License To Install For The Posse Gold Mine

TORONTO - State regulators have approved the Posse Gold Mine for Amarillo Gold Corporation after receiving the License to Install (LI) for its project on the Mara Rosa Property in Goias, Brazil. The license permits the company to start construction. “Amarillo is one step closer to becoming a gold producer,” said Mike Mutchler, Chief Executive Officer. “I’d like to thank the state’s environmental department, the Mara Rosa community, and our dedicated team in Brazil led by Country Manager Arao Portugal for all their hard work and support in achieving this important milestone.”

The LI is awarded by the Secretaria de Estado de Meio Ambiente e Desenvolvimento Sustentavel do Estado de Goias, the state’s environmental authority. The LI was delivered 10 days after the state’s governor announced his support for the project at a public meeting on mining investments in Goias, and a week after Amarillo signed an agreement to build a dedicated power line from Porangatu to Mara Rosa.

The Posse Gold Project is located on the company’s Mara Rosa Property in Goias State, Brazil. It will be built into an open pit mine and carbon-in-leach operation with dry stack tailings. A definitive feasibility study released in June 2020 showed that Posse will produce gold at an all-in sustaining cost of US$656 per ounce, based on a gold price per ounce of US$1,730 and a foreign exchange rate of 5.3 BRL to 1 USD. Posse has an initial mine life of 10 years, initial gold production of 104,000 ounces per year, and an after-tax net present value 5% of US$360 million.

The development stage Posse Gold Project is on its Mara Rosa Property in Goias State. It has a 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 22 prospects centered on historic gold workings.