Amarillo Drills 120m @ 3.52 g/t Au at Butia, Lavras do Sul, on 2nd Step-Out Section
July 15 2008 - 9:00AM
Marketwired
VANCOUVER, BRITISH COLUMBIA ("Amarillo" or the "Company"), is
pleased to report on gold assay results from the next four holes
from its Butia prospect at its Lavras do Sul project in southern
Brazil. Drill holes LDH-127, 128 and 129 are the first 3 of 6 drill
holes from the next step-out cross section, 50 metres to the west
of the drill results reported in our May 14th news release. The
drill holes are collared 50 metres apart along this section and
drilled at an azimuth of 10 degrees and at a dip of -60 degrees.
LDH-126 is the last hole drilled along the section that was
reported on May 14th.
Highlighted is drill hole LDH-128 which ran 120 metres at 3.52
g/t from 87 metres and includes 57 metres at 6.95 g/t from 123
metres. Drill hole LDH-127 ran 58 metres at 0.93g/t. Details of
gold assay results for drill holes LDH-126 through to LDH-129 are
summarized in table 1 below.
As drilling progresses the Company's geologists are refining
their understanding of the deposit. In the May 14th news release
the Company reported that a syenite zone seemed to be controlling
the better gold grades. Petrographic studies, commissioned by the
Company, now suggest this "episyenite" is an alteration product,
the result of intense alkaline alteration of the perthitic granite
host rock such that most of the quartz is removed, leaving
feldspathic microbreccia. Later, as these fluids dissolved more and
more quartz, they became oversaturated and began re-depositing
silica as comb textured quartz veins with abundant fluid
inclusions. These textures suggest a low temperature epithermal
environment. There is much left to understand; for example, at what
stage in the fluid evolution does the gold mineralization occur? It
appears the higher grades occur with quartz saturation and sulphide
generation, but there may be multiple events and some intense
alteration zones have better gold grades than others.
These results show the higher grade zone at Butia continuing
through three sections. The section principally reported on here,
BU-05, is the westernmost section drilled to date, and is located
in close proximity to the edge of the intrusive. As a result, it
was thought that this would be the last section worked in this
direction. However, the encouraging results from BU-05 mandate
another section be drilled, if only to close the higher grade zones
off. To the east, section BUT-02 was tested in the mid-80's by a
former operator with a single drill hole. However, this hole was
fairly shallow, drilled to the south and would have missed the
projection of the higher grade zones. This area is being tested now
and the core is revealing similar rocks as those that carried in
the drill intersections reported below.
The drilling at the Butia deposit had been designed to provide
adequate information to commission an independent 43-101 resource
assessment of this prospect prior to year end. The recent success
on the prospect, however, has resulted in more work than originally
planned. The Company now has one rig on the prospect and a second
is expected shortly.
Table 1: Assay results from Butia 2nd round of step-out drilling
Width Grade Au
From (m) To (m) (m) (g/t)
----------------------------------------------------
LDH-126 139.5 246 106.5 0.53
LDH-127 34 50 16.0 2.16
including 34 35 1.0 30.00
61 88 27.0 0.41
104 162 58.0 0.93
LDH-128 17.5 30 12.5 1.57
including 26 27 1.0 8.49
50 71 21.0 2.19
including 52 55 3.0 11.43
87 207 120.0 3.52
including 123 180 57.0 6.94
LDH-129 No significant assay
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. Intercepts were calculated using a minimum of a
0.3 g/t cut off at the beginning and end of the intercept and
allowing for no more than 10 consecutive metres of less than 0.3
g/t Au. Intercepts of less than 5 metres or less than 5 gm.metres
are not reported. There were 34 gold assays greater than 5 g/t Au
in the reported assays for LDH -128, and these are being repeated
by Screen Fire Assay. While this technique may give different
results for particular samples, our experience is that the overall
intersections will remain little changed.
Please also note that the interval 172.0m to 180.0m in LDH128
contained 2 very high gold assays of 48.9 and 126.0 g/t Au
respectively.
An updated map of the prospect and drill hole locations can be
found at:
http://www.amarillogold.com/sites/amarillogold.com/files/ButiaMap_July15.pdf.
Updated sections can be found at:
http://www.amarillogold.com/sites/amarillogold.com/files/ButiaSection04_July15.pdf
http://www.amarillogold.com/sites/amarillogold.com/files/ButiaSection05_July15.pdf
The Lavras granite complex hosts numerous areas of historic
diggings and small mine workings that were the subject of sporadic
gold rushes from the 1870's through to the 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 643,000 ounces indicated @ 1.48 g/t Au and 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
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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