Amarillo Gold Upgrades Mara Rosa Resource to Measured Indicated 1.17 Million Ounces at 1.75 g/t Au
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 09/13/11 -- Amarillo Gold Corp. (TSX VENTURE: AGC) ('Amarillo' or the 'Company') is pleased to announce that it has received an updated gold resource calculation for its 100%-owned Posse deposit on the Mara Rosa gold project in Goias State, Brazil. The new gold resource estimate includes the most recent 31 drill holes completed during an 8524 metre definition drilling program. The results are given in Table 1 below and are NI 43-101 compliant.
Table 1. Posse Deposit resource estimate using 0.5g/t gold cut-off.
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Cut-off Category Tonnes Grade Contained Oz
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0.5 g/t Measured 5,463,000 2.04 358,300
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Indicated 15,393,000 1.65 816,600
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Total M I 20,856,000 1.75 1,174,900
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Inferred 3,630,000 1.34 156,400
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The independent qualified person for the resource estimate report is Hugo Hoogvliet, a consulting geologist with 25 years experience and a member of the AIG. The resource calculation was completed by Keith Whitehouse a geologist with 30 years experience and a principal of Australian Exploration Field Services Pty Ltd. ('AEFS'). Mr. Whitehouse is a member of the Aus.IMM and a CP (Chartered Professional Geologist).
The modeling process consisted of completing four runs through the data for each of the zones modeled (Hanging Wall, Main, and Foot Wall) using different size search ellipsoids. The different ellipsoids were initially used to differentiate and assign resource classification codes to each resource block (i.e. Measured, Indicated, Inferred and Not Classified). This process was then refined based on the drill-hole data density. The resource was modeled using two different modeling algorithms - Inverse Distance Squared and Median Indicator Kriging. A second run with modified search parameters to specifically model the higher grade portions of the deposit was completed and combined with the model from the first run. This combined resource model improved the fit to the raw data. The estimates were made using Micromine software.
Buddy Doyle, CEO and President of Amarillo commented, 'We are very pleased with these results. The definition drilling has materially improved the quality of the gold resource at Posse. Prior to definition drilling the indicated resource was 60% of the global resource; now it is more than 90% (M I), and the gold grade has also improved over past estimates. The Measured and Indicated category resources will now be used as the basis for the pit design, scheduling, and the economic modeling for the ongoing Pre-feasibility Study, which is on track for completion early next quarter.'
The qualified person for this report as per the NI 43-101 guidelines is Kevin R. Kivi, PGeo (APGO).
The full report regarding this new resource estimate can be viewed on the Company's website www.amarillogold.com and has also been filed on SEDAR.
About Amarillo Gold Corp.
Amarillo Gold Corp. is focused on the acquisition, discovery, and definition of gold resources in Brazil. The Company's 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 1,174,900 ounces of gold measured and indicated from 20.85 MT at 1.75 g/t Au, and 156,400 ounces of gold inferred from 3.63 MT at 1.38 g/t Au (0.5 g/t cut-off grade) (NI 43-101 compliant resource as independently determined by Australian Exploration Field Services Pty. AEFS). The Mara Rosa Gold Project is in the Pre-feasibility stage.
The Posse Deposit was successfully mined by Western Mining Company (WMC) during the 1990s (mined areas are excluded from the above-stated resource figures), and is located in an area of excellent infrastructure approximately 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 Ni laterite project (in construction), 95 km NW of Votarintim's Niquelandia Ni laterite mine, and some 60 km NE of Yamana's Pilar Au project (in Feasibility). Grid power to the site was established during WMC's open pit mining operation, and the Serra da Mesa (450 MW) hydro-electric dam lies 35 km to the east.
The Lavras do Sul Project is an advanced exploration stage property (190 sq km) comprised of more than 19 prospects centered on historic gold workings, with encouraging gold mineralization discovered and defined by more than 16,000 metres of drilling. The initial resource estimate at the Butia prospect reported 215,000 ounces of gold indicated from 6.4 MT at 1.05 g/t Au, and 308,000 ounces of gold inferred from 12.9 MT at 0.74 g/t Au ((0.3 g/t cut-off grade)(NI 43-101 compliant resource as independently determined by Atticus Consulting 2010). Lavras do Sul is also located near excellent infrastructure. The Company also has a portfolio of earlier stage projects and all properties under Amarillo's management are located in areas of good infrastructure and mining-friendly communities.
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) or 55-31-3261 5974 (Brazil)
1-604-689-8199 (FAX)
info@amarillogold.com
www.amarillogold.com