Amarillo reports an intercept of 190m @ 0.94 g/t Au from its continuing drill program at the Butia Prospect, Lavras do Sul, Southern Brazil

Amarillo Gold Corp. (TSX-V: AGC)(“Amarillo” or the “Company”) is pleased to release the latest results from the Butia drilling at its Lavras do Sul project in southern Brazil.

The Company is currently drilling the Butia prospect, one of a number of areas at Lavras that has returned significant gold intersections from previous drilling. The purpose of the current phase of drilling, which commenced in October 2009, is to generate sufficient information to enable an initial 43-101 compliant estimate of the gold resource at Butia. This news release reports the assay results for the most recent 3 holes of the 14 holes completed to date: LDH-149, LDH-151 and LDH-152. The results are listed in Table 1.  The assay results for 7 of the holes have been reported in previous news releases, assays are awaited for 3 holes and one hole is currently being sampled.

Hole No.

Table 1: Composite Assay Results

Hole No. From
Distance (meters) Grade
(g/t Au)
LDH-153 36.5 49 12.5 0.54
120 125.5 5.5 0.32
147 152 5.0 0.45
164.5 169.5 5.0 0.73
187.0 192.5 5.5 0.42
197.2 202.5 5.3 0.89
274.3 306.0 31.7 1.02
including 274.3 278.0 3.7 3.21
327 332.0 5.0 0.31
LDH-154 13.5 19.0 5.5 0.39
32 222 190 0.94
including 90 94 4 3.96
173 176 3 4.31
87.0 110.0 23 1.33
132.5 170.0 37.5 0.43

Notes:  All drill hole samples shown here consist of split HTW and NTW diamond drill core. The samples are sent to Acme Laboratories in Goiania, Brazil, and Vancouver, Canada, Samples are first subjected to a multi-element ICP assay that includes Au and then sent to fire assay for Au using 30g aliquots. If the grade is higher than 5 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 meters 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,, true widths are given when known in the text of the News release, otherwise they are not yet known.

The location of the drill holes can be found in Table 2 listed by UTM co-ordinates, and by referring to an updated plan map to be posted at the Company’s website  The episyenite altered gold mineralized zone at Butia appears to have an “L” or “Hockey Stick” shape in plan view. The company currently interprets this to be caused by the intersection of an E-W structure that carries gold mineralization for at least 250m along its strike, and a N-S structure that carries gold for at least 200m along strike. The mineralization continues from surface to at least 150m depth, where it is still open.

Drill hole LDH-149 was drilled at a 45 degree angle to bisect the intersection of the two structures where it was postulated that a breccia pipe might be found occupying this hinge zone area. The hole intercepted a micro-brecciated episyenite alteration zone which coincides with the 206m gold mineralized zone intersected in the drill hole. The positive result from LDH 149 demonstrates that the mineralization in the hinge zone has a substantial diameter of at least 103m.

(Drill hole LDH-150 was reported in a prior news release).

Drill hole LDH-151 was drilled on the southern side of the E-W zone of the “hockey stick” to test for mineralisation at depth. Other than the 11m intercept shown in Table 1, this hole places a southern boundary to the gold mineralization at depths greater than 100m below surface.

Drill hole LDH-152 was drilled E-W across the N-S part of the “hockey stick” to test for the true width of this mineralized zone. The main zone of gold mineralization grading 1.08 g/t  over 121m in this 60 degree inclined hole demonstrates  a true width of approximately110m for this zone, which is a very positive result

The drilling continues at the Butia prospect area, where the rig is currently testing for extensions to the N-S structure. The drill will then be moved to test the eastern extension of the E-W structure. Four holes in total are planned.  When work is completed the drill is expected to be moved to other areas within the Butia alteration zone. The Butia alteration zone consists of three parallel E-W structurally controlled corridors of altered rock with numerous diggings scattered for 1.5km. To date all of the Company’s drilling has been focused on the far western end of this zone. The larger diggings identified to date are Galeria dos Belgas (where there is a 75m long adit), Castelhano, Corte do Zalmiro (where mapping has identified episyenite which is the rock type hosting the main mineralization at Butia) and Trencher do Qumbu (where galena, which is correlated with gold at Butia, has been noted in mapping).  Depending on the outcome of this work, the drill will then be moved to the Cerrito prospect 5km to the east.

The Company plans to commission a 43-101 report on the Butia prospect once the results from LDH 153 are in hand. This drill hole is the last hole to be drilled in the core of the gold mineralized zone in the current program and therefore forms the natural trigger for the initial resource estimate.

Table 2:  Drill Holes Completed in the Current Program.

LDH-144* 200° -55° 364.28 307 218144 6586763
LDH-145* 200° -60° 256.98 166 218089 6586719
LDH-146* 200° -80° 290.21 202 218162 6586638
LDH-147* 200° -60° 433.33 307 218203 6586698
LDH-148* 200° -60° 383.15 265 218355 6586702
LDH-149* 45° -60° 292.35 284 218091 6586444
LDH-150* 200° -60° 21.25 29 218225 6586619
LDH-150A* 200° -60° 408.5 291 218241 6586653
LDH-151* 290° -60° 356.95 204 218236 6586435
LDH-152* 290° -60° 276.8 191 218156 6586575
LDH-153** 290° -60° 369.4 228 218277 6586553
LDH-154** 290° -60° 308.65 261 218232 6586516
LDH-155** 200° -60° 348.95 193 218280 6586661
LDH-156 200° -60° 377.55 208 218085 6586515
LDH-157 20° -60° 453.4 267 218242 2586294
LDH-158 200° -60° 247.5 114 218324 6586474
TOTAL   5189.25

Note: Samples include standards, blanks and duplicates, inserted at approximately every 30th drill core sample. The entire length of core is sampled. Those areas that appear to be mineralized are sampled at 1m intervals, all others at 2.5m. The UTM co-ordinates are given using the SAD-69 system, zone 22.

* Reported in an earlier news release    ** Reported in this news release.

LDH150 was abandoned @ 21.25m as the whole intersected old mine workings.

To view the updated plan map, please click: ButiaPlan-May8-10_0.pdf

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.


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 643,000 ounces indicated from 13.5MTonnes @ 1.48 g/t Au, 538,000 ounces inferred from 13.0MTonnes @ 1.26 g/t Au at a 0.5g/t cut-off grade and the project is in the economic evaluation stage.  The Posse deposit is located in an area of excellent infrastructure located some 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 nickel laterite project (in construction), 95 km NW of Votorantim’s Niquelandia nickel laterite mine and approximately 60 kms NE of Yamana’s Pilar Au project (in feasibility). Grid power to the site was established during the previous open pit mining operation and the Serra da Mesa hydro-electric dam lies 35 km to the east.

The Lavras do Sul project is in the advanced exploration stage with over 15,000m of drilling with encouraging gold mineralization being discovered and defined, also in an area of excellent infrastructure.  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.



Per:      “Buddy Doyle”    
Buddy Doyle, President


Amarillo Gold Corp.
+ 1-604-689 1799 (Canada)
+55-31-3261 5974 (Brazil)

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.


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