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Amarillo Gold Corporation (AGC.V)

TSXV - TSXV Real Time Price. Currency in CAD
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0.2750+0.0050 (+1.85%)
At close: 3:44PM EDT
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Previous Close0.2700
Open0.2700
Bid0.2750 x 0
Ask0.2800 x 0
Day's Range0.2700 - 0.2750
52 Week Range0.1800 - 0.4200
Volume100,091
Avg. Volume108,106
Market Cap105.07M
Beta (5Y Monthly)1.54
PE Ratio (TTM)N/A
EPS (TTM)-0.0150
Earnings DateFeb. 26, 2021
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target EstN/A
  • Amarillo Launches 2021 Exploration Program at Mara Rosa
    GlobeNewswire

    Amarillo Launches 2021 Exploration Program at Mara Rosa

    FIGURE 1 LOCATION OF PASTINHO, ESTRELA, AND SPETI FIGURE 2 LOCATION OF FILO AND SORONGO – CENTRAL BELT (ZACARIAS TREND) EXTENSION NORTH FIGURE 3 SURFACE TRENCHING AND SHALLOW AUGER DRILLING TORONTO, April 12, 2021 (GLOBE NEWSWIRE) -- Drills are turning again at Amarillo Gold Corporation’s (TSXV: AGC, OTCQB: AGCBF) Mara Rosa Property in the State of Goiás, Brazil. Amarillo is following up on the successes of its 2020 exploration program, which defined gold mineralization up to 1.5 kilometres in strike length, approximately 3.5 kilometres northeast of its flagship Posse Gold Project. A total of 8,500 metres will be drilled, including 6,500 metres of diamond drilling and 2,000 metres of reverse circulation drilling, on four target areas close to the Posse Gold Deposit. Posse hosts proven and probable reserves of 902,000 gold ounces, as detailed in the Amended and Restated NI 43-101 Technical Report Definitive Feasibility Study Posse Gold Project, Brazil. Dated August 3, 2020, the report was compiled by SRK Consultores do Brasil Ltda with input from other engineering companies and consultants. “Amarillo’s work in 2020 generated numerous high-quality drill targets within an 8-kilometre radius of Posse, several of which will be drilled for the first time this year,” said Mike Mutchler, Amarillo’s President and Chief Executive Officer. “We’ll focus on defining new zones of mineralization, initially emphasizing the Pastinho target. “Last year, gold soil surveys, surface trenchwork, auger drilling, and limited diamond core drilling at Pastinho defined gold mineralization up to 1.5 kilometres in strike length. A recently completed induced polarization (IP) survey has defined chargeability anomalies that have aided in drill target selection. “The Covid-19 situation in Brazil remains critical and our thoughts and prayers are with the people of Brazil at this time. Mining and exploration remain a crucial function for the Brazilian economy and we are working closely with officials in Mara Rosa city to ensure that our employees, contractors, and neighbours are kept safe by following proper Covid protocols coupled with a rigorous testing program.” Priority 2021 drill targets Drilling is planned at four priority target areas located nearby the Posse Gold Deposit: Pastinho, Estrela, Speti, and Filo and Sorongo. Pastinho, Estrela, and Speti are located along the North Posse Trend (Figure 1), and Filo and Sorongo is located in the Central Belt, about 5 kilometres northwest of Posse (Figure 2). PASTINHO The Pastinho deposit is located approximately 3.5 kilometres north east of Posse on 6,000 hectares of new exploration tenements that Amarillo gained access to in December 2019. Limited drilling in 2020 defined a gold mineralized structure approximately 800 to 900 metres long oriented in a northeast-southwest direction along the same structural trend as the Posse Gold Deposit. The apparent thickness varies from 10 to 20 metres and dips about 60 degrees northwest. Follow up surface trenching and shallow auger drilling extended the strike length of mineralization to about 1.5 kilometres (Figure 3). As previously disclosed, selected near surface drillhole intercepts include: 18.7 metres grading 0.84 g/t gold11.0 metres grading 0.74 g/t gold7.6 metres grading 1.45 g/t gold*. Highlights of previously released surface trenching results include Trench 20TCH009 that returned 17 metres grading 1.46 g/t gold at the farthest northeast extent of the Pastinho deposit. The planned drilling program will test the northeast strike extent and depth potential of the deposit. Approximately 4,000 metres of diamond drilling is planned at Pastinho in 2021. ESTRELA Estrela is located about 6 kilometres northeast of the Posse Gold Deposit. Amarillo completed a detailed soil survey and shallow auger drilling in late 2020 defining anomalous gold over a strike length of 1.4 kilometres and widths of up to 800 metres (Figure 1). A detailed IP survey is currently underway, and the results should help with drill target selection. Historical work by previous operators highlights the potential of the target. For instance, Mineracao Colorado (BHP) started exploration work on the target in 1983 and completed 74 trenches and sampling in 1986-1987. This was followed by 45 hammer drill holes. Two mineralized zones were reportedly defined up to 8 metres deep with grades of 4.0-5.20 g/t gold*. In 1993, Western Mining Corporation (WMC) is reported to have mined 4,615 tonnes grading 3.5 g/t gold (519 oz)*. Amarillo has budgeted for up to 2,000 metres of diamond drilling at Estrela in 2021. SPETI The Speti target is located 2.2 kilometres northeast of the Posse Gold Deposit and interpreted to be hosted in the same northeast trending gold-bearing structure. Gold mineralization is characterized by strongly deformed and altered quartz-sericite schists hosting up to 1-2% disseminated pyrite. A surface soil gold anomaly has been defined over 400 metres of strike length. Historical drill-testing returned 15 metres grading 0.62 g/t gold from 31.10 metres to 46.0 metres. This drill hole was oriented with an azimuth of 140 degrees and inclined at -70 degrees. The intersection width is estimated to be close to true width. A follow up drilling program in 2020 returned intercepts including: Hole 20P101 intersected 7.5 metres grading 0.77 g/t gold from 175.0 metres to 182.50 metresHole 20P103 returned 2.5 metres grading 1.20 g/t gold from 37.5 metres to 40.0 metresHole 20P111 generated 2 metres grading 1.14 g/t gold from 7.0 metres to 9.0 metres and 9 metres grading 0.47 g/t gold from 70 to 79 metres. Importantly, anomalous gold values bottomed in several holes and require follow-up work to better understand the nature and extent of this mineralization. A ground IP survey was recently completed at Speti, and the results have aided in the selection of drilling targets. Approximately 650 metres of drilling in three drill holes is budgeted at Speti in 2021. FILO AND SORONGO The Filo and Sorongo exploration concessions are located roughly 5 kilometres northwest of the Posse Gold Deposit along the same structure as the Zacarias gold deposit in the Eastern Belt (Figure 2). The Filo garimpo showing is a small shallow pit in oxidized material, with a few small shafts and pits from which some sulphide-bearing quartz veins were extracted. WMC undertook a limited drilling program at Filo that outlined a historical reported resource of approximately 8,000 tonnes grading 2.88 g/t gold*. Some of the better historical drill results included 1.12 g/t gold over 4 metres and 2.11 g/t gold over 2 metres*. WMC reportedly did not drill outside the immediate area of the garimpo pit. Sorongo is a larger garimpo pit compared with Filo, however, the mineralization and geology are similar. Mineralization is associated with a thrust fault and characterized by hydrothermal alteration, and brecciation and sulphide minerals along the sheared structure. Examples of historical drilling include 1.13 g/t gold over 2 metres with anomalous copper values, and 0.52 g/t gold over 1 metre*. Amarillo has completed surface mapping, and sampling at the Filo and Sorongo showings. An initial drilling program consisting of up to 1,000 metres is planned for these targets. * These are historical results obtained from the reports and documents of previous operators and have not been independently verified by Amarillo. Qualified person Michael Durose, P.Geo., Consulting Geologist for Amarillo Gold Corporation and a qualified person ("QP") as defined by Canadian National Instrument 43-101, has reviewed and approved the scientific and technical information contained in this release. Quality assurance and quality control Sample handling, preparation and analysis are monitored through the implementation of formal chain-of-custody procedures and quality assurance/quality control programs designed to follow industry best practices. Trench channel samples were taken at 1 metre intervals and placed in a secure sample bag and submitted to ALS Laboratories Inc. in Goiania, Goiás State, Brazil for preparation by crushing to 70% passing 2.0 mm, riffle splitting to obtain 500 g aliquots, and pulverizing to 85% passing 75 microns. All drillhole samples in this drilling program consist of split NQ diamond drill core. Drillcore is logged and sampled in a secure facility located in Mara Rosa, Goiás State, Brazil. Drillcore samples for gold assay are cut in half using a diamond saw and submitted to ALS Laboratories Inc. in Goiania, Goiás State, Brazil for preparation by crushing to 70% passing 2.0 mm, riffle splitting to obtain 500 g aliquots, and pulverizing to 85% passing 75 microns. Pulps are shipped to ALS Laboratories in Lima, Peru and analyzed by a 30 g fire assay and AAS finish. For assays above 10 ppm gold, a cut of the original pulp was re-assayed with a gravimetric finish. Certified standards, non-certified blanks and field duplicates are inserted into the sample stream at regular intervals, so that QA/QC accounted for about 10% of the total samples. Results are routinely evaluated for accuracy, precision, and contamination. To view FIGURE 1: LOCATION OF PASTINHO, ESTRELA, AND SPETI, please visit the following link: https://www.globenewswire.com/NewsRoom/AttachmentNg/979ffcde-142e-431b-b840-5440ade869fe To view FIGURE 2: LOCATION OF FILO AND SORONGO – CENTRAL BELT (ZACARIAS TREND) EXTENSION NORTH, please visit the following link: https://www.globenewswire.com/NewsRoom/AttachmentNg/41aab4a2-c5d0-4631-8f66-bdf45d865f6a To view FIGURE 3: SURFACE TRENCHING AND SHALLOW AUGER DRILLING, please visit the following link: https://www.globenewswire.com/NewsRoom/AttachmentNg/9caf9537-6f24-4c08-9ed8-a34b1cf0cb46 About Amarillo Amarillo is advancing two gold projects located near excellent infrastructure in mining-friendly states in Brazil. The development stage Posse Gold Project is on the Company’s Mara Rosa Property in Goiás State. It has a positive 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. Amarillo trades on the TSXV under the symbol AGC and the OTCQB under the symbol AGCBF. Visit www.amarillogold.com to learn more about the Company’s focus on becoming a mid-tier Brazilian gold producer. Contact information Mike MutchlerPresident & CEO416-294-0736mike.mutchler@amarillogold.com Annemarie BrissendenInvestor Relations416-844-6284annemarie.brissenden@amarillogold.com NOTES Neither the TSX Venture Exchange nor its Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the content of this news release. FORWARD-LOOKING INFORMATION This news release contains forward-looking statements regarding the Company’s current expectations regarding future events, including its business, operations and condition, and management’s objectives, strategies, beliefs, and intentions. Various factors may prevent or delay its plans, including but not limited to, the trading price of the common shares of the Company, capital market conditions, impacts from the coronavirus or other pandemics, counterparty risk, TSXV approval(s), contractor availability and performance, weather, access, mineral and gold prices, and success and failure of the exploration and development carried out at various stages of the program. Permission from the government and community is also required to proceed with future mining production. Readers should review the Company’s ongoing quarterly and annual filings, as well as any other additional documentation comprising the Company’s public disclosure record, for additional information on risks and uncertainties relating to these forward-looking statements. Readers should also review the risk factors applicable to junior mining exploration companies generally to better understand the variety of risks that can affect the Company. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements whether as a result of new information or future events or otherwise, except as may be required by law. PDF available: http://ml.globenewswire.com/Resource/Download/fa7e5cfb-fcdf-41bd-ba41-b1903f897435

  • A year of progress as Amarillo meets key milestones for Posse Gold Project in 2020
    GlobeNewswire

    A year of progress as Amarillo meets key milestones for Posse Gold Project in 2020

    This news release should be read in conjunction with our consolidated financial statements and management’s discussion and analysis for the year ended December 31, 2020. Both are available at www.amarillogold.com, and under our company profile at www.sedar.com. All monetary amounts are in Canadian dollars unless stated otherwise. TORONTO, Feb. 26, 2021 (GLOBE NEWSWIRE) -- Amarillo Gold Corporation (TSXV: AGC, OTCQB: AGCBF) continued to move toward its goal of becoming a Brazilian gold producer, said the Company today as it announced its financial results for the year and three months ended December 31, 2020. Key achievements included delivering a positive feasibility study, closing a large equity financing, and, crucially, receiving the License to Install for the Posse Gold Project after year end. “I would like to thank our dedicated team for their efforts in securing the License to Install and further advancing the project,” said Mike Mutchler, Amarillo’s Chief Executive Officer. “We’ve met the significant milestones that we needed to meet, and have begun to prepare to break ground on Posse as soon as we finalize the balance of our construction financing.” At the Company’s Mara Rosa Property in the State of Goiás, the main focus was on advancing the Posse Gold Project. After publishing the feasibility study in August 2020, detailed engineering began on the processing plant, infrastructure, and earthworks areas. Orders have been placed for select long lead time equipment, and negotiations have been advanced to purchase mill and filtration plant equipment. Amarillo also signed an agreement to build a 138 kilovolt transmission line from Porangatu to Mara Rosa. The exploration program along the Posse Trend, aimed at finding satellite gold deposits that could increase Posse’s mine life, was also successful. Trenching results showed gold anomalies up to 8 kilometres northeast of Posse, and an induced polarization survey was completed in the fourth quarter. Amarillo secured a large equity stake for a portion of its construction financing for Posse after closing $57.2 million in equity offerings in August. The Company is working on securing the balance under the guidance of Auramet International, its financial adviser. Technical due diligence is ongoing with the goal of attaining successful financing. At Lavras do Sul, the focus was on starting to unlock the district scale potential of this highly prospective property and open a second development front. The Company has identified 22 targets and are following up on the Butia and Matilde targets. At the corporate level, Antenor Silva and David Laing, two mine builders with experience in Brazil, joined the board of directors. Mr. Silva co-founded Yamana Gold, where he was Chief Operating Officer, then President and Chief Operating Officer until his retirement in 2009. He was also a co-founder of MBAC Fertilizer Corp, and served as its Chief Executive Officer until July 2016. He has sat on the boards of several public companies, including Yamana Gold, Colossus Minerals, Oceana Gold, and Valdiam Resources. David Laing is a mining executive with 40 years of experience in mining operations, mine construction, mining finance, corporate development, and company building. He was most recently the Chief Operating Officer of Equinox Gold, where he led the rebuilding of the Aurizona Project in Brazil, a feasibility study on the restart of the Castle Mountain Mine in California, and the acquisition of the Mesquite Gold mine, also in California. He sits on the boards of Fortuna Silver Mines, Inc., Northern Dynasty Minerals Inc., Aton Resources, and Blackrock Gold Corp. While Brazil has been hit hard by Covid-19, the Company has been very fortunate. Neither of its operations have been affected by the pandemic, and the Company has full access to its properties. In Canada, Amarillo’s Toronto-based management team has been working from home since mid March 2020. So far, Covid-19 has not had a material impact on the Company’s financial condition or its performance. FINANCIAL RESULTS The following table summarizes the Company’s major operating expense categories for the fourth quarter of 2020 (Q4 2020) and 2019 (Q4 2019) and for the years ended December 31, 2020 and 2019. Three months endedYears ended December 31December 31 2020 2019 2020 2019 Category $ $ $ $ General and administrative (G&A) Consulting 160,831 40,153 371,223 323,434 Professional 171,401 224,921 713,288 856,267 Salaries and benefits 142,401 172,478 667,522 698,986 Directors’ fees 50,156 52,500 207,656 172,500 Marketing and promotion 27,522 60,852 107,417 314,507 Filing and transfer agent 66,327 16,953 135,904 78,509 Travel 63 12,964 9,688 41,304 Other G&A 53,606 71,013 194,610 260,285 Total G&A 672,307 651,834 2,407,308 2,745,792 Recovery of legal fees from WPC – – (187,000)– Stock-based compensation 1,342,867 18,168 1,342,867 1,004,270 Financial advisory services 467,676 36,000 540,965 36,000 Foreign exchange loss/(gain) 50,641 107,701 (195,284)153,489 Interest income (50,295)– (50,295)– Interest and finance charges (18,204)111,590 11,273 121,041 Gain on debt settlement – (5,417)– (5,417)Net loss and comprehensive loss 2,464,992 919,876 3,869,834 4,055,175 For the year ended December 31, 2020, Amarillo recorded a loss of $3,869,834 (2019: $4,055,175) mostly as a result of the following. Consulting fees of $371,223 in 2020 (2019: $323,434) consisted of: financial and technical advisory services paid to various consultants of $211,441 (2019: $72,881)marketing and investor relations consultants of $149,806 (2019: $182,400)chief exploration geologist $nil (2019: $81,970) who departed in Q3 2019fees in Brazil of $9,976 (2019: $3,148). Professional fees (including legal, audit, accounting and advisory) of $713,288 in 2020 (2019: $856,267) consisted of $251,669 (2019: $392,925) in Canada and $461,619 (2019: $463,342) in Brazil. Salaries and benefits of $667,522 in 2020 (2019: $698,986) consisted of $542,707 (2019: $521,656) in Canada and $124,815 (2019: $177,330) in Brazil. Salaries in Canada relate to the CEO of $300,000 (2019: $300,000) and the CFO of $200,000 (2019: $200,000) plus government benefits. Salaries in Brazil declined due to the weakening of the Brazilian real versus the Canadian dollar. Directors’ fees in 2020 were $207,656 (2019: $172,500). Directors other than the CEO are compensated an annual fee of $35,000, which was increased from $20,000 per annum effective October 1, 2019. Five directors earned fees of $5,000 each per quarter in 2019 plus an additional $72,000 for one of the directors. In 2020, there were six directors who each earned $8,750 per quarter. Marketing and promotion of $107,417 in 2020 (2019: $314,507) declined due to less trade shows and travel mostly related to the Covid-19 restrictions. Filing and transfer agent fees of $135,904 in 2020 (2019: $78,509) increased in 2020 compared to 2019 due to the increase in shares as a result of the August 2020 issuance of shares. Other general and administrative expenses of $194,610 in 2020 (2019: $260,285) include $123,236 (2019: $215,569) related to operations in Brazil, and $71,374 (2019: $44,716) related to operations in Canada. Brazil expenses declined due to the weakening of the Brazilian real versus the Canadian dollar. Canadian expenses increased due to an increase in website, communications, and data room maintenance. Stock-based compensation of $1,342,867 (2019: $1,004,270) related to: an expense of $1,070,960 (2019: $871,880) from 4,400,000 (2019: 4,600,000) stock option grants that vested immediately out of a granted total of 7,930,000 (2019: 5,000,000).the remaining 3,530,000 options granted in 2020 vest over a three-year period with an amortized expense of $271,907. The additional expense of $132,390 in 2019 resulted from the amortization of 2,000,000 stock options granted in Q1 2018 that vest over a two-year period. Financial advisory fees of $540,965 (2019: $36,000) related to fees paid for financial advisory services in search of construction financing for the Posse Project. Fees were paid in 2019 and 2020, as Amarillo continued to retain the financial advisor. In addition, after attracting an interested lender, the Company incurred additional fees for technical due diligence and independent technical engineering oversight. Amarillo also incurred fees related to starting a project execution plan in anticipation of successfully completing the construction financing and breaking ground once a construction decision is made. Foreign exchange losses and gains relate mostly to the ANM liability for all periods and to the WPC receivable to pay for this liability, which was recorded for the first time in Q2 2020. Both items are recorded in Brazilian reais. Interest income of $50,295 (2019: $nil) is due to cash on hand following the August 2020 financing that raised net cash of $55.1 million. Cash on hand at December 31, 2020 was $52.4 million, most of which is invested in short term savings and investment accounts awaiting deployment for constructing Posse, exploration, and general corporate purposes. ABOUT AMARILLO Amarillo is advancing two gold projects located near excellent infrastructure in mining-friendly states in Brazil. The development stage Posse Gold Project is on the Company’s Mara Rosa Property in Goiás State. It has a positive 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. Amarillo trades on the TSXV under the symbol AGC and the OTCQB under the symbol AGCBF. Visit www.amarillogold.com to learn more about the Company’s focus on becoming a mid-tier Brazilian gold producer. CONTACT INFORMATION Mike MutchlerPresident & CEO416-294-0736mike.mutchler@amarillogold.com Annemarie BrissendenInvestor Relations416-844-6284annemarie.brissenden@amarillogold.com NOTES Neither the TSX Venture Exchange nor its Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the content of this news release. Forward-looking statements This news release contains forward-looking statements regarding the Company’s current expectations regarding future events, including its business, operations and condition, and management’s objectives, strategies, beliefs and intentions. Various factors may prevent or delay our plans, including but not limited to, the trading price of the common shares of the Company, capital market conditions, impacts from the coronavirus or other epidemics, counterparty risk, TSXV approval(s), contractor availability and performance, weather, access, mineral and gold prices, and success and failure of the exploration and development carried out at various stages of the program. Permission from the government and community is also required to proceed with future mining production. Readers should review the Company’s ongoing quarterly and annual filings, as well as any other additional documentation comprising the Company’s public disclosure record, for additional information on risks and uncertainties relating to these forward-looking statements. Readers should also review the risk factors applicable to junior mining exploration companies generally to better understand the variety of risks that can affect the Company. The Company undertakes no obligation to update publicly or otherwise revise any Forward-looking statements whether as a result of new information or future events or otherwise, except as may be required by law. PDF available: http://ml.globenewswire.com/Resource/Download/c852719a-e97b-4ad9-88a6-664b5ad67d9a

  • Here's Why We're Not Too Worried About Amarillo Gold's (CVE:AGC) Cash Burn Situation
    Simply Wall St.

    Here's Why We're Not Too Worried About Amarillo Gold's (CVE:AGC) Cash Burn Situation

    Even when a business is losing money, it's possible for shareholders to make money if they buy a good business at the...