(TheNewswire)
Vancouver, British Columbia – TheNewswire - January 12, 2022 – Radius Gold Inc. (TSXV: RDU)(“Radius” or the “Company”) is pleasedto provide a review of 2021 and an update on the Company’sassets.
2021 Summary
“In 2021, Radius took many important steps towardsadvancing the Company’s assets. Drilling and other explorationwork on Radius’s projects in Mexico and Guatemala deliveredoutstanding results that could prove to be transformational. Ourexploration success has advanced our projects significantly andpositioned Radius to provide significant return for our shareholders. We look forward to continuing that success in 2022,” Radius’sPresident and CEO Bruce Smith stated.
MEXICAN ASSETS
Amalia Project
Radius’s Mexican Amalia project is under a jointventure with Pan America Silver Corp. (PAAS.T). Radius requires nocapital expenditures to advance the Company’s interest in theproject. Pan American Silver can earn a 65% interest in the Amaliaproject by paying Radius US$1.5 million over 48 months. To date theyhave paid US$800,000 with a final payment of US$700,000 due in June2022. Pan American Silver may earn an additional 10% by funding theproject to a pre-feasibility study.
The 10,250 hectare property includes the Amalia,California and El Cuervo major vein systems. Within these major veinsystems are multiple targets, all of which are included in Radius’sconsolidated concessions that extend for more than 10 km of strikelength of the regional fault.
45 drill holes totaling 14,402m have been completed atthe Amalia project. 10,588m in 31 drillholes have been completed onthe Amalia vein system, and 3,814m in 14 drillholes completed in theCalifornia vein system. The drilling initially focused on the SanPedro target and has identified a coherent shoot of high-gradegold-silver mineralization commencing at surface and continuouslydefined 450m down dip.
Drilling has re-started at El Cuervo target after theNew Year’s break, with 3,500m of core drilling expected in thecoming months. Within the greater Amalia project there are manytargets remaining to drill test including: Oro Viejo, La Caverna,California SE, El Durazno and Palmillas.
With the San Pedro zone drill defined and infill andexpansion drilling planned for this year at California, Radius will bein a position to define a significant resource at the Amalia Propertyand is excited by the possibility of new discoveries at multipletargets that remain to be drill tested.
Maricela Project
Radius Gold’s Maricela project is located within aprolifically mineralized mining district, 20km south of the Cananeamine, one of the world's largest open pit copper mines. The Arizona- Sonora porphyry belt is one of the most important centers of coppermineralization worldwide. Silvercrest Metals’ Las Chispasdiscovery is located 50km south of Maricela. Other significant minesnear to Maricela include Santa Elena silver gold mine (First MajesticSilver), Nacozari copper mine (Groupo Mexico), Mercedes gold mine(Equinox Gold), Maria copper mine (Minera Frisco).
At the Maricela project, geologists have mapped andsampled an epithermal silver and gold mineralized vein systemextending approximately 1.5km long by 300m wide, within which occursmultiple veins, stockworks and breccias . Veinintersections have exposed widths of up to 25 meters. Radius hascollected 576 rock chip samples which returned values from belowdetection to highs of 12.75 g/t gold and 3,780 g/t silver and variouscontinuous chip sampling across the structures which include highlightintervals of:
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3m at 4.46 g/t gold and 1,335 g/t silver - Baby GloriaVein
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6m at 1.03 g/t gold and 418 g/t silver - SilverCentral Vein
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25.3m at 0.31 g/t gold and 62 g/t silver -(intersecting veins)
Radius’s geological team believes the recentgeochemical results demonstrate potential for both high gradesilver-gold veins and bulk tonnage lower grade mineralization thatcould be amenable to open pit mining. The multiple intersectingmineralized veins at Maricela make for compelling drill targets thathave never been tested. Radius’s team is currently preparing drillpermits and access agreements for a planned first program thisyear.
Plata Verde Project
The Plata Verde project is located in Chihuahua,Mexico, north of Radius Gold's Amalia Gold-Silver project and east ofthe historic Batopilas silver mining district (1708 to 1920) whichreportedly produced over 300 million ounces of silver from high gradeveins and structures.
In February 2021 Radius published the results of recentgeophysical surveys completed at the Plata Verde silver project. NP/Resistivity sections show significant structural zones extendingto depth directly below the known large scale historic silver mines. The structural zones are clearly connected with the historic minesand are possibly feeder zones for the silver mineralizing system. Radius has now defined two priority targets for drilling.
Radius’s geological team has also completed detailedunderground mapping and sampling of the historic Mina Real and MinaMojonera. Three distinct mineralization styles have been definedwithin the basaltic andesite volcanic host rock. Radius is currentlyevaluating options to fund drilling later this year.
GUATEMALAN ASSETS
Radius’s Guatemalan assets are under a joint ventureagreement with Volcanic Gold Mines Inc. (VG.V), a Gold Group companyled by CEO Simon Ridgway. Radius will have no capital expendituresto advance the Company’s interests in the projects. Volcanic canearn a 60% interest in the Holly and the Banderas projects by spendingthe cumulative amount of US$7.0 million on exploration of theProperties within 48 months from the date of the agreement. Aninitial US$1M must be spent on exploration within the 12 months ofreceiving the required drill permits, which expenditure will include aminimum 3,000m of drilling on the properties. Following the exerciseof the Option, Volcanic will enter into a standard 60/40 Joint Venturein order to further develop the Properties. Volcanic has also beengranted an exclusive right to evaluate all other property interests ofRadius in Guatemala with a right to acquire an interest.
Holly Project
4,744m of diamond drilling has been completed at theHolly project within the last eight months. The next round ofdrilling at Holly will focus on resource definition at La Peña veinsystem which has delivered high-grade and consistent drill results,including recently published:
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HDD-21-017 8.83m @ 8.81 g/t Au and 355 g/tAg (Sep 9, 2021)
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HDD-21-019 1.53m @ 191.80 g/t Au and 539 g/tAg (Oct 5, 2021)
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and 6.52m @11.72 g/t Au and 340 g/t Ag
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HDD-21-020 5.40m @ 4.38 g/t Au, 350 g/t Ag(Oct 5, 2021)
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HDD-21-023 4.58m @ 79.84 g/t Au and 5,053g/t Ag (Oct 19, 2021)
Field crews have continued detailed mapping and sampling at Hollyproject. This work has identified new drill targets on splaystructures of the Jocotan fault where 2 large zones of mineralizedbreccia have been mapped and are coincident with high grade soil androck chip results.
Volcanic plans systematic drill testing of these newtargets including the Jocotan splay faults and to continue testing theextensions, both strike and dip, of the La Peña vein system. Assaysare still pending on drill holes HDD-21-024 to 028 and the samplesfrom the detailed rock chip sampling of the Jocotan splay targets. Drilling will recommence at Holly once outstanding assays have beenreceived and interpreted.
Banderas Project
The Company is working on access agreements with anadjoining community prior to commencing any drilling at Banderas. Access agreements are in place with the community covering the drillproject but further consultation work is required with adjoiningcommunities to ensure the benefits of the project are spread out andall affected communities in the area consent. Further news ondevelopments at Banderas will be released as progress is made.
Regional Exploration
The Volcanic Gold exploration tenement package coversapproximately 2,400 square kilometres of the Eastern Guatemalaepithermal belt which hosts the Escobal, Cerro Blanco and Hollydeposits.
Multi-element rock chip / soil geochemistry have beenreceived for the first regional prospecting area discovery, MotaguaNorte, where a continuous 2-3-kilometre-long elevated gold trend hasbeen defined. The structural and lithologic setting together withindications of orogenic style gold setting, interpreted from themulti-element geochemistry and mineralogy, increase the priority ofthis trend. The entire area is densely covered by boulders rangingin size up to maximum 3m diameter. Samples range from anomalous gold up to 320 g/t. Mineralization ishosted in massive quartz veining and stockwork veining within sericitealtered schist and is interpreted to be mesothermal shear hosted goldand silver.
The project has low population density with the maintarget areas having large farms with just a few private owners; formallandowner access agreements are in place. Volcanic has prepared andsubmitted environmental permits and is working with Radius toprioritize the granting of these concessions.
INVESTMENT ASSETS
The Company’s significant equity investments consistof the following positions:
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3,973,275 shares in Rackla Resources Inc. (RAK.V). Rackla is in the process of acquiring the Misisi Gold projectlocated in the Democratic Republic of Congo. The TSX VentureExchange has conditionally approved the proposed acquisition by theCompany for a 73.5% interest in the Misisi Gold project. On closingmanagement intends, subject to TSX-V approval, to change the name ofthe company to Goldenhawk Resources Ltd. and to appoint Mr. DarryllCastle as President, Chief Executive Officer and Director.
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830,412 shares in Volcanic plus warrants to purchase anadditional 160,714 shares. Volcanic is a TSX-V listed companyfocused on building multi-million-ounce gold and silver resources inunderexplored countries. It holds an option to acquire a 60%interest in the Company’s Holly and Banderas gold/silver propertieslocated in eastern Guatemala, and is currently conducting explorationprograms on the properties.
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10,126,500 shares inMedgold Resources Corp. (“Medgold”). Medgoldis a TSX-V listed, project generator company targeting early-stagegold properties in the Balkan region. Its holdings include theTlamino gold-silver project in Serbia which has an Inferred MineralResource containing approximately 680,000 oz AuEq.
Quality Assurance and QualityControl
Reported drilling was carried out using by Radius jointventure partners under the supervision of senior geologists toindustry accepted standards. Radius’s Qualified Person has visitedboth the Holly project and Amalia project multiple times during thecourse of the reported drill programs and inspected the drill andsampling operations. Sample intervals are generally 1-2 m intervals,with half-core samples delivered to internationally certifiedlaboratories. The samples are fire assayed for Au and are analysedfor Ag and multi-elements using method ICP following a four-aciddigestion. Overlimits are analyse dusing an appropriate method. Multi-element geochemical standards andblanks are routinely entered into the drill core sample stream tomonitor laboratory performance. Quality control samples submittedwere returned within acceptable limits.
Technical Information
Bruce Smith, M.Sc. (Geology), a member of theAustralian Institute of Geoscientists, is Radius’s Qualified Personas defined by National Instrument 43-101 - Standards of Disclosure forMineral Projects. Mr. Smith has reviewed and approved the technicalinformation contained in this news release.
Radius Gold Inc.
Radius has a portfolio of projects located in Mexico,United States and Guatemala which it continues to advance, utilizingpartnerships where appropriate in order to retain the Company’sstrong treasury. At the same time, management is seeking outadditional investment and project acquisition opportunities across theglobe. Radius is a member of the Gold Group of companies, led bySimon Ridgway.
ON BEHALF OF THE BOARD
Bruce Smith
President and CEO
Symbol: TSXV-RDU
Contact: Bruce Smith
200 Burrard Street, Suite 650
Vancouver, BC V6C 3L6
Tel: 604-801-5432; Toll free 1-888-627-9378; Fax:604-662-8829
Email: info@goldgroup.com
Website: www.radiusgold.com
Neither the TSX Venture Exchange northe Investment Industry Regulatory Organization of Canada acceptsresponsibility for the adequacy or accuracy of this release.
Forward-looking statements
Certain statements contained in this news releaseconstitute forward-looking statements within the meaning of Canadiansecurities legislation. All statements includedherein, other than statements of historical fact, are forward- lookingstatements and include, without limitation, statements about the results of exploration work and future plansat the Company’s properties . Often, but notalways, these forward looking statements can be identified by the useof words such as “estimate”, “estimates”, “estimated”, “potential”, “open”, “future”, “assumed”, “projected”, “used”, “detailed”, “has been”,“gain”, “upgraded”, “offset”, “limited”,“contained”, “reflecting”, “containing”, “remaining”,“to be”, “periodically”, or statements that events,“could” or “should” occur or be achieved and similarexpressions, including negative variations.
Forward-looking statements involve known and unknownrisks, uncertainties and other factors which may cause theactual results, performance or achievements of the Company to be materially different from any results, performance or achievementsexpressed or implied by forward-looking statements. Such uncertaintiesand factors include, among others, whether the planned explorationwork at the Company’s properties will proceed as intended; changesin general economic conditions and financial markets; the Company orany joint venture partner not having the financial ability to meet itsexploration and development goals; risks associated with the resultsof exploration and development activities, estimation of mineralresources and the geology, grade and continuity of mineral deposits;unanticipated costs and expenses; and such other risks detailed from time to time in the Company’s quarterly and annual filings with securities regulators andavailable under the Company’s profile on SEDAR at www.sedar.com. Although the Companyhas attempted to identify important factors that could cause actualactions, events or results to differ materially from those describedin forward-looking statements, there may be other factors that causeactions, events or results to differ from those anticipated, estimatedor intended.
Forward-looking statements contained herein are basedon the assumptions, beliefs, expectations and opinions ofmanagement, including but not limited to: thatthe exploration work at the Company’sproperties will advance as planned; that the Company’s stated goals and the planned exploration and developmentactivities at its properties will be achieved; that there will be no material adverse change affecting the Company or its properties; and such other assumptionsas set out herein. Forward-looking statements are made as of the datehereof and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events orresults or otherwise, except as required by law. There can be noassurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors shouldnot place undue reliance on forward-looking statements.
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