Amarillo Gold Corp.

Amarillo Gold Corp.

January 18, 2016 09:30 ET

Public Hearing for the Environmental Permitting of the Posse Deposit Set for February 23th, 2016, Mara Rosa, Goias, Brazil

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 18, 2016) - Amarillo Gold Corp. (TSX VENTURE:AGC) ("Amarillo" or the "Company") is pleased to announce that the date for the Public Hearing has been set for the 23rd of February, 2016. This is the final stage of the process to obtain the preliminary license (LP) for the new mine. The date was set by the Secretary of Environment, Water Resources, Infrastructure, Cities and Metropolitan Affairs (SECIMA), and has been accepted by the Public Prosecutors office, (Ministério Público, "MP").

This Public Hearing is a fundamental part of the licensing process and gives the opportunity for local representatives of the stakeholders to hear about the project on an official basis and ask questions if necessary. Apart from local stakeholders, representatives of Amarillo, SECIMA and the MP will be present.

Prior to the Hearing, there will be preparation sessions with both SECIMA and the MP to ensure that the meeting covers all the necessary points related to the community and the project.

Assuming no major impediments occur stemming from the Public Hearing, the preliminary environmental license ("LP") would be issued, within a month or two.

To date the Company has enjoyed support for our project from the local community, who are well aware of the economic advantages of the mine. It has always focused on employment, training and business opportunities in previous informal meetings.

Buddy Doyle President and CEO commented, "The setting of the Public Hearing is the last major hurdle in our permitting process. A successful meeting opens the way to obtain the Preliminary License, ("LP") which the Company now expects during the first half of the second quarter. I would like to thank the efforts of our staff, in particular Luis Carlos, Arão Portugal and Frank Baker. The recent devaluation of the local currency the "Real" (nearly 50% in 2015) is expected to substantially increase the economic viability of the project by decreasing Capex and Opex costs far outweighing the drawback of lower international gold prices, which in contrast is at near record prices in the local currency."

The Posse Deposit at Mara Rosa contains 1,174,900 ounces of measured and indicated gold contained in 20.85 MT at 1.75 g/t Au, and 156,400 ounces of gold inferred from 3.63 MT at 1.38 g/t Au (0.5 g/t cut-off grade), (NI 43-101 compliant resource as independently determined by Australian Exploration Field Services Pty. AEFS). The Mara Rosa Gold Project has received a positive economic assessment from a pre-feasibility study (NI 43-101 Coffey Mining,).

Brazilian mine permitting is governed and administered by each state, however the states tend to keep the same standards so the process is very similar throughout Brazil. The process has three stages, the preliminary license ("LP,"), the installation license ("LI"), and finally the license to operate ("LO"). The application for an LP is accompanied by an environmental base-line report called the EIA (Estudo de Impacto Ambiental, English translation: Environmental Impact Statement) and an environmental mitigation report, or RIMA (Relatório de Impacto Ambiental). The granting of the LP is often regarded as the most important license as it outlines all the basic parameters of the project which have to be accepted by all the parties involved. Further parts of the licensing process enter in more detail always following the basic parameters stipulated in the LP.

The setting of the LP date is a milestone signifying that SECIMA has accepted our mining plan from an environmental point of view. Once the LP is in hand the Company will focus on the second stage of the permit process, the LI, which will require a bankable feasibility study as well as negotiating agreements with the surface right holders. Construction can commence once the LI is obtained.

In parallel to our continuing efforts with the project the DNPM (the Federal Department of Mines) granted an extension to our mineral rights. The rights have been held under a suspended mining license since 1996.

About Amarillo Gold Corp.

Amarillo Gold Corp. is focused on acquisition, discovery, and definition of gold resources in Brazil. It is the Company's policy to strive to do this in a sustainable, safe way using best practices whilst benefiting our shareholders and the communities we work in. The Company's 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 contains 1,174,900 ounces of measured and indicated gold contained in 20.85 MT at 1.75 g/t Au, and 156,400 ounces of gold inferred from 3.63 MT at 1.38 g/t Au (0.5 g/t cut-off grade) (NI 43-101 compliant resource as independently determined by Australian Exploration Field Services Pty. AEFS). The Mara Rosa Gold Project has received a positive economic assessment from a Pre-Feasibility study and Amarillo is proceeding to get the project permitted. The Posse Deposit was successfully mined by Western Mining Corporation (WMC) during the 1990s (mined areas are excluded from the above-stated resource figures), and is located in an area of excellent infrastructure: approximately 35 km NE of Yamana's Chapada open pit Cu-Au operation, some 80 km NE of Yamana's Pilar Au project (in feasibility), 95 km NW of Votorantim's Niquelandia Ni laterite mine, 105 km from NE of Serra Grande's underground Au mine, and 105 km NNW of Anglo American's Ni laterite project at Barro Alto.

The Lavras do Sul Project is an advanced exploration stage property (190 sq. km.) comprising of more than 19 prospects centred on historic gold workings, with encouraging gold mineralization discovered and defined by more than 16,000 metres of drilling. The initial resource estimate at the Butia prospect reported 215,000 ounces of gold indicated from 6.4 MT at 1.05 g/t Au, and 308,000 ounces of gold inferred from 12.9 MT at 0.74 g/t Au using a 0.3 g/t cut-off grade in a NI 43-101 compliant resource as independently determined by Atticus Consulting 2010. Lavras do Sul is also located near excellent infrastructure. The Company also has a portfolio of earlier stage projects and all properties under Amarillo's management are located in areas of good infrastructure and mining-friendly communities.



Buddy Doyle, President

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.


This news release contains Forward Looking Statements regarding our intentions and plans. Forward looking statements in this news release include the expected timing and issuing of the LP. Various factors may prevent or delay our plans, including but not limited to, the lenders not advancing funds as required, 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. Permission from the Government and community is also required to proceed with future mining production. We may not be able to fulfill our obligations under the proposed gold loan and we may be unable to raise sufficient financing to carry out our plans. Readers should review risk factors applicable to junior mining exploration companies generally to understand the variety of risks that can affect the Company. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements whether as a result of new information or future events or otherwise, except as may be required by law.

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