AGC Amarillo Gold Corporation

Amarillo Gold Corp. (TSX VENTURE:AGC) ("Amarillo" or the "Company") announces
that the application for the preliminary license, which is the first step in the
permitting process to allow mining of the Posse deposit, was filed May, 2012.
The application was accompanied by the required environmental base line study
and impact report compiled by Amarillo's environmental consultants, Neotropica
Tecnologia Ambiental (Neotropica). The application was filed at the Secretariat
for the Environment and Hydrology ('SEMARH'), a department of the Goias state
government. 


Although mine permitting is governed and administered by each state, the process
is very similar throughout Brazil. The process has three stages, the preliminary
license ("LP"), the initial license ("LI"), and finally the license to operate
("LO"). SEMARH, having received Amarillo's application for an LP, will on
average take 3 to 6 months to review the application. An official public hearing
organised by SEMARH and the district judge must be held as part of this process.
Upon completion of this review, and if there are no issues, Amarillo will
receive the LP. The LI can be applied for immediately after the LP is received
as long as certain provisions are met. (see below for details). Once the LI is
received, the applicant is authorized to commence mine construction. The final
step, the LO, is applied for when the plant is completed but before operation
commences. To obtain this license the finished plant and facilities are
inspected by SEMARH to ensure that the company has complied with the plan agreed
to in the LI. The LO is granted if the plant and facilities are found to comply
with the LI and production may then commence.


During the LI review period, Amarillo and SEMARH are required to devise a
mutually acceptable environmental, social, and economic plan for the mine. Also
required for the grant of the LI is an agreement with the surface rights holders
(or purchase of their land), permissions for water use, a contract to buy the
"reserve legal", and forestry permits. "Reserve legal" requires the purchase of
a parcel, somewhere in the district, to compensate for the area of the proposed
mine disturbance, (approximately 190ha: 25% of the size of the mine area), to be
put aside as a nature reserve. The completion of these steps, and the LI
process, should take approximately 2-6 months.


The company anticipates that the public hearing component of the LP and the
community consultation process will proceed smoothly as over the last 12 months
it has already held a number of local community public meetings in conjunction
with the Prefieto (Mayor) of the Mara Rosa village and Goias State regarding the
Mara Rosa project in particular, and mining in general. The proposed mining of
the Posse deposit was consistently well received by the community during these
meetings. The primary focus of the community during all these meetings was on
the employment benefits that the project would bring to the area.


An additional factor providing further confidence is the track record of mine
permitting in Goias State as reflected by the recently permitted Anglo
American's Barro Alto nickel laterite mine and Yamana's Pilar gold mine (which
is of similar scope to the Mara Rosa project) now under construction 82
kilometres away. Both mines are located in the same district as the Posse
deposit within Goias State. 


The NI 43-101 compliant qualified person for this news release is Frank Baker, a
metallurgist with over 30 years experience and a member of AUSIMM and the IOM3.


About Amarillo Gold Corp.

Amarillo Gold Corp. is focused on acquisition, discovery, and definition of gold
resources in Brazil. The Company's principal projects are the Mara Rosa Project
in the state of Goias, and the Lavras do Sul Project in the state of Rio Grande
do Sul. The Posse Deposit at Mara Rosa contains 1,174,900 ounces of measured and
indicated gold contained in 20.85 MT at 1.75 g/t Au, and 156,400 ounces of gold
inferred from 3.63 MT at 1.38 g/t Au (0.5 g/t cut-off grade) (NI 43-101
compliant resource as independently determined by Australian Exploration Field
Services Pty. AEFS). The Mara Rosa Gold Project has received a positive economic
assessment from a Pre-feasibility study and is preparing to proceed to a
bankable feasibility study. Should this continue to be positive it would be
possible to commence mining by 2014.


The Posse Deposit was successfully mined by Western Mining Company (WMC) during
the 1990s (mined areas are excluded from the above-stated resource figures), and
is located in an area of excellent infrastructure: approximately 35 km NE of
Yamana's Chapada open pit Cu-Au operation, some 80 km NE of Yamana's Pilar Au
project (in Feasibility), 95 km NW of Votarintim's Niquelandia Ni laterite mine,
105 km from NE of Serra Grande's underground Au mine, and 105 km NNW of Anglo
American's Ni laterite project at Barro Alto. 


The Lavras do Sul Project is an advanced exploration stage property (190 sq.
km.) comprising more than 19 prospects centered on historic gold workings, with
encouraging gold mineralization discovered and defined by more than 16,000
metres of drilling. The initial resource estimate at the Butia prospect reported
215,000 ounces of gold indicated from 6.4 MT at 1.05 g/t Au, and 308,000 ounces
of gold inferred from 12.9 MT at 0.74 g/t Au using a0.3 g/t cut-off grade in a
NI 43-101 compliant resource as independently determined by Atticus Consulting
2010. Lavras do Sul is also located near excellent infrastructure. The Company
also has a portfolio of earlier stage projects and all properties under
Amarillo's management are located in areas of good infrastructure and
mining-friendly communities.


ON BEHALF OF THE BOARD OF DIRECTORS

AMARILLO GOLD CORP.

Buddy Doyle, President

FORWARD LOOKING STATEMENTS:-

This news release contains Forward Looking Statements regarding our intentions
and plans. The PFS model presented in this news release is not a production
forecast by the company. There remains at present insufficient certainty in the
PFS to reliably estimate future production and economics, further engineering
and geology studies are requires to determine this. The scope of this PFS was to
deliver a project with plus or minus 20% accuracy in its estimates. Various
factors may prevent or delay our plans, including but not limited to, 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. The planned DCF is designed to achieve a higher accuracy in our
engineering and economic estimates. At the end of the DCF the company should
have enough information to attract bank financing on the project, should it be
still be suitably economically and risk attractive. Permission, from the
Government and community is also required to proceed with future mining
production. There many mining projects in the state of Goias and several
recently permitted mines. This would suggest successful permitting of the Mara
Rosa project is highly likely. However, each mine is treated separately in the
permitting process and the project is not yet far enough along the permitting
process to guarantee if environmental permits will be received. In particular
the company will require the funds to make the surface right purchases and the
reserve legal mentioned in this news release. Readers should review risk factors
applicable to junior mining exploration companies generally to understand the
variety of risks that can affect the Company.

Grafico Azioni Amarillo Gold (TSXV:AGC)
Storico
Da Mag 2024 a Giu 2024

Grafico Azioni Amarillo Gold (TSXV:AGC)
Storico
Da Giu 2023 a Giu 2024