Radius Gold Defines New Drill Targets at Plata Verde Silver Project

2021-02-03 / @thenewswire

(TheNewswire)

Vancouver, Canada – TheNewswire - February 3, 2021 - Radius Gold Inc. (TSXV:RDU) (OTC:RDUFF) is pleased to publish the results of recent geophysical surveys completed at the Company’s Plata Verde silver project located in Chihuahua, Mexico. New IP/Resistivity sections show significant structural zones extending to depth directly below the known large scale historic silver mines. The structural zones are clearly connected with the historic mines and are possibly feeders zones for the silver mineralizing system. Radius has now defined two priority targets:

1) Extensions and repetitions of the shallow dipping large scale silver rich breccias, stockworks and disseminated silver mineralization exposed within the historic mines.

2) Sub-vertical feeder zones below the historic silver mines.

At Plata Verde, Radius geologists re-discovered an undocumented large scale underground bulk mining operation where in the late 1800’s, historic miners hand excavated an extensive series of anastomosing mines, producing silver bars at an associated smelter operation. The project was un-explored since the historic miners ceased operations. Initial phases of rock chip sampling by Radius geologists returned widespread silver mineralization between 5 and 1070 g/t Ag over a 200 x 500 metre area within the historic mines. 255 rock chip and panel samples have been collected from the mines and average 156 g/t silver, detailed in Radius’ press release 22 July, 2020. The silver mineralization is hosted within a shallow dipping basaltic andesite exposed in a deeply incised drainage with principal extensions covered by rhyolitic agglomerates. The silver mineralization is best exposed in the mines which extend horizontally up to 180 m under rhyolitic cover.

Plata Verde Geophysics

Radius has recently completed sampling and processing geophysical programs at Plata Verde, consisting of 7.5 line km magnetic survey and 4.5 line km IP/Resistivity survey conducted by consultants, Geofisica TMC. The program was designed to locate potential feeder systems below the historic silver mines and successfully identified compelling drill targets below the known mines (figures 1 and 2). All relevant data and sections from the geophysical surveys are available on the Radius website.

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Figure 1. Initial IP/Resistivity section through the historic Mina Real.

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Figure 2. Initial IP/Resistivity section through the historic Mina Mojonera.

Geological model, silver mineralization and exploration targets

Radius’s geological team have completed detailed underground mapping and sampling of the historic Mina Real and Mina Mojonera. Three distinct mineralization styles have been defined within the basaltic andesite volcanic host rock:

1. Multiple large scale breccia zones with chimney type structures up to 75 m diameter and sampled on multiple mine levels. The breccias are cemented by massive to crustiform banded barite calcite with silver chlorides, sulphosalt minerals and native silver.

2. Fracture fill and stockwork silver mineralization occurs as massive to crustiform banded barite calcite with silver chlorides, sulphosalt minerals and native silver.

3. Disseminated style mineralization with fine silver sulphosalts disseminated within the volcanic host with little to no brecciation, veining or fracture fill.

In general the silver mineralization is covered by the overlying rhyolitic volcanics and is only exposed within the historic mines and at surface in a few areas along the length of a small creek.

The barite/silver chloride mineralization appears to be a late stage low temperature mineralizing event with the source and feeder systems an attractive exploration target. Barite and silver chloride are often part of the upper levels or supergene zone around large silver deposits. The solubility of barite and silver chlorides is low, and hence the source zone is likely to be close by. Extensions of the known mineralization below the ignimbrite cover to the north, east and west are open. Potential feeder structures have been clearly defined by the recent geophysics. Radius has completed an environmental study in support of drill permits which have been recently filed. The Company looks forward to drill testing the compelling targets once drill permits are granted.

The Agreement

Radius can earn a 100% interest in the project by making staged payments to the property owner totalling US$800,000 over four years with a final payment of $400,000 due at the end of year four. A total of $16,000 has been paid to date. The owner retains a 1% NSR which Radius can buy back for US$1,000,000.

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 worked in the field at Plata Verde, and prepared and approved the technical information contained in this news release.

Quality Assurance and Quality Control

Reported assays are rock chip and channels samples taken by Radius geologists and trained sampling teams. Sample intervals are generally 2m chip channels or 2x2m panels producing samples of between 2 to 9 kg. Reported samples were delivered to SGN Laboratories in Paral, Chihuahua. The samples were crushed and pulverised. Two 100 gram splits were taken. Radius geologists removed and stored the excess and a 100g split at the Radius offices. SGN proformed initial Ag and Au analysis. The second split was subsequently sent to the ALS Geochemistry laboratory facilities in Chihuahua, Mexico and was analysed for Ag and multi-elements using method code ME-ICP61 following a four-acid digestion. Overlimits are analysed using an appropriate method. All assays reported above 30g/t Ag have been analysed by ALS Geochemistry. Radius routinely inserts multi-element geochemical standards and blanks into the sample stream to monitor laboratories performance. Quality control samples submitted were returned within acceptable limits. Comparisons between sample splits demonstrate acceptable accuracy and precision.

Radius Gold Inc.

Radius has a portfolio of projects located 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.

ON BEHALF OF THE BOARD

Bruce Smith

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; the exploration plans for the Plata Verde Project and the Company’s right to acquire the Plata Verde 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 plans for exploring the Plata Verde Project and the Company’s right to acquire the Plata Verde 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 Plata Verde Project will proceed 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.