Amarillo Gold's Updated Pre-Feasibility Study at Mara Rosa delivers Post Tax IRR of 35% with a 2.2 year payback @ $1200/oz Au

Amarillo Gold (TSXV:AGC) (“Amarillo” or the “Company”) is pleased to announce the results of an updated Pre-feasibility Study (“PFS” or “Study”) in accordance with National Instrument 43-101 (“NI 43-101”) on the Posse gold deposit within its 100% owned Mara Rosa project located in the state of Goias, central Brazil. Two open cut mining scenarios were investigated in the updated PFS, one where the mining equipment is owner operated, the other where the mining is carried out by contractors. The contract mining scenario was selected as our main base case, primarily due to a significantly lower initial CAPEX and a higher internal rate of return (IRR). A gold price of US$1,200 per troy ounce and a USD/BRL exchange rate of 3.20 were applied in the base case economic model, all currencies are quoted in US dollars unless otherwise specified.
As quoted in the press release:

Buddy Doyle, Amarillo CEO commented: “This updated Pre-feasibility Study firmly establishes superior economics for our Mara Rosa project. The project benefits from being a simple, open pit, proposed mining operation with a rapid after-tax payback period of only 2 years.” He further stated: “Amarillo is pleased to be in the pro-mining state of Goias where we are surrounded by excellent infrastructure and multiple operating mines, the project has already received it’s LP permit and we have a clear road map to obtaining our, LI permit, which gives permission to mine.”

Click here for the full text release