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 - 1:55PM
Marketwired
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
TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
Contacts: Amarillo Gold Corp. Patrick Power Investor Relations
(604) 689-1799 (604) 689-1899 (FAX) Website:
www.amarillogold.com
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