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Amarillo Gold Corp
Symbol C : AGC
Shares Issued 114,455,208
Close 2019-01-07 C$ 0.28
Recent Sedar Documents

Amarillo drills 24 m of 1.66 g/t Au at Posse

2019-01-07 07:23 ET - News Release

Mr. Mike Mutchler reports

AMARILLO PROVIDES FURTHER UPDATE ON DRILLING RESULTS AT MARA ROSA AND JANUARY MARKETING SCHEDULE

Amarillo Gold Corp. has provided encouraging drill results from the continuing drilling program at its Posse (Mara Rosa) open-pit gold project in Goias state, Brazil.

Highlights (1):

  • 1.66 grams per tonne gold over 24-metre core length in infill drill hole 18P067;
  • 2.40 g/t Au over 15 m core length in infill drill hole 18P067;
  • 1.56 g/t Au over 15 m core length in infill drill hole 18P068;
  • 3.17 g/t Au over 15 m core length in infill drill hole 18P081;
  • 1.78 g/t Au over 22 m core length in stepout exploration drill hole 18P070.

(1) Drill core lengths and true widths are indicated in the associated table.

In May, 2018, the company commenced a 10,000 m drill program at the Posse deposit which included 7,000 m of core drilling and 3,000 m reverse circulation (RC) drilling designed to convert some of the existing 330,000 ounces of inferred resources to indicated resources and to explore for additional resources along the 12-kilometre-long Posse trend.

In September, 2018, the core drilling program was expanded to 12,000 m of infill drilling and 3,000 m of stepout exploration drilling to test the continuity of the Posse deposit along strike to the southwest of the main deposit, while the RC drilling program was reduced to the then completed 1,295 m.

A total of 11,915 metres of diamond drilling from 41 holes have been completed to date (see also results from 19 diamond drill holes in the company's press releases dated Sept. 10, 2018, and Oct. 31, 2018). Drilling assay results of 2.40 g/t Au over 15 m core from infill drill hole 18P067 and 3.17 g/t over 15 m core from infill drill hole 18P081 confirm better-than-average ore grade and good deposit width in the southern section of the orebody.

Encouraging results from exploration drill hole 18P070 were obtained having intersected 1.78 g/t Au over 22 m and suggesting continuity of the Posse deposit over 200 m southwest along strike.

The remaining 700 m of infill core drilling will be completed in early January, 2019, and a new resource update is planned for release in February, 2019. The final 2,400 m of stepout exploration core drilling is also expected to be completed in February.

Mike Mutchler, chief executive officer of Amarillo, commented: "We are quite excited with our latest drilling results. The better grades and thicknesses that we are seeing in the southern portion of the planned pit confirm what we expected from our block model and should allow us to convert a significant portion of our inferred ounces into measured or indicated ounces to extend the planned mine life from eight to 10-plus years by pushing further downdip. These drilling results, along with the final results that will be available over the next few weeks, will be used for a resource update in February and will be the basis for the mine design for the feasibility study which we will be starting later this month."

Mr. Mutchler continued, "Although we only have the first of our stepout drill holes completed, the success of this hole is showing a potential extension of the Posse orebody southwest along strike and could eventually allow for a pit expansion in that direction to further increase the mine life."

                                   DIAMOND DRILL HOLE ASSAY RESULTS  

Drill             From       To       Core length       True width      Grade Au       Grade Au uncut
hole               (m)      (m)               (m)              (m)         (g/t)                (g/t)

18P066             308      311               3.0              2.5          0.64                 0.64
18P066             315      318               3.0              2.5          0.51                 0.51
18P066             330      338               8.0              6.7          0.43                 0.43
18P066             343      353              10.0              8.3          0.76                 0.76
18P067             320      344              24.0             22.2          1.56                 1.66
18P067             353      368              15.0             13.9          2.23                 2.40
18P067             374      379               5.0              4.6          0.60                 0.60
18P068             283      298              15.0             14.8          1.33                 1.56
18P069             262      264               2.0              2.0          1.59                 1.59
18P069             277      290              13.0             12.9          0.56                 0.56
18P069             310      314               4.0              4.0          1.31                 1.31
18P070             141      146               5.0             4.72          0.12                 0.12
18P070             412      434              22.0             21.3          1.78                 1.78
18P071             400      407               7.0              6.9          0.61                 0.61
18P071             413      436              23.0             22.8          1.22                 1.22
18P071             437      440               3.0              3.0          0.84                 0.84
18P072           267.5      270               2.5              2.5          1.50                 1.50
18P072             275      278               3.0              3.0          0.35                 0.35
18P072             283      296              13.0             12.9          1.22                 1.22
18P072             306      320              14.0             13.9          1.34                 1.34
18P073             134      140               6.0              5.5          0.46                 0.46
18P074             101      104               3.0              2.7          0.77                 0.77
18P074             116      118               2.0              1.8          0.53                 0.53
18P075                                                                                results pending
18P076             349      352               3.0              2.8          0.45                 0.45
18P076             364      424              60.0            55.23          0.74                 0.74
including          364      373               9.0              8.3          0.88                 0.88
including          376      390              14.0             12.9          0.71                 0.71
including          391      407              16.0             14.7          1.15                 1.15
including          410      418               8.0              7.4          0.42                 0.42
including          419      424               5.0              4.6          0.68                 0.68
18P077             104      110               6.0              5.5          0.59                 0.59
18P078                                                                                results pending
18P079                                                                                results pending
18P080                                                                                results pending
18P081             331      404              73.0             69.8          1.19                 1.28
including          331      335               4.0              3.8          0.40                 0.40
including          338      340               2.0              1.9          0.37                 0.37
including          343      375              32.0             30.6          1.70                 1.91
including          360      375              15.0             14.3          2.72                 3.17
including          376      404              28.0             26.8          1.01                 1.01
18P082                                                                                results pending
18P083                                                                                results pending
18P084                                                                                results pending
18P085                                                                                results pending
18P086                                                                                results pending
18P087                                                                                results pending
 
Notes: 
Samples of split NQ-size core, sampled at one m intervals, assayed by fire assay at ALS Laboratories, 
an ISO-registered laboratory.
Blank, repeat assays and standards were used and all returned results within compliance.
Gold intervals calculated using a 0.35 g/t cut-off. Intervals of up to five m below cut-off 
included for continuity.
Assays greater than 10 g/t cut to 10 g/t. Grades quoted to two decimal places.
Samples followed a chain-of-custody protocol.

The 2018 RC drilling program completed 1,295 m from 15 holes, including one twinned hole in the southeast sector. The results from this shallow overburden drilling are generally subeconomic and the remainder of the planned 2018 RC drilling in the northeast sector was replaced with shallow infill diamond drilling due to RC drilling technical issues where sample recovery and dilution are thought to have possibly been a factor in the weaker results.

January, 2019, marketing schedule

Amarillo will be attending the Vancouver Resource Investment Conference (VRIC) from Jan. 20 to Jan. 21, 2019, at the Vancouver Convention Centre West, 1055 Canada Place, Vancouver. At the VRIC, Amarillo's booth is No. 441. A feature workshop will be held at 2:10 p.m. to 2:20 p.m. on Monday, Jan. 21.

Mr. Mutchler will also be available to meet investors in Vancouver on Tuesday, Jan. 22. In addition, Mr. Mutchler and Karen Mate will be in Calgary on Wednesday, Jan. 23, to meet with investors. Interested parties that wish to schedule a meeting, or who would like more information regarding the conference and events noted above, please contact Ms. Mate, director of communications, at 416-230-6454, or e-mail her.

About Amarillo Gold Corp.

Amarillo is developing an open-pit gold resource at its Mara Rosa project in the mining-friendly jurisdiction of Goias state in Brazil. Based on the NI 43-101 prefeasibility study 2018 update filed on SEDAR on Sept. 13, 2018, the Posse deposit at the Mara Rosa project contains estimated 513,000 ounces of gold in the proven category from 9.6 million tonnes at 1.65 g/t Au and 574,000 ounces gold in the probable category from 14.2 Mt at 1.26 g/t Au for total estimated reserves of 1,087,000 ounces from 23.8 Mt at 1.42 g/t Au.

Mr. Mutchler is a qualified person as defined by National Instrument 43-101 guidelines, and has reviewed and approved the scientific and technical disclosure relating to the PFS 2018 in this section of the news release.

We seek Safe Harbor.

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