Drills are turning again at Amarillo Gold Corporation’s (TSXV: AGC,
OTCQB: AGCBF) Mara Rosa Property in the State of Goiás, Brazil.
Amarillo is following up on the successes of its 2020 exploration
program, which defined gold mineralization up to 1.5 kilometres in
strike length, approximately 3.5 kilometres northeast of its
flagship Posse Gold Project.
A total of 8,500 metres will be drilled, including 6,500 metres
of diamond drilling and 2,000 metres of reverse circulation
drilling, on four target areas close to the Posse Gold Deposit.
Posse hosts proven and probable reserves of 902,000 gold
ounces, as detailed in the Amended and Restated NI 43-101
Technical Report Definitive Feasibility Study Posse Gold Project,
Brazil. Dated August 3, 2020, the report was compiled by SRK
Consultores do Brasil Ltda with input from other engineering
companies and consultants.
“Amarillo’s work in 2020 generated numerous
high-quality drill targets within an 8-kilometre radius of Posse,
several of which will be drilled for the first time this year,”
said Mike Mutchler, Amarillo’s President and Chief Executive
Officer. “We’ll focus on defining new zones of mineralization,
initially emphasizing the Pastinho target.
“Last year, gold soil surveys, surface trenchwork,
auger drilling, and limited diamond core drilling at Pastinho
defined gold mineralization up to 1.5 kilometres in strike length.
A recently completed induced polarization (IP) survey has defined
chargeability anomalies that have aided in drill target
selection.
“The Covid-19 situation in Brazil remains critical
and our thoughts and prayers are with the people of Brazil at this
time. Mining and exploration remain a crucial function for the
Brazilian economy and we are working closely with officials in Mara
Rosa city to ensure that our employees, contractors, and neighbours
are kept safe by following proper Covid protocols coupled with a
rigorous testing program.”
Priority 2021 drill targets
Drilling is planned at four priority target areas
located nearby the Posse Gold Deposit: Pastinho, Estrela, Speti,
and Filo and Sorongo. Pastinho, Estrela, and Speti are located
along the North Posse Trend (Figure 1), and Filo and Sorongo is
located in the Central Belt, about 5 kilometres northwest of Posse
(Figure 2).
PASTINHO
The Pastinho deposit is located approximately 3.5
kilometres north east of Posse on 6,000 hectares of new exploration
tenements that Amarillo gained access to in December 2019.
Limited drilling in 2020 defined a gold mineralized
structure approximately 800 to 900 metres long oriented in a
northeast-southwest direction along the same structural trend as
the Posse Gold Deposit. The apparent thickness varies from 10 to 20
metres and dips about 60 degrees northwest.
Follow up surface trenching and shallow auger
drilling extended the strike length of mineralization to about 1.5
kilometres (Figure 3). As previously disclosed, selected near
surface drillhole intercepts include:
- 18.7 metres grading
0.84 g/t gold
- 11.0 metres grading
0.74 g/t gold
- 7.6 metres grading
1.45 g/t gold*.
Highlights of previously released surface trenching
results include Trench 20TCH009 that returned 17 metres grading
1.46 g/t gold at the farthest northeast extent of the Pastinho
deposit.
The planned drilling program will test the
northeast strike extent and depth potential of the deposit.
Approximately 4,000 metres of diamond drilling is
planned at Pastinho in 2021.
ESTRELA
Estrela is located about 6 kilometres northeast of
the Posse Gold Deposit.
Amarillo completed a detailed soil survey and
shallow auger drilling in late 2020 defining anomalous gold over a
strike length of 1.4 kilometres and widths of up to 800 metres
(Figure 1). A detailed IP survey is currently underway, and the
results should help with drill target selection.
Historical work by previous operators highlights
the potential of the target. For instance, Mineracao Colorado (BHP)
started exploration work on the target in 1983 and completed 74
trenches and sampling in 1986-1987. This was followed by 45 hammer
drill holes.
Two mineralized zones were reportedly defined up to
8 metres deep with grades of 4.0-5.20 g/t gold*. In 1993, Western
Mining Corporation (WMC) is reported to have mined 4,615 tonnes
grading 3.5 g/t gold (519 oz)*.
Amarillo has budgeted for up to 2,000 metres of
diamond drilling at Estrela in 2021.
SPETI
The Speti target is located 2.2 kilometres
northeast of the Posse Gold Deposit and interpreted to be hosted in
the same northeast trending gold-bearing structure. Gold
mineralization is characterized by strongly deformed and altered
quartz-sericite schists hosting up to 1-2% disseminated pyrite. A
surface soil gold anomaly has been defined over 400 metres of
strike length.
Historical drill-testing returned 15 metres grading
0.62 g/t gold from 31.10 metres to 46.0 metres. This drill hole was
oriented with an azimuth of 140 degrees and inclined at -70
degrees. The intersection width is estimated to be close to true
width. A follow up drilling program in 2020 returned
intercepts including:
- Hole 20P101
intersected 7.5 metres grading 0.77 g/t gold from 175.0 metres to
182.50 metres
- Hole 20P103 returned
2.5 metres grading 1.20 g/t gold from 37.5 metres to 40.0
metres
- Hole 20P111 generated
2 metres grading 1.14 g/t gold from 7.0 metres to 9.0 metres and 9
metres grading 0.47 g/t gold from 70 to 79 metres.
Importantly, anomalous gold values bottomed in
several holes and require follow-up work to better understand the
nature and extent of this mineralization. A ground IP survey was
recently completed at Speti, and the results have aided in the
selection of drilling targets.
Approximately 650 metres of drilling in three drill
holes is budgeted at Speti in 2021.
FILO AND SORONGO
The Filo and Sorongo exploration concessions are
located roughly 5 kilometres northwest of the Posse Gold Deposit
along the same structure as the Zacarias gold deposit in the
Eastern Belt (Figure 2). The Filo garimpo showing is a small
shallow pit in oxidized material, with a few small shafts and pits
from which some sulphide-bearing quartz veins were extracted.
WMC undertook a limited drilling program at Filo
that outlined a historical reported resource of approximately 8,000
tonnes grading 2.88 g/t gold*. Some of the better historical drill
results included 1.12 g/t gold over 4 metres and 2.11 g/t gold over
2 metres*. WMC reportedly did not drill outside the immediate area
of the garimpo pit.
Sorongo is a larger garimpo pit compared with Filo,
however, the mineralization and geology are similar. Mineralization
is associated with a thrust fault and characterized by hydrothermal
alteration, and brecciation and sulphide minerals along the sheared
structure. Examples of historical drilling include 1.13 g/t gold
over 2 metres with anomalous copper values, and 0.52 g/t gold over
1 metre*.
Amarillo has completed surface mapping, and
sampling at the Filo and Sorongo showings.
An initial drilling program consisting of up to
1,000 metres is planned for these targets.
* These are
historical results obtained from the reports and documents of
previous operators and have not been independently verified by
Amarillo.
Qualified person
Michael Durose, P.Geo., Consulting Geologist
for Amarillo Gold Corporation and a qualified person ("QP") as
defined by Canadian National Instrument 43-101, has reviewed and
approved the scientific and technical information contained in this
release.
Quality assurance and quality
control
Sample handling, preparation and analysis are
monitored through the implementation of formal chain-of-custody
procedures and quality assurance/quality control programs designed
to follow industry best practices.
Trench channel samples were taken at 1 metre
intervals and placed in a secure sample bag and submitted to ALS
Laboratories Inc. in Goiania, Goiás State, Brazil for preparation
by crushing to 70% passing 2.0 mm, riffle splitting to obtain 500 g
aliquots, and pulverizing to 85% passing 75 microns.
All drillhole samples in this drilling program
consist of split NQ diamond drill core.
Drillcore is logged and sampled in a secure
facility located in Mara Rosa, Goiás State, Brazil. Drillcore
samples for gold assay are cut in half using a diamond saw and
submitted to ALS Laboratories Inc. in Goiania, Goiás State, Brazil
for preparation by crushing to 70% passing 2.0 mm, riffle splitting
to obtain 500 g aliquots, and pulverizing to 85% passing 75
microns.
Pulps are shipped to ALS Laboratories in Lima, Peru
and analyzed by a 30 g fire assay and AAS finish. For assays above
10 ppm gold, a cut of the original pulp was re-assayed with a
gravimetric finish.
Certified standards, non-certified blanks and field
duplicates are inserted into the sample stream at regular
intervals, so that QA/QC accounted for about 10% of the total
samples. Results are routinely evaluated for accuracy, precision,
and contamination.
To view FIGURE 1: LOCATION OF PASTINHO,
ESTRELA, AND SPETI, please visit the following
link: https://www.globenewswire.com/NewsRoom/AttachmentNg/979ffcde-142e-431b-b840-5440ade869fe
To view FIGURE 2: LOCATION OF FILO AND SORONGO
– CENTRAL BELT (ZACARIAS TREND) EXTENSION NORTH, please visit
the following
link: https://www.globenewswire.com/NewsRoom/AttachmentNg/41aab4a2-c5d0-4631-8f66-bdf45d865f6a
To view FIGURE 3: SURFACE TRENCHING AND
SHALLOW AUGER DRILLING, please visit the following
link: https://www.globenewswire.com/NewsRoom/AttachmentNg/9caf9537-6f24-4c08-9ed8-a34b1cf0cb46
About Amarillo
Amarillo is advancing two gold projects located
near excellent infrastructure in mining-friendly states in
Brazil.
The development stage Posse Gold Project is on the
Company’s Mara Rosa Property in Goiás State. It has a positive
definitive feasibility study that shows it can be built into a
profitable operation with low costs and a strong financial return.
Mara Rosa also shows the potential for discovering additional
near-surface deposits that will extend Posse’s mine life beyond its
initial 10 years. The exploration stage Lavras do Sul Project in
Rio Grande do Sul State has more than 22 prospects centered on
historic gold workings.
Amarillo trades on the TSXV under the symbol AGC
and the OTCQB under the symbol AGCBF. Visit www.amarillogold.com to
learn more about the Company’s focus on becoming a mid-tier
Brazilian gold producer.
Contact information
Mike MutchlerPresident &
CEO416-294-0736mike.mutchler@amarillogold.com
Annemarie BrissendenInvestor
Relations416-844-6284annemarie.brissenden@amarillogold.com
NOTES
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
the content of this news release.
FORWARD-LOOKING INFORMATION
This news release contains forward-looking
statements regarding the Company’s current expectations regarding
future events, including its business, operations and condition,
and management’s objectives, strategies, beliefs, and
intentions.
Various factors may prevent or delay its plans,
including but not limited to, the trading price of the common
shares of the Company, capital market conditions, impacts from the
coronavirus or other pandemics, counterparty risk, TSXV
approval(s), contractor availability and performance, weather,
access, mineral and gold prices, and success and failure of the
exploration and development carried out at various stages of the
program. Permission from the government and community is also
required to proceed with future mining production. Readers should
review the Company’s ongoing quarterly and annual filings, as well
as any other additional documentation comprising the Company’s
public disclosure record, for additional information on risks and
uncertainties relating to these forward-looking statements.
Readers should also review the risk factors
applicable to junior mining exploration companies generally to
better understand the variety of risks that can affect the Company.
The Company undertakes no obligation to update publicly or
otherwise revise any forward-looking statements whether as a result
of new information or future events or otherwise, except as may be
required by law.
PDF available:
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