Radius Gold and Pan American Silver Intercept Significant Gold Silver Mineralization at Amalia Project, Mexico

2018-12-04 / @thenewswire

(TheNewswire)

Vancouver, Canada / TheNewswire / December 4, 2018 - Radius Gold Inc. (TSX-V: RDU) is pleased to announce results from the Company’s initial drill program at the Amalia Gold-Silver Project in Chihuahua, Mexico. Five drill holes tested the Campamento – San Pedro structural corridor, intercepting gold mineralization in all holes with the deepest hole cutting 26m at 7.08g/t Au and 517 g/t Ag.

The nine hole 1909m diamond drill program was completed by Radius and funded by Pan American Silver under a joint venture agreement (see Radius news release August 27, 2018). Three target zones (Campamento/San Pedro, Guadalupe and Dulces) were tested across a strike length of 1.8km following the trace of a large regional fault and associated splays hosting high level epithermal gold and silver mineralization.

Five drill holes (AMD001 / 003 / 007 / 008 / 009) were drilled between the Campamento and San Pedro targets (Campamento Zone) defining a 650m strike length of epithermal banded veining, stockworks and multiphase breccia with significant gold and silver mineralization. A table of results is listed below. This initial drill program was designed to test the targets between 50 and 150m below ground surface. Considering the topography the drill holes cut mineralization in a range between 1988 m above sea level (asl) and 1882m asl, effectively testing the mineralization over a 100m vertical interval. AMD001 cut the zone highest in the system at 1988m asl and was still within the upper rhyolite host. AMD009 cut the system within the andesite host at the deepest level (1908m als) and recorded the best widths (26m) and highest grades with bonanza intervals, including 5m at 14.71 g/t Au and 1378 g/t Ag.

Table 1. Drill results for Campamento Zone, Amalia Project

-------------------------------------------------------------------------- |Hole |Collar, |from |to |interval|Au |Ag |Elevation| | |NAD | | | |g/t |g/t | | | |27, | | | | | | | | |Zone | | | | | | | | |13 | | | | | | | | |-----------------| | | | | |---------| | |UTM E |UTM N | | | | | |m asl* | |------------------------------------------------------------------------| |AMDD18-001|295,998|2,863,234|44.35 |56.35 |12m |0.1 |44 |1988 | |------------------------------------------------------------------------| |AMDD18-003|296,025|2,863,269|107.44|137.44|30m |0.30 |65 |1937 | |------------------------------------------------------------------------| |AMDD18-007|296,234|2,862,867|129.1 |133.1 |4m |0.29 |229 |1950 | |------------------------------------------------------------------------| |AMDD18-008|296,077|2,863,172|98.65 |99.65 |1m |2.28 |521 |1976 | |------------------------------------------------------------------------| |and | | |126.65|131.65|5m |0.59 |571 |1950 | |------------------------------------------------------------------------| |AMDD18-009|295,988|2,863,347|144.35|170.35|26m |7.08 |517 |1908 | |------------------------------------------------------------------------| |including | | |165.35|170.35|5m |14.71|1378|1882 | --------------------------------------------------------------------------

* elevations are given as metres above sea level at the top of the reported interval. Drill holes were drilled perpendicular to the mineralized zone and reported intervals are thought to approximate true width.

Mineralization at the Campamento Zone is open in all directions. On strike from Campamento, along the Amalia regional fault system, high grade gold and silver mineralization outcrops at intervals vertically at least 600m below Campamento. Similar style major epithermal mines of the Sierra Madre (e.g. Palmerejo, Pinos Altos, La Cienga) located in the same regional volcanic belt as Amalia are known to have mineralization occurring over large vertical intervals between 600 and 750m. To date the Radius / Pan American JV has tested a very limited part of the system and it is intended to follow the high grade mineralization along strike and to depth with further drilling early in the new year.

Drill holes AMD002 / 004 / 005 / 006 targeted mineralization at the Guadalupe and Dulces zones. These drill holes did not intercept significant gold/silver mineralization.

Maps and sections of the Amalia phase 1 drilling are available on the Radius website at: http://www.radiusgold.com/s/amalia.asp

Figure 1: Photographic record of the high-grade zone in AMD009 with meter by meter assay.

Click Image To View Full Size

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 participated in the reported drill program and prepared and approved the technical information contained in this news release.

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 between 1m and 1.5m 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. Radius routinely inserts multi-element geochemical standards and blanks into the drill core sample stream to monitor laboratory performance. Quality control samples submitted to ALS were returned within acceptable limits.

Radius Gold Inc.

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

Simon Ridgway

President and CEO

Symbol: TSXV-RDU

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

Email: info@goldgroup.com

Website: www.radiusgold.com

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

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 results of exploration work and future plans at the Amalia Project; 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 results of exploration work and future plans at the Amalia Project; 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 the exploration activities at the Amalia Project will advance 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.