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Amarillo’s third quarter marked by exploration success

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This information launch ought to be learn along with our consolidated monetary statements and administration’s dialogue and evaluation for the 9 months ended September 30, 2021. Each can be found at, and beneath our firm profile at

All financial quantities are in Canadian {dollars} except said in any other case.

TORONTO, Nov. 22, 2021 (GLOBE NEWSWIRE) — The Pastinho Gold Deposit has the potential to be a sport changer for Amarillo Gold Company (TSXV: AGC, OTCQB: AGCBF), mentioned the Firm at this time because it introduced its outcomes for the 9 months ended September 30, 2021.

“We anticipate the deposit to grow to be one other supply of future ore feed for the Posse mill,” mentioned Mike Mutchler, Amarillo’s Chief Govt Officer. “We consider Pastinho will prolong Posse’s total mine life and considerably enhance the mine’s common annual gold manufacturing, thus enhancing the economics proven by the constructive feasibility examine.”

As introduced in September, Pastinho is a brand new major gold deposit positioned roughly 3.5 kilometres northeast of the Posse Gold Deposit. It’s a near-surface tabular formed deposit hanging 1,700 metres in a northest-southwest course that dips roughly 60 levels northwest. In October, after quarter finish, Amarillo acquired assay outcomes that confirmed the continuity and down dip extensions of Pastinho, which is a minimum of 200 metres deep.

In fact, the main target throughout the quarter was on evaluating the choices for elevating the stability of the development financing to construct the Posse Gold Mine. The objective is to search out one of the best financing choice for the Firm and its shareholders, working beneath the steerage of its monetary adviser, and profiting from the pliability of Amarillo’s money place.

As mentioned beforehand, this course of is by nature unpredictable, so it’s troublesome to set timelines round how lengthy it would take, nevertheless it’s believed this method will lead to a greater final result for shareholders in the long run.

Within the meantime, Amarillo continues to be on observe at Posse, the place the Firm is spending what it must spend to remain on schedule for Posse whereas minimizing its monetary publicity till it has obtained full building financing. The developments at Posse embody:

  • Greater than 95% of the land for the undertaking space has been acquired; the ultimate parcel is being acquired and that course of ought to be accomplished shortly
  • 50% of the general undertaking detailed engineering, together with 99% of the early works detailed engineering, has been accomplished; the stability of engineering might be primarily based on main gear acquisitions that might be bought topic to undertaking financing
  • Vendor drawings for the ball mill have been bought, and gear engineering for the filtration circuit is full.

Vital progress was additionally made on the 67-kilometre 138-kilovolt energy line that can join the Posse mine to a substation in Porangatu. All of the land for the ability line has been acquired, the engineering has been accomplished, and undertaking approval has been acquired from Enel Brasil, the state electrical energy utility. And, in October, the License to Set up for the road was acquired. Work is predicted to start out later this yr and take about 14 months.

One of many phrases of the License to Set up for Posse is to develop and prepare native labour. Over 2,200 individuals have registered on the coaching centre within the city of Mara Rosa because it opened in February, and over 766 individuals have been skilled by way of 51 programs since January.

At Lavras do Sul, the place Amarillo’s objective is to open a second improvement entrance, drilling continued at a major gold-hosting structural zone at Matilde, considered one of 23 extremely potential gold targets on the property.

The Firm stays very lucky with respect to Covid-19. A number of of workers in Brazil have examined constructive, however all have totally recovered. Amarillo has full entry to its properties and its consultants have been in a position to work with out interruption. In Canada, the Toronto-based administration group has been working from dwelling since mid-March 2020. Up to now, Covid-19 has not had a cloth influence on the Firm’s monetary situation or efficiency.

Amarillo follows the rules set by well being authorities the place it operates, in addition to its personal operational and monitoring protocols. About 64% of Amarillo’s personnel are totally vaccinated, in addition to 27% of the contractors. About 73% have had their first dose. Although it’s arduous to foretell how Covid-19 will influence the Firm’s exploration and improvement actions, it’s believed any delays might be minimal. Nevertheless, the Firm will proceed to observe the pandemic’s potential influence on its enterprise.

On the company degree, Paulo Serpa, an achieved mining engineer from Brazil, succeeded Arão Portugal as Nation Supervisor for Amarillo’s Brazilian subsidiaries after quarter finish. Mr. Portugal, nevertheless, stays energetic with the Firm, serving as particular adviser to the CEO. After quarter finish, 5,145,000 choices had been granted to administrators, officers, and consultants of the Firm. These had been priced at $0.24 and expire on November 3, 2026.

Lastly, Amarillo continued to extend its investor outreach after launching a brand new web site and social media channels final quarter. The Firm attended two key gold conferences in September and plans to take part in three useful resource conferences within the fourth quarter, all a part of a method to lift consciousness amongst a broader base of potential shareholders.

Money available on the finish of the third quarter was $32.3 million. Roughly $2 million was spent throughout the quarter on engineering and consulting for the Posse Gold Challenge as we put together to make a building resolution as soon as the financing is secured. Different main bills within the quarter included $2.3 million for land acquisition, elevated salaries because of extra employees hires, and elevated skilled charges because of monetary advisory providers.


Amarillo is advancing two gold tasks positioned close to wonderful infrastructure in mining-friendly states in Brazil.

The event stage Posse Gold Challenge is on the Firm’s Mara Rosa Property in Goiás State. It has a constructive definitive feasibility examine that reveals it may be constructed right into a worthwhile operation with low prices and a powerful monetary return. Mara Rosa additionally reveals the potential for locating extra near-surface deposits that can prolong Posse’s mine life past its preliminary 10 years. The exploration stage Lavras do Sul Challenge in Rio Grande do Sul State has greater than 23 prospects centered on historic gold workings.

Amarillo trades on the TSXV beneath the image AGC and the OTCQB beneath the image AGCBF. Go to to study extra in regards to the Firm’s give attention to turning into a mid-tier Brazilian gold producer.

Observe Amarillo on LinkedIn, Twitter, and YouTube.



Neither the TSX Enterprise Alternate nor its Regulation Providers Supplier (as outlined within the insurance policies of the TSX Enterprise Alternate) accepts duty for the adequacy or accuracy of the content material of this information launch.

Ahead-looking statements

This information launch accommodates forward-looking statements concerning the Firm’s present expectations concerning future occasions, together with its enterprise, operations and situation, and administration’s targets, methods, beliefs and intentions.

Numerous elements could forestall or delay our plans, together with however not restricted to, the buying and selling value of the frequent shares of the Firm, capital market situations, impacts from the coronavirus or different epidemics, counterparty threat, TSXV approval(s), contractor availability and efficiency, climate, entry, mineral and gold costs, and success and failure of the exploration and improvement carried out at varied phases of this system. Permission from the federal government and group can be required to proceed with future mining manufacturing. Readers ought to evaluate the Firm’s ongoing quarterly and annual filings, in addition to every other extra documentation comprising the Firm’s public disclosure report, for extra info on dangers and uncertainties relating to those forward-looking statements.

Readers also needs to evaluate the chance elements relevant to junior mining exploration corporations typically to raised perceive the number of dangers that may have an effect on the Firm. The Firm undertakes no obligation to replace publicly or in any other case revise any Ahead-looking statements whether or not because of new info or future occasions or in any other case, besides as could also be required by legislation.

PDF obtainable: resource/Obtain/272321eb-a4f3-4541-ba00-e896394c43de

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Supply: Amarillo Gold Corp.

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