Company Profile: Amarillo Gold Corp

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    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

    Mara Rosa Posse cross section looking north.

    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.

    Regional Geology
    Great future potential for further exploration steps along 12km trend at Mara Rosa.
    • 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

    Digital elevation in grey, roads in black. Colour image: airborne magnetics showing geology and structure.
    • 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


    Disclaimer
    MiningIR host a variety of articles from a range of sources, our content, while interesting, should not be considered as formal financial advice. Always seek professional guidance and consult a range of sources before investing.