Amarillo Starts Drilling on the Butia Gold Discovery, Lavras do Sul Project, Southern Brazil
15 October 2009 - 12:05AM
Marketwired
Amarillo Gold Corp. (TSX VENTURE: AGC) ("Amarillo") -
Highlights:
- Drilling has commenced on our prime prospect, "Butia" within the larger
Lavras do Sul project.
- Amarillo has historically completed 6976m of drilling at Butia
generating significant gold intercepts such as 232m @ 1.95 g/t Au and
120m @ 3.23 g/t Au.
- The new drilling program (minimum 5000m) will define and attempt to
further expand the known 250m by 230m mineralized gold zone and explore
the 1400m by 500m alteration zone in the target-area.
- Assay results from the new drilling program are expected within the next
6 weeks.
- Butia is just one part of a larger mineralization system hosted by the
100km2 Lavras do Sul intrusive complex. With and adjacent to this
complex there are at least. 19 separate prospects/targets. To date we
have drill tested 5 prospects (Butia being just one), 4 return
significant gold intercepts and that require further follow-up. Future
work will focus on systematically exploring these other gold
prospects/targets as the exploration program on the property advances.
Amarillo is pleased to announce that drilling has started on its
Lavras do Sul project, in the state of Rio Grande do Sul in
southern Brazil. The Company has signed a minimum 5000m diamond
drilling contract with Brazilian-based Geologica Sondagens Ltda
after a competitive tender process.
The first phase of drilling will focus on the Butia Prospect
about 4km west of the village of Lavras do Sul (pop. 8000). The
purpose of this program is to follow up on the success of our
previous work. From October 2006 to November 2008, Amarillo
completed 6976m of drilling resulting in the discovery of a
significant gold system. Table 1 lists some of the better drill
intercepts.
Table 1: Highlights of Historical Drilling Results from
Amarillo's Butia prospect.
--------------------------------------------------------
Drill Hole From To Down-hole Grade Au g/t
(m) (m) Intercept (m)
--------------------------------------------------------
LDH-01 0 157 157 1.05
--------------------------------------------------------
LDH-122 46 279 232 1.95
--------------------------------------------------------
LDH-123 80 307 227 1.84
--------------------------------------------------------
LDH-124 37 76 40 1.75
--------------------------------------------------------
LDH-125 37 91 54 1.36
--------------------------------------------------------
LDH-128 87 207 120 3.23
--------------------------------------------------------
LDH-37 32 120 88 1.83
--------------------------------------------------------
LDH-134 0 50 50 1.33
--------------------------------------------------------
LDH-136 0 59 59 1.33
--------------------------------------------------------
LDH-132 115 133 18 4.12
--------------------------------------------------------
NB: More detailed descriptions of the previous drilling are
available in previous news releases and on SEDAR within the annual
report and MD and A discussions each quarter. All of these holes
were drilled, primarily at a dip of minus 60 degrees at 20 degrees
azimuth. The width and extent of the mineralization is described
below.
Gold mineralization at Butia is hosted in a 1400m by 500m zone
of altered granitic intrusive rock. Drilling has focused on the NW
portion of the alteration zone, where the host rock is
characterized by altered perthitic granite. The gold mineralization
as defined by drilling using a 0.3g/t Au cut-off grade occupies a
250m by 230m ellipsoid shaped area beginning from surface and has
been defined to a depth of about 150m. The gold system is open
along strike to the east and the west, and is not well defined to
the north and at depth. The density of the mineralized rock
averages 2.6g/cm3. Free gold has been noted in the core in the
higher grade sections, usually with galena. The first phase of
drilling is designed to test and better define the higher grade
gold zones encountered on sections 4 and sections 5 (see
illustrations of these sections and a plan map of the Butia area by
following this link:
http://www.amarillogold.com/sites/amarillogold.com/files/ButiaPlan-Apr19-09b.pdf).
This drilling should help to define the location of the hanging
wall in the north and the dip and plunge of the higher grade
mineralization. This information will then be used to define
step-out holes within the sections to the east and the west, in
order to expand the "high-grade" gold zone.
After this first phase of drilling, step-out drilling will test
other promising gold target-areas within the larger alteration
system at Butia with the goal of defining other mineralized
zones.
All necessary environmental licences have been obtained for the
planned drilling program. The company has also engaged the services
of a community liaison officer, a semi-retired local geological
professional, to help facilitate two-way communication with the
local community of Lavras do Sul about the Company's work program
and future plans.
The Company has installed a new core processing facility a few
kilometres outside the village. It is expected that the drill will
complete 800m to 1000m a month, with an assay turn-around of about
6 weeks after completion of each drill hole. Assuming positive
drilling results, Amarillo plans to commission an initial
independent, 43-101 compliant resource estimate of the gold
mineralization at Butia. This would include preliminary
metallurgical test work. The Lavras do Sul project is in area of
excellent infrastructure. A tarmac road services the village which
is a 4.5hr drive from Porto Alegre, the capital of the state.
Cellular phones work from the drill rigs. There is good mining
infrastructure in the state characterized by numerous open pit coal
mines.
Future plans include further drilling of other prospects/targets
within the Lavras do Sul project.
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.
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 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.
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. - Canada Buddy Doyle President
1-604-689-1799 1-604-689-1899 (FAX) Amarillo Gold Corp. - Brazil
+55-31-3261 5974 info@amarillogold.com www.amarillogold.com
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