Amarillo Gold Corp.
TSX VENTURE : AGC

Amarillo Gold Corp.

May 02, 2007 09:56 ET

Amarillo Gold Corp. Receives Final Independent Mineral Resource Estimate Report for the Mara Rosa Project, Goias, Brazil

TORONTO, ONTARIO--(CCNMatthews - May 2, 2007) - Amarillo Gold Corp. (TSX VENTURE:AGC)("Amarillo" or the "Company") has received the final report regarding the Independent Mineral Resource Estimate (the "Estimate") for its 100% owned Mara Rosa Project, located 350 km north of the national capital of Brasilia, Brazil. Amarillo previously released the results of this resource estimate on March 5th 2007, pending the completion of this report.

The Mara Rosa Project is a greenstone belt shear hosted meso-thermal gold mineralized system located near the village of Mara Rosa in the State of Goias. The Independent Mineral Resource Estimate was prepared by Caracle Creek International Consulting Inc. ("CCIC") of Sudbury, Ontario.

The report details the procedures involved in estimating the mineral resource, and includes all the elements required by the 43-101 Standard. The report is now publicly available on SEDAR, www.sedar.com, The resource estimate given on March 5th is repeated below, it was calculated using 0.5 and 1.0 g Au/t block cut-offs and by capping gold grades at 30 g Au/t. The Estimate extends a maximum of 380 metres below surface; however, approximately 70% of tonnage lies within 200 metres of surface.



Inferred Mineral Resource Estimate

0.5 g Au/t cut-off
Tonnes Au (g/t) Contained ounces Au
22,468,000 1.35 974,000

1.0 g Au/t cut-off
Tonnes Au (g/t) Contained ounces Au
13,208,000 1.80 764,000


The above Inferred Mineral Resource Estimates was calculated using ordinary Kriging methods and conforms to the National Instrument 43-101 Standards of Disclosure for Mineral Projects. The Estimate was generated using a data base of 194 historic drill holes and 28 drill holes completed by Amarillo in 2006. The Mineral Resource Estimate reported herein is not a Mineral Reserve and, as such, does not demonstrate economic viability. The above Mineral Resource Estimate was prepared by Qualified Person, Iain Kelso, P.Geo. Details of the Estimate are contained in a report produced in accordance with the guidelines set out in National Instrument 43-101, companion policy NI43-101CP and Form 43-101F1.

Amarillo now plans to move the Project forward by instigating an aggressive exploration program, contending that that the best way to add value would be to add more ounces. Quoted from the 43-101 document, "CCIC has reviewed Amarillo's proposed exploration program for Mara Rosa and believes the concept is properly conceived and justified. The opinion of CCIC is that the character of the Mara Rosa Property, the Posse deposit and the Mineral Resource Estimate it represents, and the potential for developing new mineral targets and expanding current Mineral Resources are of sufficient merit to justify further exploration on the Property. An exploration program with a budget of CAD$2,250,000 is proposed to further examine the Property. The recommendations and budget are summarized in the table below:"



Summary budget for recommendations on Mara Rosa Property
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Geophysical Exploration
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Airborne Magnetics and Radiometrics $120,000
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Ground Magnetics and Magneto-Tellurics $180,000
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Drill Testing $350,000
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Sub-total $650,000
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Ground Exploration
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Bleg Sampling $120,000
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Soil and Float Sampling $250,000
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Trenching $180,000
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Drill testing $300,000
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Sub-total $850,000
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Posse Deposit
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Drill Delineation $475,000
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Preliminary Economic Assessment $100,000
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Metallurgical Testing $175,000
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Sub-total $750,000
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Total CAD $2,250,000
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Some of the proceeds from the recently announced private placement (News Release 27th April) will be used to fund this program.

ON BEHALF OF THE BOARD OF DIRECTORS

AMARILLO GOLD CORP.

Per: Buddy Doyle, President



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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


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Contact Information

  • Amarillo Gold Corp.
    Buddy Doyle
    President
    (604) 689-1799
    (604) 689-1899 (FAX)
    Website: www.amarillogold.com