Amarillo Concludes In-fill Drilling And Initiates Resource Update

TORONTO - Amarillo Gold Corporation reported on results from its recently concluded in-fill drilling program at its Mara Rosa open-pit gold project Posse Gold Deposit) in Goias State, Brazil. A total of 13,929 m of diamond drilling from 46 holes have been completed to date.

The company has completed the in-fill core drilling and has commissioned Australian Exploration Field Services (AEFS) to provide a resource update for the Posse Gold Deposit to be used in the Feasibility Study (FS) which commenced in January 2019.  AEFS completed the last two Resource Updates for the Posse Gold Deposit.  Three planned step-out exploration holes remain to be drilled totaling 1,150 m and are expected to be completed later this month.

CEO Mike Mutchler said, “We are very pleased to have our in-fill drilling program completed and our Resource Update pending at the end of the month.  Our objective of this drill program is to convert some of the 330K ounces of Inferred resource into Measured or Indicated resource so that it can be included in the Feasibility Study Mine Plan.  The PFS Mine Plan left 183K ounces in the pit floor as it could not justify a push back for that number of ounces.  The 330K ounces of Inferred resource is just down dip from these remaining ounces, so by converting some of the Inferred resource into Measured and Indicated resource, we expect to justify a push back to expand the mine. Subsection 5 in the attached cross section shows a good example of our drilling results with holes 18P081 and 18P082 cutting the Inferred resource just down dip from the planned pit.  Subsection 5 also shows the good grades and thicknesses that are encountered in the southern end of the planned pit. We kicked off our FS in late January in which the FS will provide the information and documentation to satisfy the regulatory requirements in the application for the License to Install (LI) in mid 2019.  We anticipate receiving the LI in late 2019 or early 2020 and to be ready for construction beginning in 2020.”

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