Amarillo Gold Corp.

Amarillo Gold Corp.

March 14, 2005 13:44 ET

Amarillo mobilizes drill rig to San Antonio property, Brazil


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: AMARILLO GOLD CORP.

NEX BOARD SYMBOL: AGC.H

MARCH 14, 2005 - 13:44 ET

Amarillo mobilizes drill rig to San Antonio property,
Brazil

TORONTO, ONTARIO--(CCNMatthews - March 14, 2005) - Amarillo Gold Corp
(NEX:AGC.H) ("Amarillo", "the Company") recently received notice from
the TSX Venture Exchange that it had accepted for filing the arm's
length Option Agreement between the Company and Phelps Dodge Do Brasil
Mineracao Ltda, ("Phelps Dodge"), whereby the Company may acquire up to
a 100% interest in the San Antonio property in Goias State, Brazil. The
Company must pay Phelps Dodge US$5,000 and complete a 400m drill
program. Amarillo may then proceed to the second stage of the option and
earn a 50% interest by completing a 1,000m drill program in the first
year and incurring US$250,000 in exploration during the second year. A
70% interest may be earned by incurring US$250,000 in exploration in the
third year. A 100% interest may be earned by incurring US$250,000 in
each of the fourth and fifth years and presenting a bankable feasibility
study by the end of the sixth year. Phelps Dodge will retain a 2% net
smelter return royalty. No shares are being issued.

Amarillo is pleased to announce that it has now signed drilling
contracts and that a drill rig is being mobilised to the property.

San Antonio property is located in the Goias State, Brazil. The property
consists of 1931 Ha of exploration permits within which there are gold
and copper stream, soil and rock-chip anomalies hosted in carbonates in
a promising structural setting 1km by 3km in area. This area was in the
past worked by garimpeiros, who left behind shallow trenches and shafts
as evidence of their activities. Rock chips from these workings have
returned values of up to 22m of 8.80 g/t Au, and 5m of 11.7 g/t with up
to 1.23% Cu and 115g/t Ag.

Phelps Dodge previously drilled two holes on the property one was
completed to 450.9m depth drilled at 70 degrees dip parallel to the main
garimpeiros workings and the other vertical to 240.7m depth. Both holes
were drilled to test the concept that a "Telfer" like gold-copper
mineralized system may exist on the property. Telfer is a large
operating gold mine in Australia, where the mineralisation is
stratiform. The drilling was looking for stratiform extensions of
mineralization controlled by the sedimentary host extending from the
workings using Telfer as a model

The first drill hole intersected 3m of 0.05% Cu and 44 g/t Ag at
surface. Neither drill hole intersected significant gold, however, both
had zones of high greater than 1000ppm Arsenic, a common pathfinder of
gold. This drilling demonstrated to Phelps Dodge that there was a
lowered probability of a "Telfer" like system at San Antonio at a scale
that would interest this large-scale miner, however Amarillo believes
there is still high potential for a structurally-controlled gold system
at a scale more suitable for a junior company.

Amarillo's Country Manager, Rick Brown, recently visited the property
and selected the first drill collars. Amarillo intends to drill test the
down dip extension of the steeply dipping vein systems that where mined
by the garimpeiros and also returned the encouraging rock chips assays
mentioned above.

Amarillo will, at a minimum, honor the 400m drilling commitment of the
option. A further commitment to drill greater than 1000m will occur if
there is mineralisation evident in the first 400m of drilling. A
reconnaissance stream sediment sampling program and inspection and
sampling of other garimpeiros workings in the area will completed during
the drill program.



ON BEHALF OF THE BOARD OF DIRECTORS

AMARILLO GOLD CORP.

"Buddy Doyle"
Per: Buddy Doyle, President



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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Amarillo Gold Corp.
    Buddy Doyle
    President
    (416) 304-4209
    (416) 599-4959 (FAX)
    www.amarillogold.com
    The NEX has not reviewed and does not accept responsibility for the
    adequacy or accuracy of this release.