Radius Options the Coyote Property, Elko County, Nevada
VANCOUVER, British Columbia, March 21, 2018 (GLOBE NEWSWIRE) -- Radius Gold Inc. (TSX-V:RDU) is pleased to announce that Radius has been granted a lease and option to purchase on the Coyote gold property from Geologic Services Inc. (“Geologic”), adding to Radius’s portfolio of epithermal gold projects in Nevada. The project is located in northern Elko County on the eastern flank of the Independence Valley, an area known for its prolific gold production.
The Coyote property consists of 58 unpatented mining claims located on the east side of a Tertiary basin. Chalcedonic lenses and siliceous sinter deposits are localized along north-east trending normal faults that form the basin boundary and have been traced along strike on the property for 8,500 feet. The alteration extends into the hillsides for 2,000 feet.
In 1990, Chevron Resources drilled the Coyote property as part of their Independence Valley district program. They drilled four angle holes each approximately 800 feet apart, along one of the bounding structures of the basin in the area of the largest siliceous sinter terrace. The holes ranged from 240 feet to 500 feet deep maximum depth. All four holes encountered an altered structural zone ranging from 40 feet to 100 feet thick exhibiting strong argillic alteration with the rock mostly altered to clay.
Geochemical results of Chevron’s drilling returned anomalous values in mercury (high of 19 ppm), antimony (high of 1,900 ppm) and arsenic (high of 910 ppm) with weak gold values (high of 93 ppb) – geochemical results consistent with the top of a low-sulfidation epithermal gold system. The deepest drill hole intercepted the structural zone at 125 feet below surface.
The results described above are summarized from historical exploration data provided to Radius by Geologic. Radius believes the historical work was performed according to best practices and the historical exploration data are reliable, but a Qualified Person has not verified the results independently.
Radius plans to conduct due diligence and exploration field studies this spring and summer on the Coyote property, including surface prospecting and alteration mapping, and a geophysical CSAMT survey. The latter will investigate the subsurface along the range-bounding fault in the vicinity of the siliceous sinters for evidence of a structural feeder to the hydrothermal system.
Agreement Terms
Radius has been granted a lease of the Coyote property for up to 15 years, in consideration for the granting to Geologic of a 2.0% to 3.0% net smelter return royalty, the percentage to depend on the prevailing price of gold. In order to keep the lease in good standing, Radius has the right to make annual advance royalty payments to the Geologic. At any time during the term of the lease, Radius may elect to acquire a 100% interest in the Coyote property by making a cash payment of US$2.0 million to Geologic.
Radius has also agreed to reimburse Geologic for the filing costs of a portion of the claims comprising the Coyote property.
Qualified Person
David Clark, M.Sc., P.Geo. is a Qualified Person under the terms of National Instrument 43-101, “Standards of Disclosure for Mineral Projects”, and has approved the disclosure of the technical information in this news release.
About Radius
Radius has been exploring for gold in the Americas for over a decade. The Company has a strong treasury and is looking for investment and project acquisition opportunities across the globe. Please call toll free 1-888-627-9378 or visit our web site (www.radiusgold.com) for more information.
ON BEHALF OF THE BOARD
Simon Ridgway
President and CEO
Symbol: TSXV-RDU
Contact: Simon Ridgway
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 nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
Certain statements contained in this news release constitute forward-looking statements within the meaning of Canadian securities legislation. All statements included herein, other than statements of historical fact, are forward-looking statements which include, without limitation, statements about the Coyote Property; the Company’s business strategy, plans and outlook; the merit of the Company’s investments and properties; timelines; the future financial performance of the Company; expenditures; approvals and other matters. Often, but not always, these forward looking statements can be identified by the use of 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 similar expressions, including negative variations.
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 results, performance or achievements expressed or implied by forward-looking statements. Such uncertainties and factors include, among others, the Company’s plans for Coyote Property and whether the Company will acquire any interest in the Property; changes in general economic conditions and financial markets; the Company or any joint venture partner not having the financial ability to meet its exploration and development goals; risks associated with the results of exploration and development activities, estimation of mineral resources 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 and available under the Company’s profile on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.
Forward-looking statements contained herein are based on the assumptions, beliefs, expectations and opinions of management, including but not limited to: that the Company’s activities at the Coyote Property will proceed as planned; that the Company’s activities will be in accordance with its public statements and stated goals; that all required approvals will be obtained; that there will be no material adverse change affecting the Company or its investments or properties; and such other assumptions as set out herein. Forward-looking statements are made as of the date hereof and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by law. There can be no assurance 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 should not place undue reliance on forward-looking statements.