VANCOUVER, BRITISH COLUMBIA–(Marketwired – May 9, 2016) – Amarillo Gold Corp. (TSX VENTURE:AGC) (“Amarillo” or the “Company”) is pleased to announce that it received, from the Secretary of Environment, Water Resources, Infrastructure, Cities and Metropolitan Affairs (SECIMA) of the state of Goiás the preliminary license (LP) for the proposed Posse mine at the Mara Rosa project.
Buddy Doyle, President and CEO, commented: “The LP is a major milestone for the project which gives general environmental and social acceptance to the project by the Brazilian authorities, both state and federal. Being awarded the LP gives the Company the platform to move towards production. The timing is good, there are signs of returning vigor to the gold resource market, gold is at a higher price in US dollar terms than when we did our PFS ($1200/ounce) and at near record prices in the Brazil currency which will be favorable to the operational expenditures and capital items purchased locally.”
The Brazilian mine permitting process has three stages, the just obtained preliminary license (“LP,”), the installation license (“LI”), and finally the license to operate (“LO”). The granting of the LP is regarded as the most important license as it outlines all the basic parameters of the project that have to be accepted by all the parties involved. Subsequent stages enter in more detail following the basic parameters stipulated in the LP.
The Company will now focus on obtaining the LI which once awarded allows construction to start. The LI will require detailed engineering of the tailings facility, a feasibility study, commitment to social programs, agreements with the surface rights owners and continued environmental monitoring.
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 inferred gold from 3.63 MT at 1.38 g/t Au (0.5 g/t cut-off grade), (NI 43-101 resource as independently determined by Australian Exploration Field Services Pty. AEFS, Keith Whitehouse, QP). The Mara Rosa Gold Project demonstrated robust economics in the 2012 pre-feasibility study (NI 43-101 Coffey Mining, Norman Lock, QP).
To date the Company has enjoyed support for our project from the local community, as evidenced by the well attended Public Hearing in February, part of the LP process. Amarillo will continue to strive to be a respected and positive corporate citizen in the Mara Rosa district.
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) (A NI 43-101 resource as independently determined by Australian Exploration Field Services Pty. AEFS, Keith Whitehouse QP). 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 centered on historic gold workings, with encouraging gold mineralization discovered and defined by more than 16,000 meters 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 resource as independently determined by Atticus Consulting 2010, Anthony Amberg, QP. 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.
ON BEHALF OF THE BOARD OF DIRECTORS
AMARILLO GOLD CORP.
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.
FORWARD LOOKING STATEMENTS:-
This news release contains Forward Looking Statements regarding our intentions and plans. Forward looking statements in this news release include plans to move ahead with the work required to obtain the LI. Various factors may prevent or delay our plans, including but not limited to, the ability to raise funds, 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.
