Radius options 200-hectare Tropico property
2023-03-21 12:01 ET - News Release
Mr. Bruce Smith reports
RADIUS GOLD DISCOVERS GOLD MINERALIZED "HOTSPRING TYPE" SINTER AND BRECCIA PIPE TARGET IN FRESNILLO DISTRICT, ZACATECAS
Radius Gold Inc. has noted the discovery and acquisition of a new gold mineralized hotspring-type sinter and breccia pipe target within the Fresnillo district, Zacatecas, Mexico. Radius has entered into an option agreement with local claim owners to acquire 100 per cent of the new property named Tropico.
Tropico location
The Tropico target is located 30 kilometres northwest of Fresnillo city, Zacatecas, Mexico. The Fresnillo mining district is one of the world's greatest 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-plus large-scale ore producers, and it continues to deliver new discoveries. In 2005, the Juanicipio project was discovered by MAG Silver Corp. and Fresnillo PLC, located eight km from Fresnillo city. This recent discovery is one of the world's highest grade and largest primary silver (plus gold) development projects (MAG Silver PEA (preliminary economic assessment) Nov. 7, 2017).
The Tropico property is located one km off the paved national highway Route 45 between Fresnillo and Durango. The ground is flat and has easy access to all areas by farm tracks. The property is a mixture of rocky pasture and bean fields. A pre-existing lease agreement that allows for exploration has been signed with the local community.
Target model
Chimney bodies in the Fresnillo district are often cylindrical-shaped brecciated pipes that crosscut the cretaceous volcano sedimentary host units and predate, or are contemporaneous with, silver, gold and base metal veins. The vein systems at Fresnillo are most frequently blind, meaning they do not outcrop, and the tops of the orebodies are concealed to a depth of approximately 150 m to 300 m. Surface expressions can include geochemical path finder halos, thin discontinuous quartz carbonate veinlets and, critically, low-temperature chalcedonic silica and sinter.
Sinter is a formation of opaline silica deposited in a hotspring environment at surface. Sinter typically has very low-grade or barren precious metal content but can be the surface indication of a mineralized system at depth. There are many famous examples of epithermal gold and silver mines located below sinter deposits, both within the Fresnillo district and globally (for example, Waihi -- New Zealand, Lihir -- Papua New Guinea, McLaughlin -- United States).
Geology and geochemistry
Outcrop within the Tropico property is sparse. From limited outcrop and float, Radius geologists have identified an elliptical zone of intensely silicified hydrothermal breccias approximately 450 m by 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. There are known active hotspring and mercury occurrences nearby.
Radius collected and assayed 28 rock chip samples from the area of the silica breccia and sinter. Gold values ranged from 0.02 part per million (ppm) to 0.88 ppm gold (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 mercury (Hg) (the upper limit of detection). Typical epithermal pathfinder elements were also highly anomalous with antimony (Sb) between 64 ppm and 1,135 ppm, arsenic (As) between eight ppm and 854 ppm, and silver (Ag) between 0.6 ppm and 5.6 ppm.
Bruce Smith, president and chief executive officer, comments:
"Tropico has every indication for the potential to make a great discovery. Located within sight of Fresnillo, the world's largest epithermal silver deposit, within the same host rocks. Our team have located and secured a gold-rich breccia pipe of significant scale, rimmed by sinter and yet to be drill tested. Access and terrain are perfect, enabling low exploration costs. Radius will move quickly to acquire drill permits and conduct deep-penetrating resistivity surveys to define the subsurface pipe shape, and drill."
Agreement terms
Radius has entered into an option agreement with a local Mexican group to acquire 100 per cent of the 200-hectare (ha) Tropico claim. Payment on signing of $200,000 (U.S.) is completed. A further $200,000 (U.S.) can be paid in six monthly instalments over a period of 42 months, starting with $25,000 (U.S.) at month 12 from signing, in order to maintain the property option. At month 48, Radius can acquire 100 per cent of the property for $5-million (U.S.). An additional milestone payment of $5-million (U.S.) is conditional on delivering a compliant feasibility study or at the start of mine construction. A further $3-million (U.S.) to be paid if reserves exceed two million gold equivalent (Au plus Ag) ounces. If Radius does not complete payment of the milestone $5-million (U.S.) dollars within eight years of signing, the property would return 100 per cent to the original owners.
Management update
Mr. Smith, president and CEO of Radius Gold, has resigned his executive role as president at Rackla Metals Inc., to focus on Radius and advancing its Tropico, Amalia, Plata Verde and Motagua Norte properties and, as always, on the discovery of new projects.
Quality assurance and quality control