| ||Vancouver, Canada: Simon Ridgway, the President of Radius Gold Inc. (TSX-V: RDU), is pleased to announce the signing of a Letter Agreement to acquire the Artemisas gold project, located in southeastern Peru. The geological setting and mineralization at Artemisas shows characteristics of a sediment-hosted disseminated gold system of probable high-sulphidation type.|
Gold mineralization at Artemisas is hosted within a sequence of Jurassic and Cretaceous-aged sandstones, shales and fine grained quartzites belonging to the Hualhuani Formation. Strongly silicified hydrothermal breccias are developed both as bedding-parallel mantos and along steeply dipping fault zones, some of which were exploited for gold in colonial times. Host rocks are equivalent to the Chimu Formation in northern Peru that hosts several important gold deposits such as Santa Rosa, La Arena and Llagunas Norte.
Under the terms of a Letter Agreement with Kingsgate Peru S.R.L., Radius can earn up to 70% in the project by spending $2 million in exploration over a period of 3 years, with 50% of costs to be expended on drilling. Once Radius has vested its 70% a joint venture will be formed where both parties fund their share of exploration on a pro-rata basis. If either party dilutes to less than a 10% interest, it will be converted into a 1% Net Smelter Royalty.
The project is situated in the District of Chuquibambilla, Department of Apurimac, and some 1,000km southeast of Lima. It lies at an altitude of 4,700m and consists of 4 contiguous exploration concessions totaling 3,300 hectares.
The property was staked in 2006 by Kingsgate Peru S.R.L. who conducted surface rock sampling which concentrated in a 1.5km by 0.75km area called Millococha. Surface channel samples taken by Kingsgate in this area gave values from trace to 11.6 g/t Au over 2m. Gold mineralization exhibits a strong structural and lithological control and is associated with 0.5 -- 3m wide zones of strong silicification, brecciation and fracturing with secondary iron oxides after sulphides. Additional mineralized zones were identified elsewhere on the property and require follow-up.
Exploration targets include epithermal gold-copper mineralization of high sulphidation type and conceptual porphyry-skarn deposits at depth. Planned work will comprise compilation of existing data, geological and structural mapping, geochemistry and geophysics, followed by drilling.
Property maps and photos will be available shortly on the Radius website.
Assay Protocol & Qualified Person
Sample preparation and analyses were conducted by Actlabs in Lima, Peru. Samples were analyzed for Au, using a 30 gram pulp with Fire Assay.
Mr. David Cass, P.Geo., a member of the Association of Professional Engineers and Geoscientists of BC, is the Company's Qualified Person as defined by National Instrument 43101 and is responsible for the technical and scientific information in this news release.
Radius Gold is a well-funded, Canadian junior gold explorer with a portfolio of exploration properties in Mexico, Nicaragua, Guatemala, Ecuador and Peru. The Company's strategy is to build value for shareholders by the identification, acquisition and exploration of early-stage properties that show significant potential for the discovery of gold.
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
Simon Ridgway, President
Investor relations: Ralph Rushton / Erin Ostrom Symbol: TSXV-RDU; OTCBB-RDUFF Shares Issued: 53.5-million
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