RIGINAL: Radius JV partner Volcanic Gold Mines provides update on Holly Project, Guatemala
2021-02-09 08:01 ET - News Release
(via TheNewswire)
February 9, 2021 - TheNewswire - Vancouver, British Columbia - Radius Gold Inc. (TSXV:RDU) (OTC:RDUFF) is pleased to publish a progress report from joint venture partner, Volcanic Gold Mines Inc., on exploration work at the Holly project in Guatemala. Volcanic’s exploration teams have been ground proofing the extensive historic data collected by Radius Gold since initial discovery in 2002, and the reprocessing and reinterpretation of the geophysical data acquired at Holly has led to well defined drill targets. Drill permits are expected to be received in Febuary with drilling planned to commence before month end.
The Holly property straddles the regional-scale Jocotan Fault which forms part of the Motagua Suture Zone, a 400km long and up to 80km wide deformation zone that separates the North American and Caribbean tectonic plates.
At Holly, the Jocotan Fault forms a well defined east-west trending ridge, separating older metamorphosed, foliated sedimentary rocks to the north from much younger volcanic rocks to the south. Exploration programs conducted by Radius outlined a number of very high grade silver/gold occurrences along the trace of the ridge. Initial trenching and drilling of these targets returned excellent results, however no follow-up work was done on the extension of these mineralized zones along the ridge and to the north. These zones remain open for resource definition. (see Figure 1 below)
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Figure 1: Exploration Targets and Jocotan Fault Zone
Volcanic Gold reprocessed the data from IP surveys conducted on the property in 2002 and 2008, and the updated models have improved the data quality. Ground proofing of these targets has defined several exciting drill ready targets:
Selected trench samples results from Holly Ridge:
-------------------------------------- |Trench ID |Interval m|Au g/t|Ag g/t| |------------------------------------| |El Pino # 1|5.1 |58.3 |1937 | |------------------------------------| |Stockwork |40 |2.0 |7.0 | |------------------------------------| |La Pena # 1|14 |3.5 |43.0 | |------------------------------------| |La Pena # 2|6 |25.8 |121.7 | --------------------------------------
Selected drill results from Holly Ridge:
---------------------------------------------- |Hole ID|From m|To m|Interval m|Au g/t|Ag g/t| |--------------------------------------------| |HDD-001|34.8 |49 |14.2 |4.14 |150.6 | |--------------------------------------------| |HDD-005|19.1 |29.7|10.6 |7.95 |263.4 | |--------------------------------------------| |HDD-007|88.5 |97.5|9.0 |1.84 |45.1 | ----------------------------------------------
Simon Ridgway, Volcanic’s CEO, commented: “Our IP modelling has revealed compelling drill targets at Holly. Three out of four historic drill holes completed at Holly testing the high-grade veins returned great gold and silver mineralized intervals, and we’ve always believed that the Jocotan Fault has the potential to host a significant mineralized system. No drill holes have tested the structure at depth, and the coincident restivity high and soil gold geochemistry is set to be the focus of drilling at Holly.
Volcanic’s geologists have initiated an extensive mapping and sampling program along the 60km strike length of the Jocotan Fault zone that occurs within the properties that Volcanic has optioned from Radius. Several other mineralized zones have been identified by Radius’ historic sampling programs.”
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 approved the technical information contained in this news release.
Terms of Guatemala Radius Gold and Volcanic Gold Mines option
Volcanic can earn a 60% interest in the Holly and the Banderas projects by spending the cumulative amount of US$7.0 million on exploration of the Properties within 48 months from the date of the agreement. An initial US$1M must be spent on exploration within the 12 months of receiving the required drill permits, which expenditure will include a minimum 3,000m of drilling on the properties.
Following the exercise of the Option, Volcanic will enter into a standard 60/40 Joint Venture with Radius in order to further develop the Properties.
Volcanic has also been granted an exclusive right to evaluate all other property interests of Radius in Guatemala with a right to acquire an interest in any or all other such properties on mutually acceptable terms.
Radius Gold Inc.