Amarillo Provides Further Update on Drilling Results at Mara Rosa and January Marketing Schedule

TORONTO, Jan. 07, 2019 (GLOBE NEWSWIRE) — Amarillo Gold Corporation (“Amarillo” or the “Company”) (TSX.V: AGC) (OTCQB: AGCBF) is pleased to provide encouraging drill results from the ongoing drilling program at its Posse (Mara Rosa) open-pit gold project in Goias State, Brazil.

Highlights¹:

  • 1.66 Au g/t over 24 m core length in in-fill drill hole 18P067
  • 2.40 Au g/t over 15 m core length in in-fill drill hole 18P067
  • 1.56 Au g/t over 15 m core length in in-fill drill hole 18P068
  • 3.17 Au g/t over 15 m core length in in-fill drill hole 18P081
  • 1.78 Au g/t over 22 m core length in step-out exploration drill hole 18P070
    ¹Drill core lengths and true widths are indicated in Table 1a below

In May 2018, the Company commenced a 10,000 m drill program at the Posse deposit which included 7,000 m of core drilling and 3,000 m of RC drilling designed to convert some of the existing 330K ounces of Inferred resources to Indicated resources and to explore for additional resources along the 12 km long Posse trend.

In September 2018 the core drilling program was expanded to 12,000 m of in-fill drilling and 3,000 m of step-out exploration drilling to test the continuity of the Posse deposit along strike to the southwest of the main deposit, while the RC drilling program was reduced to the then completed 1,295 m.

A total of 11,915 m of diamond drilling from 41 holes have been completed to date (see also results from 19 diamond drill holes in our Press Releases dated September 10, 2018 and October 31, 2018). Drilling assay results of 2.40 g/t Au over 15 m core from in-fill drill hole18P067 and 3.17 g/t over 15 m core from in-fill drill hole 18P081 confirm better than average ore grade and good deposit width in the southern section of the ore body.

Encouraging results from exploration drill hole 18P070 were obtained having intersected 1.78 g/t Au over 22 m and suggesting continuity of the Posse deposit over 200 m southwest along strike.

The remaining 700 m of in-fill core drilling will be completed in early January 2019 and a new Resource Update is planned for release in February 2019. The final 2,400 m of step-out exploration core drilling is also expected to be completed in February.

Please click on the attached link to view the drill hole locations:

https://www.amarillogold.com/W0p23B/wp-content/uploads/2019/01/Mara-Rosa-Map-Drilling-Program-Update-Jan-2019.jpg

Mike Mutchler, CEO of Amarillo commented, “We are quite excited with our latest drilling results. The better grades and thicknesses that we are seeing in the southern portion of the planned pit confirm what we expected from our block model and should allow us to convert a significant portion of our Inferred ounces into Measured or Indicated ounces to extend the planned mine life from eight to ten-plus years by pushing further down dip. These drilling results, along with the final results that will be available over the next few weeks, will be used for a Resource Update in February and will be the basis for the mine design for the Feasibility Study which we will be starting later this month.”

Mike Mutchler continued, “Although we only have the first of our step-out drill holes completed, the success of this hole is showing a potential extension of the Posse orebody southwest along strike and could eventually allow for a pit expansion in that direction to further increase the mine life.”

 
Table 1a: Diamond Drill Hole Assay Results
 
Drill Hole From (m) To (m) Core Length (m) True Width (m) Grade Au g/t Grade Au g/t uncut
18P066 308 311 3.0 2.5 0.64 0.64
18P066 315 318 3.0 2.5 0.51 0.51
18P066 330 338 8.0 6.7 0.43 0.43
18P066 343 353 10.0 8.3 0.76 0.76
18P067 320 344 24.0 22.2 1.56 1.66
18P067 353 368 15.0 13.9 2.23 2.40
18P067 374 379 5.0 4.6 0.60 0.60
18P068 283 298 15.0 14.8 1.33 1.56
18P069 262 264 2.0 2.0 1.59 1.59
18P069 277 290 13.0 12.9 0.56 0.56
18P069 310 314 4.0 4.0 1.31 1.31
18P070 141 146 5.0 4.72 0.12 0.12
18P070 412 434 22.0 21.3 1.78 1.78
18P071 400 407 7.0 6.9 0.61 0.61
18P071 413 436 23.0 22.8 1.22 1.22
18P071 437 440 3.0 3.0 0.84 0.84
18P072 267.5 270 2.5 2.5 1.50 1.50
18P072 275 278 3.0 3.0 0.35 0.35
18P072 283 296 13.0 12.9 1.22 1.22
18P072 306 320 14.0 13.9 1.34 1.34
18P073 134 140 6.0 5.5 0.46 0.46
18P074 101 104 3.0 2.7 0.77 0.77
18P074 116 118 2.0 1.8 0.53 0.53
18P075           Results pending
18P076 349 352 3.0 2.8 0.45 0.45
18P076 364 424 60.0 55.23 0.74 0.74
Including 364 373 9.0 8.3 0.88 0.88
Including 376 390 14.0 12.9 0.71 0.71
Including 391 407 16.0 14.7 1.15 1.15
Including 410 418 8.0 7.4 0.42 0.42
Including 419 424 5.0 4.6 0.68 0.68
18P077 104 110 6.0 5.5 0.59 0.59
18P078           Results pending
18P079           Results pending
18P080           Results pending
18P081 331 404 73.0 69.8 1.19 1.28
Including 331 335 4.0 3.8 0.40 0.40
Including 338 340 2.0 1.9 0.37 0.37
Including 343 375 32.0 30.6 1.70 1.91
Including 360 375 15.0 14.3 2.72 3.17
Including 376 404 28.0 26.8 1.01 1.01
18P082           Results pending
18P083           Results pending
18P084           Results pending
18P085           Results pending
18P086           Results pending
18P087           Results pending
Notes to Table 1a
Samples of split NQ size core, sampled at 1m intervals, assayed by fire assay at ALS Laboratories an ISO registered laboratory.
Blank, repeat assays, and standards were used and all returned results within compliance.
Gold intervals calculated using a 0.35 g/t cut-off. Intervals of up to 5m below cut-off included for continuity.
Assays greater than 10g/t cut to 10g/t. Grades quoted to two decimal places.
Samples followed a chain of custody protocol.

 

Table 1b: Diamond Drill Hole Location And Parameters
 
Drill Hole Easting (m) Northing (m) Length (m) Azimuth/Dip
18P066 696372 8454485 425 140°/-79.5
18P067 696268 8454449 410 140°/-71.1
18P068 696558 8454731 342 140°/-42.5
18P069 696593 8454761 342 140°/-43.3
18P070 695931 8454306 466 140°/-65
18P071 696200 8454600 475 140°/-50
18P072 696571 8454750 400 140°/-45
18P073 697015 8454920 178 140°/-70
18P074 697056 8454910 135 140°/-70
18P075 695987 8454238 426 140°/-60
18P076 696145 8454402 491 140°/-70
18P077 697060 8454944 136 140°/-50
18P078 697084 8454952 122 140°/-60.2
18P079 697108 8454962 122 140°/-70
18P080 697100 8455050 181 140°/-55.1
18P081 696198 8454416 483 140°/-71
18P082 696167 8454417 500 140°/-69.9
18P083 696160 8454267 345 140°/-60
18P084 696204 8454179 267 140°/-60
18P085 697115 8454995 131 140°/-59.1
18P086* 696195 8454459 252 140°/-60
18P087 697194 8455092 106 140°/-66.8
 
* Drill hole in progress
 

The 2018 RC drilling program completed 1,295 m from 15 holes, including 1 twinned hole in the southeast sector. The results from this shallow overburden drilling are generally sub-economic and the remainder of the planned 2018 RC drilling in the northeast sector was replaced with shallow in-fill diamond drilling due to RC drilling technical issues where sample recovery and dilution are thought to have possibly been a factor in the weaker results.

January 2019 Marketing Schedule

Amarillo will be attending the Vancouver Resource Investment Conference (VRIC) on January 20-21, 2019 at the Vancouver Convention Centre West, 1055 Canada Place, Vancouver. At the VRIC, Amarillo’s booth is #441. A Feature Workshop will be held at 2:10 – 2:20 P.M. on Monday, January 21st.

Mike Mutchler will also be available to meet investors in Vancouver on Tuesday, January 22nd.

In addition, Mike Mutchler and Karen Mate will be in Calgary on Wednesday, January 23rd to meet with investors. 

Interested parties that wish to schedule a meeting, or who would like more information regarding the conference and events noted above, please contact Karen Mate, Director of Communications at 416-230-6454, or email karen.mate@amarillogold.com.

ABOUT AMARILLO

Amarillo is developing an open pit gold resource at its Mara Rosa Project in the mining friendly jurisdiction of Goias State in Brazil. The Mara Rosa Project was awarded its main (LP) permit which provides the social and environment permission to mine. Amarillo is progressing toward obtaining an installation permit (LI). Based on the NI 43-101 Pre-Feasibility Study 2018 (PFS 2018) update filed on SEDAR on September 13, 2018, the Posse Deposit at the Mara Rosa Project contains estimated 513,000 ounces of gold in the Proven category from 9.6 Mt at 1.65 g/t Au, and 574,000 ounces gold in the Probable category from 14.2 Mt at 1.26 g/t Au, for total estimated Reserves of 1,087,000 ounces from 23.8 Mt at 1.42 g/t Au. In addition to the Mara Rosa Project, Amarillo has an advanced exploration project with excellent grades at Lavras do Sul, Brazil. A Mineral Resource Estimate Study (NI 43-101 technical report) for Lavras do Sul was filed on SEDAR on October 4, 2010. The Lavras do Sul Project is an advanced exploration stage property (190 sq. km.) comprising of more than 22 prospects centered on historic gold workings. The initial resource estimate at the Butia prospect reported 215,000 ounces of gold in the Indicated category from 6.4 Mt at 1.05 g/t Au, and 308,000 ounces of gold in the Inferred category from 12.9 Mt at 0.74 g/t Au using a 0.3 g/t cut-off grade. Both projects have excellent nearby infrastructure.

Mike Mutchler, President and Chief Executive Officer of the Company, is a Qualified Person as defined by NI 43-101 guidelines, and has reviewed and approved the scientific and technical disclosure relating to the PFS 2018 in this section of the news release.

     
For further information, please contact:    
     
Mike Mutchler or Karen Mate
President & CEO   External Communications
416-294-0736   416-230-6454
mike.mutchler@amarillogold.com   karen.mate@amarillogold.com
     
32 Richmond St. East Suite    
201 Toronto, ON Canada,    
M5C 1P1    
Website: www.amarillogold.com    
     

Neither the 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 the content of this news release.

FORWARD LOOKING STATEMENTS:

This news release contains Forward Looking Statements regarding the Company’s current expectations regarding future events, including with respect to the Company’s business, operations and condition, and management’s objectives, strategies, beliefs and intentions. Various factors may prevent or delay our plans, including but not limited to, the trading price of the common shares of the Company, 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. Permission from the Government and community is also required to proceed with future mining production. Readers should review the Company’s ongoing quarterly and annual filings, as well as any other additional documentation comprising the Company’s public disclosure record, for additional information on risks and uncertainties relating to these forward-looking statements. Readers should also review the risk factors applicable to junior mining exploration companies generally to better understand the variety of risks that can affect the Company. The Company undertakes no obligation to update publicly or otherwise revise any Forward Looking Statements whether as a result of new information or future events or otherwise, except as me be required by law.