TORONTO, Feb. 04, 2022 www.Amarillogold.com -- Amarillo Gold Corporation (TSXV: AGC, OTCQB: AGCBF) announces the filing of an independent technical report according to National Instrument 43-101 – Standards of Disclosure for Mineral Projects (NI 43-101) on the Butiá Gold Prospect.

The report, called NI 43-101 Technical Report Mineral Resource for Butiá Gold Prospect, is dated and effective January 25, 2022. It was prepared by VMG Consultoria e Soluções Ltda. for Lavras Gold Corp. and is available on SEDAR (www.sedar.com) under Amarillo Gold’s issuer profile.

Butiá is one of 23 gold prospects on the Lavras do Sul Property and located 4 kilometres west of the town of Lavras do Sul, in the state of Rio Grande do Sul, southern Brazil. In general, the main characteristics of gold mineralization in the Butiá Prospect are:

Structurally controlled gold mineralization hosted within hydrothermally altered micro-brecciated sericite granite.

The gold mineralization is disseminated occurring over large thicknesses and associated with fluids of alkaline affinity. Mineralogical associations include sericite, albite, chlorite, jarosite, calcite, pyrite, galena, and sphalerite.

Mineralization begins at surface and extends to a depth of up to 300 metres. The width of the gold mineralized zones typically varies from 15 to 20 metres.
Mineral Resource Estimate for the Butiá Gold Prospect

The gold resources for the Butiá Prospect are based on a block model interpolated by the Ordinary Kriging method. A 0.3 grams per tonne (g/t) gold cutoff grade is assumed. This estimate should be read in conjunction with the full report.

TABLE: MINERAL RESOURCE ESTIMATE FOR BUTIA GOLD PROSPECT

Class Type Tonnes Gold (grams per tonne) Gold ounces
Measured Saprolite 138,210 0.65 2,906
Hard rock 4,504,865 0.89 128,623
Indicated Saprolite 248,219 0.95 7,568
Hard rock 8,025,529 0.92 238,207
Inferred Saprolite 59,663 1.32 2,526
Hard rock 3,616,339 0.96 112,115
Notes

Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resources estimated will be converted into mineral reserves
Assumes a gold cut-off grade of 0.3 g/t
Numbers may not sum due to rounding
The qualified person for the resource estimate is Volodymyr Myadzel of VMG Consultoria e Soluções Ltda.
About the estimate

Dr. Volodymyr Myadzel, who is independent of Amarillo, is responsible for the resource estimation. The data for the Mineral Resource estimate were generated using the Micromine software.

Modelling

The block model was generated from the discretization of the three-dimensional solids into blocks of defined dimensions. The process of discretization of the solid included the sub-blocking process. Initially, the model was filled with blocks measuring 10 (X) by 10 (Y) by 10 (Z) metres, which were divided into subunits of smaller size, with a factor for size subdivision of 10 by 10 by 10 in contact with the surrounding three-dimensional solids.

As a result, at the limit with solids, the size of the blocks became 1.0 (X) by 1.0 (Y) by 1.0 (Z) metres. The initial size of the blocks was chosen based on the morphology of the orebodies and the size of the exploration grid at 1/2 of the main grid. This model contains 176,954 blocks.

The solid was used to create a block model within the mineralized geological body. This solid was used to encode the respective blocks. The digital model of the topographic surface was used to limit the block models by the vertical axis. The blocks were generated with faces parallel to the north/south and east/west axes.

Qualified person

Dr. Volodymyr Myadzel of VMG Consultoria e Soluções Ltda., a qualified person as defined by Canadian National Instrument 43-101, has reviewed and approved the scientific and technical information contained in this release.

ABOUT AMARILLO

Amarillo is advancing two gold projects located near excellent infrastructure in mining-friendly states in Brazil. The development stage Posse Gold Project is on the Company’s Mara Rosa Property in Goiás State. It has a positive definitive feasibility study that shows it can be built into a profitable operation with low costs and a strong financial return. Mara Rosa also shows the potential for discovering additional near-surface deposits that will extend Posse’s mine life beyond its initial 10 years. The exploration stage Lavras do Sul Project in Rio Grande do Sul State has more than 23 prospects centered on historic gold workings.

On November 29, 2021, Amarillo announced a Plan of Arrangement with Hochschild Mining whereby Hochschild will acquire all the outstanding shares of Amarillo by way of a plan of arrangement under the Business Corporations Act (British Columbia). Pursuant to the proposed Arrangement, each share of Amarillo will be exchanged for cash consideration of C$0.40 and one share of a new Brazil-focused exploration company, Lavras Gold Corp., based in Toronto, Ontario. Learn more about the transaction at Amarillo’s website, www.amarillogold.com