Amarillo Commences Environmental Studies Required to Permit a Mine on the Posse Deposit, Mara Rosa Project, Brazil, 3rd Rig Comm
05 November 2010 - 12:30AM
Marketwired
Amarillo Gold Corp. (TSX VENTURE: AGC) is pleased to announce that
after a competitive bidding process, it has engaged Neotropica
Tecnologia Ambiental Ltda. ("Neotropica"), a Brazilian
environmental consulting firm, to conduct environmental and social
impact studies at our Mara Rosa project's Posse gold deposit in
Goias state. Neotropica has extensive experience in permitting
Brazilian mining projects such Chapada, a copper/gold mine operated
by Yamana located close to Mara Rosa (36 km to the SW). As
environmental permitting for mining operations in Brazil is
primarily a state responsibility, Amarillo accordingly opted for an
experienced local firm based in Goiania, the capital of Goais
State. Neotropica has already commenced work at Mara Rosa.
The environmental work will incorporate all aspects required for
the ongoing Mara Rosa Pre-Feasibility study ("PFS"). Initiating an
environmental baseline study designed to allow opening of a 2
million tonne per year gold mining operation at Posse (as currently
envisaged), is a key task assigned to Neotropica.
Combined with the current drilling and metallurgical program,
the start of the environmental study is particularly significant as
now, all the time sensitive aspects of the PFS study are underway.
Detailed engineering studies and cost analysis await the outcome of
these three programs. The company would also like to note that an
additional drill rig has arrived at Mara Rosa to take the total
number of drill rigs turning on the project to three. This is
designed to condense the time line of this crucial aspect of the
PFS. Drilling is underway on the 7th hole (1400m completed) in the
planned 20 hole, 7000m program.
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 36 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 initial resource estimate at the Butia prospect
reported 215,000 indicated ounces from 6.4MT @ 1.05 g/t Au and
308,000 inferred ounces from 12.9MT @ 0.74 g/t Au at a 0.3 g/t
cut-off. 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. + 1-604-689 1799 (Canada)
+55-31-3261 5974 (Brazil) info@amarillogold.com
www.amarillogold.com
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