Update on 2009-2010 drill program at Butia Gold Prospect, Lavras do Sul Project. First hole, Returns 11m @ 2.34g/t Au

Amarillo Gold Corp. (TSX-V: AGC) (“Amarillo”) is pleased to announce the following update for our Lavras do Sul project in the State of Rio Grande do Sul.

As detailed in our October 7th news release, Amarillo has mobilized a drill rig on the Butia gold prospect. This drill is now on the sixth hole after recommencing work after the Christmas break. This current drilling program adds to the 6.8km of drilling already completed on the Butia prospect. The purpose is to determine the full extent of the mineralized system with step out drilling and conduct enough infill drilling to determine a first pass resource estimate (approximate 50m spacing between collars). The timing and the amount of drilling to accomplish this is open ended as it depends on the results of the step-out drilling. The more positive results we receive the more work required.

Table 1: A list of the drill holes completed in the current drill program.

Drill Hole Section Azimuth Dip Total Depth (metres) Samples sent
LDH144 Section 5 200 55 364 307
LDH145 Section 6 200 60 257 166
LDH146 Section 4 200 80 290 202
LDH147 Section 4 200 60 433 307
LDH 148 Section 1 200 60 383 265
LDH 149 Section 4 45 60 In progress Nil
TOTALS       1727m 1247 samples

Note: Samples include standards, blanks and duplicates, inserted at approximately every 30th drill core sample. The entire core is sampled, those that look possibly mineralized are sampled at 1m intervals, other areas at 2m.

Samples have been sent to Acme Laboratories. The results from the first hole have been received and are reported below in Table 2. Table 3 lists those results that returned greater than 5 g/t.

Table 2: Assay results

Drill hole From To Interval Composite Gold assay
LDH 144 174m 210m 46m 0.44g/t










  305 309.4 4.4m 2.58g/t

Note:  All drill hole samples shown here consist of split HTW and NTW diamond drill core. The samples were sent to Acme Laboratories in Goiania, Brazil, and Vancouver, Canada, Samples are first subjected to an multi-element ICP assay that includes Au. Those samples that are greater than 0.2ppm Au are then sent to fire assay using 30g aliquots with an ICP finish.  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 metres 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. The true width of the mineralization is not yet known.

Table 3: High grade assay results.

Drill hole From To Interval Gold assay
LDH 144 247m 248m 1m 6.75 g/t
  307m 308m 1m 5.78 g/t

Drill hole LDH 144 was drilled as a scissor on section 5 below the previous drilling to look for extension of the mineralization at depth and to help determine the true width. The 221m to 296m interval corresponds to the mineralized zone that reported 120m @ 3.23 g/t zone from 87m down hole in drill hole LDH 128. It suggests this zone has a width of approximately 50m on this section and has increased its depth extent by 50m, to 225m below the surface. See figure “Section BU 05” at the end of this press release.

The company will release further assays as they come to hand, usually in batches of 3-5 holes or at our discretion.

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 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 15000m 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.