Amarillo Gold (AGC) has reported the results of the exploration drill program carried out at the Posse deposit’s northern area.
The company has encountered shallow gold mineralization in the proposed pit well, which is exposed at depth and towards the northern part.
The company intersected 1.83 g/t gold over 13 m in hole 2011-MRP 0007, 1.14 g/t gold over 22 m in hole 2011-MRP 0008 and 1.28 g/t gold over 13 m in hole 2012-MRP 0019. These holes are spaced 50 m apart and up to 150 m from the present pit wall.
According to Amarillo’s Chief Executive Officer, Buddy Doyle, the company’s exploration is giving priority to discover new, shallow mineralized gold at the Mara Rosa project. It has aimed to look for shallow ounces adjacent to the Posse deposit. These shallow ounces can be processed in the facility during the pre-strip. This may significantly enhance the economy of the project. The company has encountered positive gold mineralization during the phase I of this exploration plan.
The company has also encountered mineralized silver in hole 2012 MRP0021 at surface. This result has shown a new exploration target area.
Currently, one drilling rig is carrying out exploration in the Posse deposit. The focus of the drilling program is to examine the "Posse" structural trend, which is a huge regional structure hosting the Posse deposit. Soil geochemistry, geophysics and mapping have outlined this structure, which has a strike of more than 20 km. The present drilling conducted at the Posse deposit shows condemnation drilling, because it addresses structural and geochemistry target areas located in the proposed mine layout area. The company is planning to include about 8,000 m of drill program as part of this condemnation or exploration campaign.