.0 17.0 0.30
343.5 358.0 14.5 0.40
LDH-221 370.30 20° -60° 0 1.0 1.0 9.15
141.0 143.0 2.0 0.52
LDH-222 390.20 20° -60° 33.0 87.0 54.0 1.28
99.5 102.0 2.5 1.22
LDH-223 378.90 20° -60° 53.5 79.5 26.0 0.56
88.5 188.5 100.0 1.85
Including 153.5 155.5 2.0 6.98
Including 167.5 169.5 2.0 8.29
LDH-224 378.70 4.3 9.0 4.7 15.46
290° -60° 38.5 41.0 2.5 0.90
99.0 100.0 1.0 9.50

Notes:  All drill hole samples shown here consist of split HTW and NTW diamond drill core. The samples are sent to Acme Laboratories in Goiania, Brazil, and Vancouver, Canada. Samples are first subjected to a multi-element ICP assay that includes Au and then sent to fire assay for Au using 30g aliquots. If the grade is higher than 5 g/t, a gravimetric method is used.  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 0.3 g/t cut off at the beginning and end of the intercept and allowing for no more than 10 consecutive metres of less than 0.3 g/t Au. Drill holes are exploratory and true widths are not yet known, however in most cases the holes are designed to cut perpendicular to the mineralization trend.

The location of the previous drill holes, and the new drill holes reported here, can be viewed in three dimensions and by section on the Company’s website at or at New sections and plans showing the drilling at Butia have also been posted to our website.

Keith Whitehouse, an independent consultant of Australian Exploration Field Services, has conducted the site visit at Lavras do Sul and he now has all the information required to complete an upgraded resource estimate at Butia as well as an initial estimate at the Cerrito prospect, 6 km to the east of Butia.

The author of this news release is Buddy Doyle, a member of the AUSIMM, and a geologist of 30 years experience. The NI 43-101 compliant qualified person for this news release is Kevin Kivi P.Geol.

About Amarillo Gold Corp.

Amarillo Gold Corp. is focused on acquisition, discovery, and definition of gold resources in Brazil.  The Company’s principal projects are the Mara Rosa Project in the state of Goias, and the Lavras do Sul Project in the state of Rio Grande do Sul.  The Posse Deposit at Mara Rosa contains 1,174,900 ounces of measured and indicated gold contained in 20.85 MT at 1.75 g/t Au, and 156,400 ounces of gold inferred from 3.63 MT at 1.38 g/t Au (0.5 g/t cut-off grade) (NI 43-101 compliant resource as independently determined by Australian Exploration Field Services Pty. AEFS).  The Mara Rosa Gold Project has received a positive economic assessment from a Pre-feasibility study and is preparing to proceed to a bankable feasibility study. Should this continue to be positive it would be possible to commence mining by 2014.

The Posse Deposit was successfully mined by Western Mining Company (WMC) during the 1990s (mined areas are excluded from the above-stated resource figures), and is located in an area of excellent infrastructure: approximately 35 km NE of Yamana’s Chapada open pit Cu-Au operation, some 80 km NE of Yamana’s Pilar Au project (in Feasibility), 95 km NW of Votarintim’s Niquelandia Ni laterite mine,  105 km from NE of Serra Grande’s underground Au mine, and 105 km NNW of Anglo American’s Ni laterite project at Barro Alto.

The Lavras do Sul Project is an advanced exploration stage property (190 sq. km.) comprising of more than 19 prospects centred on historic gold workings, with encouraging gold mineralization discovered and defined by more than 26,000 metres of drilling.  The initial resource estimate at the Butia prospect is reported above in this news release. Lavras do Sul is also located near excellent infrastructure.  The Company also has a portfolio of earlier stage projects and all properties under Amarillo’s management are located in areas of good infrastructure and mining-friendly communities.



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.


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. The company has not made any studies towards determining if the gold mineralisation at the Butia prospect can be economically exploited at this stage. The prospect is still in the advance exploration stage.  Permission from the Government and community is also required to proceed with future mining production. Readers should review risk factors applicable to junior mining exploration companies generally to understand the variety of risks that can affect the Company.