Amarillo Drills 88m @ 1.83 g/t Au at Butia, and 162m @ 0.70 g/t Au at Cerrito, Lavras do Sul
August 20 2008 - 1:54PM
Marketwired Canada
Amarillo Gold Corp. (TSX VENTURE:AGC) ("Amarillo" or the "Company"), is pleased
to provide the following exploration update based on gold assay results from the
Butia, Cerrito and Caneleira prospects at its Lavras do Sul project in southern
Brazil. The results from Butia demonstrate a further extension of the higher
grade intense alkali alteration highlighted in the two most recent new releases.
The Company also wishes to summarize recent work at Cerrito, where the known
mineralization was confirmed and expanded, and at Caneleira, the site of a
recently discovered gold zone.
The drilling at Butia has been focused on expanding the known mineralization as
described in the news releases dated July 15th and May 14th of this year.
LDH-132 was drilled on Section 5, 100 m to the south of the last reported hole
on this section (LDH-129) and highlights a new area of gold mineralization south
of the main Butia zone, reporting 18m @ 3.91g/t Au. Drill holes LDH-36 and
LDH-37 are located on Section 2, 150m to the east of Section 5. Both these holes
encountered gold mineralization, with drill hole LDH-37 intersecting 1.84g/t Au
over 88 m. Intense alkaline alteration (episyenite) was noted in both holes and
has now been intersected on four contiguous sections spaced 50m apart. The
mineralization remains open in several directions. The company continues to
drill the Butia prospect with 2 drill rigs along 50m spaced cross section with
50m spaced holes. A summary of recent results for the Butia prospect is given in
Table 1 below; maps and sections will be posted to the Company's website.
The results for an additional 10 drill holes from Cerrito are reported in Table
2 below. Cerrito is located approximately 7 km to the east of Butia. Some of the
better results from the 2nd round of drilling include 21 m of 1.09 g/t Au in
drill hole LDH-27 and 162.35 m of 0.70 g/t Au in drill hole LDH-31. In total
3,808 metres have been drilled by Amarillo at Cerrito to date.
Drill holes LDH-26 and LDH-31 were drilled within the main Cerrito area, the
orientation of some of the drill holes were changed from an azimuth of 10
degrees to 340 degrees so as to intercept perpendicular to a structure
interpreted from airborne geophysics recently flown by Amarillo. The orientation
of this structure is aligned with the long axis of the mapped alteration in the
area and appears to be one of the main controls of mineralization. The drilling
by Amarillo has revealed a gold mineralized E-W zone extending 600 m in length
and up to 70 m wide and 150 m depth greater than 0.3 g/t gold, with zones
greater than 1 g/t, still open mainly at depth. There are also a number of
parallel gold mineralized zones that are yet to be adequately drill tested.
Drill holes LDH-32 to LDH-35 tested the NE extension of this structure as
interpreted from airborne geophysics. All 4 holes hit significant widths of
alteration but only one, LDH-35, returned sporadic gold mineralization.
Table 1: Recent results from Butia:
--------------------------
---------------------------------------------------------------------------
Hole No. Total Azimuth From To Distance Grade
Depth Dip TD Zone (metres) (metres) (metres) (g/t Au)
(metres)
---------------------------------------------------------------------------
LDH-36 125.80 16 degrees/ 0.0 42.8 42.8 0.82
-60 degrees
LDH-37 150.00 16 degrees/ 32.0 120.0 88.0 1.83
-60 degrees
incl. 34.0 40.0 6.0 4.94
LDH-130 210.50 12 degrees/ 2.6 13.0 10.4 0.97
-60 degrees
incl. 11.0 12.0 1.0 7.65
LDH-131 210.05 20 degrees/ 51.5 62.5 11 1.18
-60 degrees
LDH-132 210.82 16 degrees/ 85 90 5 1.04
-60 degrees
115 133 18 3.91
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. The style of mineralization
appears to be disseminated with zones of higher grade which are probably
somewhat structurally controlled. The drilling is exploratory and designed
to cut a fence perpendicular to the most elongated direction in the
alteration hosting the mineralization. The true width of the
mineralization is not yet known.
Following completion of the Cerrito program the rig was moved to the Butia
prospect, 7 km to the West, to follow up on the recent success there. Based on
what we are learning at Butia and from the gold assays now received in full the
Company plans to return to Cerrito where it will drill some deeper holes,
especially where significant quartz veining has been noted. Our current
mineralization model based on petrographic analysis carried out on core from
Butia suggests that this quartz veining will signify quartz dissolution and a
similar style of advanced alkali alteration to that associated with the higher
grades at Butia.
Table 2: Summary of results from the Cerrito Prospect.
---------------------------------------------
---------------------------------------------------------------------------
Hole No. Total Azimuth From To Distance Grade
Depth Dip Zone (metres) (metres) (metres) (g/t Au)
(metres)
---------------------------------------------------------------------------
LDH-26 130.0 14 degrees/ 43.0 63.0 20.0 0.33
-60 degrees
83.0 130.0 47.0 0.57
incl. 102.0 120.0 18.0 1.01
LDH-27 153.15 5 degrees/ 53.5 153.2 99.7 0.58
-60 degrees
incl. 75.0 96.0 21.0 1.09
LDH-28 120.20 330 degrees/ 6.2 13.0 6.8 0.31
-60 degrees
39.5 42.0 2.5 1.26
53.0 66.0 13.0 0.35
79.0 85.0 6.0 0.50
LDH-29 101.1 330 degrees/ 47.0 101.0 54.0 0.40
-60 degrees
LDH-30 73.55 340 degrees/ 0.0 12.5 12.5 0.36
-60 degrees
40.0 71.5 31.5 0.78
incl. 51.0 58.0 7.0 1.42
LDH-31 184.15 321 degrees/
-60 degrees 11.6 174.0 162.4 0.70
incl. 38.0 45.0 7.0 1.51
LDH-32 34.05 330 degrees/ No significant intercepts
-60 degrees
LDH-33 192.4 330 degrees/ No significant intercepts
-60 degrees
LDH-34 262.5 330 degrees/ No significant intercepts
-60 degrees
LDH-35 117.55 150 degrees/ 4.0 8.0 4.0 0.35
-60 degrees
12.0 14.0 2.0 0.58
Notes: As per table 1.
The Caneleira prospect is a new gold discovery by Amarillo located about 1 km
north of Butia. Surface mapping revealed sericite alteration and sporadic
diggings and pits along a 1 km long E-W zone bearing 100 degrees. Initial
drilling, as reported in the news release of December 18, 2007, returned
encouraging values, including 39m @ 1.32 g/t and 38m of 1.14 g/t. The results
for the remaining six holes are reported in Table 2 below. This work has
revealed a consistent mineralized zone 400 m long in the west, and sporadic
mineralization in the east. Further drilling is required to better define the
western 400 m zone and in the eastern zone to test a ground IP/Resistivity
anomaly detected in a recent ground geophysics survey.
Table 2 Summary of results, Caneleira Prospect.
---------------------------------------
---------------------------------------------------------------------------
Hole No. Total Azimuth From To Distance Grade
Depth Dip TD Zone (metres) (metres) (metres) (g/t Au)
(metres)
---------------------------------------------------------------------------
LDH-116 296.2 190 degrees/ East 114.0 127.0 13.0 0.32
-60 degrees
138.0 144.0 6.0 0.33
LDH-117 99.5 188 degrees/ East 25.0 29.0 4.0 0.49
-60 degrees
LDH-118 274.65 187 degrees/ East No significant intercepts
-60 degrees
LDH-119 180.2 188 degrees/ East 43.0 44.0 1.0 21.2
-60 degrees
LDH-120 222 200 degrees/ East No significant intercepts
-60 degrees
LDH-121 139.45 187 degrees/ East 0.0 1.6 1.6 1.2
-60 degrees
Notes: As per table 1.
The reader is referred to the Company website www.amarillogold.com for plans and
sections further detailing Lavras results.
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.
Per: Buddy Doyle, President
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
Real-Time news about Amarillo Gold Corporation (TSX Venture Exchange): 0 recent articles
More Amarillo Gold Corp. News Articles