Vancouver, B.C., April 22, 2008– Amarillo Gold Corp. (TSX-V: AGC) (“Amarillo” or the “Company”), is pleased to provide the following exploration update based on gold assays from the Butiá prospect at its Lavras do Sul project in southern Brazil. The Company has been systematically drill testing the prospect on a 50m grid, along sections aligned at nominal compass heading of 20° (true) and drilled at an angle of -60°. Five sections have now been completed with four to six holes on each. Additionally seven holes were drilled at right angles (110°) to these sections, the first at this orientation. Figure 1 – posted on our website – depicts the location of these drill holes along with the other holes completed to date. Additional figures numbered 2-6 depict the sections orientated at 20°, can also be found on our website.
Some of the more interesting results from this round of drilling include 50 m @ 1.82 g/t Au from surface in drill hole LDH-134, drilled on the far western edge of the mapped alteration and 59 m @ 1.33 g/t Au from surface in LDH-136, on the far eastern edge of the current drilling. These drill holes, along with LDH-137, LDH-142 , LDH-39, LDH-41 and LDH-43, all contain elevated gold within the oxide/transition zone (see Table 1). Previous drilling also encountered significant gold values in this zone and a grid of shallow vertical holes is contemplated in the future to define this oxidized mineralization.
|Table 1: Summary of Drill Results – Butiá|
|Hole No.||Total Depth
|Azimuth Dip TD||From (metres)||To (metres)||Distance
Notes: All drill hole samples shown here consist of split HTW diamond drill core. The samples were sent to Acme Laboratories in Goiania, Brazil, and Vancouver, Canada and ALS in Belo Horizonte, Brazil. Gold is determined by fire assay using 50g aliquots with an ICP finish; if the grade is higher than 10 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. The drilling is exploratory and designed to cut a fence perpendicular to the most elongated direction in the alteration hosting the mineralization. The true width of the mineralization is not yet known.
Amarillo also routinely re-assays higher grade samples by Screen Fire Assay. This method is utilized to determine how much occurs as finely disseminated gold and how much occurs as large grains or nuggets. The result not only helps characterize the gold mineralization, but also helps determine the repeatability of higher grade gold results. A larger sample (1,000 gms) is taken and the coarse gold is separated by screening, utilizing the tendency for larger gold grains to flatten during grinding. The sample is ground to where the P80 is 75µm. The whole sample is screened at 150µm and retaining the oversized, recording the mass of both oversized and undersized. The oversize is assayed by fire assay. The undersized is assayed in duplicate by fire assay. The fire assays of the oversized and undersized are combined to give the calculated gold head grade incorporating the coarse gold component.
The results can differ significantly from those originally reported due to the nugget effect of the coarse gold. The screen fire assay method is considered more accurate as it uses a larger sample size than the original 50 gm fire assay so Amarillo follows a practice of restating our assay results once the screen assays have been received. Table 2 lists the drill holes reported from our August 2008 news release for the Butiá prospect.
|Table 2 – Drill hole results adjusted to accommodate Screen fire assay results|
|Hole No.||Total Depth
Note: The adjusted column is for Screen Fire Assays.
On average the 107 screen fire assays had 17% coarse gold (median 15%, maximum 62%, minimum 2%.) and only varied from the original fire assays by 3%.
Amarillo’s drilling at Butiá now totals 6,976m with 33 drill holes. The main mineralized zone remains open to the NW, to the east and at depth. Additionally two new zones of anomalous mineralization and broad zones of alteration in the Butiá area are yet to be drill tested. The company plans to close off the majority of these zones before commissioning a first pass 43-101 compliant resource estimate on the prospect.
The Qualified Person for this news release is Buddy Doyle as per the guidelines laid out in the NI 43-101.
- Lavras do Sul – Butia
Amarillo Gold Corp. is a company focused on the acquisition, definition and discovery of gold resources in Brazil. Its principal projects are the Mara Rosa project in the state of Goiás and the Lavras do Sul project in the state of Rio Grande do Sul. The Posse deposit at Mara Rosa was found by an independent 43-101 compliant preliminary economic assessment study carried out by CCIC to contain a 13.5M tonnes indicated resource @ 1.48 g/t Au (643,000 ounces) and a 13M tonnes inferred resource @ 1.26 g/t Au (538,000 ounces) . The Company also has a portfolio of earlier stage projects. All properties under Amarillo’s management are located in areas of good infrastructure and robust community support.
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.
ON BEHALF OF THE BOARD OF DIRECTORS
AMARILLO GOLD CORP.
Per: “Buddy Doyle”
Buddy Doyle, President
TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.