Vancouver, Canada: Radius Gold Inc. (TSX-V: RDU) is pleased to provide an exploration update for its Amalia Gold-Silver joint venture project, operated by Pan American Silver Corp. The highlight of progress to date is the development of the El Cuervo target, where wide zones (up to 40m) of silicification, breccias and veining with strong gold and silver rock chip geochemistry is being mapped and sampled 3.8km south east of the current drilled area at San Pedro.
Since optioning the Palmillas properties (see new release February 24, 2020), Pan American has conducted detailed geological mapping and collected over 250 rock chip samples from selected targets along 6 km of the Amalia fault system.
El Cuervo Target
The El Cuervo target is located within the newly acquired Palmillas properties, 3.8km south east of San Pedro. Geological mapping has identified a zone of veining, silicification and breccias approximately 750m long and upto 40m wide. Initial prospecting rock chip samples range from below detection up to 637 g/t Ag and 2.24 g/t Au. The geological setting is similar to San Pedro zone. Geological maps and sampling data will be available at http://www.radiusgold.com/s/amalia.asp.
Phase IV Drilling
Environmental permits are in progress for a fourth phase of drilling at Amalia. Currently 9 deep holes are planned to test down dip and lateral expansions of the high grade gold and silver mineralization defined at San Pedro in drill phases I – III.
The Pan American Agreement
According to the option agreement signed in June 2018, Pan American Silver Corp. has the option to earn up to an initial 65% interest in Radius’s Amalia Project and Palmillas Properties by making cash payments to Radius totaling US$ 1.5 million (of which US$250,000 has been received) and expending over four years US$ 2 million on exploration and reimbursement of Radius’s costs to maintain its option agreements with the owners of Amalia and Palmillas. Pan American may earn an additional 10% by advancing the project to preliminary feasibility.
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. Reported rock chip samples were conducted by Pan American Silver. Pan American implements a quality assurance and quality control (“QAQC”) program including the submission of certified standards and blank samples to the laboratory. The results of the QAQC samples submitted demonstrate acceptable accuracy and precision.
Due to restrictions on travel and for the safety of our employees, Radius has curtailed operations for the time being. Most of the geological staff have returned home and in the corporate office where possible staff are working from home. We will return to the field and office when it is safe and cost effective to do so; meanwhile we will preserve the cash position of the Company.
Radius Gold Inc.
Radius has a portfolio of projects located primarily in Mexico, United States and Guatemala 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
President and CEO
Contact: Simon Ridgway
200 Burrard Street, Suite 650
Vancouver, BC V6C 3L6
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
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 possible acquisition by Pan American of an interest in the Amalia and Palmillas Projects; the exploration plans for the Amalia and Palmillas Projects; 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 possible acquisition by Pan American of an interest in the Amalia and Palmillas Projects; the plans for exploring the Amalia and Palmillas Projects; 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 Pan American will acquire an interest in the Amalia and Palmillas Projects; that the exploration activities at the Amalia and Palmillas Projects 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.