Amarillo Gold Corp.
TSX VENTURE : AGC

Amarillo Gold Corp.

March 03, 2011 13:08 ET

Amarillo Gold Drills 17 Metres of 3.17 G/T Au in 2nd Round of Results From Infill Drill Program at Mara Rosa Project, Brazil

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 3, 2011) - Amarillo Gold Corp. (TSX VENTURE:AGC) ("Amarillo" or the "Company") is pleased to announce the 2nd round of results from the current resource definition drilling program at its Mara Rosa Gold project, with the release of gold assays from nine holes as shown in Table 1. The total number of assays received from drill holes now stands at 15 (includes 6 holes from the NR dated February 1, 2011), bringing the total metres from assays reported to 2597.5m. At site, drill hole number 29 of the 34 drill hole program is nearing completion. Core from ten drill holes are at the laboratory awaiting assay. The current drill program is designed to upgrade existing inferred resources to the indicated and measured categories. This work is an integral part of the pre-feasibility study (PFS) currently underway.

Table 1: Composite Assay Results

        True  
  From To Interval Width Grade
Hole No. (metres) (metres) (metres) (metres) (g/t Au)
MRP0021 125 130 5 4.7 0.68
  137 142 5 4.7 1.29
  146 175 29 27.3 0.82
MRP0022 207 235 28 26.3 1.08
MRP0023 83 110 27 25.4 1.47
  113 118 5 4.7 0.52
MRP0024 59 76 17 16.4 3.17
MRP00251 0 3 3 2.9 0.55
  53 58 5 4.8 0.7
  64 88 24 23.2 2.05
MRP0026 122 127 5 4.7 0.5
MRP0027 160 205 45 42.3 1.22
MRP0028 34 39 5 4.7 0.68
  43 56 13 12.2 0.99
MRP0029A2 197 241 44 41.3 1.65
           
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 using 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 release all the standards, blanks and repeats delivered acceptable results. Intercepts were calculated using a minimum of a 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.
 
1 MRP0025 0-3m is an oxide interval, all other intervals are in sulphide.
 
2 Drill hole MRP029 was stopped at 126m due to drilling difficulties. The collar was moved slightly and drill hole MRP29A was drilled in its place.

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)
MRP0021 253.3 140 70 696569 8454461 447
MRP0022 321.5 140 70 696303 8454312 444
MRP0023 169.1 140 70 696514 8454294 440
MRP0024 166.5 140 60 696615 8454254 440
MRP0025 154.2 140 60 696624 8454358 435
MRP0026 281.9 140 70 696307 8454152 441
MRP0027 283.7 140 70 696530 8454469 442
MRP0028 140.3 140 70 696616 8454289 438
MRP0029A 325.5 140 70 696446 8454447 445
             
Notes: Collars located by hand held GPS and are yet to be surveyed to high resolution. UTMs are in SAD69

The results are as expected when compared to the current resource model. Cross Sections and plans showing the recent and past results can be viewed on our website, by following the link: http://amarillogold.com/projects/mara-rosa or at www.corebox.net. Amarillo Gold will be presenting core and data on the Mara Rosa project at PDAC 2011 in Toronto, March 6-7 (Sunday-Monday), Booth #5017A.

The qualified person for this report as per the NI 43-101 guidelines is Buddy Doyle, B. App. Sc. Member AUSIMM, a geologist of 30 years experience.

ABOUT AMARILLO:

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 gold project in the state of Goiás and the Lavras do Sul gold project in the state of Rio Grande do Sul. The Posse Deposit at Mara Rosa contains 623,000 ounces indicated from 11.9 MTonnes @ 1.62 g/t Au and 451,000 ounces inferred from 10.1 MTonnes @ 1.38 g/t Au at a 0.5g/t cut-off grade (NI 43-101 compliant resource as independently determined by AEFS). The Mara Rosa project is in the economic evaluation stage. The Posse deposit was successfully mined by WMC during the 1990's (mined areas are excluded from the above resource figures) and is located in an area of excellent infrastructure. Mara Rosa is located some 36 km NE of Yamana's Chapada open pit Cu-Au operation, 105 km NE of the Serra Grande underground Au mine, 105 km NNW of Anglo American's nickel laterite project (in construction), 95 km NW of Votorantim's Niquelandia nickel laterite mine and approximately 60 kms NE of Yamana's Pilar Au project (in feasibility). Grid power to the site was established during the previous open pit mining operation and the Serra da Mesa 450 MW hydro-electric dam lies 35 km to the east.

The Lavras do Sul gold project is in the advanced exploration stage with over 16,000m of drilling with encouraging gold mineralization being discovered and defined, also in an area of excellent infrastructure. The initial resource estimate at the Butia prospect reported 215,000 indicated ounces from 6.4MT @ 1.05 g/t Au and 308,000 inferred ounces from 12.9MT @ 0.74 g/t Au at a 0.3 g/t cut-off. 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.

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.

Contact Information