Guatemala Joint Venture ProjectHighlights
- World class gold silver terrain
- High grade advanced gold silver targets
- Huge regional land position
- $7M exploration drilling to be funded by joint venture partner Volcanic Gold Mines Inc
- Radius Gold to retain undiluted 40% equity
Holly and Banderas Projects History
- Initial discoveries by Radius Geologists in 2002/3
- Several shallow drill programs conducted during next 36 months
- Extensive high-grade drill intercepts indicate potential. Weak gold market halts exploration
- No drilling on property package since 2006
- In 2007 Goldcorp makes Escobal world class silver discovery 20 km's away
- Multiple targets open for expansion or are untested by drilling
Holly Project Summary
- Intersection of Jocotan fault and Ipala graben fault
- Key features of both Escobal and Cerro Blanco
- High-grade mineralization
- Best drilling 6.00 m @ 43.56 g/t gold and 1,618 g/t silver
- Just 15 shallow historic drill holes (less 150 m)
- Possible fast track to establish high grade gold resource
- Holly is 60km by paved road to Bluestone's planned processing plant
Road cut through the Jocotan fault, 150m wide regional mega shear -- not drill tested
Holly project overview
Multiple high-grade structures cutting the regional Jocotan fault
Large scale bulk tonnage and potential high-grade feeder drill targets.
Banderas project Summary
- Large caldera and rhyolite dome complex with gold-silver rich epithermal veins and breccias extending over 9km2
- Escobal style targets where Banderas veins are predicted to merge
- Brecciated dome margin targets at Zapote
- High-grade mineralization in multiple drill intercepts
- Including 1.5 m @ 70 g/t gold and 516 g/t silver, and 6.7 m @ 4 g/t gold and 70 g/t silver
- Historic drilling is limited shallow holes
- 49 holes , <7500 meters, tested less than 200 vertical meters
Banderas project regional view
Vein zone -- predicted to converge at depth
Vein zone -- Alteration and geological studies indicate deep source
Banderas Zapote Target
Zapote target brecciated margin of the large Banderas Rhyolite dome, mostly covered by rubble and slope deposits
Zapote 3.5km strike length gold silver geochemical target-- undrilled
- 240,000 hectare land position
- 10,000 data point proprietary geochemical data base
- Large number of anomalies never followed up
- Potential for new discoveries
Terms of Guatemala Radius Gold Inc and Volcanic Metals Inc option
The Company has acquired an option on a large land position in Eastern Guatemala from Radius Gold Inc.
Volcanic can earn a 60% interest in the Holly and the Banderas projects by spending the cumulative amount of US$7.0 million on exploration of the Properties within 48 months from the date of the agreement.
An initial US$1M must be spent on exploration within the 12 months of receiving the required drill permits, which expenditure will include a minimum 3,000m of drilling on the properties.
Following the exercise of the Option, Volcanic will enter into a standard 60/40 Joint Venture in order to further develop the Properties.
Volcanic has also been granted an exclusive right to evaluate all other property interests of Radius in Guatemala with a right to acquire an interest in any or all other such properties on reasonable terms.