VANCOUVER – Amarillo Gold Corp. (TSXV:AGC) says a new calculation at its 100 per cent owned Posse gold deposit in Brazil has raised the measured and indicated resource calculation by a third.
Prior to definition drilling, the indicated resource was 60 per cent of the global resource but has now risen to more than 90 per cent (measured and indicated) and the gold grade has also improved over past estimates, the company said in a release Tuesday.
Amarillo said the new calculation will be used as the basis for pit design, scheduling and the economic modeling for the ongoing pre-feasibility study at the Posse deposit, which is on the Mara Rosa gold project in Goias State.
The pre-feasibility study is on track for completion early next quarter, it said.
“We are very pleased with these results,” said president and CEO Buddy Doyle. “The definition drilling has materially improved the quality of the gold resource at Posse.”
Amarillo shares were up 10 cents, or 6.5 per cent, at $ 1.65 in thin trading Tuesday morning on the TSX Venture Exchange.
Local news from metronews.ca/vancouver
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