Tickers: XTSX:RDU, PINX:RDUFF
May 5, 2020 - TheNewswire - Vancouver, Canada - Radius Gold Inc. (TSXV:RDU) (OTC:RDUFF) is pleased to announce the results of second phase rock chip sampling from the Company's recently acquired Plata Verde project located in Chihuahua, Mexico.
Highlights include a 64m continuous rock chip sample grading 142 g/t Ag, within Mina Mojonera.
Widespread silver mineralization sampled over 200m x 100m area of Mina Real.
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 caverns, producing silver bars at an associated smelter operation. The project appears to be un-explored since the historic miners ceased their operations. Initial prospecting rock chips by Radius geologists returned silver grades between 5 and 1070 g/t Ag (press release 23 March, 2020). Radius has completed additional mapping and rock chip sampling (105 assays) and is pleased to report the latest results.
Mina Mojonera Zone
Mina Mojonera is an extensive network of anastomosing mining tunnels and cavities covering roughly 100m x 100m. The height of the excavation varies from 4 to 30m. Radius previously reported 35 rock chip samples collected from the walls and remaining pillars (2 x 2m panel samples or 2m chip channel samples) at stations approximately 10 to 20m apart covering the irregularly shaped +5000m2 mining area. These samples ranged from 5 to 849 g/t Ag and averaged 276 g/t Ag (press release 23 March 2020). Radius geologists recently sampled a 68 meter rock chip channel (34 samples, 2m x 2m panels) extending across the northern wall of the main mining cavity with the following result:
64m grading 142 g/t Ag, Including 12m at 350 g/t Ag
Outcropping mineralization is only exposed in a small creek from which the historic mining developed. Potential extensions of mineralization are largely covered by overlying ignimbrite volcanics. New sampling at the extremities of the mined areas indicate the mineralization is open to expansion in most directions (figure 1).
Figure 1. Mina Mojonera rock chip sampling with silver assays in g/t Ag.
Mina Real Zone
Mina Real, located 150m south of Mina Mojonera, is an extensive network of anastomosing mining tunnels and cavities covering roughly 150m x 140m. The height of the excavation varies from 3 to 20m. Radius has collected a total of 75 prospecting rock chip samples from the walls and remaining pillars with silver grades ranging between 8 and 730 g/t Ag and averaged 276 g/t Ag (figures 2 and 3).
Figure 2. Mina Real rock chip sampling with silver assays in g/t Ag.
Geology and Mineralization
At Plata Verde, silver mineralization occurs as massive to crustiform banded barite calcite with silver chlorides, sulphosalt minerals and native silver infilling and cementing fractures and breccia within a basaltic/andesite extrusive volcanic. The basaltic/andesite host occurs at the base of the Upper Rhyolitic Volcanics of the Northern Sierra Madre. In general the host volcanics and associated silver mineralization is covered by the overlying rhyolitic ignimbrites and is only exposed along the length of a small creek.
Sampling has mostly been confined to the two main mining areas (Mina Real and Mina Mojonera) which define a zone of silver mineralization approximately 550m long by 200m wide. To the south the mineralization appears to be displaced by a large fault. In other directions the host basaltic andesite units are largely covered by rhyolite ignimbrites. Radius plans to fly an airborne magnetic survey to help define the extensions of the host rocks under cover.
Figure 3. Plata Verde geology and rock chip sampling with silver assays in g/t Ag.
The barite/silver chloride mineralization appears to be a late stage low temperature mineralizing event with the source and feeder systems as yet unknown and 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 attractive large scale bulk minable targets.
Due to COVID-19 and associated travel restrictions the project will not advance as quickly as normal. Radius has a Mexican geological team in Chihuahua and in the coming weeks our teams will decide how best to advance, based on the situation in Chihuahua and our team's personal and family safety. Radius has established a full camp at Plata Verde with internet connection and accommodation for field teams ready to ramp up work as soon as possible.
Figure 4. Mina Real typical large scale underground excavation.
Radius can earn a 100% interest in the project by making staged payments totalling US$800,000 over four years with a final payment of $400,000 due at the end of year four. An $8,000 signing payment has been paid. The owner retains a 1% NSR which Radius can buy back for US$1,000,000.
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 Labortories 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
President and CEO
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
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
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; 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; 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.
Copyright (c) 2020 TheNewswire - All rights reserved.