Amarillo Reports Further Positive Results From its Butia Prospect Drill Program, Including an: Intercept of 121m @ 1.08 g/t Au
13 April 2010 - 2:04AM
Marketwired
Amarillo Gold Corp. (TSX VENTURE: AGC) ("Amarillo" or the
"Company") is pleased to release the latest results from the Butia
drilling at its Lavras do Sul project in southern Brazil.
The Company is currently drilling the Butia prospect, one of a
number of areas at Lavras that has returned significant gold
intersections from previous drilling. The purpose of the current
phase of drilling, which commenced in October 2009, is to generate
sufficient information to enable an initial 43-101 compliant
estimate of the gold resource at Butia. This news release reports
the assay results for the most recent 3 holes of the 14 holes
completed to date: LDH-149, LDH-151 and LDH-152. The results are
listed in Table 1. The assay results for 7 of the holes have been
reported in previous news releases, assays are awaited for 3 holes
and one hole is currently being sampled.
Table 1: Composite Assay Results
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Distance
Hole No. From (metres) To (metres) (metres) Grade (g/t Au)
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LDH-149 12 20 8 0.45
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51 257 206 0.63
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LDH-151 298.5 310 11.5 1.27
---------------------------------------------------------------------------
LDH-152 0 15 15 0.99
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25 146 121 1.08
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Including 129 145 16 4.12
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Notes: All drill hole samples shown here consist of split HTW
and NTW diamond drill core. The samples are sent to Acme
Laboratories in Goiania, Brazil, and Vancouver, Canada, Samples are
first subjected to a multi-element ICP assay that includes Au and
then sent to fire assay for Au using 30g aliquots. 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. 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 meters of less than 0.3
g/t Au. The drilling is exploratory and designed to cut a fence
perpendicular to the most elongated direction in the alteration
hosting the mineralization,, true widths are given when known in
the text of the News release, otherwise they are not yet known.
The location of the drill holes can be found in Table 2 listed
by UTM co-ordinates, and by referring to an updated plan map to be
posted at the Company's website www.amarillogold.com. The
episyenite altered gold mineralized zone at Butia appears to have
an "L" or "Hockey Stick" shape in plan view. The company currently
interprets this to be caused by the intersection of an E-W
structure that carries gold mineralization for at least 250m along
its strike, and a N-S structure that carries gold for at least 200m
along strike. The mineralization continues from surface to at least
150m depth, where it is still open.
Drill hole LDH-149 was drilled at a 45 degree angle to bisect
the intersection of the two structures where it was postulated that
a breccia pipe might be found occupying this hinge zone area. The
hole intercepted a micro-brecciated episyenite alteration zone
which coincides with the 206m gold mineralized zone intersected in
the drill hole. The positive result from LDH 149 demonstrates that
the mineralization in the hinge zone has a substantial diameter of
at least 103m.
(Drill hole LDH-150 was reported in a prior news release).
Drill hole LDH-151 was drilled on the southern side of the E-W
zone of the "hockey stick" to test for mineralisation at depth.
Other than the 11m intercept shown in Table 1, this hole places a
southern boundary to the gold mineralization at depths greater than
100m below surface.
Drill hole LDH-152 was drilled E-W across the N-S part of the
"hockey stick" to test for the true width of this mineralized zone.
The main zone of gold mineralization grading 1.08 g/t over 121m in
this 60 degree inclined hole demonstrates a true width of
approximately 110m for this zone, which is a very positive
result.
The drilling continues at the Butia prospect area, where the rig
is currently testing for extensions to the N-S structure. The drill
will then be moved to test the eastern extension of the E-W
structure. Four holes in total are planned. When work is completed
the drill is expected to be moved to other areas within the Butia
alteration zone. The Butia alteration zone consists of three
parallel E-W structurally controlled corridors of altered rock with
numerous diggings scattered for 1.5km. To date all of the Company's
drilling has been focused on the far western end of this zone. The
larger diggings identified to date are Galeria dos Belgas (where
there is a 75m long adit), Castelhano, Corte do Zalmiro (where
mapping has identified episyenite which is the rock type hosting
the main mineralization at Butia) and Trencher do Qumbu (where
galena, which is correlated with gold at Butia, has been noted in
mapping). Depending on the outcome of this work, the drill will
then be moved to the Cerrito prospect 5km to the east.
The Company plans to commission a 43-101 report on the Butia
prospect once the results from LDH 153 are in hand. This drill hole
is the last hole to be drilled in the core of the gold mineralized
zone in the current program and therefore forms the natural trigger
for the initial resource estimate.
Table 2: Drill Holes Completed in the Current Program.
TOTAL
DRILL HOLE AZIMUTH DIP DEPTH (m) SAMPLES EASTING NORTHING
LDH-144(i) 200 degrees -55 degrees 364.28 307 218144 6586763
LDH-145(i) 200 degrees -60 degrees 256.98 166 218089 6586719
LDH-146(i) 200 degrees -80 degrees 290.21 202 218162 6586638
LDH-147(i) 200 degrees -60 degrees 433.33 307 218203 6586698
LDH-148(i) 200 degrees -60 degrees 383.15 265 218355 6586702
LDH-149(ii) 45 degrees -60 degrees 292.35 284 218091 6586444
LDH-150(i) 200 degrees -60 degrees 21.25 29 218225 6586619
LDH-150A(i) 200 degrees -60 degrees 408.5 291 218241 6586653
LDH-151(ii) 290 degrees -60 degrees 356.95 204 218326 6586435
LDH-152(ii) 290 degrees -60 degrees 276.8 191 218156 6586575
LDH-153 290 degrees -60 degrees 369.4 228 218277 6586553
LDH-154 290 degrees -60 degrees 308.65 261 218232 6586516
LDH-155 200 degrees -60 degrees 348.95 193 218280 6586661
in
LDH-156 200 degrees -60 degrees progress 218085 6586515
TOTAL 4110.8
Note: Samples include standards, blanks and duplicates, inserted
at approximately every 30th drill core sample. The entire length of
core is sampled. Those areas that appear to be mineralized are
sampled at 1m intervals, all others at 2.5m. The UTM co-ordinates
are given using the SAD-69 system, zone 22.
(i) Reported in an earlier news release (ii) Reported in this
news release.
LDH150 was abandoned @ 21.25m as the whole intersected old mine
workings.
This press release was reviewed by Buddy Doyle (B. App. Sc.), a
member of Autism, 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 Votorantim'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 15,000m 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. Buddy Doyle President + 1-604-689
1799 (Canada) or +55-31-3261 5974 (Brazil)
info@amarillogold.com
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