Trenching results show gold anomalies up to 8 kilometres northeast of Posse

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TORONTO, Sept. 14, 2020 (GLOBE NEWSWIRE) — Outcomes from a floor exploration program help the speculation that there are further near-surface gold deposits alongside the Posse North Gold Pattern, stated Amarillo Gold Company (TSXV: AGC) (OTCQB: AGCBF) as we speak.

Since February 2020, floor work on the Firm’s Mara Rosa Property in Brazil has targeted on trenching and auger drilling to delineate the higher-grade zones of anomalous gold on floor alongside the development. The continued intention is to establish probably financial gold deposits that would add to current sources and reserves, which might improve the manufacturing profile of the Posse Gold Mission.

“We’re beginning to notice the district scale potential of the Posse development,” stated Mike Mutchler, Amarillo’s Chief Government Officer. “These thrilling outcomes are in step with the outcomes of our profitable November 2019-February 2020 drill program, which confirmed the potential for satellite tv for pc gold deposits at Mara Rosa.

“A brand new useful resource would give us the choice to increase the deliberate lifetime of the Posse Mine, broaden the plant throughput, or some mixture of each. This may considerably enhance the challenge’s anticipated returns.”

The floor exploration program targeted on three targets. Pastinho, Lambari, and Estrela are positioned 3.5 kilometres, 4.5 kilometres, and eight.Zero kilometres northeast of the Posse Gold Deposit alongside the Posse North Pattern (see Determine 1).

Posse North is a northeast trending potassium-radiometric anomaly with coincident gold in soil anomalies better than 50 components per billion outlined by earlier work. Structural options discovered by airborne magnetics had been additionally helpful guides for concentrating on.

A mechanical back-hoe loader dug three-metre-deep trenches usually at each 200 metres. Chip channel samples had been taken at one-metre intervals for every trench, which had been oriented in a northwest-southeast course and perpendicular to the primary development of the gold deposits.

The important thing findings of the floor exploration program are:

  • floor trenching and auger drilling verify the up-dip extension of the Pastinho gold goal
  • the floor soil anomaly at Pastinho has been outlined over a strike size of 1.5 kilometre and stays open alongside strike to the northeast
  • there seem like subparallel gold constructions with as much as 5 mineralized gold zones trending northeast alongside the Pastinho goal.
  • Lambari and Estrela have outlined gold anomalies that require follow-up work.

The Pastinho goal
Pastinho is 3.5 kilometres northeast of the Posse Deposit on 6,00Zero hectares of recent exploration tenements that Amarillo gained entry to in December 2019. It’s a gold mineralized construction roughly 800-900 metres lengthy oriented in a northeast-southwest course alongside the identical structural development because the Posse Gold Deposit. The obvious thickness varies from 10-20 metres and dips about 60 levels northwest.

Geologically, Pastinho is just like Posse. It’s characterised by a hydrothermally altered thrusted shear zone developed alongside the contact between a biotite microcline gneiss (granodiorite composition) and metagabbo and/or amphibolite mafic rocks. There are structural materials together with mylonites along with hydrothermal alteration minerals like silicification (quartz), biotite, sericite, and carbonate with related disseminated sulphides which can be usually 1-3% pyrite.

The outcomes of Amarillo’s most up-to-date diamond drilling are interpreted to have elevated the strike extent to 900 metres (see Determine 2) from the 150 metre lengthy zone of near-surface gold mineralization outlined by a earlier operator. Examples from these drill outcomes embody:

  • gap LMR007A – 18.7 metres grading 0.84 g/t gold. It was oriented with an azimuth of 109.1 levels and a dip of -50 levels.
  • gap 20P109 – 11 metres grading 0.74 g/t gold. It was oriented with an azimuth of 125 levels and a dip of -59 levels.

9 trenches (see Figures Three and 4) had been dug totalling 791.6 metres, and 850 samples had been examined over a strike size of 1.5 kilometres (see Desk 1). Highlights of the outcomes embody:

  • trench 20TCH001 – 20 metres grading 1.034 g/t Au
  • trench 20TCH002 – 11 metres grading 0.95 g/t Au
  • trench 20TCH003 – 10 metres grading 1.22 g/t Au
  • trench 20TCH004 – 5.1 metres grading 3.27 g/t Au
  • trench 20TCH009 – 17 metres grading 1.46 g/t Au.

Considerably, the floor trench work has prolonged the strike size of the Pastinho gold goal to 1.5 kilometres. The present interpretation is that the floor trenching program has outlined the up-dip extension of Pastinho. There seem like as much as 5 subparallel gold constructions dipping northwest roughly 50-60 levels. Pastinho, which has been drill-tested to a depth of roughly 100 metres, stays open at depth.

Lambari
Lambari is positioned roughly 1.Zero kilometre northeast of Pastinho, and 4.5 kilometres north of Posse. The geological setting of Lambari is just like the Posse Gold Deposit and Pastinho.

Floor work consisted primarily of shallow auger drilling, which outlined two gold in soil anomalies. The primary anomaly is positioned alongside strike and parallel to Pastinho and has a strike size of roughly 1.Zero kilometre. The second gold in soil anomaly happens to the northeast and is parallel to the primary anomaly. It has been outlined over a distance 1.5 kilometres.

Estrela
Estrela is positioned about 3.5 km northeast and alongside development from Pastinho, and roughly 8.Zero kilometres northeast of Posse. Estrela is interpreted to happen alongside the identical structural hall as Posse and Lambari and shares comparable geology. Work consisted primarily of shallow floor auger drilling and outlined a northeast trending gold in soil anomaly over a strike size of 900 metres.

Future exploration program
The floor exploration work at Mara Rosa has been profitable in higher defining the Pastinho, Lombari, and Estrela gold exploration targets.

Along with on-going floor trenching and auger drilling of chosen targets, subsequent steps may even embody finishing an in depth induced polarization floor geophysical survey over every of the targets and a diamond drill program.

Floor geophysics is predicted to start in late September or early October, with a diamond drilling program deliberate to start in late 2020 or early 2021. Roughly C$1.75 million has been budgeted for exploration at Mara Rosa to the top of 2021.

Desk 1: Trenching outcomes

Trench
quantity
Variety of
samples
Gold
construction
From
(metres)
To
(metres)
Size
(metres)
Gold grade
(g/t)
20TCH001 96 1 23.00 43.00 20.00 1.034
2 55.00 59.00 4.00 0.320
20TCH002 92 1 23.00 34.00 11.00 0.950
2 54.00 58.00 4.00 0.222
20TCH003 98 1 31.00 41.00 10.00 1.220
2 44.00 55.00 11.00 0.341
3 72.00 80.00 8.00 0.196
4 83.00 84.00 1.00 0.705
5 94.00 95.00 1.00 0.246
20TCH004 89 1 20.90 26.00 5.10 3.265
2 39.00 43.00 4.00 0.271
3 52.00 53.00 1.00 0.491
4 55.00 56.00 1.00 5.435
5 65.00 66.00 1.00 7.275
20TCH005 99 1 31.20 39.10 7.90 1.524
2 50.00 52.00 2.00 0.242
3 60.00 63.00 3.00 0.544
4 68.00 71.00 3.00 0.388
5 80.00 82.00 2.00 1.070
20TCH006 76 1 53.30 56.00 2.70 0.919
20TCH007 66 1 58.00 59.80 1.80 0.393
20TCH007A 32 1 0.00 19.00 19.00 1.431
20TCH008 62 1 47.00 55.65 8.65 0.918
20TCH008A 30 1 22.00 23.00 1.00 1.642
20TCH009 110 1 7.00 24.00 17.00 1.461
2 29.00 31.00 2.00 0.280
3 43.10 43.90 0.80 0.686

Figures

The next figures illustrate the Pastinho drill goal and the Firm’s interpretation of the work achieved thus far:

  • Determine 1 – Posse North Pattern
  • Determine 2 – Location of Pastinho drill holes
  • Determine 3 – Location of Pastinho trenches
  • Determine 4 – Plan view of trenches and drill holes alongside part traces
  • Determine 5 – Cross-section via Pastinho on part line 12
  • Determine 6 – Cross-section via Pastinho on part line 15

To viewDetermine 1: Posse North Pattern, please go to the next hyperlink: https://www.globenewswire.com/NewsRoom/AttachmentNg/22bdf620-6122-4e29-a756-f1f85advert099cc

This determine reveals the potassium radiometric and floor soil anomalies alongside Posse North Pattern. It additionally reveals the situation of the Pastinho, Lambari, and Estrela targets, and distance from Posse Gold Deposit.

To viewDetermine 2: Location of Pastinho drill holes, please go to the next hyperlink: https://www.globenewswire.com/NewsRoom/AttachmentNg/d17d371c-031e-4dfb-a260-3502cdef5308

To viewDetermine 3: Location of Pastinho trenches, please go to the next hyperlink: https://www.globenewswire.com/NewsRoom/AttachmentNg/6df219d8-f2f8-4576-b95d-bd843ea48b92

To viewDetermine 4: Plan view of trenches and drill holes alongside part traces, please go to the next hyperlink: 
https://www.globenewswire.com/NewsRoom/AttachmentNg/cd1e7481-6521-4350-88c2-8510d1ba2eb4

To viewDetermine 5: Cross-section of Pastinho via part line 12, please go to the next hyperlink:  
https://www.globenewswire.com/NewsRoom/AttachmentNg/2a818c1d-0bb1-4240-b150-57c47820dddd

This determine is a northeast dealing with cross-section via Pastinho on part line 12 primarily based on trench 20TCH007A and diamond drill gap LMR006A.

To viewDetermine 6: Cross-section via Pastinho on part line 15, please go to the next hyperlink: 
https://www.globenewswire.com/NewsRoom/AttachmentNg/8986af50-7de1-4468-9f1c-e02e19748e33

This determine is a cross-section via Pastinho on part line 15, which is roughly 150 metres northeast of part line 12. The floor trenching outcomes once more verify the up-dip extension of Pastinho. On this case, 4 subparallel gold constructions have been outlined.

About Amarillo

Amarillo Gold Company is advancing two gold initiatives in Brazil. Each are in mining-friendly states and have glorious close by infrastructure. The event stage Posse Gold Mission on its Mara Rosa Property in Goiás State has obtained the primary allow that gives social and environmental permission for mining. Work is underway on receiving the set up allow. The exploration stage Lavras do Sul Mission in Rio Grande do Sul State has greater than 22 prospects centered on historic gold workings.

Amarillo Gold Company trades on the TSXV below the imageAGC, and on the OTCQB below the image AGCBF.

For additional data, please contact

Certified Particular person

Michael Durose, P.Geo., Consulting Geologist for Amarillo Gold Corp. and a professional particular person (“QP”) as outlined by Canadian Nationwide Instrument 43-101, has reviewed and authorised the scientific and technical data contained on this launch.

High quality assurance and high quality management

Pattern dealing with, preparation and evaluation are monitored via the implementation of formal chain-of-custody procedures and high quality assurance/high quality management applications designed to comply with trade greatest practices.

Trench channel samples had been taken at 1 m intervals and positioned in a safe pattern bag and submitted to ALS Laboratories Inc. in Goiania, Goiás State, Brazil for preparation by crushing to 70% passing 2.Zero mm, riffle splitting to acquire 500 g aliquots, and pulverizing to 85% passing 75 microns.

Pulps are shipped to ALS Laboratories in Lima, Peru and analyzed by a 30 g hearth assay and AAS end. For assays above 10 ppm Au, a lower of the unique pulp was re-assayed with a gravimetric end.

Licensed requirements, non-certified blanks and discipline duplicates are inserted into the pattern stream at common intervals, in order that QA/QC accounted for about 10% of the full samples. Outcomes are routinely evaluated for accuracy, precision and contamination.

Ahead-looking statements

This information launch accommodates forward-looking statements concerning the Firm’s present expectations concerning future occasions, together with its enterprise, operations and situation, and administration’s aims, methods, beliefs and intentions.

Varied elements could forestall or delay our plans, together with however not restricted to, the buying and selling value of the widespread shares of the Firm, capital market situations, impacts from the coronavirus or different epidemics, counterparty threat, TSXV approval(s), contractor availability and efficiency, climate, entry, mineral and gold costs, and success and failure of the exploration and improvement carried out at numerous phases of this system.

Permission from the federal government and neighborhood can be required to proceed with future mining manufacturing. Readers ought to assessment the Firm’s ongoing quarterly and annual filings, in addition to some other further documentation comprising the Firm’s public disclosure report, for added data on dangers and uncertainties relating to those forward-looking statements.

Readers must also assessment the chance elements relevant to junior mining exploration firms usually to raised perceive the number of dangers that may have an effect on the Firm. The Firm undertakes no obligation to replace publicly or in any other case revise any Ahead-looking statements whether or not on account of new data or future occasions or in any other case, besides as could also be required by regulation.

Disclaimer

Neither the TSX Enterprise Alternate nor its Regulation Companies Supplier (as outlined within the insurance policies of the TSX Enterprise Alternate) accepts accountability for the adequacy or accuracy of the content material of this information launch.

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