Radius Gold Options Mexican Epithermal Ag-Au Property
VANCOUVER, Feb. 26, 2013 /PRNewswire/ – Radius Gold Inc. (TSX-V: RDU) is
pleased to announce that it has signed a binding agreement (the
“Agreement”) with a private exploration company (the “Optionor”) to
option a 10,800 hectare property which hosts a low-sulphidation,
epithermal silver-gold vein system located approximately 80 km ENE of
the city of Guanajuato in Mexico. Radius has named the project “Santa
BrÃgida” after the Santa BrÃgida vein, one of the historically mined
veins on the property.
Artisanal-scale mining of surface outcrop is known to have occurred in
the area from pre-colonial times. Reliable historical reports indicate
that more modern small-scale underground mining operations produced,
from the late 1800s up to 1926, over 40 Moz of silver and 400 koz of
gold from 1.05 Mt at weighted-average grades of 1,300 g/t Ag and 13 g/t
Mineralization is associated with two principal vein swarms, the Pozos
system and the Santa BrÃgida system, each striking generally NW with
steep SW dips. Historic production focused on discrete high-grade ore
shoots within hydrothermal quartz veins and surrounding altered
wall-rock. Historical production records indicate that individual
operations mined mineralized shoots ranging from 5 kt to 300 kt in
size, with average grades ranging from 200 g/t Ag to 2,500 g/t Ag, and
2 g/t Au to 40 g/t Au. The richest shoot documented produced 300 kt
grading 2,500 g/t Ag and 15 g/t Au.
The property is underlain by folded Jurassic-aged sedimentary rocks
including carbonaceous shales, shales, arenites, and greywackes, which
are discordantly overlain by Cretaceous limestones and Tertiary
volcanic rocks. Most of the district is covered by recent soils and
caliche, and known areas of mineralization are all hosted by the
Jurassic sedimentary sequences where these outcrop.
Radius’s initial exploration efforts will be concentrated on the Santa
BrÃgida vein system, near the town of Mineral de Pozos, in flat-lying
agricultural and cattle grazing lands. The veins are exposed in
discontinuous outcrop over 1 km in strike length, along a regional
topographic lineament likely related to faulting, and which is parallel
and potentially genetically related to the mineralized system. Radius
believes there is excellent potential for the extension of the Santa
BrÃgida vein system in both directions.
The historical Santa BrÃgida mine exploited three ore shoots along the
vein system with mine workings up to 250 m in depth, and approximately
1.3 km in length. The potential for discovery for Radius is chiefly
along strike both to the SE and NW, beyond the last surface expression
of the vein system, where its outcrop disappears below recent soil and
Exploration plans call for an exploratory induced polarization (IP)
geophysical survey to cover the ground both to the SE and the NW of the
known vein system. Survey parameters will be designed to image the
near-surface expression of the vein system under the soil cover. A
drill program will follow to test the targets generated by the IP
Radius can earn a 100% interest in the project by making an immediate
cash payment of US$160,000 to cover outstanding property payments, and
by completing a 3,000 meter drill program within 12 months of the
issuance of a drilling permit. Once Radius has completed the drill
program, it will have 60 days to pay to the Optionor, US$700,000 to
acquire the 100% interest, subject to a 2.5% NSR royalty.
Mr. David Clark, M.Sc., P.Geo. (APEGBC), a Qualified Person as defined
by National Instrument 43-101, has verified that the technical
information contained in this news release is an accurate summary of
the information provided to Radius by the Optionor and is consistent
with known historic records, and has approved its disclosure.
Radius has been exploring for gold in Latin America for over a decade.
More recently the Company has focused on selling non-core assets,
thereby raising the capital needed to succeed in making a discovery
with potential to give investors the return desired from a mineral
ON BEHALF OF THE BOARD
Investor relations: Jaclyn Ruptash
Symbol: TSXV-RDU; OTCBB-RDUFF
Shares Issued: 86.6-million
Neither the TSX Venture Exchange nor the Investment Industry Regulatory
Organization of Canada accepts responsibility for the adequacy or
accuracy of this release.
Some of the statements in this news release contain forward-looking
information that involves inherent risk and uncertainty affecting the
business of Radius Gold Inc. Actual results may differ materially from
those currently anticipated in such statement.
SOURCE Radius Gold Inc.