VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov 9, 2015) - Amarillo Gold Corp. (TSX VENTURE:AGC) ("Amarillo" or the "Company") in a meeting last week the Company received written notice that the Ministério Público (Ministry Public or Public Prosecutor), ("MP") had ceased the proceedings regarding the environmental effects of the past mining operations within the Mara Rosa project. The meeting was presided by the Honorable Cristina Emilia Franca Malta. (Hon. Ms. Malta).
Her Hon. Ms. Malta, considered the investigation into the environmental liability, and the monitoring data presented, had been carried out satisfactorily. She recommended that the Company representatives continue with the licensing process for the new mine with the Secretary of Environment, Water Resources, Infrastructure, Cities and Metropolitan Affairs (SECIMA). (SECIMA was called SEMARH in previous news releases; there has since been a name change).
Buddy Doyle President and CEO commented, "The removal of this judicial review is a major milestone in our permitting process. The way is now open to complete the Preliminary License application. I would like to thank the efforts of our staff, in particular Luis Carlos, Frank Baker and Araõ Portugal. I would also like to express the Company's appreciation of the due process of the law carried out by the MP."
The Posse Deposit at Mara Rosa contains 1,174,900 ounces of measured and indicated gold contained in 20.85 MT at 1.75 g/t Au, and 156,400 ounces of gold inferred from 3.63 MT at 1.38 g/t Au (0.5 g/t cut-off grade) (NI 43-101 compliant resource as independently determined by Australian Exploration Field Services Pty. AEFS). The Mara Rosa Gold Project has received a positive economic assessment from a Pre-feasibility study (NI 43-101 Coffey Mining).
Amarillo applied for the necessary permits to build an open pit gold mine in May 2012 after filing the Prefeasibility study. (see News Releases dated January 11th 2012, June 4th 2012 and January 24th 2014 for details). In Brazil mine permitting is governed and administered by each state. The process has three stages, the preliminary license ("LP"), the installation license ("LI"), and finally the license to operate ("LO"). The application for an LP is accompanied by an Environmental base line report called the EIA (Estudo de Impacto Ambiental which translates to Environmental Impact Statement) and an environmental mitigation report, or RIMA (Relatório de Impacto Ambiental). The application is administered by SECIMA and is also subject to review by the MP.
At the request of the MP the Company delivered an IPA report, (IPA: Investigação de Passivo Ambiental - Investigation into Environmental Damage) in January 2014. The IPA report was the result of 18 months of monitoring and measuring the quality of the surface and ground waters in the catchment around the Posse deposit, soil sampling, and monitoring the aquatic biota. In July 2014 the Company received a letter from the technical department of the MP that agreed with the report's conclusions, "that there is no significant or lasting effect on the environment from the previous mining work."
In closing the case the Hon. Ms. Malta concluded that the Company had shown that the environmental damage caused by the previous mining activity was not significant. Considering the prospect of further imminent mining activity, it was perceived that there was no reason to continue with the public enquiry. If any new complaints were to be received they will be treated on a case by case basis. The quarterly monitoring of the water at the project that was part of the IPA, was also eased to bi-annual monitoring.
Our staff now plan to visit SECIMA with this news to expedite the LP application. The Company has been told by SECIMA, that the final review of our application is imminent. This review may have requests for changes to our mine plan. The Company will have time to review and react to these requests. Once this is settled SECIMA and the MP meet to decide when to hold the required Public Audience. This audience presents the project to the community for input and comment. Soon after the Public Audience the LP is granted. It is reasonable to expect that all this will be completed during the first quarter of 2016.
Buddy Doyle commented further, "The Company has been focused on the permitting process for some time and it has required patience. The MP review mentioned in this news release has caused some of the delay. Also the fact that we are one of the first mines in Goias to be permitted in a new Environmental Act (2012) has slowed things. Our consultants, lawyers, staff and advisors, have been on a learning curve on how to navigate the new act. We believe that having an open pit, low cost mine development, next to a highway, that is permitted, will create a new and exciting value proposition for our shareholders. This goal just became one large step closer."
About Amarillo Gold Corp.
Amarillo Gold Corp. is focused on acquisition, discovery, and definition of gold resources in Brazil. It is the company's policy to strive to do this in sustainable safe way, using best practices whilst benefiting our shareholders and the communities we work in. The Company's principal projects are the Mara Rosa Project in the state of Goias, and the Lavras do Sul Project in the state of Rio Grande do Sul. The Posse Deposit at Mara Rosa contains 1,174,900 ounces of measured and indicated gold contained in 20.85 MT at 1.75 g/t Au, and 156,400 ounces of gold inferred from 3.63 MT at 1.38 g/t Au (0.5 g/t cut-off grade) (NI 43-101 compliant resource as independently determined by Australian Exploration Field Services Pty. AEFS). The Mara Rosa Gold Project has received a positive economic assessment from a Pre-feasibility study and are proceeding to get the project permitted. The Posse Deposit was successfully mined by Western Mining Company (WMC) during the 1990s (mined areas are excluded from the above-stated resource figures), and is located in an area of excellent infrastructure: approximately 35 km NE of Yamana's Chapada open pit Cu-Au operation, some 80 km NE of Yamana's Pilar Au project (in Feasibility), 95 km NW of Votarintim's Niquelandia Ni laterite mine, 105 km from NE of Serra Grande's underground Au mine, and 105 km NNW of Anglo American's Ni laterite project at Barro Alto.
The Lavras do Sul Project is an advanced exploration stage property (190 sq. km.) comprising more than 19 prospects centred on historic gold workings, with encouraging gold mineralization discovered and defined by more than 16,000 metres of drilling. The initial resource estimate at the Butia prospect reported 215,000 ounces of gold indicated from 6.4 MT at 1.05 g/t Au, and 308,000 ounces of gold inferred from 12.9 MT at 0.74 g/t Au using a0.3 g/t cut-off grade in a NI 43-101 compliant resource as independently determined by Atticus Consulting 2010. Lavras do Sul is also located near excellent infrastructure. The Company also has a portfolio of earlier stage projects and all properties under Amarillo's management are located in areas of good infrastructure and mining-friendly communities.
ON BEHALF OF THE BOARD OF DIRECTORS
AMARILLO GOLD CORP.
Buddy Doyle, President
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
FORWARD LOOKING STATEMENTS:
This news release contains Forward Looking Statements regarding our intentions and plans. Forward looking statements in this news release include the expected timing and issuing of the LP. Various factors may prevent or delay our plans, including but not limited to, the lenders not advancing funds as required, contractor availability and performance, weather, access, mineral prices and success and failure of the exploration and development carried out at various stages of the program. Permission from the Government and community is also required to proceed with future mining production. We may not be able to fulfill our obligations under the proposed gold loan and we may be unable to raise sufficient financing to carry out our plans. Readers should review risk factors applicable to junior mining exploration companies generally to understand the variety of risks that can affect the Company. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements whether as a result of new information or future events or otherwise, except as may be required by law.