| ||NR RGI 8|
Radius Gold Inc. ("Radius": TSX-Venture: RDU-V) is pleased to announce that it has signed an agreement with Glamis Gold Ltd. ("Glamis": Toronto: GLG; NYSE: GLG) giving Glamis an option to explore and develop the Banderas and Marimba epithermal gold systems in eastern Guatemala.
The Agreement gives Glamis the right to acquire a 51% interest in the properties by spending US$4-million over a four year period. To earn this interest Glamis must:
Glamis may earn an additional 24% interest in the property, for a total of 75%, by funding and completing a positive feasibility study for the development and construction of a mine at Banderas within five years from the Effective Date. After the feasibility study has been completed, each party shall fund its share of future expenditures, including for the construction and development of a mine on the property, in proportion to its respective interest in the Property, or have its interest in the property diluted on a straight-line basis. Glamis has also agreed to use reasonable efforts to assist Radius in arranging financing for its share of development and construction expenditures.
- incur US$250,000 in exploration or development expenditures on the property in the first 12-months following receipt of all governmental permits necessary to carry out the proposed exploration program (the "Effective Date");
- spend not less than US$4 million of exploration expenditures within four years from the Effective Date, including a minimum US$250,000 during each of the second, third and fourth years.
If Glamis fails to proceed with a feasibility study within five years from the Effective Date, Radius has an option to earn back to a 75% interest in the property by funding and completing a positive feasibility study for the development and construction of a mine at Banderas.
Glamis has also agreed to reduce by $500,000 a payment due on or before May 6, 2006, from Radius to Glamis, which relates to an agreement covering one of the mineral licenses underlying Radius' Tambor project in Guatemala.
Simon Ridgway, the President of Radius Gold, said "We're very pleased to have such a solid partner involved in Banderas. Glamis' technical people have invaluable experience of exploring and drilling similar systems in Guatemala at Marlin and Cerro Blanco, and there are obvious synergies between Banderas and their Cerro Blanco project".
Banderas is a classic low sulphidation epithermal gold-silver vein system located in eastern Guatemala about 3 hours drive from Guatemala City, close to the town of Chiquimula. Infrastructure is excellent and the project is just a 45 minute drive up into the hills surrounding Chiquimula.
A program of mapping and hand trenching was conducted on the property in 2002, with banded quartz veins returning values up to 28 g/t Au and 553 g/t Ag from trenching. A two phase program of core drilling, totaling 2545m, was completed in early 2004. Best results from core included 18g/t Au over 1.5m and 332 g/t Ag over 1.6m. The project lies 40 km to the North of Glamis' Cerro Blanco project.
Peter Thiersch, M.Sc. P.Geo. is the Qualified Person as defined by National Instrument 43-101 responsible for ensuring that the geological information in this release is an accurate summary of the information originally reported to Radius by PilaGold Inc. (now Radius Gold Inc.). Radius has not independently verified the assay or geological information.
For further information on Radius Gold Inc, please call toll free 1-888-627-9378 or visit our web site www.radiusgold.com.
The TSX Venture Exchange has not reviewed and does not take responsibility for the adequacy or accuracy of this release.
ON BEHALF OF THE BOARD
Vice-President, Corporate Development
Shares Issued: 52.2-million
You can view the Next News Releases item: Mon Nov 22, 2004, Radius & Coastport Drill San Ramon, Nicaragua
You can view the Previous News Releases item: Mon Nov 1, 2004, Radius Follows up High Grade Silver Results at Kuikuinita, Nicaragua
You can return to the main News Releases page, or press the Back button on your browser.