Amarillo Signs Property Agreements With Crusader on Adjoining Mara Rosa Exploration Permits
December 05 2007 - 8:00AM
Marketwired
VANCOUVER, BRITISH COLUMBIA ("Amarillo" or the "Company"), has
signed a heads of agreement with Crusader Holdings NL ("Crusader"),
an ASX listed company, whereby Amarillo has the right to acquire a
70% interest in 4 exploration permits ("alvaras") totalling 4,560
hectares which are contiguous with the Company's current Mara Rosa
Project holdings.
The terms of the Crusader agreement are: Amarillo can earn a 70%
interest by expending US$300,000 on exploration over the next
thirty months and making staged cash payments totalling US$50,000
during the earn-in period. Subsequent to the earn-in a 70:30 joint
venture agreement will be implemented. In the event that either
party elects not to contribute then a standard dilution clause will
be applied down to a 10% equity interest at which point it converts
to a 1% NSR.
The Crusader alvaras consist of two discrete blocks. One is NE
and directly along strike from the historical Zacharias gold
deposit (held by a third party) and contains a number of abandoned
garimpeiro workings. Here Crusader completed a first-pass
reconnaissance program of geological mapping and soil /rock chip
sampling which included 2.7g/t Au in rock chips and 195ppb gold in
soils. The second block adjoins the SW corner of Amarillo's
existing land package and has been little explored up to this point
however a 2006 BLEG program undertaken by Amarillo highlighted
anomalous gold values possibly sourced from this area.
Amarillo plans to commence a follow-up exploration program over
the Crusader areas during the first quarter of 2008 with the
objective of delineating drill targets by the fourth quarter.
Subsequent to the Crusader agreement and the previously
announced option/JV agreement with Horizonte Minerals PLC
(Stockwatch Oct 9), Amarillo now has priority exploration rights
over 76,000 hectares within the Mara Rosa district.
About Amarillos' Mara Rosa project: the initial property package
which contains the Posse Au deposits was purchased for $US450,000
in October 2003. Posse was previously mined by BHP Billiton and
Western Mining Ltd and is estimated to have produced in the region
of 80,000 ounces of gold.
From November 2005 until November 2006 Amarillo completed a 24
hole drilling program on the Posse deposit. This provided infill
information on the known mineralisation, but more importantly,
discovered new gold mineralisation beneath the North and South
pits. A 43-101 compliant mineral resource estimate was completed in
March 2007 by Caracle Creek International Consulting Inc. This
reported an inferred mineral resource of 22,468,000 tonnes grading
1.35 g/t Au for 974,000 ounces of contained gold using a 0.5 g/t Au
cut off.
ON BEHALF OF THE BOARD OF DIRECTORS
AMARILLO GOLD CORP.
Per: Buddy Doyle, President
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
Contacts: Amarillo Gold Corp. Buddy Doyle President (604)
689-1799 (604) 689-1899 (FAX) Website: www.amarillogold.com
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