Drilling Results Update For The Mara Rosa Open Pit Gold Project

TORONTO - Amarillo Gold Corporation reported encouraging drill results from the ongoing drilling program at its Posse (Mara Rosa) open-pit gold project in Goias State, Brazil.

Highlights: 1.66 Au g/t over 24 m core length in in-fill drill hole 18P067; 2.40 Au g/t over 15 m core length in in-fill drill hole 18P067; 1.56 Au g/t over 15 m core length in in-fill drill hole 18P068; 3.17 Au g/t over 15 m core length in in-fill drill hole 18P081; and 1.78 Au g/t over 22 m core length in step-out exploration drill hole 18P070.
In May 2018, the Company commenced a 10,000 m drill program at the Posse deposit which included 7,000 m of core drilling and 3,000 m of RC drilling designed to convert some of the existing 330K ounces of Inferred resources to Indicated resources and to explore for additional resources along the 12 km long Posse trend. In September 2018 the core drilling program was expanded to 12,000 m of in-fill drilling and 3,000 m of step-out exploration drilling to test the continuity of the Posse deposit along strike to the southwest of the main deposit, while the RC drilling program was reduced to the then completed 1,295 m.

A total of 11,915 m of diamond drilling from 41 holes have been completed to date. Drilling assay results of 2.40 g/t Au over 15 m core from in-fill drill hole18P067 and 3.17 g/t over 15 m core from in-fill drill hole 18P081 confirm better than average ore grade and good deposit width in the southern section of the ore body. Encouraging results from exploration drill hole 18P070 were obtained having intersected 1.78 g/t Au over 22 m and suggesting continuity of the Posse deposit over 200 m southwest along strike. The remaining 700 m of in-fill core drilling will be completed in early January 2019 and a new Resource Update is planned for release in February 2019. The final 2,400 m of step-out exploration core drilling is also expected to be completed in February.

Mike Mutchler, CEO said, “We are quite excited with our latest drilling results. The better grades and thicknesses that we are seeing in the southern portion of the planned pit confirm what we expected from our block model and should allow us to convert a significant portion of our Inferred ounces into Measured or Indicated ounces to extend the planned mine life from eight to ten-plus years by pushing further down dip. These drilling results, along with the final results that will be available over the next few weeks, will be used for a Resource Update in February and will be the basis for the mine design for the Feasibility Study which we will be starting later this month.”

Mike Mutchler continued, “Although we only have the first of our step-out drill holes completed, the success of this hole is showing a potential extension of the Posse orebody southwest along strike and could eventually allow for a pit expansion in that direction to further increase the mine life.”

The company’s address is 32 Richmond St. East, Suite 201, Toronto, ON M5C 1P1, 416-294-0736, www.amarillogold.com.