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In This List

Amarillo defines 1.2 Moz gold resource for Mara Rosa's Posse deposit

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Amarillo defines 1.2 Moz gold resource for Mara Rosa's Posse deposit

Amarillo Gold Corp. on March 25 announced an updated measured and indicated resource for the Posse deposit within its Mara Rosa gold project in Brazil of 1.2 million ounces of gold within 29 million tonnes grading 1.20 g/t, using a 0.5 g/t cutoff.

The figure includes a high-grade core zone containing 630,000 ounces of gold within 8.9 million tonnes at 2.20 g/t.

Inferred resources, meanwhile, total 30,000 ounces of gold within 1.4 million tonnes at 0.70 g/t.

Amarillo said the new estimate is based on 12,701 meters of new drilling, which converted inferred resources to the indicated and measured categories and paved the way for the definition of the high-grade zone.

The company plans to use the updated resource for a feasibility study that is expected to be completed later this year.

A pre-feasibility study for the Posse deposit generated a posttax net present value of US$244 million, discounted at 5%, with an internal rate of return of 51% and payback period of 2.6 years.