Taking a quick look at a mining company which has been in the news recently.
Amarillo Gold Corp is a Toronto-based gold mining company. They are currently developing two projects in Brazil. An open pit gold resource of 1.27Moz g/t – Mara Rosa, and an advanced exploration project of more than 22 prospects called Lavras do Sul.
Mara Rosa
The Mara Rosa Project is a greenstone belt, shear hosted meso-thermal gold mineralized system of Neo-Proterozoic age located near the village of Mara Rosa in the state of Goias.
- A September 2018 pre-feasibility study using a gold price of £1300,modelled 24m tonnes of reserves at 1.42 g/t for 1.1M ozs.
- A 15,000m drilling programme was completed in February 2019.
- Applying for License to Install which is expected mid 2019.
- Expected to be shovel ready in 2020.
- The project encompasses aproximately 60,000 hectares of exploration permits and 2,600 hectares of mining permits.
- Geological, aeromagnetic and ternary radiometric maps illustrate the litho-structural setting host to several existing and historical gold mines across the land package.
- Several gold soil anomalies along strike from existing and historical gold mines across the land package.
Lavras do Sol Project
- The project encompasses some 19,000 hectares of exploration permits and private mineral holdings.
- 100 km perimeter trend along granite intrusion 11 km in diameter host to over 22 gold targets
- Soil sampling and geological mapping on 22K hectares of exploration concessions ongoing
- Completed an airborne magnetic survey on Butiá, Caneleira and Matilde targets in December 2018
- Initiating an environmental baseline study at Butiá property for application for mining concession
- 3K meter drilling program planned for Butiá, Caneleira, Matilde and Valdo Teixeira in 2019
Corporate
The company recently overhauled their board, so a more experienced team is now in place.
The shareholder structure is well-balanced, with the board and management holding 9%, institutional investors on 54% and high net worth on 17%
What we like about Amarillo Gold
They are due to close a first tranche of a private placement for $5.1 million to fund the next stage of their projects.
The plan – being focussed on the Mara Rosa project, then to use cash flow from that project to develop Lavras do Sul.
They’re well placed to take advantage of a strengthening gold price as they bring their Mara Rosa project up to production.
Their share price seems very low when compared to their peers.
Find out more at https://www.amarillogold.com
