Amarillo Gold Corp.
TSX VENTURE : AGC

Amarillo Gold Corp.

November 16, 2006 15:51 ET

Amarillo Drilling Detects New Mineralization at Mara Rosa Project Includes 25 m of Gold @ 2.1 g/t

TORONTO, ONTARIO--(CCNMatthews - Nov. 16, 2006) - Amarillo Gold Corp. (TSX VENTURE:AGC) ("Amarillo") is pleased to provide the drill assays from the final 6 holes of its 28 drill hole program at the Mara Rosa Project. All drill holes intersected significant gold mineralization however the Company is particularly encouraged by the results from holes SPET1-27 and SPET1-28 which intercepted thick intervals of gold mineralization in a previously untested zone between the North and South Posse deposits:

- Drill hole SPET1-27 intercepted 25m @ 2.09 g/t Au, including 12 m @ 3.28 g/t Au

- Drill hole SPET1-28 intercepted 42m @ 1.45 g/t Au including 9 m @ 3.24 g/t Au

The technical data for the above drill holes are summarized in Table 1. Also reported in Table 1 is the result from drill hole SPET1-23 targeted below the North Posse Deposit where Amarillo has been drilling to define the extent mineralization discovered earlier in 2006.

In both the cases, beneath North Posse and in the zone between the two deposits, previous workers had made the interpretation that the mineralization trend flowed out of the South Posse deposit from depth, forming a mushroom shape near the surface to feed the mineralization in these areas. It was assumed that the mineralization north of South Posse was rootless. Amarillo's drilling has showed this is not the case, and that in fact the North Posse deposit and the zone between the North and South Posse deposits are also fed from depth, from a continuous structure. Drilling has shown that this structure has higher grade zones of gold mineralization that form plunging shoots along strike, nested in a boarder zone of elevated gold hosted within this structure.

Amarillo believes this work is adding to the inventory of gold mineralization on the Project and has commissioned Caracle Creek International Consulting Inc. (CCIC) of Sudbury, Ontario to undertake an independent resource calculation for the Posse deposit. CCIC will expedite the inclusion of the Company's 2006 drill results into the previous historic resource and calculate a new upgraded resource which will be NI 43-101 compliant.

The Company also drilled three holes to the north of the Posse deposits to test the elevated gold-in-soil and trench anomalies in this area. All three drill holes intersected the targeted horizons which showed elevated gold and the results are shown in Table 2 below. This drilling provides subsurface confirmation that the Posse mineralizing system continues to the northeast as interpreted by previous geochemical and geophysical surveys that showed anomalous gold values continuing for over 10 km of strike. Amarillo will now focus its exploration efforts in locating higher grade gold zones along this trend.



Table 1 Drill at Posse

---------------------------------------------------------------------------
Azimuth
Drill Hole Location Dip TD Mineralization Comments
---------------------------------------------------------------------------
SPET1-23 100054m E 135.0 m 118.0 - 132.5 m North Posse
-------------------
100825m N Az 140 14.5 m @ 1.06 g/t Au
Inc -80
---------------------------------------------------------------------------
SPET1-27 100179m E 150.0 m 71.0 - 96.0 m Zone between North
and South Posse
Deposits
-------------------------------------------
100100m N Az 140 25.0 m @ 2.08 g/t Au
Inc -80 incl. 12m @ 3.28 g/t Au
---------------------------------------------------------------------------
SPET1-28 100152m E 136.0 m 86.0 - 128.0 m Zone between North
and South Posse
Deposits.
-------------------------------------------
100076m N Az 140 42.0 m @ 1.45 g/t Au,
Inc -80 incl. 9m @ 3.24 g/t Au
---------------------------------------------------------------------------

NB: The results in table 1 and 2 are derived from split NQ diamond drill
core, submitted to Acme Laboratories, prepared in Brazil and assayed in
Vancouver. Each batch has a chain of custody and is accompanied by blank
samples and standards as a quality check. The results from the blank,
standard and repeat assays are within acceptable limits.

Table 2 Exploration Drilling at Mara Rosa, north of the Posse Deposits.

---------------------------------------------------------------------------
Azimuth
Drill Hole Location Dip TD Mineralization Comments
---------------------------------------------------------------------------
SPET1-24 101092m E 90.75m 31 to 47 m Drilled under
Trench-1 (15 m @
0.69 g/t Au)
-------------------------------------------
503313m N Az 140 16 m @ 0.59 g/t Au
Inc -70
---------------------------------------------------------------------------
SPET1-25 100569m E 100.0m 15 to 24 m Drilled under
Trench-11 (12.5 m @
0.93 g/t Au)
-------------------------------------------
501911m N Ax 143 9 m @ 0.34 g/t Au
Inc -65
---------------------------------------------------------------------------
SPET1-26 100237m E 100.8m 25 to 75 m Drilled under
Trench-15 (7.5 m @
0.65 g/t Au)
-------------------
101799m N Az 148 50m @ 0.13 g/t Au
Inc -60
---------------------------------------------------------------------------


The 2006 Mara Rosa drill program has now been completed and the drill rig has been sent for maintenance in preparation for drilling Amarillo's new project, Lavras Do Sul (please see news release dated September 26). Drilling is expected to recommence at Mara Rosa in early 2007, meanwhile the Company is continuing with an active work program on the project which includes:

1. Delineating new exploration drill targets within the 62,500 hectares it has under title in the district;

2. Logistical on-site support for completing the 43-101 estimate on the updated Posse resource; and

3. Commencing a scoping study, based on the above resource estimate, which is expected to be completed by July 2007.

This news release was written by Buddy Doyle and reviewed by Rick Brown, Country Manager, Brazil. Both are qualified persons for the Mara Rosa Project, as such term is defined by the National Instrument 43-101.

ON BEHALF OF THE BOARD OF DIRECTORS

AMARILLO GOLD CORP.

Per: Buddy Doyle, President

Legal Notice Regarding Forward Looking Statements

Statements in this news release that are not historical are forward looking statements. It is important to note that the Company's actual outcomes may differ materially from those statements contained in this press release. Factors which may delay or prevent these forward looking statements from being realized include misinterpretation of data; that we may not be able to get equipment or labor as we need it; that we may not be able to raise sufficient funds to complete our intended exploration; that we may not obtain permits to drill or environmental requirements are too onerous; that our contractors fail to perform; that weather, logistical problems or hazards may prevent us from exploration; that analysis of data cannot be done accurately and at depth; that results which we have found in any particular location are not necessarily indicative of larger areas of our property; and that despite encouraging data there may be no commercially exploitable mineralization on our properties.



Vancouver Office: Toronto Office:
Suite 2833 595 Burrard St. Exchange Tower
PO BOX 49057 Suite 3680 PO Box 99
Vancouver BC Canada V7X 1C4 130 King Street West
Tel: 1-604-689-1799 Toronto, ON Canada M5X 1B1
Fax: 1-604-689-1899 Tel: 1-416-363-8147
Fax: 1-416-599-4959


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
    President
    (604) 689-1799
    (604) 689-1899 (FAX)
    Website: www.amarillogold.com