Amarillo files updated technical report for Posse Gold Project

Rhea-AI Summary

Amarillo Gold Corporation (OTCQB: AGCBF) has released an updated technical report for its Posse Gold Project located in Goiás, Brazil. This report, effective December 31, 2021, was prepared by SRK Consultores do Brasil Ltda. and updates the previous feasibility study from August 2020. It incorporates changes in execution plans, mine scheduling, and financial parameters. The updated report supports Amarillo's acquisition by Hochschild Mining PLC announced in November 2021 and outlines the project's potential profitability and longevity.

Positive

• Updated technical report reflects improvements in mine scheduling and cost estimates.
• Posse Gold Project shows potential for discovering additional near-surface deposits extending mine life beyond 10 years.

Negative

• None.

TORONTO, Feb. 22, 2022 (GLOBE NEWSWIRE) -- Amarillo Gold Corporation (TSXV: AGC, OTCQB: AGCBF) has filed an updated technical report for the Posse Gold Project on its Mara Rosa Property in Goiás State, Brazil.

The report is called Technical Update on the Definitive Feasibility Study Posse Gold Project, Brazil and has an effective date of December 31, 2021. It was prepared for Amarillo by SRK Consultores do Brasil Ltda. to update the Amended and Restated NI 43-101 Technical Report Definitive Feasibility Study Posse Gold Project, Brazil dated August 3, 2020, previously filed by Amarillo. The report is available under Amarillo’s profile on SEDAR (www.sedar.com) and is dated February 18, 2022.

The updated report was prepared in connection with Amarillo’s proposed acquisition by Hochschild Mining PLC announced on November 29, 2021. It reflects additional technical, economic, and legal work that Amarillo has completed since the effective date of the August 2020 technical report. The main changes relate to the execution plan, mine scheduling, permitting status, cost estimates, and financial parameters. The impact of these changes on the previously reported mineral resources and mineral reserves were verified and quantified as described in the updated report.

ABOUT AMARILLO

Amarillo is advancing two gold projects located near excellent infrastructure in mining-friendly states in Brazil. The development stage Posse Gold Project is on the Company’s Mara Rosa Property in Goiás State. It has a positive definitive feasibility study that shows it can be built into a profitable operation with low costs and a strong financial return. Mara Rosa also shows the potential for discovering additional near-surface deposits that will extend Posse’s mine life beyond its initial 10 years. The exploration stage Lavras do Sul Project in Rio Grande do Sul State has more than 23 prospects centered on historic gold workings.

Amarillo trades on the TSXV under the symbol AGC and the OTCQB under the symbol AGCBF. Follow Amarillo on LinkedIn, Twitter, and YouTube.

CONTACT INFORMATION

Mike Mutchler
President & CEO
416-294-0736
mike.mutchler@amarillogold.com 

Annemarie Brissenden
Investor Relations
416-844-6284
annemarie.brissenden@amarillogold.com

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

PDF available: http://ml.globenewswire.com/Resource/Download/2909b87d-ae58-4040-9138-52c55492bbaf

FAQ

What is the significance of the updated technical report for AGCBF?

The updated report enhances the Posse Gold Project's feasibility, indicating better mine scheduling and cost estimates, which could improve financial returns.

When was the updated technical report for AGCBF released?

The updated technical report was released on February 18, 2022, with an effective date of December 31, 2021.

How does the updated report affect Amarillo Gold's acquisition by Hochschild?

The updated report provides critical technical and economic information that supports the acquisition, enhancing the value of Amarillo's assets.