Amarillo Gold Corp (CVE:AGC) (OTCQB:AGCBF) (FRA:72A) has reported positive drill results from its exploration-stage Lavras do Sul project in Brazil, which showed wide intervals of gold beginning at surface.
An 8,000-metre (m) drill program is underway at the property, with 6,000m currently being sunk at the Matilde target, which includes a gold-in-soil anomaly, previously identified by mapping, trenching and airborne magnetics.
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Two holes 50m apart were drilled into Matilde, along an east-west strike direction, which confirmed the primary source of the gold, said Amarillo.
One hole intercepted an interval of 2.28m at 0.70 g/t gold from 7m depth. Other highlights in the hole included 62.53m at a grade of 0.62 grams per tonne (g/t) gold from 189.70m
The second hole intersected 144.6m grading 0.69 g/t gold from 117m, including 91.60m grading 0.87 g/t gold from 170m depth.
Numerous zones of elevated gold were encountered beginning from surface throughout both holes, the company told investors.
"These holes are significant intersections that confirm the primary source of gold at Matilde," said Mike Mutchler, Amarillo’s CEO.
"Gold mineralization begins at surface and shows good continuity over broad intervals and across a wide structural corridor."
Amarillo holds two gold projects near excellent infrastructure in mining-friendly states in Brazil.
The Posse gold asset sits on the Mara Rosa property in Goiás State and a definitive feasibility study has shown it can be built into a profitable operation with low costs and a strong financial return.
The exploration stage Lavras do Sul Project in Rio Grande do Sul State has more than 23 prospects centered on historic gold workings.
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