An Update on the Butia Prospect Drill Program, Lavras do Sul
March 08 2010 - 9:40AM
Marketwired Canada
Amarillo Gold Corp. (TSX VENTURE:AGC) ("Amarillo", the "Company") is pleased to
announce the following update for our Lavras do Sul project in the State of Rio
Grande do Sul.
The Company is currently conducting a drill program on the Butia prospect, one
of the many areas within the Lavras do Sul project that has returned significant
gold intersections from previous drilling. This news release reports the assay
results for 5 of the 9 holes completed to date, LDH145, LDH 146, LDH147, LDH148
and LDH 150. Drill hole LDH 144 was reported in an earlier news release. The
assays results are listed in table 1.
Table 1: Composite Assay results
----------------------------------------------------------------------------
Drill hole From To Interval Composite Gold
assay
----------------------------------------------------------------------------
LDH 145 133.3m 149 15.7m 0.39 g/t(i)
----------------------------------------------------------------------------
LDH 146 50m 91m 41m 0.49g/t
128m 140m 12m 0.44g/t
167m 181m 14m 9.51g/t
----------------------------------------------------------------------------
LDH 147 183m 189m 6m 1.85g/t
362m 376m 14m 0.32 g/t
----------------------------------------------------------------------------
LDH 148 187m 197m 10m 0.51 g/t
345m 353m 8m 0.33 g/t
----------------------------------------------------------------------------
LDH 150 0m 21.25m 21.5m 0.53 g/t
----------------------------------------------------------------------------
LDH 150a 77m 148m 71m 0.54 g/t
215m 238m 23m 0.3 g/t
282m 290m 8m 2.64 g/t
331m 335m 4m 0.82 g/t
----------------------------------------------------------------------------
Notes: All drill hole samples shown here consist of split HTW and NTW
diamond drill core. The samples were sent to Acme Laboratories in Goiania,
Brazil, and Vancouver, Canada, Samples are first subjected to an multi-
element ICP assay that includes Au. Those samples that are greater than
0.2ppm Au are then sent to fire assay using 30g aliquots with an ICP finish.
If the grade is higher than 5 g/t 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 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. (i) LDH145 are ICP-MS, Fire assay results are awaited.
Table 2 lists the intervals that assayed above 5 g/t gold.
Table 2: High grade assay results.
----------------------------------------------------------------------------
Drill hole From To Interval Gold assay
----------------------------------------------------------------------------
LDH 150 0m 1m 1m 6.94 g/t
----------------------------------------------------------------------------
LDH 146 168m 169m 1m 110.3 g/t (3.54 troy
ounces per tonne)
146 Interval cut to 167m 181m 14m 2.35 g/t
10g/t
----------------------------------------------------------------------------
LDH 147 188m 189m 1m 7.47 g/t
----------------------------------------------------------------------------
The location of the drill holes can be found on the plan map given at the end of
this news release in figure 1 and table 3. Figures 2, 3 and 4 show the cross
sections that contain these holes, and these can be viewed by following these
links:
http://www.amarillogold.com/sites/amarillogold.com/files/ButiaPlan-Mar5-10_1.pdf
http://www.amarillogold.com/sites/amarillogold.com/files/SectionBU01-Feb24-10.pdf
http://www.amarillogold.com/sites/amarillogold.com/files/SectionBU03-Mar2-10.pdf
http://www.amarillogold.com/sites/amarillogold.com/files/SectionBU04-Feb22-10.pdf
http://www.amarillogold.com/sites/amarillogold.com/files/SectionBU06-Mar4-10.pdf
The high grade gold intercept of 3.54 oz/t in drill hole LDH 146 coincides with
a zone where visible gold was noted in the logging of the core. The majority of
greater than 5 g/t gold zones occur within veins of grey silica with galena.
These veins in turn are hosted within a larger episyenite alteration zone that
carries the broader intercepts of elevated gold values. Drilling is presently to
widely spaced to determine if the high grade zones encountered are continuous.
The episyenite altered gold mineralized zone at Butia appears to have a "L" or
"Hockey Stick" shape in plan view and we currently interpret this to be caused
by the intersection of an E-W structure that carries gold mineralization for
250m along its strike and a N-S structure that carries gold for 200m along
strike. To confirm this and to obtain the true widths of the mineralized zones
within these structures, in particular the N-S structure, the Company is
currently drilling a series of drill holes to the west.
In section the mineralization appears to become more restricted and narrows at
depth. It broadens out towards the surface from 150m deep to 70m deep then
becomes more restricted from 70m to the surface. Testing these structural
features at depth for possible high grade zones beneath the episyenite hosted
mineralization is a prime exploration target. To date most of the gold reporting
in the drill assays is located near surface and would be accessible by open pit
methods should studies support the economics. The Company plans to commission a
43-101 compliant report after completion of the next few drill holes at Butia.
This interim study will provide a first past determination of the gold resource
at this prospect. The drilling will then progress to the Cerrito prospect which
has the next highest priority amongst the 19 known prospects within the Lavras
do Sul project.
Buddy Doyle the CEO of Amarillo said, "After completing of the next few holes we
will have enough data to conduct an initial 43-101 compliant resource estimate
for the Butia prospect, which we anticipate will be the first of many. We have
recently solicited tenders to start the first study. Our expectation is that the
multiple areas of historic mine workings that occur within the Lavras do Sul
project area will host multiple zones of gold mineralization. Our previous
drilling has already demonstrated that such mineralization occurs in four
separate prospects. Producing an interim resource estimate at Butia and then
Cerrito will enable the Company to demonstrate the initial potential at Lavras.
If Butia and Cerrito are representatives of gold mineralization in the other
known occurrences at Lavras, then systematically testing of the other 17
prospects, should create a growing resource base."
Table 3: A list of the drill holes completed in the current drill program.
----------- ------- ------ ----------- ------- ------------- -------- ------
Drill Hole Azimuth Dip Total Depth Samples Easting SAD69 Northing Elev m
(metres)
----------- ------- ------ ----------- ------- ------------- -------- ------
LDH144(i) 200 55 364 307 218144 6586763 379
----------- ------- ------ ----------- ------- ------------- -------- ------
LDH145(ii) 200 60 257 166 218089 6586719 359
----------- ------- ------ ----------- ------- ------------- -------- ------
LDH146(ii) 200 80 290 202 218162 6586638 375
----------- ------- ------ ----------- ------- ------------- -------- ------
LDH147(ii) 200 60 433 307 218203 6586698 372
----------- ------- ------ ----------- ------- ------------- -------- ------
LDH 148(ii) 200 60 383 265 218355 6586702 377
----------- ------- ------ ----------- ------- ------------- -------- ------
LDH 149 45 60 292 253 218100 6586450 386
----------- ------- ------ ----------- ------- ------------- -------- ------
LDH 150(ii) 200 60 21.25 9 218225 6586619 379
----------- ------- ------ ----------- ------- ------------- -------- ------
LDH 150 200 60 408 274 218241 6586653 377
A(ii)
----------- ------- ------ ----------- ------- ------------- -------- ------
LDH 151 290 60 276.8 191 218326 6586453 381
----------- ------- ------ ----------- ------- ------------- -------- ------
LDH 152 290 65 In progress 218156 6586575 383
----------- ------- ------ ----------- ------- ------------- -------- ------
TOTALS 2725m 1974
----------- ------- ------ ----------- ------- ------------- -------- ------
Note: Samples include standards, blanks and duplicates, inserted at
approximately every 30th drill core sample. The entire length of core is
sampled, those that look possibly mineralized are sampled at 1m intervals,
other areas at 2m.
(i) Reported in an earlier News Release (i)(i) Reported this news release.
LDH150 was abandoned @ 21.25m as the hole intersected old mine workings.
This press release was reviewed by Buddy Doyle (B. App. Sc.), a member of
AusIMM, with 28 years experience 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. 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.
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.
To View "Figure 1 The plan of the drilling at the Butia project Lavras do Sul,"
please visit the following link:
http://media3.marketwire.com/docs/Fig1Butia.jpg.
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