Amarillo Drills 206m @ 2.16 g/t Au on Butia Step-Out Section, Lavras do Sul
May 14 2008 - 12:00PM
Marketwired
VANCOUVER, BRITISH COLUMBIA ("Amarillo" or the "Company"), is
pleased to report on gold assay results from the first 4 holes of a
5 hole step-out section being drilled on its Butia prospect at its
Lavras do Sul project in southern Brazil. Extensive intersections
of higher grade gold mineralization were reported in all holes.
Highlights include:
- Drill hole LDH-122 included 206 metres averaging 2.16 grams
per tonne (g/t) Au from 73 metres and 29 metres @ 4.92 g/t Au from
107m.
- Drill hole LDH-123 intersected 227 metres averaging 1.84 g/t
Au from 80 to 307 metres, including 22 metres @ 8.26 g/t Au from
147m.
- Drill hole LDH-124 intersected 26.5 metres averaging 2.50 g/t
Au from 36.5 to 63 metres
- Drill hole LDH-125 intersected 54 metres averaging 1.36 g/t Au
from 37 to 91 metres
The comprehensive gold assay results for drill holes LDH-122
through to LDH-125 are summarized using a 0.3g/t cutoff grade in
table 1 below. A further 3,000 metres of drilling is projected for
the current program with the two objectives of defining the extent
of mineralization of the Butia deposit and to acquire enough data
to commission an independent 43-101 resource assessment of this
prospect.
The above four drill holes were drilled on-section, collared
approximately 50m apart, and were completed in the centre of a
partly outcropping syenite zone. This syenite had been specifically
targeted by the Company's geologists as a favourable host for
higher grade gold mineralization and it appears, based on these
results, that they have found the key to higher grades at Butia.
Although this prospect had been drilled previously in the 1980's,
these older holes were drilled over the top of the higher grade
gold zone reported on here.
All holes, save for LDH-122, were drilled at an azimuth of 10
degrees (LDH-122 was drilled at 4 degrees) and at a dip of -60
degrees. A map of the prospect and drill hole locations can be
found either at the end of this release or at:
http://www.amarillogold.com/sites/amarillogold.com/files/ButiaMap_May08.jpg.
A section can be found, likewise, either below or at:
http://www.amarillogold.com/sites/amarillogold.com/files/ButiaSection_May08.jpg
These higher grade intercepts appear to be hosted by an altered
nepheline-syenite late stage intrusive to the surrounding perthitic
granite, and although the granite is mineralized it is theorized
that the silica under-saturated nature of the syenite acted as a
better chemical/compositional trap to the mineralizing fluids.
Current drilling at Butia is along the next section to the west and
these holes also appear to intersected the same mineralized host.
The syenite is open to the east, west and at depth. Other syenites
have been mapped on the project and more attention will be paid to
these occurrences in the future.
Table 1: Assay results from Butia step-out drilling
From (m) To (m) Width (m) Grade Au (g/t)
----------------------------------------------------
LDH-122 5.5 34 28.5 0.40
and 47.0 278.9 231.9 1.95
including 73.0 278.9 205.9 2.16
including 107.0 136.0 29.0 4.92
including 206.0 244.0 38.0 2.91
including 263.0 271.0 8.0 6.17
LDH-123 43.0 62.0 19.0 1.03
and 80.0 307.0 227.0 1.84
including 147.0 169.0 22.0 8.26
including 214.0 223.0 9.0 4.72
LDH-124 36.5 76.0 39.5 1.75
including 36.5 63.0 26.5 2.50
111 226 115.0 0.76
LDH-125 37 91 54.0 1.36
Including 80 86.5 6.5 4.69
Notes: All drill hole samples shown here consist of split HTW
diamond drill core. The samples were sent to Acme Laboratories in
Goiania, Brazil, and Vancouver, Canada. Gold is determined using
fire assay using 50g aliquots with an ICP finish; if the grade is
higher than 10 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. To determine the reported intercepts, a 0.3g/t
cut-off was employed with the constraint that no sub cut-off grade
interval exceed 10m in length. There were 24 gold assays greater
than 5 g/t Au in the reported assays for LDH-122 and LDH-123, and
these are being repeated by Screen Fire Assay. While this technique
may give substantially different results for particular samples,
our experience is that the overall intersections will remain little
changed.
Amarillo Chief Executive Officer Buddy Doyle commented: "We are
obviously pleased with this latest round of drill results. It is
the first time that potential bulk tonnage intervals on the order
of 2 grams per tonne of gold have been drilled at Lavras. By happy
coincidence, Amarillo has recently completed its 10,000th metre of
drilling on the property, and I would like to congratulate our
technical team on the ground, whose persistent and enthusiastic
application of best exploration practices appears to be unlocking
the gold mineralization potential within the Lavras intrusion."
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, (which number greater than 12), have ever
been drill tested prior to Amarillo optioning the project in 2006.
Amarillo's strategy has been to systematically surface map these
areas and follow-up, where warranted, with a drill program.
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 was found by an independent 43-101 compliant
preliminary economic assessment study carried out by CCIC to
contain 1.18 million ounces (643,000 ounces indicated @ 1.48 g/t
Au, 538,000 ounces inferred @ 1.26 g/t Au). 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
Please note: The Butia Map is available at the following link:
http://media3.marketwire.com/docs/agc0514b.jpg
Please note: The Butia Section map is available at the following
link:
http://media3.marketwire.com/docs/agc0514a.jpg
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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