Amazon Mining Holding Plc
TSX VENTURE : AMZ

Amazon Mining Holding Plc

October 22, 2008 10:43 ET

Amazon Provides Madeira Gold Project Exploration Update

TORONTO, ONTARIO--(Marketwire - Oct. 22, 2008) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Attention Business Editors:

Amazon Mining Holding Plc (TSX VENTURE:AMZ) ("Amazon" or the "Company") is pleased to report that it has materially increased its title permit areas held at the Madeira Gold Project ("Madeira") located in the Rondonia and Amazonas states of Brazil. The Company has received encouraging field exploration results and has increased its exploration concession to 332,011 hectares from 202,568 hectares (see figure 1 at http://files.newswire.ca/760/Amazon_Madeira.pdf).

Early stage exploratory ground field work has identified gold bearing conglomerates in a farmland region located away from the Madeira River where historic multi-million ounce gold production occurred between 1975 and 1995. As part of the Company's Madeira work program, geologists targeted the delineation of a medium grained conglomerate (known as "Mocururu"), in an area located hundreds of metres away from the Madeira River. Samples taken from water bore-holes confirmed the presence of the Mocururu and importantly that the structure was gold bearing. In addition, gold mineralization was also encountered in the coarse-grained sandy stratigraphic layers occurring above and below the Mocururu. Historically, buried conglomerate structures exposed by the Madeira River provided for reported gold production of over 1.6 million ounces.

The water bore-holes, located 1,154 metres apart, were drilled to the north of Humaita to approximate depths of 30 metre. Pan concentrates of 2 litres of material from every 1 metre interval of bore-hole interval were prepared, and panning of this material produced fine grained gold over a 5 to 6 metre zone. The gold bearing zones begin at approximately 20 metres below surface. The Mocururu in this area is 40cm thick. Gold was also recovered from the coarse grained sand layers that occur above and below the Mocururu.

Amazon plans to continue to use well drilling equipment to cost effectively determine the extent and nature of the mineralization at Madeira. The method has been successful and can be utilized at up to one-tenth the cost of conventional diamond core drilling. In subsequent work the Company expects to be able to determine grade content for identified structures.

Mr. Cristiano Veloso, Amazon's President and CEO commented, "We are very pleased with the initial results at Madeira. The program to date is encouraging and will provide project exploration advances in a very cost effective manner."

Background

To date, exploration on the property has consisted of the processing and analyzing of remote sensing data to define shallow paleo-channels or depressions that could be favourable for hosting gold deposition. The results reported in this press release did not occur within any of the previously identified paleo-channels or depressions. If further exploration on the Company's sizeable land package continues to show significant gold rich horizons away from the paleo-channels or depressions exposed by the Madeira River, then there is potential for multiple shallow high grade gold deposits amenable to open pit mining.

Amazon's interpretation of the geological setting is that the Mocururu mineralization is a result of the transport and deposition of gold and heavy minerals that were eroded during the uplift of the Bolivian Andes. Given the abundance of identified gold deposits in the Andean cachement feeding this basin, the Company believes it controls a highly prospective area. The initial results are the first clear indication that gold mineralization extends beyond the immediate vicinity of the Madeira River.

Going Forward

Amazon has budgeted $500,000 for the Madeira project to be spent over the next 12 months. Low cost drilling techniques and very shallow holes should allow for a large amount of data to be generated cheaply and relatively quickly. The Company's cash position remains in excess of C$9.0MM. In light of current market conditions Amazon has taken strong measures with its portfolio to preserve cash. Amazon is engaged in creating shareholder value through diligently assessing opportunities in mineral exploration and development.

Competent Person

As required by Canadian National Instrument 43-101, Amazon's designated qualified person required for review of the technical and scientific information herein contained is Dr. Joao Batista G. Teixeira, Chief Geoscientist of the Company.

On behalf of the Board of Directors of Amazon Mining Holding Plc,

Cristiano Veloso, President & Chief Executive Officer

To view figures 1 and 2 please see http://files.newswire.ca/760/Amazon_Madeira.pdf

Cautionary Language and Forward Looking Statements

THIS PRESS RELEASE CONTAINS CERTAIN "FORWARD LOOKING STATEMENTS", WHICH INCLUDE BUT IS NOT LIMITED TO, STATEMENTS WITH RESPECT TO THE FUTURE FINANCIAL OR OPERATING PERFORMANCE OF THE COMPANY, ITS SUBSIDIARIES AND ITS PROJECTS, STATEMENTS REGARDING USE OF PROCEEDS, EXPLORATION PROSPECTS, IDENTIFICATION OF MINERAL RESERVES, COSTS OF AND CAPITAL FOR EXPLORATION PROJECTS, EXPLORATION EXPENDITURES, TIMING OF FUTURE EXPLORATION AND PERMITTING, REQUIREMENTS FOR ADDITIONAL CAPITAL, GOVERNMENT REGULATIONS OF MINING OPERATIONS, ENVIRONMENTAL RISKS, RECLAMATION EXPENSES, TITLE DISPUTES OR CLAIMS, AND LIMITATIONS OF INSURANCE COVERAGE. FORWARD LOOKING STATEMENTS CAN GENERALLY BE IDENTIFIED BY THE USE OF WORDS SUCH AS "PLANS", "EXPECTS", OR "DOES NOT EXPECT" OR "IS EXPECTED", "ANTICIPATES" OR "DOES NOT ANTICIPATE", OR "BELIEVES", "INTENDS", "FORECASTS", "BUDGET", "SCHEDULED", "ESTIMATES" OR VARIATIONS OF SUCH WORDS OR PHRASES OR STATE THAT CERTAIN ACTIONS, EVENT, OR RESULTS "MAY", "COULD", "WOULD", "MIGHT", OR "WILL BE TAKEN", "OCCUR" OR "BE ACHIEVED". FORWARD LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SAID STATEMENTS. THERE CAN BE NO ASSURANCES THAT FORWARD-LOOKING STATEMENTS WILL PROVE TO BE ACCURATE, AS ACTUAL RESULTS AND FUTURE EVENTS COULD DIFFER MATERIALLY FROM THOSE ANTICIPATED IN SAID STATEMENTS. ACCORDINGLY, READERS SHOULD NOT PLACE UNDUE RELIANCE ON FORWARD-LOOKING STATEMENTS.

Readers are cautioned not to rely solely on the summary of such information contained in this release and are directed to the complete set of drill results posted on Amazon's website (www.amazonplc.com) and filed on SEDAR (www.sedar.com) and any future amendments to such. Readers are also directed to the cautionary notices and disclaimers contained herein.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release and the information contained herein.

Contact Information

  • Amazon Mining Holding Plc
    Cristiano Veloso
    President & Chief Executive Officer
    +44 (0) 20 8133 7607
    +44(0)20 7405 7773 (FAX)
    Email: cv@amazonplc.com

    Amazon Mining Holding Plc
    Jed Richardson
    VP Corporate Development
    (416) 866-2966
    (416) 866-8829 (FAX)
    Email: jed@amazonplc.com
    Website: www.amazonplc.com