Oh look we are have life?
Radius Gold arranges $1.75-million financing
2023-04-25 08:02 ET - News Release
Mr. Bruce Smith reports
RADIUS GOLD PROVIDES EXPLORATION UPDATE FOR TROPICO PROJECT AND ANNOUNCES PROPOSED PRIVATE PLACEMENT TO FUND DRILLING
Radius Gold Inc. has provided an exploration update for the Tropico gold mineralized hot-spring-type sinter and breccia pipe target within the Fresnillo district, Zacatecas, Mexico. Additionally, Radius proposes a non-brokered private placement of a minimum of 10,000,000 units at a price of $0.175 per unit for proceeds of a minimum of $1,750,000.
Each unit will consist of one common share of the Company and one common share purchase warrant. Each warrant will entitle the holder to purchase one common share at a price of $0.35 for a term of 24 months following the closing of the private placement.
The proceeds of the private placement are intended to be used to fund drilling and exploration efforts on Radius's Tropico project, and for general working capital. Completion of the private placement is subject to approval by the TSX Venture Exchange. All securities issued pursuant to the private placement will be subject to the applicable statutory four-month hold period.
Tropico Target
The Tropico target is located 30 km northwest of Fresnillo city, Zacatecas, Mexico. The Fresnillo mining district is one of the world's largest epithermal systems and hosts the world's oldest continuously operating mines producing silver, gold, copper, lead, and zinc for approximately five centuries, since 1554. The district has over 150 veins, mantos and chimney deposits including +30 large scale ore producers.
The orebodies at Fresnillo are most frequently "blind", meaning they do not outcrop, and the tops are concealed to a depth of approximately 150 to 300 m. Surface expressions can include geochemical path finder halos, thin discontinuous quartz carbonate veinlets, and critically low temperature chalcedonic silica and hot spring related sinter.
From limited outcrop and float at Tropico, Radius geologists identified an elliptical zone of intensely silicified hydrothermal breccias approximately 450 m x 250 m. Several of the outcrops and float blocks are composed of chalcedonic and opaline sinter. The Tropico breccia is hosted within finely bedded siltstones and dirty limestones, interpreted to be part of the Proano group which hosts the major Fresnillo deposits. The sinter and silicified breccia at Tropico contains gold, mercury and trace elements. Radius initially collected 28 rock chip samples from the area and gold values ranged from 0.02 ppm to 0.88 ppm Au, with an average of 0.28 ppm Au which is considered significant for a sinter system. In actual sinter material the highest grade was 0.39 ppm Au. Mercury values are very high, with several samples exceeding >100 ppm Hg (the upper limit of detection). Typically sinter systems have very low grade gold or are barren, so the grades at Tropico are considered a strong indication of potential to find high grade mineralization at the boiling zone, 150 to 300m below surface.
Tropico Exploration Update
Since acquiring the rights to the Tropico property Radius has advanced rapidly to prepare for drilling by completing the following:
Radius has negotiated and signed an access agreement with the local community and land owners.
The Radius field team has completed geological mapping and sampling and have 140 rock chip samples in the laboratory pending results.
Contract geophysical surveys (CSAMT and conventional IP/Resistivity) have commenced.
Site visits with drill contractors have been completed and contracts are being finalized.
Environmental studies are underway to submit with drill permits.
Radius expects to conclude preparations for drilling along with drill permitting within 3 to 4 months and plans to commence drilling immediately upon receipt of permits.
Management Update
Simon Ridgway has been appointed Executive Chairman of Radius (formerly non-executive Chairman).
Executive Chairman, Simon Ridgway commented: "I am delighted to be working with the Radius team as Executive Chairman, and assist with financing and driving the company forward. Tropico is a hot spring related epithermal gold target, similar to the discoveries I made early in my career. The Radius team has worked diligently over the past two years to secure the property and we believe it offers the potential to host a great gold discovery for shareholders."
Quality Assurance and Quality Control
Reported assays are rock chip samples taken by Radius geologists. Reported samples were delivered to ALS in Chihuahua. The samples were analysed by ALS Geochemistry for Au by fire assay (Au-ICP21), and Ag and multi-elements using a four-acid digestion with ICP-AES finish (ME-ICP61). ALS geochemistry is an internationally certified laboratory. Radius routinely inserts multi-element geochemical standards and into the sample stream to monitor laboratory performance. Quality control samples submitted were returned within acceptable limits.
Technical Information