Amarillo provides update on Mara Rosa Exploration drill testing commences, Goias State Brazil
Vancouver, B.C., April 9, 2008, – Amarillo Gold Corp. (TSX-V: AGC) (“Amarillo” or the “Company”) has commenced exploration drilling on its Mara Rosa project in Goias state, Brazil. The drill will initially target two prospects developed over 2007. One is called Lambari the other is named Grid A.
The Lambari prospect lies 3km to the east of the Posse Deposit. Interest in the area was first derived from anomalous gold results (700 ppb Au) in BLEG (bulk leach extractable gold) sampling in the streams and from the occurrence of several garimpo’s that were worked up to the early 1990’s. Subsequently the company has completed geological mapping and took 2,200 soil samples covering a grid of 20 sq. km. This work highlighted four linear trends 50 to 150m wide up to 1.5km long of anomalous gold in the soils. Five trenches where completed in to the soil anomalies and cumulatively they measured 1.4 kilometers long. Thirty-six auger holes where completed near the João Lemos garimpo. The trenching revealed grab values of up to 7.0 g/t with channel samples carrying 12m of 0.78 g/t Au with 3.3m of 2.2 g/t Au hosted in a quartz sericite schist with qtz veins stringers. The quartz sercite schists are part of a metavolcanic, sedimentary package that dips steeply (55 degrees to 80 degrees) to the west, striking ENE. The drilling will test for down dip mineralization beneath these trenches and soil anomalies.
The Grid A prospect lies 5km South of Posse and was recognized by previous workers in the area but has never been adequately tested. The area is noticeable as an anomaly in the K-channel airborne radiomertics, and is produced by very mica rich quartz sericite chlorite schists. These schists have veinlets containing fuchsite (high chrome vanadium mica) and have elevated copper and gold in the soil. They dip to the west at a relatively shallow 15 to 30 degrees with a hanging wall of fine grained diorite and schists and a foot wall of amphibolites and schist. This signature not dissimilar to the setting at the Posse deposit, with the added interest that the entire volcano sedimentary package changes strike from ENE to NE on a hinge beneath grid A. The exploration model is that this is a splay off of the thrust fault that hosts Posse and that the structural setting is favorable. The company has taken 600 termite mound samples, covering 2.5 sq km, 160 soil samples covering 1 sq km, completed 8 trenched totaling 1.85 kilometres from which 2535 channel samples where taken. A total of 36 auger holes where also completed. From the trenches results such as 66m of 0.21 g/t gold, 19m of 0.4g/t gold, 0.5m @ 1.71 g/t gold and 2m @ 0.59 g/t have been returned. The drilling is designed to test the down dip extension of the values in the trenches.
Both the Lambari and Grid A prospects lie near the edge of the exhumed (by erosion) paleo-laterite surface at Mara Rosa and have deep saprolite profiles. (saprolite is a leached tropical soil). The drilling will test the fresh rock beneath this weathered horizon. Each prospect will receive four test holes, from which the results will be awaited before proceeding with further testing.
After this first round of exploration drilling the drill will be moved to the Posse Deposit to begin delineation drilling and exploration drilling for nearby extensions to this deposit.
Amarillo Gold land package in the Mara Rosa district consists of over 60,000 hectares of exploration permits and 3 mining concessions over the Posse pits and infrastructure areas from the previous mining operation. The Posse Deposit was found by an independent 43-101 compliant preliminary economic assessment study carried out by CCIC to contain an indicated resource of 643,000 ounces @ 1.48 g/t Au plus an inferred resource of 538,000 ounces @ 1.26 g/t Au.
This news release was compiled by Buddy Doyle, who is the Qualified Person as defined by NI 43-101 and 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
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.