Radius receives $150,000 (U.S.) Amalia option payment
2020-06-29 15:01 ET - News Release
Mr. Simon Ridgway reports
RADIUS GOLD RECEIVES OPTION PAYMENT AND REPORTS HIGH GRADE SURFACE SAMPLING FROM CALIFORNIA TARGET AT AMALIA GOLD-SILVER JV IN CHIHUAHUA, MEXICO
Radius Gold Inc. has provided an exploration update for its Amalia gold-silver joint venture project, operated by Pan American Silver Corp., and an update on Radius's proposed Guatemala JV with Volcanic Gold Mines Inc.
In partial fulfilment of the Amalia joint venture agreement, Radius Gold has received a $150,000 (U.S.) payment from Pan American Silver.
Surface sampling from the untested California target have returned grades of up to 1.5 m at 27 g/t Au.
Permitting for stage 4 drilling at Amalia had been halted by the closure of the permitting authorities at start of the COVID-19 pandemic. Processing of the permits has resumed and drill permits are expected within the next 6 weeks.
Radius is also pleased to provide an update on plans to option 60% of its Guatemala properties to Volcanic Gold Mines Inc. (see news release June 1, 2020). Volcanic's proposed non-brokered private placement has been increased from $3.0-million to $5.0-million.
Amalia Project, California Target
The California target is located roughly 1.5 km northeast of the San Pedro high grade drilling. Geological mapping has identified mineralization outcropping for 2 km long along a regional structure parallel to the main Amalia Fault Zone, with veining, silicification and breccias. Results from new initial prospecting chip channel sampling range from below detection up to 27 g/t Au. Some highlights of the most recent sampling program include: 1.3 m at 7.66 g/t Au, 1.2 m at 10.55 g/t Au, 1 m at 17.45 g/t Au, and 1.5 m at 27 g/t Au. The geological setting of the California structure is similar to the Amalia Fault Zone and the San Pedro high-grade mineralization. Geological maps and sampling data will be available at the company's website.
Phase 4 Drilling
Drilling permits have been submitted to the recently opened Semarnet agency and Radius expects to have the permits back within 6 weeks. A fourth phase of drilling at Amalia will commence after the permits have been received and depending on the progress and restrictions of the Covid-19 pandemic at that time.
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$400,000 has been received) and expending over four years US$ 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.
Guatemala option with Volcanic Gold Mines Inc.
Radius is pleased to announce that Volcanic's proposed non-brokered private placement has been increased from $3.0-million to $5.0-million.
The implications for Radius's Holly, Banderas, and 240,000 hectares of regional exploration properties is significant. The option agreement will be initiated upon stock exchange approval and after Volcanic raises a minimum of $3-million and makes a cash payment of $100,000 to Radius. Volcanic will have sufficient funding, an experienced executive management and an expert local Guatemala team built from Radius's 20 years of work in Guatemala. Guatemala has a new government which started in January 2020 with a positive attitude towards re-starting the mining industry. The new partnership between Radius and Volcanic will have an intense focus on Guatemala and is ready to start work in the short term unlocking the value in Radius's advanced high grade gold silver Holly and Banderas projects and its unique large scale regional land holdings between Pan American's world class Escobal mine and Bluestone Resources' development project at Cerro Blanco.
Regional Exploration
Radius Gold geologisits have been conducting field work in local areas and where travel restrictions allow.
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. 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.
About 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.
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