Amarillo Commences 5,000 Metre Drilling Program at Mara Rosa Project Brazil
October 04 2010 - 1:02PM
Marketwired
Amarillo Gold Corp. (TSX VENTURE: AGC) ("Amarillo" or the
"Company") is pleased to announce that it has mobilized 2 drill
rigs and drilling has started at its Mara Rosa project in Goias
State, Brazil, 320km by road NNW of Brasilia, the nation's capital.
The Mara Rosa project was recently shown to have a significant
gold resource at the Posse Deposit in an independent 43-101
compliant study completed by Hugo Hoogvliet, an independent
consultant, and Australian Exploration Field Services Pty Ltd.
("AEFS"), Bendigo, Australia. Table 1 summarizes the geological
resource estimate based on a 0.5 g/t Au cut-off grade. Results from
a preliminary economic analysis of the deposit are also very
encouraging (the study can be downloaded from the company's website
at www.Amarillogold.com). Amarillo has decided to commence a
pre-feasibility study on the Posse deposit and results from this
drilling program are a key component of this study.
Table 1. Posse Deposit Gold Resource Estimate based on a 0.5g/t
gold cut-off grade.
---------------------------------------------------------------
Cutoff Category Tonnes Grade Contained Oz
---------------------------------------------------------------
0.5 g/t Indicated 11,928,000 1.62 623,000
---------------------------------------------------------------
Inferred 10,164,000 1.38 451,000
---------------------------------------------------------------
The main objectives of this minimum 5,000 metre HQ diameter
diamond drill program are:
a. Converting indicated and inferred gold resources into proven and
probable gold reserves for the $US1,000/oz open pit design through
infill and closer density drilling where required;
b. Collecting oriented geotechnical data to allow for optimization of pit
slope design;
c. Collecting metallurgic samples;
d. Supplying samples for acid drainage and other environmental impact
studies.
The Company has decided to mobilize 2 drill rigs to the project
to accelerate time lines.
This press release was authored by Buddy Doyle (B. App. Sc.), a
member of the AusIMM, with 28 years experience and a qualified
person in compliance with National Instrument 43-101.
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 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.
Buddy Doyle, President
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
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.
Contacts: Amarillo Gold Corp. Buddy Doyle President + 1-604-689
1799 (Canada) +55-31-3261 5974 (Brazil) info@amarillogold.com
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