Radius Gold Reports Results from the Third Phase of Drilling at Amalia High-Grade Gold Silver Discovery, and Acquires the Adjoining 800 ha Palmillas Property
Phase Three Drill Results
The drill program included holes AMDD19-016 to AMDD19-021. Holes 016 and 017 were previously reported in Radius's December 4, 2019 news release. The program was successful in proving that the high-grade mineralized shoot continues with depth, beyond its current testing up to 300 m, and its lateral extents have been better defined. The gold-silver mineralization is still open with depth and preparation is underway for the next phase of drilling where it will be tested deeper.
AMDD19-016 intersected 120 m grading 1.53 g/t Au and 21 g/t Ag with an estimated true width of 78 m, including 23 m (estimated true width 15 m) 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 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 300 m (Figure 1).
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Figure 1. Section AMDD19-009 - 010 - 015 - 016.
AMDD19-017 was drilled 100 m north of 016, on section with AMDD19-013 and 150 m down dip. The hole cut a 30 m wide silicified fault breccia with anomalous gold and silver values up to 2.26 g/t Au and 23 g/t Ag but no economically viable ore was encountered.
AMDD19-018 was drilled 100 m south of 016 on the same drill pad as 011. 018 was drilled on section with previous drillholes 001, 003, and 011 and targeted the structure 60 m down dip of 011. The hole intersected 1.3 m grading 12.5 g/t Au and 2320 g/t Ag and 13.7 m grading 1.4 g/t Au. Mineralization in sulphide rich veinlets hosted within rhyolite volcanics in the hanging wall extends to a depth of 325 m below surface and is open with depth.
AMDD19-019 was drilled 200 m south of 016, on section with 008 and 012 and 100 m down dip of 012. The hole did not intersect the same silver-mineralized structure down dip from 008 (4 m at 158 g/t Ag and 0.8 g/t Au) and 012 (5 m at 647 g/t Ag); however, it encountered a 7.4 m at 22 g/t Ag and 0.5 g/t Au interval in a quartz vein breccia near the contact between the upper rhyolites and lower andesites.
AMDD19-020 and 021 were drilled 400 and 300 m south of 016 respectively, on new sections with no previous drill holes. Both drillholes encountered anomalous Au and Ag values at the San Pedro Fault ~350 m below the surface but no quartz veining or significant mineralization was encountered.
Note. Reported drill hole intervals are drilled widths. Full drill data, locations, sections and estimated true widths are published on http://www.radiusgold.com/s/amalia.asp.
Acquisition of the Palmillas Property
Radius is pleased to announce that it has signed a binding agreement with a private family to option the 800-hectare Palmillas Property which hosts high-grade epithermal gold-silver mineralization. The Palmillas concessions are immediately adjoining Radius's Amalia Project and cover the northeastern and southwestern strike extension of the Amalia fault zone. Radius's joint venture partner at Amalia, Pan American Silver, has the right to elect to pay the acquisition costs and add the target to the joint venture.
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Figure 2. Recently acquired concessions and Radius's position along the Amalia fault zone.
Adjoining the core Amalia concessions and entirely surrounded by the Amalia 4 property, the Palmillas concessions cover the northwestern and southeastern extension of the Amalia fault zone. The Amalia fault is a large robust fault zone that has been traced over 10 km trending northwest and dipping steeply to the northeast. The fault separates Tertiary rhyolitic ignimbrites from the Late Cretaceous Tarahumara andesite volcaniclastics and hosts gold and silver mineralization including the San Pedro zone with high-grade gold and silver drill results.
The priority target within the Palmillas Property is the Palmillas target located on the Amalia fault, 2 km northwest of the high-grade drill intercepts at San Pedro. During due-diligence evaluation Radius geologists sampled outcrop and old adits including a 4 m section that assayed 9.5 g/t Au and 73 g/t Ag, and a 10.5 m section that assayed 1.54 g/t Au and 58 g/t Ag. Mineralization is hosted within quartz vein breccias and the geology is similar to San Pedro with mineralization hosted within the Amalia fault system at the contact between the upper rhyolites and lower andesite sequences. The Palmillas Property is largely unexplored but contains several targets and historic mining areas that will be explored in the coming months. With the acquisition of Palmillas, the joint venture controls approximately 10 km strike length of the Amalia fault zone with multiple new targets to develop for future drill programs.
The Palmillas Agreement
Radius can earn a 100% interest in the Palmillas Property by completing staged payments over a period of five years totalling US$350,000 of which $200,000 is a final payment at the end of five years. The owners retain a 1% net smelter return royalty.
The Pan American Agreement
Radius granted to Pan American Silver Corp. in June 2018 the option to earn up to an initial 65% interest in the Amalia Project by making cash payments to Radius totaling US$ 1.5 million (of which US$250,000 has been received) and expending over four years US$ 2 million on exploration and reimbursement of Radius's costs to maintain its option agreement with the owners of Amalia. Pan American may earn an additional 10% by advancing the property to preliminary feasibility.
Acquisition of the Plata Verde Property
Radius Gold is also pleased to announce that it has acquired rights to an unknown, undocumented, large scale historic silver mining camp in Central Mexico. The new project named Plata Verde will be explored and reported on in the coming months.
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 1 m 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 routinely entered into the drill core sample stream to monitor laboratory performance. Quality control samples submitted to ALS were returned within acceptable limits.
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.
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
President and CEO
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
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.
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