Amarillo Gold Corp. (TSX-V: AGC) (“Amarillo” or the “Company”) is pleased to announce that Mr. Frank Baker MSc, Member IMM, Member AusIMM has accepted the position of Project Manager for the Mara Rosa project. Mr. Baker has 38 years’ experience in the mining industry, during which time he has been involved in the planning, construction and operation of mines in a number of countries including Australia, Venezuela, Africa and, importantly, Brazil. A graduate of Sheffield University with a Masters degree in Metallurgy, Mr. Baker is fluent in Portuguese and is a Brazilian citizen. He has experience working with a number of commodities with a particular emphasis on gold.
His most recent employment was in Western Australia, commissioning and operating a gold mine of similar size and scope to that envisaged for our Mara Rosa project. Mr. Baker was also the plant manager for the implementation and commissioning of the San Francisco Mine in Mato Grosso, Brazil.
A Preliminary Economic Assessment completed in 2008 by for the Mara rosa project by Caracale Creek International Consulting envisions a 2 million tonne per year open-pit gold mining operation having a mine life of at least 8 years. Amarillo is now commissioning a prefeasibility study with the view of taking this project through to bankable feasibility, and ultimately positioning the project for a mine development decision. Mr. Baker will manage these studies.
One of Mr. Baker’s first tasks will be to help select the lead engineering firm from a group of engineering consultant groups that have submitted proposals to Amarillo for the prefeasibility study. Amarillo has already commenced metallurgical test-work and the resource/geotechnical drilling components of the pre-feasibility study.
In addition to heading up the Mara Rosa project, Mr. Baker will also guide the metallurgical and engineering aspects of the Lavras do Sul project and offer general and managerial assistance to Amarillo’s entire Brazilian operations.
Amarillo would also like to take this opportunity to note that William Richard Brown, our Chief Operating Officer, has stepped down as COO. Mr. Brown will continue as a director of Amarillo, with the title of Vice President Business Development and expected to still be very active in the company. Mr. Buddy Doyle, President and CEO of Amarillo, said the following. “We would also like to welcome Mr. Frank Baker to the Company. Amarillo is fortunate to have attracted a metallurgist/engineer/mine maker of such caliber and drive. The Board and I would like to thank Rick Brown for his sustained efforts and his substantial accomplishments over the years as COO. His drive and his belief in the prospects for gold mining in Brazil led to the founding of the company, and underpinned much of our success to date. We look forward to Rick’s continued guidance in his new role.”
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 contains 623,000 ounces indicated from 11.9MTonnes @ 1.62 g/t Au and 451,000 ounces inferred from 10.1MTonnes @ 1.38 g/t Au at a 0.5g/t cut-off grade, 43-101 compliant resource as independently determined by AEFS. The project is in the economic evaluation stage. The Posse deposit was successfully mined by WMC during the 1990’s (mined areas are excluded from the above resource figures) and is located in an area of excellent infrastructure. It is 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 Votarintim’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 16,000m of drilling with encouraging gold mineralization being discovered and defined, also in an area of excellent infrastructure. The company has commissioned an initial resource estimate at the Butia prospect, and it was reported to contain 215,000 ounces of indicated from 6.4MT @ 1.05 g/t Au and 308,000 ounces of inferred from 12.9MT @ 0.74 g/t Au at a 0.3 g/t cut-off. 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.
ON BEHALF OF THE BOARD OF DIRECTORS
AMARILLO GOLD CORP.
Per: “Buddy Doyle”
Buddy Doyle, President
Amarillo Gold Corp.
+ 1-604-689 1799 (Canada)
+55-31-3261 5974 (Brazil)
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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.