Amarillo Gold Corporation’s (TSX VENTURE:AGC) (“Amarillo” or the “Company”) wishes to advise that it has been granted priority rights over 16,000 hectares of exploration tenements which will augment the Company’s existing landholdings in the area surrounding its key Mara Rosa Project. The Company’s land holding in this area now totals more than 60,000 hectares.
The new land consists of two areas named, Rio do Ouro and West Amaralina respectively.
The Rio do Ouro area is located 20 km north of the Mara Rosa Project mining concessions and is centered on an abandoned underground garimpo. Our records show that Metallica Resources, (the previous owner of the Mara Rosa Project), took 6 grab samples during a visit to the area in 2003. Metallica’s assays returned positive gold values of 2.5g/t, 0.05g/t, 5.7g/t, 94g/t, 0.25g/t and 8.1g/t. At this time mining at the site was still active, and this prevented Metallica from further work. Reportedly the gold is closely associated quartz/sericite alteration with pyrite plus abundant chalcopyrite and minor bornite mineralization, hosted in structurally controlled veins, within foliated amphibolite of mafic to intermediate composition. Amarillo has mobilized a back hoe to the area to begin trenching and sampling. The initial exploration program will also consist, mapping and stream sediment sampling.
The West Amaralina area is 15 km west of the Mara Rosa mining concessions. The Company was attracted to this area due to a pronounced N-S structure visible in both the aeromagnetic and radiometric potassium anomaly maps that is reminiscent of the structure that controls the Mara Rosa (a.k.a. Posse) deposits. In addition the area is highlighted as a zone of anomalous gold in stream samples as defined by work by BHPB in the late 1980’s. There are a number of abandoned garimpo workings in the area. Amarillo plans to take stream sediment samples, and prospect and sample around the workings and along the geophysical trends.
These land acquisitions and exploration proposals are part of Amarillo’s efforts to create nearby additions to the historic resource at Mara Rosa that might be fed, should they prove economic, to a centralized plant. Both areas occur in the NE regional trending Mara Rosa volcano-sedimentary belt that contains the Posse gold deposit and also, significantly, Yamana’s Chapada Cu-Au project which, has just been commissioned, occurs 32 kilometres to the south of Mara Rosa. The Company has been successful in acquiring this land despite the intense competition for title in the area with, CVRD, Anglo American, Yamana and several other groups holding ground adjacent to Amarillo’s mineral concessions.
The qualified person for this news release is Buddy Doyle as defined by the NI 43-101.
The Company seeks Safe Harbor, regarding forward looking statements contained within this news release.
ON BEHALF OF THE BOARD OF DIRECTORS AMARILLO GOLD CORP.
Per: Buddy Doyle, President
Legal Notice Regarding Forward Looking Statements
Statements in this news release that are not historical are forward looking statements. Forward looking statements in this news release include that we plan to create nearby additions to the historic resource at Mara Rosa that might be fed, should they prove economic, to a centralized plant. It is important to note that the Company’s actual outcomes may differ materially from those statements contained in this press release. Factors which may delay or prevent these forward looking statements from being realized include misinterpretation of data; that we may not be able to get equipment or labor as we need it; that we may not be able to raise sufficient funds to complete our intended exploration; that we may not obtain permits to drill or environmental requirements are too onerous; that weather, logistical problems or hazards may prevent us from exploration; that analysis of data cannot be done accurately and at depth; that results which we have found in any particular location are not necessarily indicative of larger areas of our property; and that despite encouraging data there may be no commercially exploitable mineralization on our properties.