Amarillo Gold Corp. (TSX-V: AGC) (“Amarillo” or the “Company”) is pleased to announce that it has received the final assay results from its definition drilling program for the Mara Rosa project. The entire program consisted of 31 drill holes totaling 8524 metres. The program was designed to upgrade the inferred gold resource category at Mara Rosa into measured and indicated resources. The program focused on material contained within the theoretical “Whittle” open pit shell optimized for a US$1000/ounce gold price. The infill-drilling has increased the total metres drilled at Mara Rosa to 33,024m. Amarillo has previously reported the assay results for the prior 21 drill holes from this infill (see AGC News Releases April 7, March 3, and Feb.1, 2011, www.amarillogold.com ). The final twelve drill holes are reported here and shown in Table 1. The locations of the drill-collars reported in this news release are provided in Table 2.
Receipt of the final assay results from this drill program has enabled our geological staff to complete an initial review and the results are encouraging. Where there were previously large gaps in the data, the new drilling intersected mineralization, as would be expected from projecting from surrounding holes, thereby increasing the degree of geological confidence in the resource model. The new drilling has also extended the main zone of mineralization further to the south (at depths of about 150m to 200m). The weighted average grade of all the holes drilled in this program is 1.50 g/t. This compares favourably with the 1.38 g/t average grade of the current inferred resource which the drill program targeted.
The drilling data have been delivered to independent consultants who will prepare an updated 43-101 compliant resource estimate within the next few weeks. This estimate will then be delivered to Coffey International Ltd., the lead contractor for the Mara Rosa Prefeasibility Study (“PFS”) currently underway, for review and incorporation into the PFS.
Table 1: Composite Assay Results.
Notes: All drill hole samples consist of split HQ and NQ diamond drill core. The samples were sent to Acme Laboratories in Goiania, Brazil, and Vancouver, Canada. Gold is determined by 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 news release all standards, blanks and repeats delivered acceptable results. Intercepts were calculated using a minimum 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: Collar information for the drill holes reported in Table 1.
|Hole No.||Total Depth
Notes: Collars located by Differential GPS, UTMs are in SAD69
This press release was reviewed by Buddy Doyle (B. App. Sc.), a member of AusIMM, with 28 years’ experience and a Qualified Person in compliance with National Instrument 43-101.
About Amarillo Gold Corp.:
Amarillo Gold Corp. is focused on the 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 623,000 ounces of gold indicated from 11.9 MT at 1.62 g/t Au, and 451,000 ounces of gold inferred from 10.1 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 is in the Pre-feasibility stage.
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, 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 some 60 km NE of Yamana’s Pilar Au project (in Feasibility).Grid power to the site was established during WMC’s open pit mining operation, and the Serra da Mesa (450 MW) hydro-electric dam lies 35 km to the east.
The Lavras do Sul Project is an advanced exploration stage property (190 sq. km.) comprised of more than 19 prospects centred on historic gold workings, with encouraging gold mineralization discovered and defined by more than 16,000 metres of drilling. The initial resource estimate at the Butia prospect reported 215,000 ounces of gold indicated from 6.4 MT at 1.05 g/t Au, and 308,000 ounces of gold inferred from 12.9 MT at 0.74 g/t Au ((0.3 g/t cut-off grade)(NI 43-101 compliant resource as independently determined by Atticus Consulting 2010). 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.
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.