Amarillo Gold Corp.

Amarillo Gold Corp.

October 30, 2007 07:00 ET

Amarillo Reports on Exploration Drilling at Its Lavras Do Sul Project; New, Near-Surface Gold Zone Discovered at Paredao Norte: 12m at 4.54 g/t

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 30, 2007) - Amarillo Gold Corp. (TSX VENTURE:AGC) ("Amarillo" or the "Company"), reports on exploration progress at its Lavras do Sul project in the state of Rio Grande do Sul, Brazil. Since work began on this project, 34 drill holes (4428m) have tested various prospects and targets associated with the Lavras granite intrusive complex. Amarillo reported on the first 8 holes, which tested the Cerrito and Butia prospects, in NR-18-07-07. This news release reports on the drill results of two new prospects, Paredao and Aurora, introduced in NR-22-07-07, and highlights the discovery of a near-surface gold zone at Paredao.

The Lavras granite complex hosts numerous areas of historic diggings and small mine workings that were the subject of gold rushes in the 1880's and 1930's. Gold mineralization had been drill-confirmed in the 1980's at Cerrito and Butia, where it was found to be hosted in structurally controlled alteration zones with sericite and pyrite, +/- sheeted quartz veins. None of the other areas of workings and alteration, (which number greater than 12), have ever been drill-tested. Amarillo's strategy has been to systematically surface map these areas and follow-up, where warranted, with a drill program. Paredao and Aurora are the first such areas to be so tested.

The Company is pleased to report it has intersected significant near-surface gold mineralization at Paredao. Drill hole LDH-105 intersected 12m at 4.54 g/t (from 26m to 38m). Other, lower grade intercepts from this hole include: 16.5m at 0.36 g/t (from 68m to 84.5m), 10m at 0.47 g/t (from 108m to 118m) and 3m at 2.76 g/t (from 160m to 163m).

The Paredao prospect lies just west of the village of Lavras do Sul on pasture lands. The prospect is divided into the southern (Sul), central (Centro) and northern (Norte) zones. (See here for updated map of Paredao.) The drilling so far has given a first-pass test of all three zones. LDH-105, the hole returning 12m at 4.54g/t, was a scout hole located in Paredao Norte. The mineralization uncovered here appears to be controlled by a SE-NW structure striking at 130 degrees. No holes have been drilled on either side along this direction and the only other hole in the area, LDH-104, collared at an offset approximately normal to 130 degrees, also returned significant mineralization: 28.0m @ 0.54 g/t Au (from 97 to 125m). Paredao Norte will be re-visited by the drill rig to determine the extent of this gold mineralization.

In addition to the high-grade intersection at Paredao Norte, a number of anomalous gold intersections were encountered in the Centro and Sul zones. These will aid in the placement of follow-up drill targets. A complete summary of results from Paredao, with the exception of LDH-109, where assays are still pending, are given in Table 1.

Table 1: Summary of Drilling at Paredao

        Depth                             From       To  Distance    Grade
Hole No.   (m)   Azimuth Dip TD   Zone (metres) (metres)  (metres) (g/t Au)
LDH-101 124.8   Az 10 / Dip -60 Centro         No significant assays      
LDH-102  80.3  Az 190 / Dip -60 Centro      24       31          7    0.59
LDH-103  84.3  Az 220 / Dip -60 Centro      50       60         10    0.14
LDH-104 201.1   Az 35 / Dip -60  Norte       0       15         15    0.20
                                    and     97      125         28    0.54
                                    and    138      145          7    0.25
LDH-105 169.1  Az 220 / Dip -60  Norte      26       38         12    4.54
                                    and     68       84         16    0.36
                                    and    108      118         10    0.47
                                    and    160      163          3    2.76
LDH-106 119.5   Az 20 / Dip -60 Centro      74       80          6    0.18
LDH-107 151.6    Az 0 / Dip -60    Sul      92      101          9    0.19
LDH-108 113.3   Az 10 / Dip -60    Sul       0        7          7    1.02
LDH-109 111.4    Az 0 / Dip -60    Sul             Assays pending         

Table 2: Summary of Drilling at Aurora

        Depth                             From       To  Distance    Grade
Hole No.   (m)      Azimuth/Dip   Zone (metres) (metres)  (metres) (g/t Au)
LDH-12  107.0  Az 180 / Dip -60    N/A       0      2.5       2.5     2.25
                                    and     59       60         1     8.30
LDH-13  122.8  Az 190 / Dip -60    N/A         No significant assays
LDH-14  118.8  Az 190 / Dip -60    N/A         No significant assays
LDH-15   73.5  Az 210 / Dip -60    N/A         No significant assays
LDH-16  120.1  Az 180 / Dip -60    N/A         No significant assays

Notes: Paredao and Aurora drill hole samples consist of split NQ diamond
 drill core. Paredao samples were sent to SGS laboratory in Santiago,
 Chile, and the Aurora samples were sent to Acme Laboratories in Goianna,
 Brazil, and Vancouver, Canada. Gold is determined using fire assay using
 50g aliquots with an ICP finish; if the grade is higher than 3ppm 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. The Company has been targeting larger
 intersections of 0.3g/t+ gold; these are highlighted in bold.
 Intersections that fall short of this threshold may provide exploration
 insight and are so given, although not highlighted.

Table 2 lists the results from the Aurora prospect. Only one gold intercept was reported here: LDH-12 returned 1m at 8.3 g/t from 59.0m - 60.0m. Aurora differs from most of the other prospects at Lavras do Sul, in that it is hosted near the edge of the granite complex and dominated by quartz, carbonate, actinolite and heamatite alteration, with accessory fluorite and tourmaline. The workings here are more extensive than elsewhere with tunnels, adits and shafts developed, and with some greater than 10g/t float around the diggings, all of which suggest the area may host a higher-grade gold deposit. However, the small intercept in this hole and the negative results from the other holes suggest that any mineralization is likely to occur in smaller pods. No further work at Aurora is planned at present.

Amarillo recently completed a 4,300 line km airborne geophysical survey at Lavras do Sul. The results show structures in the magnetics that coincide with the known mineralization at Cerrito and Butia. These structures also coincide, at times, with surface-mapped alteration. This data set should prove valuable in identifying and prioritizing targets, especially in areas under cover.

Amarillo has been operating two drill rigs at Lavras do Sul since July. The rig that was working on Paredao has moved to the Caneleira prospect and is now on to its fifth hole. (A map of Caneleira is found here.) The rig at Aurora has moved back to the Cerrito area where it is being employed to investigate what appears, from the magnetics, to be an extension of the known mineralization on this prospect. This rig has completed four holes and has started on its fifth. Extensive alteration has been encountered in the core on both prospects. Assays are pending.

Amarillo Gold Corp. is a company focused on the acquisition, definition and discovery of gold resources in Brazil. Its principal projects are Mara Rosa in the state of Goias and Lavras do Sul in the state of Rio Grande do Sul. The Posse Deposit at Mara Rosa was determined by an independent 43-101 study to contain 974,000 ounces inferred at a grade of 1.35g/t (0.5g/t cut-off) and 764,000 ounces inferred at a grade of 1.80g/t (1g/t cut-off). A scoping study on the project has been commissioned and results are expected shortly. 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.



Per: Buddy Doyle, President

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Amarillo Gold Corp.
    Buddy Doyle
    (604) 689-1799
    (604) 689-1899 (FAX)