February 1, 2011, Vancouver, B.C., – Amarillo Gold Corp. (TSX.V:AGC) (“Amarillo” or the “Company”) is pleased to announce results from the current resource definition drilling program of the Posse gold deposit at its Mara Rosa project in Goias state. These six drill holes represent the first 1251m of drilling of the planned 7000m, (34 hole) infill drilling program, which is designed to upgrade existing inferred resources to the indicated and measured categories. This work is an integral part of the pre-feasibility study (PFS) currently underway. The drill assay results are summarized in Table 1 below.
Table 1: Composite Assay Results
Notes: All drill hole samples consist of split HQ diamond drill core. The samples were sent to Acme Laboratories in Goiania, Brazil, and Vancouver, Canada. Gold is determined using fire assay using 30g aliquots with an ICP finish. 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 0.5 g/t cut off where any one sample point lies within a 5m intersection averaging at least 0.5 g/t Au. True width was determined assuming the mineralization has an average dip of 45 degrees.
Table 2 provides the drill hole locations. Figure 1 depicts the location of the drill holes in relation to the Posse Pits and previous drill collars.
Table 2: Collar information for the drill holes reported in Table 1.
|Hole No.||Total Depth
Notes: Collars located by hand held GPS and are yet to be surveyed to high resolution.
The results are as expected when compared to the current resource model.
Drill holes MPR0034, MPR0033 are currently in progress with one rig moving to MPR0036, 20 holes have been completed in the program to date with a total of 4890m drilled. Several holes are at the laboratory awaiting assay.
The qualified person for this report as per the NI 43-101 guidelines is Buddy Doyle, B. App. Sc. Member AUSIMM, a geologist of 30 years experience.
Figure 1. Location Map: showing drill holes reported in table 1 in relation to previous, current and planned drill holes.
Amarillo Gold Corp. is focused on the acquisition, definition, and discovery of gold resources in Brazil. Its principal projects are Mara Rosa in the state of Goiás, and Lavras do Sul in the state of Rio Grande do Sul. The Posse Deposit at Mara Rosa contains 650,000 ounces of gold indicated from 12.4 MTonnes @ 1.62 g/t Au, and 471,000 ounces of gold inferred from 13.8 MTonnes @ 1.38 g/t Au at a 0.5 g/t cut-off grade (Independent NI 43-101 compliant preliminary economic assessment study conducted by Whitehouse and Hoogvliet). The Mara Rosa project is in the economic evaluation stage. The Posse deposit is located in an area of excellent infrastructure 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 Ni laterite project (in construction), 95 km NW of Votarintim’s Niquelandia Ni 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. A new railroad is being constructed within 1.6 km of the project.
The Lavras do Sul property is an advanced exploration stage project with encouraging gold mineralization discovered and defined by more than 15,000 metres of drilling. Lavras do Sul is also located near excellent infrastructure. The Company also has a portfolio of earlier stage projects. All properties under Amarillo’s management are located in areas of good infrastructure and mining-friendly communities.
ON BEHALF OF THE BOARD OF DIRECTORS:
AMARILLO GOLD CORP.
Per: “Buddy Doyle”
Buddy Doyle, President
Amarillo Gold Corp.
+ 1-604-689-1799 (Canada)
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.