Radius Gold Inc. is pleased to announce that it has signed a binding agreement with a private individual to option the 380-hectare Amalia Project which is host to high grade epithermal silver-gold mineralization.
The Project is located approximately 25 km SW of the historic Guadalupe y Calvo mining district in Chihuahua, Mexico. During due diligence evaluation Radius geologists sampled bonanza grade outcrop containing 20.4 g/t Au and 5360 g/t Ag from a 1.2m chip.
The Amalia Project is unexplored, with only minor historic artisanal-scale mining of surface outcrop known. There is no known history of previous systematic exploration of the property. Epithermal Au-Ag mineralization has been sampled by Radius in several veins, vein breccias and disseminated zones over 3.5km of strike length and a 600m vertical interval following the trace of a large regional fault zone.
At the main target area, known as Campamento, a 70-meter-wide zone of intense silicification, and brecciation with massive and stockwork veining has been mapped at the contact between the upper Rhyolite and lower Andesite volcanic sequence. Twenty-two rock chip samples were collected by Radius at Campamento, from an area 250m x 70m. The samples ranged from 0.004 to 33.3 g/t Au and 1.4 to 288 g/t Ag. With results capped at 5 g/t Au, these samples averaged 0.75 g/t Au and 65 g/t Ag. The silica is chalcedonic banded and amorphous indicating a high level within the epithermal system.
Approximately 700m along strike to the SE of Campamento, and 200m vertically below, Radius geologists sampled the Guadalupe zone where intensely silicified, sulphide rich fault zones are exposed in two historic workings separated by 120m. During the initial evaluation only two rock chip samples were collected from Guadalupe zone:
AGU023 graded 20.3 g/t Au and 5360 g/t Ag over 1.2m
MX90439 graded 3.05 g/t Au and 476 g/t Ag over 1.3m
The Guadalupe area is steep and bush covered with limited exposure, hence the extent of the mineralized zone is not yet known. However, locating this high grade mineralized structure on strike and below the high level silica system of Campamento is very encouraging.
Elsewhere along strike to the East and West of Campamento sampling has returned anomalous to high grade results in veins and vein breccias both within the upper volcanic Rhyolite sequence and within the lower Andesites. With Au-Ag mineralization occurring over a vertical interval of 600m in multiple targets over 3.5km strike length, Radius believes there is excellent potential for a significant discovery at Amalia. Exploration will commence immediately. Maps and photos of the Amalia Project will be available on the Company's website.
Radius can earn a 100% interest in the Amalia Project by making an immediate cash payment of US$5000 (paid) and by completing staged payments over a period of 5 years totaling US$845,000 cash and, subject to stock exchange approval, US$15,000 in Radius shares.
Radius announces that Bruce Smith, M.Sc. Geology, MAusIMM CP, has joined the Radius Board. Bruce has 24 years' global exploration and mining experience, with 15 years in Latin America focused on gold and silver exploration. He has participated in the discovery of several gold deposits and led the exploration team that discovered the Chinchillas Ag-Pb-Zn deposit in Argentina. Bruce has worked with Radius and Goldgroup companies since 1994 and the Company is pleased to welcome him to the Board.
Bruce Smith, M.Sc., MAusIMM CP, is a Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects. Mr. Smith has visited the Amalia Project and prepared and approved the technical information contained in this news release.