| ||Radius Explorations Ltd (RDU) and PilaGold Inc. (PRI) are pleased to announce that the Extraordinary General Meetings of each company at which shareholders will be invited to vote to approve the proposed merger have been scheduled for June 1st, 2004. If the merger is approved by the shareholders of each company, and following court approval on June 14th, it is anticipated that the new entity, Radius Gold Inc, will commence trading on the TSX Venture exchange by June 15th. |
The Joint Information Circular relating to the proposed amalgamation has been completed and distributed to shareholders. Shareholders of either company who have not received a copy of the merger document but would like to, can contact Ralph Rushton (1-888-627-9378) at the head office of the company.
The combination of the businesses will have the following advantages to the shareholders of both companies:
- The consolidation of the landholdings and treasuries will result in a Nicaraguan portfolio second to none in the most prospective country in the region, managed by a single, well financed company.
- The formation of a focused and dedicated management team and the elimination of any perceived conflicts of interest.
- The reduction of administrative and regulatory compliance costs.
El Pavon, Nicaragua
In Central Nicaragua Radius continues to focus on the Pavon epithermal discovery. To date, exploration at Pavon has identified at least five significant quartz-adularia veins hosted by a package of volcanic rocks. The main Pavon vein has been identified for a strike length of >4 km. Over 30 hand-dug trenches have been completed on this vein by Radius geological staff. The weighted average of all of these trenches is 6.7 g/t gold over 3.5m. Trenching on the parallel Las Brisas, Manzaris and Las Vallas veins is returning similar grades and thicknesses. This work is ongoing.
Recent prospecting on the property has also identified broader areas of quartz stockworking --up to 100s of meters in strike length- associated with what appear to be conjugate vein splays off the main trends. For example, at the Pavon North Splay and Astrid zone, broader stockwork zones exist with samples returning grades in the 1g/t to 5g/t range associated with micro-fractures, quartz veining and pervasive silicification.
Radius has assembled an extensive 100% owned land package in the area, comprised of three granted exploration licenses and five applications, covering a total area of approximately 210,000 hectares. In all, Radius' management consider that the project is developing exceptionally well, and drilling is expected to start later in the year.
New Prospects in Nicaragua
Elsewhere in Nicaragua follow-up of geochemical anomalies has identified new vein systems at El Castillo and at San Pedro in north-central Nicaragua. At Castillo, chip samples ranging from trace gold up to 61.5g/t gold over 1m have been returned from banded quartz veins traceable in float and outcrop for roughly 5km. At San Pedro, banded quartz float has been found over a strike length of 4km associated with strongly anomalous stream sediment geochemistry. First-phase detailed work is continuing on these prospects.
The Kuikuinita concession lies in northeastern Nicaragua, 250 km by road from Managua and 35 km southwest of the "Golden Triangle" district (5-million oz historic production). PilaGold originally acquired 28,600 hectares, which has since been expanded to 139,000 hectares.
Intrusive-related gold mineralization occurs in altered rocks over an area of 5km by 5km representing a significant bulk tonnage, low grade gold target. Trenching at Lomas Los Indios, one of the more significant geochemical and geophysical anomalies, indicates that gold mineralization is hosted by stocks and dykes cutting ophiolitic ultramafics and volcanic wall rocks affected by pervasive quartz-sericite-pyrite alteration.
Drilling is underway at Kuikuinita with 15 holes planned in this first stage program.
The Banderas property hosts a classic low sulphidation epithermal vein system associated with the emplacement of rhyolitic to dacitic volcanic domes. Gold and silver bearing quartz-carbonate veins and breccias are hosted by felsic to intermediate flows and tuffs. Individual vein structures have been traced in outcrop, float and by drill holes for up to 2,500m along strike.
Two rounds of drilling totaling 22 holes (< 2,545m) have been completed on the property using a man portable rig. Although drill results to date have been mixed, management believes further work is warranted on this prospect: the mineralized footprint is large and exceptional grades have been obtained from float samples. A work program will be prepared post merger.
Tambor Properties, Guatemala
This property is located on the south side of the Motagua fault zone in central Guatemala. The Tambor Properties host an orogenic lode gold belt, containing 216,000 ounces of gold in inferred resources and 57,800 ounces in indicated resources in high-grade veins, according to the independent resource estimate prepared by Chlumsky, Armbrust and Meyer LLC (CAM) of Lakewood Colorado.
Significantly, there are at least two major gold-in-soil anomalies (over 14 linear kilometers) with associated anomalous rock samples that have yet to be drill tested. Recently geophysics has been completed over the resource area and structural/geological studies are underway prior to planning for further drilling at Tambor.
Negotiations are underway with potential joint-venture partners on several other properties owned by the Companies and announcements are expected shortly.
Peter Thiersch, M.Sc., P.Geol. is the Qualified Person as defined by National Instrument 43-101 with respect to PilaGold's exploration programs. Harmen Keyser, P.Geol. is the Qualified Person with respect to Radius's exploration programs.
For further information on Radius or PilaGold, please call toll free 1-888-627-9378 or visit our web sites at www.radiusgold.com and www.pilagold.com.
ON BEHALF OF THE BOARD
Simon Ridgway, President
Shares Issued: 23.1 million
ON BEHALF OF THE BOARD
Simon Ridgway, President
RADIUS EXPLORATIONS LTD.
Shares Issued: 40.3 million
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