| ||Vancouver, December 2, 2004: Radius Gold Inc. (TSX-Venture: RDU, "Radius") and Fortuna Ventures Inc. (TSX Venture: FVI, "Fortuna") are pleased to announce that - subject to regulatory approval - the Companies have reached an agreement for the further advancement of the high grade Tambor Gold Belt located in Central Guatemala. |
The Tambor gold properties host an orogenic lode gold system, discovered by Radius in 2000 and advanced by Gold Fields Ltd who completed extensive trenching and drilled over 60 holes on the property. Their work defined at least 13 gold occurrences over a 25km belt of prospective geology, highlighted by 2 major parallel gold-in-soil anomalies over a 7km strike length that remains to be drill tested.
Gold Fields' trenching returned grades ranging up to 66.8g/t Au over 10.9m from the Poza del Coyote zone. The drilling results ranged up to a best intersection of 12.2 g/t Au over 18.3m from the Laguna North zone and 72.1 g/t Au over 5.3m from Guapinol South. Gold Fields' drilling led to a NI 43-101 compliant mineral resource estimate of 274,000oz Au, calculated by Chlumsky, Armbrust and Meyer (CAM) of Lakewood, Colorado.
Fortuna has agreed to spend US$4-million over 4 years, to earn a 60% interest in the project and will spend a minimum of $250,000 per year. Once Fortuna has earned its 60%, Radius retains the right to back in to 51% of the project by matching Fortuna's US$4-million expenditure. Fortuna will also pay Radius the sum of US$50,000 in cash or shares on signing of the agreement, and US$50,000 in cash or shares on the 6-month anniversary of the agreement.
Fortuna's planned work program for 2005 includes:
Commenting on the deal, Simon Ridgway, the President of Radius, said "Fortuna is planning an aggressive exploration program for Tambor, which is exactly what's needed to unlock the potential upside of the project. We particularly like the fact that they plan on going underground almost immediately to demonstrate continuity of the high grade quartz bodies."
- Core drilling of roughly 3,000m around the known gold zones at Laguna North and Guapinol South to increase confidence in the resource and extend known mineralized zones;
- Core drilling of roughly 3,000m to test high priority soil anomalies and geological targets which were not previously tested; and
- An underground development program of approximately 300m on the high grade portion of Guapinol South, to confirm grades and better define the structural controls on gold mineralization.
New Appointments - Fortuna
Fortuna is also pleased to announce that Peter Thiersch, M.Sc. P.Geo. has been appointed President, and Jorge Ganoza, B.Sc. has joined the company as a member of the Board of Directors. Peter is a Geologist with 20 years' industry experience, specializing in gold exploration in North and South America. Jorge is a Geological Engineer with extensive experience in mining and business development in Latin America.
Tambor contains 216,000 ounces of gold in inferred resources and 57,800 ounces in indicated resources, according to the independent resource estimate prepared by Chlumsky, Armbrust and Meyer LLC (CAM) of Lakewood Colorado.
Significantly, there are at least 2 major parallel gold-in-soil anomalies over 7km in strike length with associated anomalous rock samples that have yet to be drill tested. Accordingly, CAM states that "it is considered likely that the current resource (at Tambor) could be doubled or tripled or even more with a concerted drilling program".
CAM's resource estimate is tabulated below:
NI 43-101 Statement
The CAM report serves as an independent report prepared by a Qualified Person as defined by the Canadian National Instrument 43-101 and the Companion Policy 43-101CP. The definitions of the measured, indicated and inferred resources conform to CIM Guidelines as defined in CIM Standards on the Mineral Resources and Reserves Definitions and Guidelines, dated August 20, 2000. George A. Armbrust, PhD., a consulting geologist and a Registered Geologist with the State of Wyoming (PG-2903), is the Qualified Person responsible for the preparation of the technical report.
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
Ralph Rushton, VP Corporate Development
RADIUS GOLD INC.
Shares Issued: 53 million
ON BEHALF OF THE BOARD
Mike Iverson, Director
FORTUNA VENTURES INC.
Shares Issued: 6.4 million
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