Amarillo Gold Discovers Two New Gold Zones at Lavras do Sul Project, Drills 78 M at 0.94 g/t Au and 20 M at 1.32 g/t Au
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/28/12 -- Amarillo Gold Corp. (TSX VENTURE: AGC) ("Amarillo" or "the Company") is pleased to announce the latest results from the ongoing exploration drill program at the Lavras do Sul, Gold Project in southern Brazil.
The results are from an exploration diamond drill program completed late in 2011 on the Cerrito Prospect at the Lavras do Sul project. The drill program consisted of 18 exploration holes (6,605 m) designed to find new gold mineralization by targeting alteration and structure targets in the alteration zone mapped at Cerrito. This drilling complements the previous drilling (31 holes, 11,187 m) to produce a total of 49 holes, and 17,792 m, drilled to date at Cerrito.
The earlier drilling had located a central zone of mineralization that is approximately 750m in strike and 120m in width and had been drilled to 150m in depth. The current program drilled to the north and west of this area. The program was successful in locating two significant new zones of gold mineralization and numerous smaller or lower grade zones.
The first new zone of mineralization occurs 75m to the north central zone and is highlighted by drill holes LDH 172: 20m @ 1.22 g/t Au from 18m depth, and LDH 173: 20m @ 1.32 g/t Au from 8m depth. These holes are 50m apart and appear to have intercepted the same mineralized structure. True width is unknown as yet. The majority of drill holes in this area intercepted gold mineralization in what appears to be a vein swarm. More drilling is required to determine the full extent of this zone.
The second new zone is 250m northwest of the central zone and is highlighted by drill hole LDH 183: 78m @ 0.94 g/t Au from 244m depth. This single hole is isolated from all the other drilling and represents an entirely new discovery at the Cerrito prospect. More drilling is required to determine its size and extent.
A plan of the Cerrito drilling is provided at www.corebox.net. Table 1 (see below); lists all the results from this latest round of drilling.
The Cerrito prospect is located approximately 2 km NE of the village of Lavras do Sul, (Pop. 8800), and 6 km from Amarillo's Butia prospect which currently holds an indicated resource of 215,000 ounces of gold from 6.4 MT at 1.05 g/t Au, and an inferred resource of 308,000 ounces of gold from 12.9 MT at 0.74 g/t Au using a 0.3 g/t cut-off grade, (NI 43-101 compliant as independently determined by Atticus Consulting in 2010).
Buddy Doyle, President and CEO of Amarillo, commented, "The Lavras do Sul project is comprised of more than 19 prospects centered on old gold workings or geochemical anomalies over a 12 km by 7 km area. Amarillo's plan is to systematically drill test each of these prospects; the Butia and Cerrito prospects are the first two to be systematically drilled. The Company's strategy is to establish sufficient resources in a series of different prospects to justify the construction of a central processing plant. The discovery of the extra gold zones at Cerrito is great news and a resource estimate is planned for Cerrito once further drilling is completed in order to obtain a better understanding of the full dimension and grade of all of the mineralized zones."
Survey work to obtain a topographic surface model, essential for producing a resource estimation at Cerrito, is currently underway.
Table 1: Composite Assay Results Cerrito 2010-2011 Drill Program.
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From To Distance Grade
Hole No. (metres) (metres) (metres) (g/t Au)
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LDH-166 0.0 22.0 22.0 0.38
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32.0 35.0 3.0 3.38
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59.0 62.0 3.0 0.67
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75.0 77.0 2.0 5.08
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120.0 127.0 7.0 0.30
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168.0 171.0 3.0 0.43
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LDH-167 20.0 22.0 2.0 5.96
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62.5 66.5 4.0 1.03
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104.0 112.0 8.0 0.67
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LDH-168 No Significant Results
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LDH-169 No Significant Results
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LDH-170 2.0 10.0 8.0 1.29
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29.0 48.0 19.0 0.74
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LDH-171 1.6 7.9 6.3 0.55
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17.0 30.0 13.0 0.72
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94.5 122.5 28.0 0.92
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140.6 143.6 3.0 0.60
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LDH-172 0.0 7.5 7.5 0.37
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18.0 38.0 20.0 1.22
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incl. 35.0 36.0 1.0 10.36
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62.5 65.5 3.0 1.19
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80.6 102.5 21.9 0.79
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incl. 80.6 81.6 1.0 6.97
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144.0 147.0 3.0 0.77
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185.0 188.0 3.0 0.50
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248.0 252.0 4.0 0.48
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274.0 279.0 5.0 0.45
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297.0 322.0 25.0 0.42
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LDH-173 8.0 28.0 20.0 1.34
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LDH-174 0.0 7.0 7.0 0.33
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63.2 77.5 14.3 0.41
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132.5 135.0 2.5 1.16
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177.5 180.0 2.5 0.60
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196.0 205.8 9.8 0.47
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LDH-175 2.3 14.8 12.5 0.52
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29.1 38.4 9.3 0.41
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LDH-176 No Significant Results
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LDH-177 62.0 63.0 1.0 1.12
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73.0 75.0 2.0 0.89
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108.0 117.0 9.0 0.48
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168.0 194.0 26.0 0.31
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261.0 268.0 7.0 0.42
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382.0 389.0 7.0 0.33
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401.0 406.0 5.0 0.32
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413.0 423.0 10.0 0.32
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439.0 446.0 7.0 0.32
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456.0 462.0 6.0 0.95
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LDH-178 19.2 27.5 8.3 0.81
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37.5 40.0 2.5 0.43
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65.0 77.5 12.5 0.96
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incl. 71.0 72.0 1.0 9.59
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157.0 168.0 11.0 0.59
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239.0 296.0 57.0 0.47
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307.0 311.0 4.0 0.46
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LDH-179 24.0 26.0 2.0 0.59
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39.0 50.0 11.0 0.36
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66.0 168.0 102.0 0.49
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incl. 154.5 156.0 1.5 6.82
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LDH-180 20.9 34.3 13.4 0.47
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46.5 54.0 7.5 2.47
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incl. 48.0 49.0 1.0 14.03
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64.0 65.0 1.0 3.53
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102.0 128.0 26.0 0.84
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146.0 147.0 1.0 1.10
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189.0 199.0 10.0 0.94
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213.0 217.5 4.5 0.48
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LDH-181 91.0 94.0 3.0 1.14
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107.0 113.0 6.0 1.46
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156.0 165.0 9.0 0.94
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174.0 194.0 20.0 0.40
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240.0 245.0 5.0 0.31
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284.0 286.0 2.0 0.41
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LDH-182 86.0 94.0 8.0 0.48
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121.5 122.5 1.0 1.90
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254.0 259.0 5.0 0.79
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279.0 282.0 3.0 0.58
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289.0 293.1 4.1 0.30
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351.0 367.5 16.5 0.31
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393.0 406.5 13.5 0.32
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429.3 438.1 8.8 0.36
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455.1 463.45 8.35 0.67
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513.6 514.6 1.0 1.25
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522.6 524.6 2.0 0.64
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LDH-183 11.0 38.0 27.0 0.35
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197.0 200.0 3.0 1.13
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233.0 234.0 1.0 1.36
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244.0 322.0 78.0 0.94
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incl. 317.0 319.0 2.0 11.91
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333.0 355.0 22.0 0.51
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Notes: 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. On occasion Amarillo also sends returned
sample pulps to other independent laboratories as a final cross check. 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 average of
the intercept must be above 0.3 g/t. The true width of the mineralization is
not yet known, however the drilling is designed to cut the mineralization
perpendicular to the estimate strike based on surface structural
information. These structure tend to be vertical or within 30 degrees of
vertical.
Location and Collar information 2010-2011 Cerrito drill campaigns.
The multi-element geochemistry from the drilling at Cerrito demonstrates that the gold mineralisation has a Ag, Te, Hg, S, Cu, Pb, Zn association which is in contrast to the gold element association at Butia, (Au, Ag, Pb), 6 kilometres to the east. The presence of mercury, the micro-crystalline quartz veins, and the clay-dominated selvages to these veins are all consistent with high level epithermal mineralisation. The company's geologists believe that the contrast between the element associations at Buita and Cerrito (and other prospects in the Lavras do Sul area) are evidence of zonation within a larger epithermal system. Anomalous Mo and As are also present at Cerrito, but these elements do not correlate well with the gold and appear to be products of a separate event. Metallurgical testing is underway for the Butia prospect. Given the differing mineral associations at Cerrito a separate round of testing will be required for the Cerrito style of gold mineralisation and this testing will commence shortly.
Amarillo changed drilling contractors at the completion of the Cerrito drilling, after some frustration with the slow progress. After a short break a new company, "Geosonde", mobilised 2 drill rigs to Lavras do Sul. Drill holes have now been completed at the Cerro Rico (6 holes), Valdo Texeira (5 holes) and Matilde (5 holes) prospects and the results from this work will be the subject of a separate news release once all assays are received.
After the Christmas break drilling restarted at the Butia prospect where several holes are planned to upgrade knowledge of the mineralization at this prospect. Once this work is completed the drills will return to Cerrito to further define the new gold mineralization zones mentioned in this news release.
This news release was authored by Buddy Doyle, a geologist of 30 years' experience, and was reviewed by Kevin Kivi, P. Geol, who is the qualified person as per the requirements of the National Instrument 43-101.
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 has received a positive economic assessment from a Pre-feasibility study and is preparing to proceed to a definitive feasibility study. Should this work continue to be positive it would be possible to commence mining by 2014.
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, some 60 km NE of Yamana's Pilar Au project (in Feasibility), 95 km NW of Votarintim's Niquelandia Ni laterite mine, 105 km from NE of Serra Grande's underground Au mine, and 105 km NNW of Anglo American's Ni laterite project at Barro Alto. Grid power to the site was established during WMC's open pit mining operation. 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.) comprising more than 19 prospects centered on historic gold workings, with encouraging gold mineralization discovered and defined by more than 25,000 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 using a 0.3 g/t cut-off grade in a 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. The resource statements described in this news release is not a production forecast by the Company. There remains at present insufficient certainty in the resource statements to reliably estimate future production and economics; further engineering and geology studies are required. Various factors may prevent or delay our plans, including but not limited to, contractor availability and performance, weather, access, mineral prices, market conditions, government policies and success or failure, as the case may be, of the exploration and development carried out at various stages of the program. Permission from various authorities will be required to proceed with future mining production. 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.
+1-604-689-1799 (Canada)
+55-31-3261-5974 (Brazil)
info@amarillogold.com
www.amarillogold.com