Amarillo Gold Submits New Environmental Impact Study on the Mara
Rosa Project
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb 18, 2014) -
Amarillo Gold Corp. (TSX-VENTURE:AGC) ("Amarillo" or the "Company")
is pleased to deliver the following company update.
Amarillo has filed a renewed application for a preliminary
environmental license ("LP") for its intended gold mine in the
municipality of Mara Rosa, Goiàs State, Brazil and is hopeful that
the Public Hearing requirement for this application will occur in
June this year and that the license would be granted soon after.
Granting of the LP would be a major step towards allowing financing
and construction of a mine.
Buddy Doyle, President and CEO said, "Obtaining the LP for the
Mara Rosa project is currently the main focus of the Company as we
see this as the best and most econmic way to move forward in these
harsh market conditions. All other activities have been curtailed
and staffing has been reduced and optimized to meet this task.
Markets do not stay down forever and by having a permitted project
we place the Company well to take the best advantage of a recovery
to finance and begin construction, it would also aid in the sale of
the company should that become a preferred option."
The Company originally filed for an LP in May 2012 (See NR June
4th 2012) but the licensing process was been delayed when the
Ministério Público ("MP" or Public Prosecutors office) requested a
review of the impact of the historic mining at the Posse deposit.
The company has since prepared and submitted an IPA preliminary
report, (IPA:- Investigação de Passivo Ambiental - Investigation
into Environmental Damage). This report measures the effects of the
past mining activity at the Posse deposit on the environment and
concludes the impact has been minimal. (See NR Jan 28th 2014).
Amarillo has used this time to update and resubmit the
application for an LP which is accompanied by an environmental
base-line report called the EIA (Estudo de Impacto Ambiental) and
an environmental mitigation report, or RIMA (Relatório de Impacto
Ambiental).
The new EIA/RIMA was submitted to the Goiás State environmental
authority, SEMARH, in late January, 2014. It upgrades and replaces
the report and application submitted in May 2012, (see NR June 4th
2012). Since that earlier submittal, new standards have been
adopted by SEMARH and some of the work done for the IPA was adapted
into the EIA/RIMA to give a more comprehensive baseline. The report
has also highlighted new wet humidity cell tests on the proposed
waste rock (as well as ore) from the planned project that also
showed no acid drainage.
The EIA/RIMA document includes an environmental diagnosis of the
area from various aspects, (fauna and flora, wet and dry seasons,
geological, physical, process descriptions, intended industrial
installations, etc.) and is presented in a series of chapters.
The Environmental Licensing procedure in Brazil consists of
three distinct stages. The LP is the most important stage as it
lays down the basic framework for the new mine including all major
installations such as the method and positions of tailings
deposition, waste piles, plant installations as well as water and
energy requirements.
An LP is only granted after a public hearing held in the
municipality and the Company intends to hold this in April. The
Company has only experienced great public support for the
implantation of the mine in the area (a traditional mining
district), with the prospect of employment being given as the main
reason for this support.
The normal course of this process is that SEMARH will return
with further requirements, which have to be addressed before the LI
(Installation License) is granted. These requirements might include
such things as installation of piezometers to monitor the ground
waters, alterations to the plant design or tailings dam, etc.
The LI is only granted after all the additional conditions and
requirements specified by SEMARH have been fully met. The LI is
also only granted after basic engineering details have been made
available to SEMARH showing exact positions of all mine
installations as well as detailed operating descriptions.
With the granting of the LI, construction of the plant can be
initiated. The last licence, the LO (Operating License), is granted
when the plant has been completed and after a final check by the
authorities to verify that the mine has been constructed as
previously agreed and that all environmental conditions have been
met.
Frank Baker, a metallurgist with over 30 years experience and
also a member of the AUSIMM and IOM3 is the qualified person for
this news release as per the guidelines of the NI-43-101. Mr. Baker
is the manager of the Mara Rosa Project.
About Amarillo Gold Corp.
Amarillo Gold Corp. is focused on acquisition, discovery, and
definition of gold resources in Brazil. The Company's 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 contains 1,174,900 ounces of measured and
indicated gold contained in 20.85 MT at 1.75 g/t Au, and 156,400
ounces of gold inferred from 3.63 MT at 1.38 g/t Au (0.5 g/t
cut-off grade) (NI 43-101 compliant resource as independently
determined by Australian Exploration Field Services Pty. AEFS). The
Mara Rosa Gold Project has received a positive economic assessment
from a Pre-feasibility study and is preparing to proceed to a
bankable feasibility study. Should this continue to be positive it
would be possible to commence mining by 2015.
The Posse Deposit was successfully mined by Western Mining
Company (WMC) during the 1990s (mined areas are excluded from the
above-stated resource figures), and is located in an area of
excellent infrastructure: approximately 35 km NE of Yamana's
Chapada open pit Cu-Au operation, some 80 km NE of Yamana's Pilar
Au project (in Feasibility), 95 km NW of Votarintim's Niquelandia
Ni laterite mine, 105 km from NE of Serra Grande's underground Au
mine, and 105 km NNW of Anglo American's Ni laterite project at
Barro Alto.
The Lavras do Sul Project is an advanced exploration stage
property (190 sq. km.) comprising more than 19 prospects centred on
historic gold workings, with encouraging gold mineralization
discovered and defined by more than 16,000 metres of drilling. The
initial resource estimate at the Butia prospect reported 215,000
ounces of gold indicated from 6.4 MT at 1.05 g/t Au, and 308,000
ounces of gold inferred from 12.9 MT at 0.74 g/t Au using a0.3 g/t
cut-off grade in a NI 43-101 compliant resource as independently
determined by Atticus Consulting 2010. Lavras do Sul is also
located near excellent infrastructure. The Company also has a
portfolio of earlier stage projects and all properties under
Amarillo's management are located in areas of good infrastructure
and mining-friendly communities.
ON BEHALF OF THE BOARD OF DIRECTORS
AMARILLO GOLD CORP.
Buddy Doyle, President
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.
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. Permission from the Government
and community is also required to proceed with future mining
production. In particular the company has no guarantee on the exact
timing of the LP and if it will be granted without further review.
Readers should review risk factors applicable to junior mining
exploration companies generally to understand the variety of risks
that can affect the Company.
Amarillo Gold Corp.+ 1-604-689-1799 (Canada)+55-31-3261-5974
(Brazil)info@amarillogold.comwww.amarillogold.com
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