Amarillo Gold Corp.

Amarillo Gold Corp.

March 25, 2008 08:00 ET

Amarillo Provides Update on the Cerrito Prospect, Lavras Do Sul, Brazil. Known Mineralization Expanded, Definition Drilling Continues

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 25, 2008) - Amarillo Gold Corp. (TSX VENTURE:AGC) ("Amarillo" or the "Company") has had a drill dedicated to exploration at its Cerrito prospect since August 2007. The Cerrito prospect is the most developed of the four known gold mineralized prospects at the Lavras do Sul project, situated in the state of Rio Grande do Sul. A total of 24 drill holes have been completed at Cerrito for a cumulative total of 2,439 metres. Assays have been returned for the first 16 of these holes. Assays for the first five holes, LDH-04 through 08, have been reported previously, but are restated here for reference. The results for drill holes 4 and 5 are re-assays, after the standards submitted in the original batch were determined to be non-compliant. The assays for all the other holes are new.

The drilling to date has revealed three zones of gold mineralization on the prospect. The central zone strikes for about 400m and is up to 50m wide. The other zones are less well defined and require more drilling. The locations of the drill holes and intercepts are depicted on our website and can be found by following this link:

The style of mineralization at Cerrito is typical of the Lavras do Sul project, where we have found other separate areas of gold mineralization at the Butia, Paredao and Caneleira prospects. They are all hosted in zones of alteration within the 100 sq. kilometre Lavras do Sul granite intrusive complex. The alteration is dominated by sericite, hematite and minor chlorite. The gold mineralization occurs hosted with the broader alteration in structurally control zones. Occasional silica and quartz veining hosts higher grade (greater than 10 g/t Au) gold values.

In detail each prospect has its own recognizably different character dependent in part on the host rock type which varies from syenite, syenogranite to granodiorite. The silver to gold ratio and the presence of pathfinder elements like arsenic vary among the prospects. There are numerous other areas of alteration and old diggings which have yet to be mapped and drill tested.

Table 1: Summary of Drill results to Date :- Cerrito Prospect

Total Grade
Hole Depth Azimuth From To Distance (g/t
No. (m) /Dip Zone (m) (m) (m) Au)

10 degrees /
LDH-04 168.05 -60 degrees Centre 2.05 126 123.95 0.90
incl. 2.05 6.65 4.6 1.48
incl. 20 38 18 1.17
incl. 64 73 9 1.69
incl. 86 100 14 1.34
incl. 111 116 5 2.66
10 degrees /
LDH-05 148.65 -60 degrees West 0 54 54 0.67
incl. 23 52 29 0.95
10 degrees /
LDH-06 135.95 -60 degrees West 0 92 92 0.31
incl. 80 92 12 0.62
10 degrees /
LDH-07 134.35 -60 degrees West 5.9 91 85.1 0.35
incl. 15 26 11 0.87
20 degrees /
LDH-08 155.95 -60 degrees West 0 122.5 122.5 0.35
incl. 0 12.5 12.5 0.45
and 92 107 15 1.22
60 degrees /
LDH-09 113.30 -60 degrees West No significant intersections
30 degrees /
LDH-10 134.65 -60 degrees West No significant intersections
30 degrees /
LDH-17 120.25 -60 degrees West 0 25.5 25.5 1.02
340 degrees /
LDH-18 120.15 -60 degrees Centre 19 74 55 0.70
incl. 52 67 15 1.84
340 degrees / North-
LDH-19 120.60 -60 degrees east No significant intersections
340 degrees / North-
LDH-20 131.00 -60 degrees east 5 13 8 0.30
340 degrees /
LDH-21 180.95 -60 degrees West 0 173 173 0.36
incl. 10 22.5 12.5 0.53
incl. 148.5 161 12.5 1.11
340 degrees /
LDH-22 218.90 -60 degrees West 0 210 210 0.31
incl. 0 12.5 12.5 0.42
incl. 37 58 21 1.04
30 degrees /
LDH-23 210.80 -60 degrees West 205 210.8 5.8 2.31
10 degrees /
LDH-24 200.85 -60 degrees West 0 4.95 4.95 0.55
and 43 50 7 1.85
and 62 76 14 0.77
and 105 113 8 1.92
and 191 195.1 4.1 1.09
20 degrees /
LDH-25 144.75 -60 degrees West 34 44 10 0.38
and 124 130 6 0.83

Note: Amarillo runs a rigorous check assay program that includes standards, repeat assays, and blanks. Some of the standards in the holes reported here did not comply with our 2 standard deviations of error limit. The Company ordered these holes to be re-assayed, consistent with our standard practice, and the new results are reported here. The new results are compliant and considered definitive. The Company uses Acme Laboratories of Santiago, Chile for these assays and the samples are subject to a chain of custody procedure. A 0.3 g/t cut-off was used to construct this table.

The Company is now drill testing the main gold zone at Cerrito with the purpose of obtaining enough information to estimate an inferred resource. The drill is currently on LDH 30, the twenty-sixth hole in the prospect; 12 more holes are planned. A second drill is currently drilling at the Butia prospect. The plan is to drill both prospects to a stage where we can complete an independent 43-101 estimate of the inferred resource. Early stage metallurgical tests will be also carried out using the core from this program. This work will increase our understanding of the mineralization at Lavras do Sul and will help guide us when we return exploration and drill test the numerous other areas of potential gold mineralization hosted by the intrusive. Our current vision is these numerous areas of mineralization could support multiple open-pits feeding a central processing plant.

This news release was compiled by Buddy Doyle, who is the Qualified Person as defined by NI 43-101.

Amarillo Gold Corp. is a company focused on the acquisition, definition and discovery of gold resources in Brazil. Its 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 was found by an independent 43-101 compliant preliminary economic assessment study carried out by CCIC to contain 1.1 million ounces (643,000 ounces indicated @ 1.48 g/t Au, 538,000 ounces inferred @ 1.26 g/t Au). 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.

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.



Buddy Doyle, President

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
    (604) 689-1799
    (604) 689-1899 (FAX)