Amarillo Gold Corp. (TSX VENTURE: AGC) ("Amarillo") is pleased to
provide an update on its recent exploration activities at its
Lavras do Sul gold project in the southern Brazilian state of Rio
Grande do Sul. Since the beginning of the year Amarillo has been
exploring primarily on the ground optioned from IAMgold in 2008
(the Property) -see NR 23 May 2008. The IAMgold option covers about
one third of the Lavras do Sul granite intrusion complex and some
of the surrounding volcanic rocks. It includes several areas of
historic workings which are listed below:
1. Valdo Teixeira, on the SE edge of the Lavras do Sul
intrusion, consists of at least three parallel E-W siliceous veins
with alteration selvedges extending 10's of metres into the
intrusive with some extending into the surrounding volcanic rocks.
Previous workers stripped soil near the veins and developed one
adit into the central vein when working for gold.
2. Cerro Rico is hosted in the Hilario volcanics which surround
the intrusive complex to the east. There are at least 24 old
workings developed into the veins. The workings - which supplied a
centralized plant built in the early 1900's - are quite extensive
with shafts galleries and adits developed within 50m of the
surface.
3. Dourada is an area of alteration hosted within the intrusion
with several pits and adits.
4. Mato Feio, is another separate area of alteration hosted
within the intrusion with several historic surface workings.
5. Sao Jose is a 3km linear belt of alteration and workings
closer to the centre of the intrusion with sheeted quartz veins and
intense alkaline alteration, (episyenite). San Jose was the site of
a second processing plant.
6. Virginia is a 1km zone of sporadic alteration which occurs at
the western end of the San Jose zone.
7. A new area of high interest found using soil sampling and
geophysics has been named Sao Domingos. Sao Domingos occurs south
and west of the Valdo Teixeira prospect. It consists of a 1.3km
zone of geochemically anomalous soils.
Amarillo now has access to all 19 known old workings/targets in
the Lavras do Sul area through various agreements. Of the 5 targets
drilled to date by the Company, 4 have returned significant
(greater than 1g/t) gold intercepts that require follow-up work to
further define these gold systems.
Amarillo has started field work on all the prospects on the
IAMgold ground listed above, with the objective of gathering enough
geological information to rank each target based on its gold
potential. Targets will then be prioritized and systematically
drill-tested.
A more detailed description of the drill-ready targets at Valdo
Teixeira and Sao Domingos is provided below.
Garimpo Valdo Teixeira
This garimpo (artisanal mine working) was operated on a small
scale in the 1950's when the surface was stripped of soil and
worked for gold with some hard rock material being fed through the
Cerro Rico plant (there are no historic production records for any
of the Lavras workings). Valdo Teixeira consists of three parallel
E-W trending quartz veins between 0.5 to 2m wide, with associated
illite alteration selvedges up to 15m wide on each side of the
central vein. The whole system has an exposed strike length of up
to 1000m, before becoming obscured by deep soils, and straddles the
intrusive/volcanics boundary. The three vein/structures have been
named Valdo Sul, Valdo Centro and Valdo Norte. The Sul and Centro
workings are 100m apart and the Norte workings are a further 400m
to the north. The most extensive workings are on Valdo Sul.
Flooding of the historic cuts and trenches at Valdo Teixeira has
made systematic sampling of the vein systems difficult. Amarillo
(and previously IAMgold) has taken rock float and channel samples
from the veins where access is available. Often samples are taken
in the walls and not perpendicular to the strike. Amarillo has
taken 119 channel samples averaging 1m wide, and 73 rock outcrop
and float samples. IAMgold generated 129 channel samples and 7 rock
float samples. Eleven samples returned assay values greater than
5g/t Au with the highest gold result being 27.2 g/t Au from a 1m
channel. Thirty-three channel samples assayed more than 1 g/t Au.
Eighteen of these greater than 1 g/t Au samples come from a 120m
long zone in Valdo Sul. In the Valdo Centro vein, only a few rock
samples assayed greater than 0.5 g/t. Three samples were taken at
Valdo Norte and they returned gold grades of 13.4g/t, 1.3g/t and
0.9g/t respectively.
Valdo Teixeira, and most of the other old workings in the
eastern portion of the Lavras do Sul Intrusion have an Au, Ag, Cu,
As, Sb, Mo, W, Pb, Zn association of elements accompanied by a
white mica /illite alteration with fluorite, barite, carbonate and
amphibole accessories. This is markedly different to the Au, Ag,
Pb, Zn association of elements encountered in the western part of
the intrusion and probably represents a larger scale temperature
zonation in the mineralizing system that suggests in a gross sense
that the temperature increases from west to east. The silver to
gold ratio at Valdo Teixeira averages 5:1(in the west of the
intrusion it averages 1:1). The highest silver value from channel
sampling was above 130 g/t Ag with 32 samples registering over 10
g/t Ag. The same areas that had high gold values also contain these
elevated silver values. Several samples also assayed over 1%
Cu.
A soil sampling program was conducted over the Valdo Teixeira
area based on a N-S grid with lines spaced 100m apart and a 25m
spacing between samples. This soil grid was extended over a 4km by
3km area centered on Valdo Teixeira. To date 3379 soil samples have
been collected and assay results have been received for some 80% of
these samples. The results of the soil sampling show that the Valdo
Teixeira garimpo lies within a large pathfinder element anomaly
(As, Cu, Sb, Mo etc. including Au). Using As (arsenic) as a guide
there is a 3500m by 600m As soil anomaly greater than 25ppm
elongated N-S coincident with the boundary of the Lavras Intrusion.
It is notable that the garimpo veins strike perpendicular to the
trend of the pathfinder soil anomaly. There is also a
semi-continuous 20ppb Au in soil anomaly (up to 350ppb) coincident
with Valdo Sul and Valdo Centro, that stretches for 1.2 km and
connects some outcropping quartz veins mapped to the west to these
workings. One rock sample, running 0.9g/t Au was discovered in this
area . This suggests further investigation may add to the strike
length of the Valdo Sul and Valdo Centro mineralization
systems.
There is a second anomalous gold zone greater than 20ppb Au with
values up to 270ppb Au that parallels the Valdo Sul soil anomaly
over the Valdo Norte area. It has a strike length of 300m.
Sao Domingos Prospect
This prospect was discovered while soil sampling southwest of
the Valdo Teixeira garimpo workings. Here a 500m by 200m area of
strongly anomalous gold pathfinder elements is defined by high
arsenic (100ppm contour, maximum 275ppm) and copper (100ppm
contour, maximum 385ppm) as well as the other elements associated
with gold in this area (Ag, Sb, Mo, W). Sporadic gold values up to
174ppb occur within this soil anomaly. The Sao Domingos prospect
occurs on a plateau with a deep soil profile but there is outcrop
on the northern and eastern flanks, where altered and mineralized
rocks have been mapped and sampled.
Of the 51 rock outcrop and float samples collected 14 ran over
0.5g/t Au, with three outcrop samples running 4.0g/t, 3.8 g/t and
1.4 g/t Au respectively.
Please refer to our website following this link,
http://www.amarillogold.com/sites/amarillogold.com/files/lavras-do-sul-exploration-update-10062009.pdf
to view maps and figures that help illustrate the results referred
to in this release.
The Company is excited about this prospect since there is no
evidence of previous workings in the immediate area. Management
believes this grass-roots discovery demonstrates the exploration
potential of the Lavras do Sul project and opens up the possibility
of further new finds over and above the 19 known workings in the
area.
Amarillo has completed the first phase earn-in of the Option
Agreement with IAMgold whereby the Company committed to spend
US$200,000 on surface exploration prior to June 30, 2009. The
second phase of the Agreement consists of a minimum 2,000 metre
drill program prior to June 30, 2011. Completion of the second
phase will entitle Amarillo to earn a 51% interest in the
Property.
The Company has applied for environmental licenses which are
necessary for drilling permission over the exploration permits
which include the Sao Domingos, Valdo Teixeira and Cerro Rico
prospects.
This press release was reviewed by Buddy Doyle (B. App. Sc.), a
member of AusIMM and a qualified person in compliance with National
Instrument 43-101.
ABOUT AMARILLO:
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 from 13.5MTonnes @ 1.48 g/t Au,
538,000 ounces inferred from 13.0MTonnes @ 1.26 g/t Au at a 0.5g/t
cut-off grade and the project is in the economic evaluation stage.
The Posse deposit is located in an area of excellent infrastructure
located some 35 km NE of Yamana's Chapada open pit Cu-Au operation,
105 km NE of Serra Grande's underground Au mine, 105 km NNW of
Anglo American's nickel laterite project (in construction), 95 km
NW of Votarintim's Niquelandia nickel laterite mine and
approximately 60 kms NE of Yamana's Pilar Au project (in
feasibility). Grid power to the site was established during the
previous open pit mining operation and the Serra da Mesa
hydro-electric dam lies 35 km to the east.
The Lavras do Sul project is in the advanced exploration stage
with over 15000m of drilling with encouraging gold mineralization
being discovered and defined, also in an area of excellent
infrastructure. T he 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.
ON BEHALF OF THE BOARD OF DIRECTORS
AMARILLO GOLD CORP.
Buddy Doyle, President
FORWARD LOOKING STATEMENTS:
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.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Amarillo Gold Corp. - Canada Buddy Doyle President
1-604-689-1799 1-604-689-1899 (FAX) Amarillo Gold Corp. - Brazil
+55-31-3261 5974 info@amarillogold.com 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