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Vancouver: Radius Gold Inc (RDU TSX-V) is a junior gold explorer discovering new gold systems in the Central American countries of Nicaragua and Guatemala. Management is pleased to provide a brief review of the Company's activities in Central America during 2004 and to outline what Radius is planning for the first half of the coming year.
Radius made solid progress during 2004 signing 4 new joint ventures, including agreements with mid-cap producers Meridian Gold (El Pavon, Nicaragua) and Glamis Gold (Banderas / Marimba, Guatemala), and with Vancouver-based juniors Coastport Capital Inc and Fortuna Ventures Inc. This had the effect of substantially reducing Radius' cash burn towards the end of 2004 as our partners shared a higher proportion of our project costs. Full details of all of the joint ventures are available on Radius' web site at www.radiusgold.com.
Radius's technical teams also made a number of significant new gold discoveries in Nicaragua including the San Pedro vein system in eastern Nicaragua, and the early stage Nueva Guinea discovery in southern Nicaragua. These new discoveries have added substantially to the depth and technical quality of Radius' project portfolio and we look forward to advancing them during 2005.
In 2005, Radius will maintain a strong advanced exploration focus through its four joint ventures. Drills are expected to be turning on at least 3 joint ventured projects in the first quarter of next year and in total, our joint venture partners are planning at least 15,000m of drilling during the first half of 2005. Management is looking forward to receiving a steady stream of drill results as the joint ventures move forward.
Radius will also place a high priority on generating new discoveries in Nicaragua and has budgeted approximately $3-million for its grass roots program. We maintain a strong land position in Nicaragua and are constantly reviewing opportunities to add to our land position in the country. Management will continue to evaluate potential regional "plays" throughout the broader Central American / Caribbean area and will react rapidly to any project opportunities that are a good fit with Radius' overall exploration strategy of acquiring large land positions in under-explored, but highly prospective regions.
Radius' planned work for the first half of 2005 is outlined below.
El Pavon, Nicaragua: Meridian Gold Joint Venture
Meridian anticipates completing around 8,500m of core drilling at El Pavon by mid-2005 as the first part of Meridian's commitment to drill 15,000m in the first 2 years of the El Pavon program. Drilling will start as soon as the final environmental sign-off has been received from the Nicaraguan authorities, expected toward the end of January. Two man-portable drill rigs will be used to reduce the need for access roads and large drill pads.
Meridian will also focus on prospecting, mapping and sampling the other veins and mineralized zones on the extensive El Pavon land package, including the Patriota Zone where sampling by Radius in 2004 returned high-grade gold values associated with volcanic breccias.
Tambor, Guatemala: Fortuna Ventures Joint Venture
Fortuna is planning an extensive work program for Tambor. Subject to permitting they will drill over 6,000m in two main areas: 1) around the known gold zones at Laguna North and Guapinol South to increase confidence in the resource and extend known mineralized zones; 2) roughly 3,000m to test high priority soil anomalies and geological targets on the broader Tambor property which were not previously tested. In addition, an underground development program of approximately 300m is planned on the high grade portion of Guapinol South, to confirm grades and better define the structural controls on gold mineralization.
San Ramon, Nicaragua: Coastport Capital Joint Venture
Drilling is currently underway at San Ramon close to the town of Matagalpa, Nicaragua. Funded by Coastport and operated by Radius, the joint venture is testing a series of intermediate-sulphidation vein targets down dip of old mine workings. Over 1,000m of drilling is planned in the current program and full results are expected in the New Year. Further work is planned for San Ramon dependent on the results of the first round of drilling
Glamis has informed Radius that drilling has started at the Banderas project in southern Guatemala. The current program will consist of approximately 6 reverse circulation (RC) holes testing high priority vein targets on the property. Further work is anticipated once the results from Glamis' first stage program have been collated and interpreted.
Grass Roots / Early Stage Discovery Programs - Nicaragua
The San Pedro low-sulphidation epithermal gold project is expected to take up a lot of geologists' time in 2005, and Radius hopes to be drilling there during the first half of the year. Initial work at San Pedro has defined a series of strong linear gold-in-soil anomalies over approximately 12km strike length, accompanied by gold-in-stream sediments and banded vein float. This appears to be an extensive system which warrants a sustained work program including detailed soil sampling, ground geophysics and then drilling of selected targets. Permits are expected before year end with a large crew planned for the property in January.
Nueva Guinea & El Castillo
Further work is also planned for Nueva Guinea and El Castillo on the southern end of Radius' concessions once the relevant permitting is in place. Both prospects host what are believed to low sulphidation vein systems. Additional soil and trench sampling programs are planned as and when the relevant permits are received from the authorities.
The timetable outlined in this press release is only meant as a rough guide to what Management expect may happen during the first 6 months of 2005, and where future news flow is expected to come from. It is important to note that the exact timing and nature of our work programs will depend on the granting of mineral concessions, environmental and other relevant exploration permits by the Nicaraguan and Guatemalan authorities and may vary considerably from what is set out in this release. No representation or prediction is intended as to the results of future work, nor can there be any promise that the estimates and projections herein will be sustained in future work or that the Projects will otherwise prove to be economic.
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
Shares Issued: 52.3-million
You can view the Next News Releases item: Wed Dec 22, 2004, Radius & Coastport Provide Update on San Ramon Drilling, Nicaragua; Radius Starts Trading on OTCBB Under Symbol RDUFF
You can view the Previous News Releases item: Thu Dec 2, 2004, Radius & Fortuna Reach a Joint Venture Agreement on the High Grade Tambor Gold Project, Guatemala
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