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Amarillo Gold resubmits preliminary environmental license for Mara Rosa

Last updated: 14:40 18 Feb 2014 EST, First published: 15:40 18 Feb 2014 EST

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Amarillo Gold Corp. (CVE:AGC) said Tuesday it filed a renewed application for a preliminary environmental license (LP) for its proposed gold mine in Brazil, and is hopeful that the public hearing requirement for the document will take place in June.

The license is expected to be granted shortly after the public hearing, the company told investors earlier this afternoon, with the license a major step toward the financing and construction of the mine.

 "Obtaining the LP for the Mara Rosa project is currently the main focus of the company as we see this as the best and most econmic way to move forward in these harsh market conditions," said president and CEO Buddy Doyle. 

"All other activities have been curtailed and staffing has been reduced and optimized to meet this task. Markets do not stay down forever and by having a permitted project we place the company well to take the best advantage of a recovery to finance and begin construction, it would also aid in the sale of the company should that become a preferred option."

Shares fell more than 27% on Tuesday, to 16 Canadian cents, opening the session at 22 cents. 

Amarillo originally filed for a preliminary environmental license in May 2012, but the licensing process was delayed when government regulators requested a review of the impact of the historic mining at the Posse deposit. The company has since concluded this review, and has also used the time to update and resubmit the application.

The newest report also highlighted new wet humidity cell tests on the proposed waste rock from the planned project, which also showed no acid drainage, the junior explorer said.

The environmental licensing procedure in Brazil is made up of three stages, with the preliminary license the most important in that it lays down the basic framework for the new mine, including all major installations.

Once the company receives an installation license, it can initiate construction of the plant . The last license, the operating license, is granted when the plant has been completed and after a final check by the authorities to verify that the mine has been constructed as previously agreed and that all environmental conditions have been met.

The Mara Rosa project is progressing to the bankable feasibility study stage, and should the company's timeline go as planned, mining could potentially begin by 2015.

Amarillo Gold to be acquired by Hochschild Mining PLC

Amarillo Gold CEO Mike Mutchler joined Steve Darling from Proactive to share news Amarillo Gold Corporation (TSX-V:AGC, OTCQB:AGCBF) has entered into an agreement with Hochschild Mining PLC (LSE:HOC, OTCQX:HCHDF) to acquire all of the outstanding shares of Amarillo in exchange for cash...

on 30/11/21