RE:Most Signifucant StatementAppreciate the anaysis Nozzpack. Im still trying to wrap my head around the data. The news is what I expected and it is still early days. It appears that they have only stepped out 70 meters from the discouvery hole which is a bit surprising for me.
A pleasent surprise was to find out they were able to hit mineralization from surface which is very encouraging that their are now 2 areas, 1 each at Butia & FDP, where there is no overburden and the digging of the pit can go directly to a mill and that the deposit has long intersections starting at surface that is continously mineralized . This is a very positive for immediate cash flow once the mill is built.
The NE treanding structures was not a surprise to me and the confirmation of this fact extremely encouraging as you have suggested. I hope you are correct that the fault is the controlling structure. If they can follow this all the way to Canalaria and Orlaria, then we would have a monster deposit on our hands.
The mineralization at Canalaria and Orlaria is different for host rock (I think) but I will need to go back and look at old Amarilo news releases to see if they can be interpreted as related in any way.
Every time the market sees a press release from LGC, it is initially interpretted negatively by Mr Market. It seems that Mr Market likes high grade veins and is disappointed by lower grade bulk deposits. But in reality it is the bulk deposits with higher grade sections that are the most profitable mines and have the longest mine life. Continuos grading mill feed is wonderful for an open pit!
Lavras has many targets and each time they drill they confirm additional ounces in continous grading ore. They have so many targets based on artisanal mining that a major (Kinross et al) will recognize that Lavras owns an entire mining district
The property likely has 2 million ounces at FDP & Butia. It is drilling Canalaria and Orlaria and hinting that FDP & Butia are on the SW to NE trend and plunging to the NW.
The high grade core (59 m @ 2.9 gm/t) is associated with ddisseminated sulphides including galena & pyrite is within the NE trending structure.
Going back to a 2007 release from Amarillo is a Dec 2007 release on Caneleira... Amarillo Gold Corp. (“Amarillo” or the “Company”), reports on the discovery of a new gold zone on the Caneleira prospect at its Lavras do Sul Project in the state of Rio Grande do Sul, Brazil. The five holes drilled and assayed to date on Caneleira have uncovered broad, low grade gold mineralization spanning almost 400m of strike length. Furthermore, the mineralization on the prospect has been continuously mapped as an alteration zone for 1km and may be apparent as 2.5km linear zone interpreted from the airborne magnetics. Assays are pending for an additional four holes and the drill remains active on the prospect. The Lavras granite complex hosts numerous areas of historic diggings and small mine workings that were the subject of gold rushes in the 1880’s and 1930’s. Gold mineralization had been drill- confirmed in the 1980’s at Cerrito and Buti, where it was found to be hosted in structurally controlled alteration zones with sericite and pyrite, +/- sheeted quartz veins. None of the other areas of workings and alteration, (at least 12 identified to date), have ever been drill-tested. Amarillo’s approach has been to dilligently surface map these areas and follow-up, where warranted, with a drill program. Since work began on this project, 43 drill holes (6237m) have tested various prospects and targets associated with the Lavras granite intrusive complex.
Caneleira is one of these areas and the results given here signify the 2nd distinct gold zone discovered during the current exploration phase. The Company has to date drilled nine holes at Caneleira totaling 1673m. Assays have been returned for the first 5 drill holes, all of which reported significant gold mineralization. Of note, drill hole LDH-110 intersected 36.1m @ 1.42 g/t. Au (from 70.4m to 106.5m); drill hole LDH-111 intersected 37.0m @ 1.17g/t Au from surface; and drill hole LDH-114 intersected 266m @ 0.35g/t from 8.0m to 276.0m. This intersection consisted of several higher grade zones, including 12.0m of 0.49g/t from 8.0m to 20m in the oxides/transition zone, interspersed by more weakly anomoulous (sub- 0.3g/t) material. A complete summary of results to date from Caneleira are given in Table 1.
Just to broaden the potential of the property. Here is a copy of 2 drill holes previously at Matilde target in 2021 release... Gold mineralization at LDS is hosted within the Lavras granite complex, an intrusive that has a 10-kilometre diameter.
Wide intervals of gold mineralization were intersected from surface in both holes (Table 1):
Hole 20MT_001 intersected 62.53 metres grading 0.62 grams per tonne (g/t) gold from 189.70 metres including 12.77 metres grading 0.89 g/t gold from 191.48 metres and 14 metres grading 1.13 g/t gold from 228.40 metres.
Hole 20MT_002 intersected 144.60 metres grading 0.69 g/t gold from 117.00 metres including 91.60 metres grading 0.87 g/t gold from 170.00 metres and 9.00 metres grading 1.02 g/t gold from 172.00 metres and 27.00 metres grading 1.04 g/t gold from 184.00 metres.
If there is a controlling structure such as a SE NW trending fault (as suggested by Nozzpack) that can be traced 2.5 km toward to Caneleira and Olaria If rocks associated with the structure had hydrothermal replacement as is the case with FDP, Butia, could these be connected to Caneleria, Orlaria with similar replacement during the same event horizon but on a different host rock. Some of the sulphides including pyrite and galena seem to be presnt in both locations and are on trend with a so called SE to NW trending structure.
Im encouraged the more I read about Amarilo history and the current efforts and results by Lavras. I think Mr Market is missing the potential of this property. I remain optomistic.