Radius Gold intersects 23m at 4.61 g/t Au and 41 g/t Ag at Amalia Project, Mexico
December 4, 2019 - Radius Gold Inc. (TSXV:RDU) (OTC:RDUFF) is pleased to report results from the phase three diamond drill program at its Amalia Gold-Silver Project in Chihuahua, Mexico. Pan American Silver Corp., the project operator, has provided assays for the first two diamond drillholes and new results include an interval of 23m at 4.61 g/t Au and 41 g/t Ag. Phase Three Drill Result Summary
AMDD19-016 intersected 120m grading 1.53 g/t Au and 21 g/t Ag with estimated true width of 75m, including 23m (est true 15m) at 4.61 g/t Au and 41 g/t Ag. Mineralization is hosted within the hanging wall of the San Pedro fault with disseminated fine black sulphides and sulphide veining commencing within rhyolitic ignimbrites, and transitioning to intense silicification, stockwork veining and brecciation. Hole AMDD19-016 was drilled down dip and on section from phase two drillholes AMDD18-009, AMDD19-010 and AMDD19-015 (see Radius news releases Dec 4, 2018, May 1, 2019 and June 13, 2019). These four drillholes define a continuous zone of high grade multi-phase gold-silver mineralization from surface to the current drill defined depth of 300m (see figure 1 below).
AMDD19-017 was drilled 100m north of 016, on section with AMDD19-013 and 150m down dip. The hole cut a 30m wide silicified fault breccia with anomalous gold and silver values up to 2.26 g/t Au and 23 g/t Ag. Although no potentially economic mineralization was encountered, the mineralization was stronger than drillhole 013, indicating deeper drilling on this section may be rewarded.
Drilling is on-going at Amalia and Radius will release further results as they become available.
Figure 1. Section AMDD19-009 - 010 - 015 - 016, San Pedro Zone.
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The Pan American Agreement
Radius granted to Pan American Silver Corp. in June 2018 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$250,000 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.
The Property Owner Agreement - Option Payment
In accordance with the terms of the Company's option to acquire a 100% interest in the Amalia Project, the Company intends, subject to stock exchange approval, to issue to the property owners 33,255 common shares in its capital stock at a deemed price of $0.20 per share.
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 has reviewed 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 1m intervals, 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. Multi-element geochemical standards and blanks are routenely entered 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.