Amarillo consolidates highly prospective land package for Lavras do Sul
June 10 2021 - 9:47AM
Amarillo Gold Corporation (TSXV: AGC, OTCQB: AGCBF) has amended its
property agreement with IAMGold Corporation and, separately,
acquired an additional exploration concession for its Lavras do Sul
Project in Rio Grande do Sul State, Brazil. The Company’s total
consolidated land position for Lavras do Sul is now 22,278 hectares
(see Figure 1).
“With a long history of gold mining, Lavras do
Sul is highly prospective,” said Mike Mutchler, Amarillo’s
President and CEO. “With this renegotiated agreement and the
recent property acquisition, the Company has now simplified and
consolidated a sizeable land package of highly prospective ground
within the Lavras do Sul gold camp.”
Amarillo terminated its December 2007 Heads of
Agreement with IAMGold and replaced it with a property Purchase
Agreement that will transfer title of the properties from IAMGold
to Energia Mineral Ltda., an Amarillo affiliate set up with
Brazilian partners to meet Brazilian Border Area requirements.
Covering 5,659 hectares, this new agreement
gives Energia 100% ownership of the four mineral concessions and
eliminates IAMGold’s 20% ownership. All IAMGold back-in rights have
been terminated.
Under the agreement, Amarillo will pay IAMGold
an aggregate of US$700,000 in progress payments as the properties
are developed. The Purchase Agreement also increases IAMGold’s net
smelter royalty from 2% to 3%, 1% of which may be repurchased for
US$1 million.
The exploration concession was also acquired
through Energia via the National Mining Agency’s exploration
auction process. It covers ground that immediately adjoins the
current land package.
The Company has started to explore for new
economic gold deposits on the property using soil geochemistry,
surface mapping, trenching, airborne and ground geophysics, and
diamond drilling.
The Lavras exploration team has identified at
least 23 known gold targets and showings through its systematic and
phased approach to mineral exploration (see Figure 2). Most of the
property had never been explored by modern exploration methods —
due to a fragmented land ownership dating back to the late-1880s —
until 2006.
Amarillo’s overall goal at Lavras is to open a
second development front, which will bring it one step closer to
realizing its vision of becoming a mid-tier Brazilian gold
producer.
FIGURE 1: LAVRAS DO SUL LAND
PACKAGEhttps://www.globenewswire.com/NewsRoom/AttachmentNg/ca607268-56da-4b54-94e7-635423e769b5
FIGURE 2: GOLD
TARGETShttps://www.globenewswire.com/NewsRoom/AttachmentNg/fed1a981-95e3-4777-8152-bd646bada667
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 23 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.
Follow Amarillo on LinkedIn, Twitter, and
YouTube.
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 statements
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 our 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 epidemics, 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.
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