Radius Gold Inc.
TSX.V: RDU     $0.10

Tlacolula Project, Mexico

 

Joint Venture Partner

Fortuna Silver Mines Inc.
http://www.fortunasilver.com/s/home.asp

Location

The Tlacolula silver project is located around 14km E-SE of the city of Oaxaca, within a district that hosts several precious metal mines and prospects including the nearby Taviche District, where high-grade silver and gold-bearing low sulphidation epithermal vein mineralization has been mined since Spanish colonial times.

Ownership

The 100%-owned Tlacolula property covers a total of 82,630 hectares in the state of Oaxaca, Mexico and was acquired through staking.

Fortuna Silver Mines can earn a 60% interest by spending US$2 million, which includes a commitment to drill 1,500 meters within 3 years, and making staged annual payments of US$250,000 cash and US$250,000 in common stock.

For further details on the joint venture, please review these press releases
http://www.radiusgold.com/i/pdf/RDUSep23.pdf
http://www.radiusgold.com/i/pdf/NR/2008-04-02_NR.pdf

Geology

The regional geology in this part of Mexico is poorly understood. The project area is largely underlain by Tertiary rhyolitic to andesitic tuffs and minor flows, underlain by Cretaceous limestones, sandstones and siltstones, with the basement formed by the Oaxaca metamorphic complex, which is locally exposed by thrust faulting. Tertiary granodiorites-granites intrude the sequence.

A systematic stream sediment sampling program was carried out by Radius which generated several anomalous areas throughout the claims, with up to 819 ppb Ag and up to 53 ppb Au. Follow up work identified a NW trending zone of argillic alteration in andesites some 30 to 40m wide in the SE part of the claims and traced for 1.5 km. Here, a series of veins and breccia zones composed of mainly calcite and lesser quartz veining contain disseminated pyrargyrite, acanthite, and pyrite. Opaline silica within the breccias could indicate the high level parts of an epithermal system. Continuous chip samples along stream channels and local road cuts in these veins and breccia zones returned from trace up to 1,335 g/t Ag.Channel Sample Results here
Channel Sample Results
Length m Ag g/t
21.5 130.8
incl.12.1 183.4
3.2 294.5
incl. 1.5 465
0.3 1,335

In the northeast part of the property, referred to as Teotitlan, stream sediment sampling also identified a series of NW trending Au-bearing quartz veins up to 1.55m wide, hosted by andesite flows and tuffs. The foundations of an old mill and several small partly collapsed pits and drifts are present. These assays were obtained in rock chip sampling.
Au g/t Length m
>10 g/t 0.80
5.02 0.80
4.8 0.35
3.2 1.55

Further work planned on the property will include trenching across the mineralized trends in order to obtain more information on the grades and controls on the epithermal mineralization.