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Amarillo Gold shares rise on latest drilling results from Lavras do Sul in Brazil

Published: 13:18 20 Jun 2012 EDT

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Junior gold explorer Amarillo Gold (CVE:AGC) announced Wednesday drill results from eleven holes at its Butia prospect, a part of the Lavras do Sul project located in Rio Grande Do Sul, Brazil, sending shares higher.

This round of drilling was intended to define and expand the known resource through infill drilling, and by targeting new mineralized zones in the larger Butia alteration zone.

The initial NI 43-101 resource for the Butia prospect contained an indicated 215,000 ounces of gold from 6.4 million tonnes at 1.05 grams per tonne (g/t) gold, and 308,000 ounces of gold inferred resource from 12.9 million tonnes at 0.74 g/t gold, using a 0.3 g/t cut-off grade.

Highlights from results reported Wednesday include hole LDH-209, which intercepted 133 metres at 2.65 g/t gold and LDH-212, which returned 123 metres at 1.49 g/t gold.

The company said holes LDH-200 and LDH-208 were drilled to locate the southern edge of the epithermal alteration that hosts the majority of the gold mineralization at Butia.

Both holes intercepted the alteration and extended the zone 50 metres south, at over 50 metres depth, where it remains open.

Meanwhile, drill hole LDH 204 intercepted 15 metres at 2.95 g/t gold and 8 metres at 4.23 g/t gold, while drill hole LDH-206 returned 5 metres at 3.48 g/t gold, confirming there is a persistent, east-west striking, gold bearing zone, the company said.

Assay results are pending for another 12 holes. So far, Amarillo has drilled 20,245 metres from 70 holes at the Butia prospect.

Lavras do Sul is an advanced exploration stage property with a large land package of 190 square kilometres.

Amarillo has tested 5 of the 19 known prospects at the property to date, and 4 of these tested prospects have returned "significant" gold values, the company said, including the Butia prospect, which now holds over 500,000 ounces of gold.

Its other main project is Mara Rosa in the state of Goias. The Posse deposit at Mara Rosa contains 1,174,900 ounces of measured and indicated gold contained and 156,400 ounces of gold inferred.

Shares of Amarillo increased 8.57 per cent to 76 cents per share Wednesday afternoon.

Amarillo Gold to be acquired by Hochschild Mining PLC

Amarillo Gold CEO Mike Mutchler joined Steve Darling from Proactive to share news Amarillo Gold Corporation (TSX-V:AGC, OTCQB:AGCBF) has entered into an agreement with Hochschild Mining PLC (LSE:HOC, OTCQX:HCHDF) to acquire all of the outstanding shares of Amarillo in exchange for cash...

on 11/30/2021