Amazon Provides Madeira Gold Project Exploration Update



    
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    THE UNITED STATES/
    

    TORONTO, Oct. 22 /CNW/ - Amazon Mining Holding Plc (TSX-V symbol: "AMZ")
("Amazon" or the "Company") is pleased to report that it has materially
increased its title permit areas held at the Madeira Gold Project ("Madeira")
located in the Rondonia and Amazonas states of Brazil. The Company has
received encouraging field exploration results and has increased its
exploration concession to 332,011 hectares from 202,568 hectares (see figure 1
at http://files.newswire.ca/760/Amazon_Madeira.pdf).
    Early stage exploratory ground field work has identified gold bearing
conglomerates in a farmland region located away from the Madeira River where
historic multi-million ounce gold production occurred between 1975 and 1995.
As part of the Company's Madeira work program, geologists targeted the
delineation of a medium grained conglomerate (known as "Mocururu"), in an area
located hundreds of metres away from the Madeira River. Samples taken from
water bore-holes confirmed the presence of the Mocururu and importantly that
the structure was gold bearing. In addition, gold mineralization was also
encountered in the coarse-grained sandy stratigraphic layers occurring above
and below the Mocururu. Historically, buried conglomerate structures exposed
by the Madeira River provided for reported gold production of over 1.6 million
ounces.
    The water bore-holes, located 1,154 metres apart, were drilled to the
north of Humaita to approximate depths of 30 metre. Pan concentrates of
2 litres of material from every 1 metre interval of bore-hole interval were
prepared, and panning of this material produced fine grained gold over a 5 to
6 metre zone. The gold bearing zones begin at approximately 20 metres below
surface. The Mocururu in this area is 40cm thick. Gold was also recovered from
the coarse grained sand layers that occur above and below the Mocururu.
    Amazon plans to continue to use well drilling equipment to cost
effectively determine the extent and nature of the mineralization at Madeira.
The method has been successful and can be utilized at up to one-tenth the cost
of conventional diamond core drilling. In subsequent work the Company expects
to be able to determine grade content for identified structures.
    Mr. Cristiano Veloso, Amazon's President and CEO commented, "We are very
pleased with the initial results at Madeira. The program to date is
encouraging and will provide project exploration advances in a very cost
effective manner."

    Background

    To date, exploration on the property has consisted of the processing and
analyzing of remote sensing data to define shallow paleo-channels or
depressions that could be favourable for hosting gold deposition. The results
reported in this press release did not occur within any of the previously
identified paleo-channels or depressions. If further exploration on the
Company's sizeable land package continues to show significant gold rich
horizons away from the paleo-channels or depressions exposed by the Madeira
River, then there is potential for multiple shallow high grade gold deposits
amenable to open pit mining.
    Amazon's interpretation of the geological setting is that the Mocururu
mineralization is a result of the transport and deposition of gold and heavy
minerals that were eroded during the uplift of the Bolivian Andes. Given the
abundance of identified gold deposits in the Andean cachement feeding this
basin, the Company believes it controls a highly prospective area. The initial
results are the first clear indication that gold mineralization extends beyond
the immediate vicinity of the Madeira River.

    Going Forward

    Amazon has budgeted $500,000 for the Madeira project to be spent over the
next 12 months. Low cost drilling techniques and very shallow holes should
allow for a large amount of data to be generated cheaply and relatively
quickly. The Company's cash position remains in excess of C$9.0MM. In light of
current market conditions Amazon has taken strong measures with its portfolio
to preserve cash. Amazon is engaged in creating shareholder value through
diligently assessing opportunities in mineral exploration and development.

    Competent Person

    As required by Canadian National Instrument 43-101, Amazon's designated
qualified person required for review of the technical and scientific
information herein contained is Dr. Joao Batista G. Teixeira, Chief
Geoscientist of the Company.

    On behalf of the Board of Directors of Amazon Mining Holding Plc,

    Cristiano Veloso, President & Chief Executive Officer
    -----------------------------------------------------

    To view figures 1 and 2 please see
http://files.newswire.ca/760/Amazon_Madeira.pdf

    
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    Cautionary Language and Forward Looking Statements
    --------------------------------------------------
    THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY
    OR ACCURACY OF THIS RELEASE AND THE INFORMATION CONTAINED HEREIN. THIS
    PRESS RELEASE CONTAINS CERTAIN "FORWARD LOOKING STATEMENTS", WHICH
    INCLUDE BUT IS NOT LIMITED TO, STATEMENTS WITH RESPECT TO THE FUTURE
    FINANCIAL OR OPERATING PERFORMANCE OF THE COMPANY, ITS SUBSIDIARIES AND
    ITS PROJECTS, STATEMENTS REGARDING USE OF PROCEEDS, EXPLORATION
    PROSPECTS, IDENTIFICATION OF MINERAL RESERVES, COSTS OF AND CAPITAL FOR
    EXPLORATION PROJECTS, EXPLORATION EXPENDITURES, TIMING OF FUTURE
    EXPLORATION AND PERMITTING, REQUIREMENTS FOR ADDITIONAL CAPITAL,
    GOVERNMENT REGULATIONS OF MINING OPERATIONS, ENVIRONMENTAL RISKS,
    RECLAMATION EXPENSES, TITLE DISPUTES OR CLAIMS, AND LIMITATIONS OF
    INSURANCE COVERAGE. FORWARD LOOKING STATEMENTS CAN GENERALLY BE
    IDENTIFIED BY THE USE OF WORDS SUCH AS "PLANS", "EXPECTS", OR "DOES NOT
    EXPECT" OR "IS EXPECTED", "ANTICIPATES" OR "DOES NOT ANTICIPATE", OR
    "BELIEVES", "INTENDS", "FORECASTS", "BUDGET", "SCHEDULED", "ESTIMATES" OR
    VARIATIONS OF SUCH WORDS OR PHRASES OR STATE THAT CERTAIN ACTIONS, EVENT,
    OR RESULTS "MAY", "COULD", "WOULD", "MIGHT", OR "WILL BE TAKEN", "OCCUR"
    OR "BE ACHIEVED". FORWARD LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN
    RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE THE ACTUAL
    RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY
    DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED
    OR IMPLIED BY SAID STATEMENTS. THERE CAN BE NO ASSURANCES THAT FORWARD-
    LOOKING STATEMENTS WILL PROVE TO BE ACCURATE, AS ACTUAL RESULTS AND
    FUTURE EVENTS COULD DIFFER MATERIALLY FROM THOSE ANTICIPATED IN SAID
    STATEMENTS. ACCORDINGLY, READERS SHOULD NOT PLACE UNDUE RELIANCE ON
    FORWARD-LOOKING STATEMENTS.

    Readers are cautioned not to rely solely on the summary of such
    information contained in this release and are directed to the complete
    set of drill results posted on Amazon's website (www.amazonplc.com) and
    filed on SEDAR (www.sedar.com) and any future amendments to such. Readers
    are also directed to the cautionary notices and disclaimers contained
    herein.
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For further information:

For further information: Cristiano Veloso, President & Chief Executive
Officer, Tel: +44 (0) 20 8133 7607, Fax: +44(0)20 7405 7773, Email:
cv@amazonplc.com OR Jed Richardson, VP Corporate Development, Tel: (416)
866-2966, Fax: (416) 866-8829, Email: jed@amazonplc.com, www.amazonplc.com

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