Friday, 22nd September 2006 (2283 views)

Amarillo Gold has announced that the proposal it put to Rio Tintas concerning the acquisition of up to a 100 per cent interest in a gold site in Brazil has been accepted.

The Lavras do Sul project is located in Rio Grande do Sul state, about 350 km away from Porto Alegre by road. The site covers 9,122 hectares and stretches over the northern part of a late Proterozoic Lavras granitic intrusion.

This structure has been exploited for gold since the end of the nineteenth century. Previous exploration work by Rio Tinto indicated that the project had the potential to hold a deposit carrying three million ounces of gold. Follow-up work from Amarillo has backed these claims.

The first phase of an exploration programme designed by Amarillo will commence shortly. The work has the following aims in mind. Firstly, it will look to define the Butia and Cerrito deposits, secondly to test the viability of a heap leach production programme and, thirdly, to discover new targets for possible further exploration.

Amarillo president Buddy Doyle commented: "Management is extremely pleased to have signed up such a quality acquisition as Lavras do Sul. We are now in a strong position to quickly build on the company's existing resource base at Mara Rosa and take a major step forward to achieving our core objective of controlling at least one million ounces of economic gold resources."

 

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