Amarillo Concludes In-fill Drilling and Initiates Resource Update

TORONTO, Feb. 12, 2019 (GLOBE NEWSWIRE) -- Amarillo Gold Corporation (“Amarillo” or the “Company”) (TSX.V: AGC) (OTCQB: AGCBF) is pleased to provide an update of results from its recently concluded in-fill drilling program at its Mara Rosa open-pit gold project (Mara Rosa Project or Posse Gold Deposit) in Goias State, Brazil.

Highlights¹:

• 1.15 Au g/t over 44 m core length in Hole 18P082
• 1.61 Au g/t over 46 m core length in Hole 18P086
• 1.10 Au g/t over 48 m core length in Hole 18P088

¹Drill core lengths and true widths are indicated in Table 1 below

A total of 13,929 m of diamond drilling from 46 holes have been completed to date (see also results from 31 diamond drill holes in our Press Releases dated September 10, 2018, October 31, 2018 and January 7, 2019).

Amarillo 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 totalling 1,150 m and are expected to be completed later this month.

Assay results of 1.61 g/t Au over 46 m core from in-fill drill hole18P086 confirm better than average ore grade and deposit width in the southern section of the ore body.

The links below provide access to the drill hole location map and drill Subsection 5 for reference:

https://www.amarillogold.com/W0p23B/wp-content/uploads/2019/02/Mara-Rosa-2018-2019-Drilling-Program-Posse-Mine-Map-and-drill-Locations-Updated-Feb-2019.jpg

https://www.amarillogold.com/W0p23B/wp-content/uploads/2019/02/Mara-Rosa-Cross-Section-Subsection-5-DDH-18P081-and-DDH-18P082.jpg

Amarillo CEO, Mike Mutchler commented “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.

The attached drill hole location map also shows the 8 step out exploration holes that we are in the process of completing.  Hole 18P070 cut 22 m of 1.78 gpt, and we are hopeful that this extends the resource by another 200 m to the southwest to potentially further extend the mine life.  The exploration drilling will be completed later this month.

We kicked off our FS in late January with SRK, Ausenco and GHT Engineering (see the Press Release dated January 21, 2019) a group of highly reputable firms in which we are confident will deliver a robust plan to develop the Mara Rosa Project.  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.”

Upcoming Marketing Schedule

Mike Mutchler,CEO of Amarillo Gold, will be marketing as follows:

• New York – February 19^th and 20^th
• London – February 25^th
• Geneva – February 26^th
• Zurich – February 27^th
• PDAC - March 3^rd and 4^th at Booth # 2621A and available for one on one meetings on March 5^th and 6^th. 

To schedule a meeting or request further information, please contact our Director of Communications, Karen Mate by email: karen.mate@amarillogold.com or by dialling 1 (416) 230-6454.

ABOUT AMARILLO

Amarillo is developing an open pit gold reserve at its Mara Rosa Project in the mining friendly jurisdiction of Goias State in Brazil. The Mara Rosa Project was awarded its main (LP) permit which provides the social and environment permission to mine. Amarillo is progressing toward obtaining an installation permit (LI). Based on the NI 43-101 Pre-Feasibility Study 2018 (PFS 2018) update filed on SEDAR on September 13, 2018, the Posse Deposit at the Mara Rosa Project contains estimated 513,000 ounces of gold in the Proven category from 9.6 Mt at 1.65 g/t Au, and 574,000 ounces gold in the Probable category from 14.2 Mt at 1.26 g/t Au, for total estimated Reserves of 1,087,000 ounces from 23.8 Mt at 1.42 g/t Au. In addition to the Mara Rosa Project, Amarillo has an advanced exploration project with excellent grades at Lavras do Sul, Brazil. A Mineral Resource Estimate Study (NI 43-101 technical report) for Lavras do Sul was filed on SEDAR on October 4, 2010. The Lavras do Sul Project is an advanced exploration stage property (190 sq. km.) comprising of more than 22 prospects centered on historic gold workings. The initial resource estimate at the Butia prospect reported 215,000 ounces of gold in the Indicated category from 6.4 Mt at 1.05 g/t Au, and 308,000 ounces of gold in the Inferred category from 12.9 Mt at 0.74 g/t Au using a 0.3 g/t cut-off grade. Both projects have excellent nearby infrastructure.

Marc Ducharme, Chief Exploration Geologist of the Company, is a Qualified Person as defined by NI 43-101 – Standards of Disclosure for Mineral Projects guidelines and has reviewed and approved the scientific and technical disclosure relating to the drilling results in this news release.

Mike Mutchler, President and Chief Executive Officer of the Company, is a Qualified Person as defined by NI 43-101 guidelines, and has reviewed and approved the scientific and technical disclosure relating to the PFS 2018 in this section of the news release.

For further information, please contact:

32 Richmond St. East Suite 201
Toronto, ON Canada,
M5C 1P1
Website: www.amarillogold.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the content of this news release.

FORWARD LOOKING STATEMENTS:

This news release contains Forward Looking Statements regarding the Company’s current expectations regarding future events, including with respect to the Company’s business, operations and condition, and management’s objectives, strategies, beliefs and intentions. Various factors may prevent or delay our plans, including but not limited to, the trading price of the common shares of the Company, contractor availability and performance, weather, access, mineral prices, and success and failure of the exploration and development carried out at various stages of the program. Permission from the Government and community is also required to proceed with future mining production. Readers should review the Company’s ongoing quarterly and annual filings, as well as any other additional documentation comprising the Company’s public disclosure record, for additional information on risks and uncertainties relating to these forward-looking statements. Readers should also review the risk factors applicable to junior mining exploration companies generally to better understand the variety of risks that can affect the Company. The Company undertakes no obligation to update publicly or otherwise revise any Forward Looking Statements whether as a result of new information or future events or otherwise, except as me be required by law.

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