| ||Vancouver, Canada: Simon Ridgway, President of Radius Gold Inc. (TSX-V: RDU), provides an update on the status of Company's projects, including cost reduction measures recently implemented by the Company as a result of the current global economic conditions. |
The Company looks forward to the development of its high-grade Tambor gold deposit in central Guatemala, where it expects to receive cash flow revenues from production, as part of its agreement with Kappes, Cassiday & Associates ("KCA") (see press release dated June 2, 2008). KCA has begun the permitting process for a small gold operation, with plant construction and commencement of production planned in 2009. Gold mineralization at Tambor is hosted by a series of high-grade mesothermal quartz veins and stockworks.
Rubi Project, Peru
Geological mapping and surface sampling has been completed by International Minerals Corporation, and a preliminary drill program will begin within the next few months as soon as drill permits have been received. Rubi is a bonanza-style gold-silver epithermal project located in southern Peru. Mineralization comprises a swarm of NNW and EW trending quartz-carbonate veins and breccias. Surface pits and shallow underground workings are extensive, with numerous veins and at least three vein trends evident with individual veins at surface reaching widths of over 4m.
International Minerals Corporation can earn 60% interest in the project by paying the initial signing fee and by funding the first year's exploration expenditures, for a total of US$475,000. The exploration and cash payments over the remainder of the term will be joint-funded by both parties (60% IMC, 40% Radius) with each party subject to standard dilution requirements for non-contribution of funds (see press release dated October 8, 2008).
Following the diamond drill program completed in August, the Company has received expressions of interest from third parties regarding its 100 percent-owned Trebol project, located in north-east Nicaragua. A total of 963m was drilled in 9 holes collared in the southwest part of the property. Gold mineralization is associated with shallow, tabular silicified zones, with several holes drilling mineralized intercepts exceeding 50m in true thickness (TRDH-08-05 - 53.4m @ 1.35 g/t Au, TRDH-08-08 - 50.5m @ 0.61 g/t Au). Further evaluation by drilling is required to test for the property's shallow, pittable resource potential, and a joint venture partner is being sought.
Reduction in Expenditures
Due to the crisis in global financial markets, the Company has taken measures to reduce its burn- rate in order to conserve its cash position during the downturn. The crisis has severely impacted the resource sector; in particular the ability of junior companies to raise capital for exploration. Measures taken include cessation of the Company's grass-roots activities in Nicaragua, Mexico and Peru.
The Company remains focused on gold and continues to review strategic opportunities brought about by the market downturn. In the near term, the Company will focus on advancing its existing projects, in particular the development of the Tambor deposit in Guatemala, its Nicaraguan properties and the Rubi joint-venture in Peru.
The Company is pleased to announce the appointment of Mr. Karl Gurr to the Company's board of directors. Mr. Gurr has more than thirty-three years of mining and operations experience, including project and construction management, underground and surface mining, resource evaluations, feasibility studies and site remediation. Over his career, Mr. Gurr has held positions with major international engineering companies and as a consultant to numerous international clients on projects located in North and South America, Asia Pacific region, Australia, China and Europe. Mr. Gurr holds a Bachelor of Science degree in Geology (1974) and a Bachelor of Science degree in Mining Engineering (1975), both from University of Utah. Mr. Gurr's extensive mining and development experience brings a wealth of knowledge to the Company as it develops the Tambor gold deposit and in the evaluation of advanced gold projects.
The Company also announces that Mr. Nicolas Glass has resigned as a director of the Company.
Assay Protocol & Qualified Person
Sample preparation and analyses was conducted by CAS Laboratories in Tegucigalpa, Honduras. Samples were analyzed for Au, using a 30 gram pulp with Fire Assay AA, with gravimetric finish. Radius carries out its own Quality Assurance / Quality Control protocol that involves the regular insertion of certified standards, blanks and field duplicates into the sample stream. Check assays on both pulps and coarse rejects are undertaken at Acme Laboratories in Vancouver.
The technical information in this release was prepared under the supervision of Mr. David Cass, Radius' Vice-President of Exploration, who is a member of the Association of Professional Engineers and Geoscientists of British Columbia, and a "Qualified Person" in accordance with National Instrument 43-101.
For further information on Radius Gold Inc., please call toll free 1-888-627-9378 or visit our web site www.radiusgold.com
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts 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
You can view the Next News Releases item: Wed Mar 18, 2009, Radius Acquires Option on Peruvian Gold Project and Signs Agreement with Focus Ventures
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