Amarillo Gold Establishes New Gold Exploration Project (Ourolandia) in Central Brazil
Amarillo Gold Corp. (TSX-V: AGC) (“Amarillo” or the “Company”) has acquired priority exploration rights over some 550 square kilometres of land in central-west Goias state in Brazil. The Company’s geologists targeted the area for its favorable geology and numerous alluvial gold occurrences, as well as the lack of modern exploration and hard rock mining within the district.
As of March 31, 2007, the project area consisted of 23,989 hectares of exploration licenses granted by the Brazilian mines department (DNPM) and 31,780 hectares under priority application. All tenements are contiguous and will be collectively known as the Ourolandia Project (the Property).
In a regional context the Property lies within the Pirineus Syntaxis, representing the intersection of two fold-thrust belts formed during the Neoproterozoic Brasiliano Orogenic period. The underlying geology consists of metamorphosed sediments and volcanics. The metasediments are calcareous and the volcanics are amphibolites and meta-tuffs. Occasional syntectonic granitic intrusions punctuate the landscape.
Amarillo has recently received assays from a stream sediment sampling program undertaken to detect which watercourses in the district may be draining from areas of potential primary gold accumulation. The samples were collected using the BLEG (Bulk Leach Extractable Gold ) technique which is designed to mitigate the nugget effect often associated with smaller volume samples or panned concentrates and to increase the probability of detecting very rare flakes of gold released by the erosion and weathering of a gold deposit
A total of 30 samples were taken, of which 15 samples recorded anomalous populations of more than 100 ppb Au, with 4 samples greater than 2,000 ppb Au. The spatial distribution of the anomalous samples indicates that gold is coming from the headwaters of at least three separate drainages. The Company plans to carry out a Phase 2 BLEG sampling (with associated float sampling) to follow-up these anomalous drainages.
Geographically the Property is located in a relatively unpopulated area of rolling hills covered by savannah type vegetation or cattle grazing grasslands. Local access is via a network of country roads with the nation’s capital, Brasilia, located just some 100 km to the east.
The exploration tenements are held 100% by the Company’s wholly owned Brazilian subsidiary, Amarillo Mineração do Brasil Ltda.
This news release was prepared by Rick Brown, Chief Operating Officer for Amarillo Gold, who is a qualified person as defined by National Instrument 43-101.
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.