Amarillo Announces Results of Posse Orebody Infill Program, Mara Rosa Project. Intersects 60 Metres of 2.19g/t Au.
March 25 2009 - 8:30AM
Marketwired Canada
Amarillo Gold Corp. (TSX VENTURE:AGC) ("Amarillo" or the "Company") is pleased
to announce results from its drilling program of the Posse gold resource at its
Mara Rosa project in the state of Goias in central Brazil. This series of 14
holes adds 3,292 metres of drilling to the 21,647m of drilling already completed
at Posse to total 24,939 metres. The results of this drilling are summarized in
the Table 1 below.
In March 2008 Amarillo announced a preliminary economic assessment on the
deposit which indicated robust economics at gold prices better than $650/ounce.
This drilling followed on from that work and was designed primarily to fill in
50 metre or greater gaps in the Posse ore block model below the $800/oz open pit
shell developed from this scoping study. Positive results beneath this shell
have the potential to widen the shell to incorporate these results next time the
ore body is modeled, thus adding ounces to the resource. Other holes were
targeted to infill data gaps within the shell, the best intersection being in
hole MRP-0002 which intersected 60 metres (est. true width 42.4m) at 2.19 g/t
Au. All of the 14 drill holes hit mineralization and the information gathered by
this drilling will allow for more certainty in the next ore resource/reserve
estimate.
Figure 1, depicts the location of the drill holes in relation to the Posse Pits
and previous drill collars. Please follow this link to view the release with
image:- www.amarillogold.com
Table 2 is also provided to show the influence of higher grade intervals, it
lists all the returned grades of 5 g/t Au.
Drill holes MRP0001 and 0002 drilled in the core of the deposit and return
typical results for this part of the orebody. Drillholes MRP0003 to MRP0008 were
drilled in the zone between the old North and South pits. Any gold found in this
area has the potential to expand the $800/ounce open pit shell which shallows in
this area. Drillholes MRP0009, MRP0010 and MRP0013 were drilled to the south and
below the open pit shell and the gold found in these holes is encouraging. Drill
MRP009 intercepted a post mineralized diabase dyke that cuts the orebody North
to South, future ore modeling will incorporate the effects of this dyke, which
constitutes a minor barren zone. The remaining holes, MRP0011, MRP0012 and
MRP0014 were drilled below the shell on the periphery of the plunge of the main
orebody.
The Company also conducted a review of the geology of the deposit by re-logging
key historic drill holes. This work recognized two main ore types that can be
split into hanging wall or foot wall. Samples of these ore types have been
collected for an extensive metallurgical testing program which the Company plans
to undertake as the first phase of a 43-101 compliant prefeasibility study.
TABLE 1: Drill Results from Partial Posse Infill Program
----------------------------------------------------------------------------
Total Azimuth
Hole No. Depth /Dip From To Interval True Width Grade
(metres) (degrees) (metres) (metres) (metres) (metres) (g/t Au)
----------------------------------------------------------------------------
MRP0001 191.95 0 / -90 138.8 180.0 41.2 29.1 1.97
----------------------------------------------------------------------------
MRP0002 164.67 0 / -90 97.0 157.0 60.0 42.4 2.19
----------------------------------------------------------------------------
MRP0003 182.02 0 / -90 103.6 116.0 12.4 8.8 1.43
-------------------------------------------------------------------
145.2 161.2 16 11.3 2.05
----------------------------------------------------------------------------
MRP0004 209.25 0 / -90 0.0 6.0 6.0 6.0(ii) 0.35
-------------------------------------------------------------------
69.0 74.0 5.0 3.5 3.43
-------------------------------------------------------------------
81.5 87.0 5.5 3.9 2.13
----------------------------------------------------------------------------
MRP0005 210.90 0 / -90 0.0 11.0 11.0 11.0(ii) 0.31
-------------------------------------------------------------------
93.1 1.09 15.1 10.7 0.99
-------------------------------------------------------------------
132.2 138.5 6.3 4.5 0.72
-------------------------------------------------------------------
183.6 193.0 9.4 6.6 1.05
----------------------------------------------------------------------------
MRP0006 220.30 0 / -90 0.0 7.5 7.5 7.5(ii) 0.74
-------------------------------------------------------------------
132.6 162.0 29.4 20.8 0.90
----------------------------------------------------------------------------
MRP0007 170.45 0 / -90 58.0 63.0 5.0 3.5 0.52
-------------------------------------------------------------------
91.0 96.0 5.0 3.5 0.49
-------------------------------------------------------------------
102.0 120.0 18.0 12.7 1.38
----------------------------------------------------------------------------
MRP0008 204.35 0 / -90 0.0 9.0 9.0 9.0(ii) 0.39
-------------------------------------------------------------------
109.0 114.0 5.0 3.5 0.48
-------------------------------------------------------------------
154.8 161.0 6.2 4.4 1.16
----------------------------------------------------------------------------
MRP0009 211.63 0 / -90 115.9 121.0 5.1 3.6 1.03
-------------------------------------------------------------------
123.0 158.0 35.0 24.7 1.28
----------------------------------------------------------------------------
MRP0010 182.13 0 / -90 99.9 119.0 19.1 13.5 2.00
----------------------------------------------------------------------------
MRP0011 342.38 0 / -90 292.0 308.0 16.0 11.3 1.30
----------------------------------------------------------------------------
MPR0012 330.45 0 / -90 224.5 230.0 5.5 3.9 1.00
-------------------------------------------------------------------
242.0 259.2 17.2 12.2 0.49
-------------------------------------------------------------------
265.0 270.0 5.0 3.5 0.49
-------------------------------------------------------------------
307.0 314.0 7.0 4.9 1.80
----------------------------------------------------------------------------
MRP0013 310.73 0 / -90 187.0 223.0 36.0 25.5 1.14
----------------------------------------------------------------------------
MRP0014 361.34 0 / -90 242.0 270.0 28.0 19.8 0.76
----------------------------------------------------------------------------
285.0 318.0 33.0 23.3 0.72
----------------------------------------------------------------------------
Notes: All drill hole samples shown here consist of split NQ diamond drill
core. The samples were sent to Acme Laboratories in Goiania, Brazil, and
Vancouver, Canada. Gold is determined using fire assay using 50g aliquots
with an ICP finish.; For drill holes 13 and 14 only ICP gold was determined
in order to lower costs, previous work shows the ICP average within 6% of
the fire assay results. 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 0.5 g/t cut off where any one sample point lies within a 5m intersection
averaging at least 0.5 g/t Au. (ii)For surface intersections, all of which
are in oxides, a 0.3 g/t Au cut-off is used.
Table 2 High Grade Intercepts (greater than 5.0g/t)
-------------------------------------------------------------
True
From To Interval Interval Grade
Hole No. (metres) (metres) (metres) (metres) (g/t Au)
-------------------------------------------------------------
MRP0001 141.1 144.0 2.9 2.0 5.58
----------------------------------------------------
145.7 146.3 0.5 0.4 6.19
----------------------------------------------------
151.2 153.5 2.3 1.6 5.11
----------------------------------------------------
165.5 167.2 1.7 1.2 8.72
-------------------------------------------------------------
MRP0002 104.0 106.0 2.0 1.4 10.47
----------------------------------------------------
112.0 114.0 2.0 1.4 10.50
----------------------------------------------------
119.0 123.0 4.0 2.8 7.67
-------------------------------------------------------------
MRP0003 106.0 108.0 2.1 1.5 6.58
-------------------------------------------------------------
MRP0004 70.0 72.0 2.0 1.4 8.30
----------------------------------------------------
82.3 84.0 1.7 1.2 6.25
-------------------------------------------------------------
MRP0009 153.0 154.4 1.4 1.1 6.36
-------------------------------------------------------------
MRP0010 115.6 118.0 2.4 1.7 7.81
-------------------------------------------------------------
To view figure 1, please visit the following link:
http://media3.marketwire.com/docs/agc325.pdf
ABOUT AMARILLO:
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 Goias 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
1.18 million ounces applying a cut-off grade of 0.5 g/t Au (643,000 ounces
indicated @ 1.48 g/t Au, 538,000 ounces inferred @ 1.26 g/t Au). 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.
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.
ON BEHALF OF THE BOARD OF DIRECTORS
AMARILLO GOLD CORP.
Per: Buddy Doyle, President
Amarillo Gold (TSXV:AGC)
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