| ||Vancouver, December 5, 2005: Simon Ridgway, President of Radius Gold ("Radius") is pleased to announce that its 100% owned Mexican subsidiary Geometales del Norte S.A. de C.V. ("Geometales") has acquired the right to earn a 100% interest in the Amatista epithermal gold-silver project, a 13,735 ha mineral exploration property within the historic mining area of San Francisco, located 29km SE of the Nayarit State capital, Tepic in Mexico. |
The property covers 18 abandoned mine workings dating from Spanish colonial times which are aligned along a northwest-southeast trending belt over a distance of 10km and up to 3km wide northeast to southwest. The mines exploited low-sulfidation epithermal quartz veins, stockworks and breccias, hosted by Tertiary rhyolite ignimbrite within the Tepic-Chapala Graben.
A study was completed in 1983 by Consejo de Recursos Minerales (Mexican Geological Survey) on 14 of the old mine workings. The mine which was most extensively sampled (98 samples from five levels) during this study returned grades of 0.1 to 22.4 g/t Au and 11.3 to 1300.0 g/t Ag over widths from 0.8m to 1.7m along a strike length of 320m, a vertical distance of 145m, with an average grade of 7.95 g/t Au and 284 g/t over 0.80m (Evaluación Geológica-Minera Preliminar del Área de San Francisco, Mpios. De Compostela y San Pedro Lagunillas en el Estado de Nayarit by Cedillo Calvillo Roberto, 1983; CRM ref: 1883CECR0001). The reader is cautioned that Radius has not independently verified these grades.
Inspection of some of this sampling by Radius' geologists suggests that only the massive parts of the mineralized structures were sampled, and potential exists to expand the width of the gold-silver mineralisation by including parallel veins, and the adjacent stockwork and breccia zones. Additionally, several areas were identified where quartz stringers and narrow veins at surface which were not exploited may lie above wider mineralized zones.
No geophysical surveys, soil surveys or drilling have ever been completed on the property.
Geometales can earn 100% of the property by making staged cash and share payments over three years totaling $425,000 and issuing 200,000 common shares of Radius Gold Inc., and by incurring expenditures totaling $1.75-million, of which $250,000 must be spent in the first year. The owner will retain a 2% NSR, which may be purchased for $2.0-million. All amounts are in US dollars.
Mineralization consists of native gold, electrum, silver sulfides and manganese and iron oxides within steeply-dipping, quartz  amethyst veins up to 1.8m wide, and adjacent stringers, stockworks and breccias. Minor pyrite, chalcopyrite and galena are present locally. A thin layer of post-mineralization basalt covers the area locally, with alteration and mineralization emerging from beneath these cover rocks. Some of the veins have been traced continuously over approximately 300m along strike and over vertical distances of up to 250m.
In addition to the high grade gold-silver veins, the property shows potential for stringer and disseminated mineralization within broad zones of stockwork and breccia. Bladed quartz after calcite or barite is present locally, indicating preservation of the upper part of the epithermal system where boiling occurred, and which is typically above bonanza-grade mineralization.
The project area is 4km from the town of Compostela. The area has a long mining history, and was founded in 1543 as the capital of the Spanish colony of Nueva Galicia due to the many mines in the area. During the 1930s, reports suggest that several of the mines work worked at a rate of 10t/day, but no production numbers are available.
Infrastructure and access to the project are excellent. Paved highways and electric power lines pass within 4km of the western boundary, and within 1km of the southern boundary of the property. An operating railway line crosses the NW corner of the property. A gravel road provides access to the center of the property where most of the old mines are located. Water is available year round on the property.
Nancy Reardon M.Sc., P.Geol. is the Qualified Person as defined in NI 43-101 responsible for verifying that the historical sampling results presented in this press release have been accurately summarized from data available from the Consejo de Recursos Minerales and the Universidad Autonoma de San Luis Potosi. Radius has not independently verified the assay results.
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
Symbol: TSXV-RDU; OTCBB-RDUFF
Shares Issued: 53.3-million
You can view the Next News Releases item: Thu Jan 12, 2006, Radius Reviews 2005 Exploration Results and Looks Forward to 2006
You can view the Previous News Releases item: Tue Nov 22, 2005, Radius Provides Clarification to Natividad Update
You can return to the main News Releases page, or press the Back button on your browser.