Amarillo Gold Corp.[AGC-TSXV, AGCBF-OTCQB] stated Tuesday it thinks the Pastinho gold deposit situated at its Mara Rosa gold task in main Brazil has the prospective to be a “video game changer” for the business. It made the forecast in a news release including its outcomes for the 3rd quarter ended September 20, 2021.
The 100%- owned Mara Rosa gold job covers 60,000 hectares of expedition licenses and 2,600 hectares of mining allows in the state of Goias. The primary build-up of gold within the Mara Rosa task, likewise called the Posse Deposit, takes place in 2 primary zones, Posse North and Posse South.
The Posse Deposit was found in 1982 by a predecessor of BHP Billiton Ltd.[BHP-NYSE, BHPLF-OTCPK], by means of drilling and checking a panned gold-in-soil anomaly in a location my own actively by garimpeiros. BMP Billiton sank a shaft and carried out little scale mining of the oxide ore prior to forming a joint endeavor with Western Mining Ltd. in 1988.
It is approximated that 80,000 ounces of gold was drawn out from Posse. Of that quantity, 31,000 ounces was drawn out by Western Mining utilizing load leaching and a 600 tonne-per-day CIL plant. In 1988, Western Mining Ltd. offered the deposit to Metallica Brasil Ltda. For US$ 1.5 million.
Amarillo acquired the Posse Deposit from Metallica in October, 2003 for US$450,000 The task brings a 1%NSR to BHP Billiton and a 1%NSR to Franco-Nevada Corp.[FNV-TSX, NYSE.]
With $323 million in money on hand, the business is working to examine alternatives for raising the balance of building funding to develop the Posse Gold Mine.
Once constructed, business states it is expected that Posse will produce 102,000 ounces of gold each year in its very first 4 years, and have typical yearly gold production of 84,000 ounces, based upon a preliminary mine life of 10 years. Typical healings are anticipated to be 89.9%and the typical strip ratio over the life of mine is expected to be 4.3.
In a September, 2021 press release, the business stated Pastinho is a brand-new main gold deposit situated roughly 3.5 kilometres north east of the Posse Gold Deposit. “We have actually specified near surface area gold mineralization over possibly mineable widths for a strike length of 1.7 kilometres and to depths of more than 100 metres,” the business stated.
At the time, the business stated 3,767 metres of diamond drilling, including 23 holes, have actually been finished a Pastinho. Of the 23 holes finished, the business stated assay outcomes have actually been gotten for 15 holes covering a strike length of 1,200 metres.
Drilling highlights consist of hole 21 N016, which returned 6.0 metres of grade 1.57 g/t gold from 42 metres.
” We anticipate the deposit to turn into another source of future ore feed for the Posse mill,” stated Amarillo CEO Mike Mutchler. “We think Pastinho will extend Posse’s total mine life and considerably increase the mine’s typical yearly gold production, therefore boosting the economics revealed by the favorable expediency research study.”
Amarillo Gold shares were the same on Tuesday and sell a 52- week series of 37 cents and 20 cents.