Amarillo Reports on the Discovery of a New, Near-Surface Gold Zone on the Caneleira Prospect, Lavras do Sul, Brazil
December 18 2007 - 6:00AM
Marketwired
VANCOUVER, BRITISH COLUMBIA ("Amarillo" or the "Company"),
reports on the discovery of a new gold zone on the Caneleira
prospect at its Lavras do Sul Project in the state of Rio Grande do
Sul, Brazil. The five holes drilled and assayed to date on
Caneleira have uncovered broad, low grade gold mineralization
spanning almost 400 m of strike length. Furthermore, the
mineralization on the prospect has been continuously mapped as an
alteration zone for 1 km and may be apparent as 2.5 km linear zone
interpreted from the airborne magnetics. Assays are pending for an
additional four holes and the drill remains active on the
prospect.
The Lavras granite complex hosts numerous areas of historic
diggings and small mine workings that were the subject of gold
rushes in the 1880's and 1930's. Gold mineralization had been
drill-confirmed in the 1980's at Cerrito and Butia, where it was
found to be hosted in structurally controlled alteration zones with
sericite and pyrite, +/- sheeted quartz veins. None of the other
areas of workings and alteration, (at least 12 identified to date),
have ever been drill-tested. Amarillo's approach has been to
dilligently surface map these areas and follow-up, where warranted,
with a drill program. Since work began on this project, 43 drill
holes (6237 m) have tested various prospects and targets associated
with the Lavras granite intrusive complex.
Caneleira is one of these areas and the results given here
signify the 2nd distinct gold zone discovered during the current
exploration phase. The Company has to date drilled nine holes at
Caneleira totaling 1673 m. Assays have been returned for the first
5 drill holes, all of which reported significant gold
mineralization. Of note, drill hole LDH-110 intersected 36.1 m @
1.42 g/t Au (from 70.4 m to 106.5 m); drill hole LDH-111
intersected 37.0 m @ 1.17 g/t Au from surface; and drill hole
LDH-114 intersected 266 m @ 0.35 g/t from 8.0 m to 276.0 m. This
intersection consisted of several higher grade zones, including
12.0 m of 0.49 g/t from 8.0 m to 20 m in the oxides/transition
zone, interspersed by more weakly anomoulous (sub- 0.3 g/t)
material. A complete summary of results to date from Caneleira are
given in Table 1.
Table 1: Summary of Drilling at Caneleira
-----------------------------------------
Total Dist-
Hole Depth Az./ Zone From To ance Grade Com-
No. (metres) Dip (metres)(metres)(metres)(g/t Au) ments
190 degrees/
LDH-110 149.1 -60 degrees Centro 70.4 106.5 36.1 1.42
incl. 78.5 88.5 10.0 3.13
and 98.5 103.5 5.0 2.19
123.0 128.0 5.0 1.01
143.5 144.5 1.0 5.89
190 degrees/
LDH-111 130.7 -60 degrees Centro 0.0 37.0 37.0 1.17
incl. 25.0 27.0 2.0 15.40 Mineral-
63.5 76.5 13.0 0.32 ised
91.5 94.5 3.0 0.60 over
entire
drill
interval
avg 0.43
g/t Au
from
0-130.7 m
190 degrees/
LDH-112 201.3 -60 degrees Centro 80.0 83.0 3.0 1.27
100.0 106.0 6.0 0.48
121.0 129.0 8.0 0.30
161.0 164.0 3.0 0.41
190 degrees/
LDH-113 195.2 -60 degrees Centro 46.0 72.5 26.5 0.58
93.0 105.0 12.0 0.77
190 degrees/
LDH-114 302.9 -60 degrees Centro 8.0 274.0 266.0 0.35
incl. 8.0 20.0 12.0 0.49 Oxide/
and 53.0 83.0 30.0 0.51 trans-
and 127.5 132.0 4.5 1.18 ition
and 156.0 166.0 10.0 1.16 zone
and 181.3 198.0 16.8 0.83
and 213.0 250.0 37.0 0.55
and 271.0 272.0 1.0 3.54
Samples sent to Acme Laboratories in Goianna, Brazil, and
Vancouver, Canada. Gold is determined using fire assay using 50 g
aliquots with an ICP finish; if the grade is higher than 3 ppm a
gravimetric method is used. All samples are subject to a chain of
custody and are submitted with standards and blanks to check the
assay results. The laboratories also use internal standards and
repeat analysis. For the results reported in this release all the
standards, blanks and repeats delivered acceptable results. The
Company has been targeting larger intersections of 0.3 g/t+ gold.
Intersections that fall short of this threshold may provide
exploration insight and are so given.
The Caneleira prospect lies 4 km to the west of the town of
Lavras do Sul on pasture lands. The dip of the structures appears
to be sub-vertical. The mineralization appears to be controlled by
a SE-NW structure striking at 130 degrees, similar to that which
appeared at the Paredao prospect, about 800 m to the NE, where a
discovery hole reported 12 m at 4.54 g/t near surface (see NR
October 30, 2007.) The holes reported here for Caneleira were
drilled on a 50 m+ spacings starting in the west and traversing
east. A map of the prospect is available on our website:
www.amarillogold.com.
These encouraging results will see a drill kept on the Caneleira
prospect. Several drill holes are currently planned to test the
entire extent of the altered zone. A second rig continues to drill
at the Cerrito prospect to the East of the Village of Lavras do
Sul. The Company will provide an update from the Cerrito prospect
in the near future.
Amarillo Gold Corp. is a company focused on the acquisition,
definition and discovery of gold resources in Brazil. Its principal
projects are Mara Rosa in the state of Goias and Lavras do Sul in
the state of Rio Grande do Sul. The Posse Deposit at Mara Rosa was
determined by an independent 43-101 study to contain 974,000 ounces
inferred at a grade of 1.35 g/t (0.5 g/t cut-off) and 764,000
ounces inferred at a grade of 1.80 g/t (1 g/t cut-off). A scoping
study on the project has been commisioned and results are expected
shortly.
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.
The Qualified person for this news release is Buddy Doyle as per
the guidelines laid out in the NI 43-101. 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.
ON BEHALF OF THE BOARD OF DIRECTORS
AMARILLO GOLD CORP.
Buddy Doyle, President
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
Amarillo Gold (TSXV:AGC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Amarillo Gold (TSXV:AGC)
Historical Stock Chart
From Jul 2023 to Jul 2024
