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Corporate Background
Q. What is Radius Gold?
Radius Gold Inc, is a junior gold exploration company trading under the symbol RDU on the Toronto Venture Exchange, and under the symbol RDUFF on the OTCBB in the US. Radius Gold was formed in July 2004 after the merger of Radius Explorations Ltd and PilaGold Inc.
The company is a focused Central American gold exploration company, working in Nicaragua, Guatemala, Mexico, Ecuador and Peru. Our aim is to discover new gold deposits and then sell or joint venture significant gold projects.
Q. How much gold does Radius produce?
Through a production agreement with Kappes Cassiday and Associates, we are developing the Tambor Gold project into a small 150 tpd gold mine. Kappes will be the project operators and eventually Radius will see 49% of the cash flows generated by the mine.
Exploration is an inherently risky business to be in and this is a key point for potential investors to remember. Many exploration projects fail the acid test of economic viability and are dropped or relinquished by the companies that found them. However, the potential upside for shareholders if a grass-roots project turns out to be mineable is extremely attractive. As a potential investor, you should be clear that you are comfortable with the investment risks associated with early-stage exploration companies such as Radius.
Q. What is the company's basic strategy?
We specialize in acquiring the mineral concessions for large areas of prospective ground in countries that have seen little modern exploration. We identify what we believe to be the main structures or geological trends controlling where gold deposits may form, and then apply low cost, effective exploration methods to identify new gold projects. We would also like to add to the portfolio advanced projects, similar to Tambor, that can be brought into production at a low cost and shorter time-frame.
Q. Do you automatically joint venture each new project you find?
No. Each project is considered individually. In some cases we believe that our shareholder's best interests will be served by Radius conducting its own detailed exploration programs. In other cases, the potential exploration costs involved in completing a detailed program are high enough to justify spreading the financial and technical risks through joint venturing.
Q. How long has Radius Gold been active in Central America?
Our management team have been exploring in Central America since the mid-1990s, first as Mar West Resources and then as Radius Explorations Ltd and PilaGold, and now --after the merger of Radius Explorations and PilaGold- as Radius Gold Inc. We moved into Nicaragua in early 2003. Over the last decade, the team has successfully discovered and sold close to 4-million ounces of gold to Glamis Gold.
Q. Are you exploring anywhere else? Do you only explore for gold?
In exploration, focus is important -particularly geographic and commodity focuses. The members of our technical team are Central American and Caribbean gold specialists. We believe our shareholders will get the best long term return if we stick to the area and commodity we know best.
However, we are always evaluating potential regional "plays" throughout the broader Central American / Caribbean area and management will react rapidly to any project opportunities that are a good fit with Radius' overall exploration strategy of acquiring large land positions in under-explored, but highly prospective regions.
Although we do come across other commodities such as copper and other base metals in the course of our exploration programs, gold is our primary target.
Q. Have you found gold mines?
Yes. Our technical management team was responsible for finding Glamis Gold's San Martin mine in Honduras, and their Cerro Blanco deposit in Guatemala. Between them, these 2 deposits contain around 4-million ounces of gold. We also discovered the Tambor gold deposit in Guatemala which has a resource of around 270,000 ounces of gold. Kappes Cassiday & Associates (KCA) have entered into a production agreement with Radius detailing an initial 150 tpd underground and surface pit operation. KCA is an established Reno-based firm specializing in development, engineering and metallurgical plants for mining projects. KCA can earn a 51 percent interest in the Tambor project by spending a total of $6.5 million on the property within 4 years through staged annual expenditures or by putting the property into commercial production within four years.
Q. How many exploration properties does Radius have?
Radius has an excellent portfolio of high quality gold exploration projects. You can click on this link to view a map of their locations and names. Our project portfolio is constantly changing as we discover new projects or existing targets are joint ventured or dropped.
Q. What's your best project?
The Tambor Gold project, and our extensive Nicaraguan project portfolio. Kappes Cassiday & Associates are currently developing a 150 tpd underground and surface pit mine at Tambor. In Nicaragua, our work has identified numerous interesting targets with a non-NI43-101 compliant resource defined at the Pavon project in the centre of the country. We will continue with our efforts to joint venture one or more of our Nicaraguan projects.
Q. How do I get a quote for Radius's share price? What is the stock symbol?
We trade on the TSX-Venture exchange in Toronto. If you're searching for a quote from Canada, you can use the symbol RDU.V or RDU-V to get a quote in Canadian dollars. We are also listed on the OTCBB under the symbol RDUFF.
Q. I live in the US. How can I buy Radius shares?
If your broker can't buy Radius shares via the Venture Exchange in Toronto, we also trade on the OTC in the US under the symbol RDUFF. If you're still having problems buying, and would like to find a US-based broker familiar with the Canadian markets, please call us at 1-604 801 5432 or 1-888-627-9378 for a recommendation.
Q. Do you plan to raise any money in the near future?
This will depend on projects and opportunities that arise in the near to medium term.
Q. Where are your samples analyzed?
We use a number of different analytical laboratories depending on which country we're working on and the kind of analyses we need. All samples from our Nicaraguan projects go to CAS's laboratory in Tegucigalpa in Honduras. CAS perform basic sample preparation and Fire Assay gold analyses. All ICP and check Fire Assay sample analyses are carried out at ACME Laboratories in Vancouver, Canada, as part of Radius's QA/QC sampling protocol. To this point, all of our Guatemalan samples have been forwarded to Inspectorate's lab in Nevada. You can follow these links for more information on the analytical companies. Columbia Analytical Services (CAS). ACME. Inspectorate.
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