About
Amarillo Gold Corp. is a company focused on the acquisition, definition and discovery of gold resources in Brazil. Our foundation is the gold resource present on the Mara Rosa project. The Lavras do Sul project is an advanced exploration project. Numerous old gold workings exist here. So far we have tested 5 out of the 19 known prospects and 4 of them have had gold. We plan to crystallize some of this success this year by presenting an interim 43-101 estimate of the resource we have drilled to date and to continue drilling. We also have a healthy portfolio of less advanced exploration projects. What makes Amarillo stand out from our peers is that all of our projects are located in great infrastructure, near roads, labour force, power and communications. This will make development easier.
Why Meet Amarillo Gold ?Amarillo hired anew Management team; raised $5.2M in March 2018; eliminated a nasty gold loan and are now debt free.
After extensive Due Diligence, Royal Gold gave us a US$10.8M NSR - which validates our project in our view. Mackie initiated coverage with an $0.80 TP. Jay Taylor and Mark Turner also follows us.
Restarted operations after a 6 year hiatus. 6 drills turning on the Mara Rosa project AGC is currently working on updating the resource est. for Feb.
Reasons why I believe we are at the inflection point. New management has a solid plan and is executing to extract value.
Two Robust assets displaying an extremely compelling valuations:
Mara Rosa Project (in a mining friendly town), delivers stunning economics: At $1200 Gold, the A/T IRR is 42%; 2.8 year payback; the P/NAV ~.09x; AISC ~$655/oz and NPV is US$194M.
Avg. Production: ~140,000 oz the first 4 years or 124,000 oz/ yr over the LOM. Gold reserves are currently 1M oz + 550,000 oz. in resources @ 1.6 gpt. Some suggest a 50% increase along the trend. Drill results and resource update in late January should boost interest.
AGC has their main permit - the social & environmental permit - & now working on the construction permit.
Highlights:
Immense support from the Locals and Federals. New President in Brazil expected to expedite projects.
Mara Rosa is a brownfield project in a mining friendly town 35km from the Yamana’s Chapada mine. Mining work force is currently available.
Lavros do Sul project: potential game changer/major catalyst - intercepts include: 120m @ 3.23 g/t and 232 m @ 1.95 g/t
We expect investors will return to the stock once they see the excellent value proposition with a new team with expertise never witnessed for this extremely undervalued asset!
New CEO: Mr. Mutchler, a 5th generation miner began is career at Homestake: 20 years at Asarco; was a partner with Whittle ; the COO for Rainy River’s gold project; the COO for Largo Resources, in Brazil; worked at the Paracatu Mine in Brazil for Kinross in Brazil. Mike is a Mining Eng., an MBA , a Juris Doctorate Degree & a Chartered Director Certificate.
Strong insider buying by the Board and the CEO.
