Radius Gold drill update Amalia Project, Mexico
Vancouver, May 8, 2019 - Radius Gold Inc. (TSX-V: RDU) reports on progress of its ongoing diamond drill program at the Amalia Gold-Silver Project in Chihuahua, Mexico. The program is operated by Radius and funded by Pan American Silver under a joint venture agreement. Since Radius announced the completion of AMDD19-010 (see press release May 1, 2019) intersecting 44m grading 12.38 g/t Au and 309 g/t Ag with estimated true width of 34m, Radius has completed 3 further drill holes for which assays are pending. Drill hole AMDD19-011 was drilled approximately 100m south of AMDD19-010 and 50m below AMDD18-003 which returned 30m at 0.3g/t Au and 65 g/t Ag. Hole AMDD19-011 targeted the San Pedro structure and intersected 97m (242 to 339m) of varying intensity quartz veins, stockwork veining and diorite dykes. While the hole lacks the strong sulphide mineralization associated with AMDD19-010, the 30m wide zone in 011 exhibiting intense stockwork veining of banded chalcedonic quartz +- amethyst is similar to holes AMDD18-001 and 003 and although it may still be high in the system, indicates a strong consistent structure. Assay results for 011 are pending.
Drill hole AMDD19-012 was drilled 100m south of AMDD19-011 (200m south of 010) targeting the San Pedro structure approximately 50m below AMDD18-008 which returned two intervals within a 33m wide mineralized zone (1m @ 2.28 g/t Au and 521 g/t Ag and 5m @ 0.59 g/t Au and 571 g/t Ag). The hole intersected a 53m (178 to 231m) zone of alteration including variable stockworks, silicification and hydrothermal breccias. Assay results for 012 are pending.
Drill hole AMDD19-013 was drilled 100m north of AMDD19-010 targeting the San Pedro structure. The hole cut 17m (200 to 217m) of moderate to strong silicification, tectonic breccia with micro vein stockworks and traces of fine sulphides. Assay results for 013 are pending.
Radius's initial drill program at Amalia (see press release December 4, 2018) tested the San Pedro structural zone with 5 diamond drill holes testing a 650m strike length of the San Pedro structure. Hole AMDD18-009, the deepest hole, intersected 26m at 7.08g/t Au and 517 g/t Ag, including 5m at 14.71 g/t Au and 1378 g/t Ag. The first hole of 2019, AMDD19-010, intersected the San Pedro structure approximately 65m down dip of the intercept in hole AMDD18-009 and intersected 44m grading 12.38 g/t Au and 309 g/t Ag including an 11m section grading 39.9 g/t Au and 323 g/t Ag. Estimated true width of the mineralized zone is 34m.
At this time our understanding of the controls on the high grade gold and silver mineralization at Amalia is evolving. Drilling is currently on-going with 2000m of program budgeted. The holes presently underway will be more proximal to the high grade intercepts encountered in holes 009 and 010 in an effort to gain a better understanding of the geological control of these exceptional high grade shoots.
Core photos and a brief description for drill holes will be posted on the Radius website as the holes are completed. Assay results will be press released as is customary in groups as the assays are received and quality control procedures allow.
The Agreement
Radius has granted to Pan American Silver Corp. the option to earn up to an initial 65% interest in the Amalia Project by making cash payments to Radius totaling US$1.5 million (of which US$100,000 has been received) and expending US$2 million on exploration over four years. Pan American may earn an additional 10% by advancing the property to preliminary-feasibility.
Technical Information
Bruce Smith, M.Sc. (Geology), a member of the Australian Institute of Geoscientists, is Radius's Qualified Person as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects. Mr. Smith participated in the reported drill program and prepared and approved the technical information contained in this news release.
Quality Assurance and Quality Control
Drilling is carried out using NQ and HQ size tooling. Drill core is cut in half using a rock saw with one half of the core then taken as a sample for analysis. Sample intervals are generally between 1m and 1.5m producing samples of between 2 to 9 kg. Half-core samples are delivered to the ALS Geochemistry laboratory facilities in Chihuahua, Mexico. The samples are fire assayed for Au and are analysed for Ag and multi-elements using method code ME-ICP61 following a four-acid digestion. Overlimits are analysed using an appropriate method. Radius routinely inserts multi-element geochemical standards and blanks into the drill core sample stream to monitor laboratory performance. Quality control samples submitted to ALS were returned within acceptable limits.
Radius has a portfolio of projects located primarily in the United States and Mexico which it continues to advance, utilizing partnerships where appropriate in order to retain the Company's strong treasury. At the same time, management is seeking out additional investment and project acquisition opportunities across the globe.
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 results of exploration work and future plans at the Amalia Project; 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 results of exploration work and future plans at the Amalia Project; 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 exploration activities at the Amalia Project will advance 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.
Copyright (c) 2019 TheNewswire - All rights reserved.