Amarillo Gold Corp.
TSX VENTURE : AGC

Amarillo Gold Corp.

April 07, 2011 13:30 ET

Amarillo Gold Completes Definition Drilling at Mara Rosa Gold Project in Brazil and Reports Results from 4 Holes-Including 7m @ 6.36 g/t Au Intercept

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 7, 2011) - Amarillo Gold Corp. (TSX VENTURE:AGC) ("Amarillo" or the "Company") is pleased to announce completion of the definition drilling program on the Mara Rosa project. The entire program consisted of 31 drill holes totaling 8524 metres designed to upgrade the defined gold resource at Mara Rosa from the inferred category into the measured and indicated categories. The program focused on material contained within the theoretical "Whittle" open pit shell optimized for a US$1000/ounce gold price. The new infill drilling increases the total metres completed to 33,024m from 24,500m previously reported.

Amarillo has reported assay results for 15 drill holes from this definition program prior to this news release (see AGC News Releases March 3, 2011, and Feb.1, 2011). Four additional holes are reported here and shown in Table 1 below, bringing the total results received to 19 drill holes. The locations of collars for the drill holes reported in this news release are provided in Table 2.

Table 1: Composite Assay Results
           
        True  
  From To Interval Width Grade
Hole No. (metres) (metres) (metres) (metres) (g/t Au)
MRP0030 218 246 28 25.4 1.69
MRP0032 223 277 39 35.3 1.36
MRP0033 347 400 53 48.0 1.91
includes 386 393 7 6.3 6.36
MRP0034 305 310 5 4.5 0.50
  316 339 23 20.8 1.03
  348 382 34 30.8 2.10
Notes: All drill hole samples consist of split HQ diamond drill core. The samples were sent to Acme Laboratories in Goiania, Brazil, and Vancouver, Canada. Gold is determined by fire assay using 30g aliquots with an ICP finish. 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 news release all standards, blanks and repeats delivered acceptable results. Intercepts were calculated using a minimum 0.5 g/t cut off where any one sample point lies within a 5m intersection averaging at least 0.5 g/t Au. True width was determined assuming the mineralization has an average dip of 45 degrees.

A request has been made to the laboratory to expedite the processing of assay results for the remaining 12 drill holes for which assays are pending. When the final assays are received, a new NI 43-101 compliant resource estimate will be generated. This new resource estimate will become an integral part of the ongoing pre-feasibility study.

Table 2: Collar information for the drill holes reported in Table 1
             
  Total          
  Depth Azimuth Dip Easting Northing Elevation
Hole No. (metres) (degrees) (degrees) UTM UTM (metres)
MRP0030 340.45 140 70 696256 8454283 443
MRP0032 371.05 140 70 696266 8454349 445
MRP0033 421.45 140 70 696205 8454422 446
MRP0034 400.9 140 70 696204 8454384 446
Notes: Collars located by hand held GPS and are yet to be surveyed to high resolution. UTMs are in SAD69

An updated plan map is presented in Figure 1 (below) and will also be posted on the Company's website at www.amarillogold.com.

Please click on the following link to view the updated plan map: http://media3.marketwire.com/docs/AGC0407.pdf

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 Gold Corp.

Amarillo Gold Corp. is focused on the 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 623,000 ounces of gold indicated from 11.9 MT at 1.62 g/t Au, and 451,000 ounces of gold inferred from 10.1 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 is in the Pre-feasibility stage.

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, 105 km NE of Serra Grande's underground Au mine, 105 km NNW of Anglo American's Ni laterite project (in construction), 95 km NW of Votarintim's Niquelandia Ni laterite mine, and some 60 km NE of Yamana's Pilar Au project (in Feasibility). Grid power to the site was established during WMC's open pit mining operation, and the Serra da Mesa (450 MW) hydro-electric dam lies 35 km to the east.

The Lavras do Sul Project is an advanced exploration stage property (190 sq. km.) comprised of more than 19 prospects centered 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 (0.3 g/t cut-off grade) (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

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.

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.

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