Amarillo Receives Updated Resource Estimate for the Mara Rosa Project: 623,000 oz in 11.9MT @ 1.62g/t Gold Indicated, and 451,00
28 May 2010 - 1:41AM
Marketwired
Amarillo Gold Corp. (TSX VENTURE: AGC) ("Amarillo" or the
"Company") is pleased to announce that it has received an updated
estimate for the Posse deposit, part of the Mara Rosa project,
approximately 360km NNW of Brasilia the capital of Brazil, in Goias
State.
The estimate is 43-101 compliant, and has been supplied by
Australian Exploration Field Services Pty Ltd. ("AEFS") of Bendigo,
Australia. The qualified person for the report is Hugo Hoogvliet, a
consulting geologist with 25 years experience and a member of the
AusIMM. The resource calculation was conducted by Keith Whitehouse,
a principal of AEFS with 30 years experience, using Micromine
software. Mr. Whitehouse is a member of the AusIMM and a CP
(Geo).
The estimate is an update of the previous resource estimate made
as part of a Preliminary Economic Assessment, authored by Ian Kelso
of Caracle Creek Consulting Inc. ("CCIC") and released in March
2008.
See:-http://www.amarillogold.com/sites/amarillogold.com/files/agc_mr_ccic43101.pdf
The AEFS model differs from the CCIC estimate in that it
contains 15 new holes drilled by Amarillo, targeting gaps in the
data underlying the CCIC model. Results for these holes were
released in March 2009. See:-
http://www.amarillogold.com/news/amarillo-announces-results-posse-orebody-infill-program-mara-rosa-project-intersects-60-metres-
The AEFS model also contains 19 historic holes drilled from
surface, and 11 underground holes and channel samples that were
added to the electronic database after a review of the historic
work carried out by Amarillo staff under the supervision of Mr.
Hoogvliet. The estimate is also the first to use geology based
wireframes to constrain the kriging.. A review of historic and new
density measurements lead AEFS to use a density of 2.73 g/cc for
the Posse orebody, replacing the 2.85 g/cc value used by CCIC. Mr.
Whitehouse employed the Median Indicator Kriging method,
constrained by the geological wireframe to make the estimate. The
results are given below at various cut-off levels.
Table 1. Posse Deposit resource estimate using 0.5g/t gold
cut-off.
-----------------------------------------------------------
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
-----------------------------------------------------------
Table 2. Posse Deposit resource estimate using 1.0g/t gold
cut-off.
-----------------------------------------------------------
Cutoff Category Tonnes Grade Contained Oz
-----------------------------------------------------------
1.0 g/t Indicated 7,868,000 2.09 529,000
-----------------------------------------------------------
Inferred 6,313,000 1.80 364,000
-----------------------------------------------------------
Table 3. Posse Deposit resource estimate using a 1.5g/t gold
cut-off
-----------------------------------------------------------
Cutoff Category Tonnes Grade Contained Oz
-----------------------------------------------------------
1.5 g/t Indicated 4,913,000 2.60 410,000
-----------------------------------------------------------
Inferred 3,403,000 2.27 249,000
-----------------------------------------------------------
The Company is pleased with these results. The full report from
AEFS is expected within 45 days, and will also contain optimized
pit estimates based on economics updated from the PEA. When
compared with the last resource estimate in the PEA, the gold grade
is consistently higher due to the addition of the extra holes and
reduced dilution. The tonnage has decreased, due to the use of a
constrained model, and the use of a lower density value in the new
estimate.
Buddy Doyle, CEO and President of Amarillo said, "The Mara Rosa
project remains the foundation project of the Company. With the
current gold prices and with this new resource estimate in hand, it
is time to move this project ahead. The Company will use a tender
process to select an independent engineering consulting firm to
conduct a pre-feasibility study, with a view toward bringing this
project into production as soon as possible."
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. It was
reviewed by AEFS and is released with their input and approval
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 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
www.amarillogold.com
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