Amarillo Files Updated Pre-Feasibility Report, Mara Rosa Project

Amarillo Gold Corp. (TSX VENTURE:AGC) (“Amarillo” or the “Company”), is pleased to announce that it has filed the updated Pre-feasibility (“PFS” or “Study”) report for the Posse gold deposit within its 100% owned Mara Rosa project (the “Project”), Goias, Brazil on SEDAR.
As quoted in the press release:

Highlights:

• Post-tax internal rate of return (IRR) of 35.2%, post-tax net present value (NPV5) of US$178M, and post-tax project payback of 2.2 years based on a gold price of US$1,200 per troy ounce and a USD/BRL exchange rate of 3.20
• Average annual gold production estimated at 140,000 ounces over first 4 years, average life of mine (LOM) production 112,000 ounces per year over 8 years, and total production of 892,000 ounces
• LOM cash operating cost of US$545/oz Au, and all-in sustaining costs (AISC) of US$627/oz Au*
• The updated PFS provides an ore reserves statement of 9.27MT Proven, @ 1.81 g/t Au, 540,567 troy ounces and 9.74MT Probable @ 1.46 g/t Au, 456,968 troy ounces at a 0.38 g/t cut-off, for total reserves of 19.01 MT @ 1.63 g/t Au, 997,536 troy ounces of Proven plus Probable that fall within the open pit design based on $US1200/ounce gold price

* AISC: Total Cash Costs + Royalties + Transportation & Refining + Sustaining Capital + Closure + Corporate G &A

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