| ||Vancouver, Canada: Simon Ridgway, President of Radius Gold Inc. (TSX-V: RDU), is pleased to announce that its joint venture partner, International Minerals Corporation (TSX: IMZ) ("IMC"), has commenced drilling on the Rubi gold-silver project located in south-eastern Peru. |
Gold-silver mineralization at Rubi is associated with a swarm of epithermal quartz-carbonate veins, breccias and stockworks that crop out over an area 1km x 0.5km. Four principal veins were mapped and have cumulative length of 2.6 kilometers, including the Rica Chola and Rio Azul veins, which have shown the best results to date in terms of mineralized grades and widths in surface and underground sampling.
Work to date by IMC has consisted of detailed mapping and sampling of surface and underground workings and a PIMA alteration study.
Significant weighted average assays from rock chip/panel sampling undertaken by IMC include:
|Rica Chola Vein|| 3.6 g/t Au & 223 g/t Ag over 5.65m (surface trench)|
3.1 g/t Au & 111 g/t Ag over 7.7m (surface trench)
4.7 g/t Au & 359 g/t Ag over 2.25m (surface trench)
2.4 g/t Au & 175 g/t Ag over 4.35m (surface trench)
9.64 g/t Au & 440 g/t Ag over 1m (underground)
3.22 g/t Au & 131 g/t Ag over 2m (underground)
Rio Azul Vein || 7.5 g/t Au & 786 g/t Ag over 3m (surface trench)|
4.62 g/t Au & 439 Ag over 1.4m (underground)
The Rica Chola and Rio Azul veins continue on surface for 600m and 800m respectively. A high level of preservation of the epithermal system is indicated by colloform vein textures and wallrock alteration characterized by low temperature carbonate minerals and illite-smectite clays. Thus the potential for high-grade (bonanza) zones at depth is considered good.
The initial diamond drill program will consist of 6 diamond drill holes totaling approximately 1,200m and will test the Rica Chola and Rio Azul veins for their continuity of mineralization at depth, possible bonanza-grade zones and structural targets where wide widths of mineralization may be expected. A drill hole location plan will be posted on the Radius website shortly (www.radiusgold.com).
IMC is an emerging precious metal producer, with mines and projects in Peru and Ecuador. The Company owns 40% of the producing Pallancata high-grade silver mine with its partner Hochschild Mining. The Pallancata Mine is located 90 kilometers due east of Rubi.
Rubi is located 16 km east of the town of Puquio in the Department of Ayacucho, in south-central Peru. The site was host to a former producing gold-silver mine in the 1980 and 1990's when it was held by the Peruvian State for 15 years.
In August 2007, Radius optioned the project from a private Peruvian company and carried out a systematic exploration program comprising property-scale geological mapping and rock chip geochemical sampling (see company press release dated Aug. 28, 2007).
Under a revised agreement with the vendor of the property (see company press release dated Oct. 8, 2008), Radius and IMC, as joint venture partners, can earn a 100% interest in the Rubi and San Sebastien claims (total 2,200 hectares) by making a series of cash payments and exploration expenditure commitments, comprising:
The vendor also retains a 2 percent Net Smelter Return royalty, with the joint venture partners having a right of first offer to purchase such royalty.
- US$75,000 on signing of the revised agreement (paid)
- Investing US$ 400,000 in exploration and paying US$ 150,000 by October 2, 2009.
- Investing US$ 600,000 in exploration and paying US$ 300,000 by October 2, 2010.
- Investing US$ 1,000,000 in exploration and paying US$ 600,000 by October 2, 2011.
- Investing US$ 1,000,000 in exploration and paying US$ 1,875,000 by October 2, 2012.
IMC, the operator of the joint venture, can earn a 60% interest in the project by paying the initial signing fee (already paid) 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 funded jointly by IMC (60%) and Radius (40%), with each party subject to standard dilution requirements for non-contribution of funds.
Assay Protocol & Qualified Person
All sample preparation and analyses were conducted by ALS Chemex Labs in Lima. Samples were analyzed for Au, using a 30 gram pulp with Fire Assay and AAS with gravimetric finish for samples over 10 g/t Au. Silver was analyzed by ICP, with AAS for samples over 100 g/t Ag.
The technical information in this release was prepared under the supervision of Mr. David Cass, Radius's 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).
ON BEHALF OF THE BOARD
Simon Ridgway, President
Investor relations: Ralph Rushton / Erin Ostrom
Symbol: TSXV-RDU; OTCBB-RDUFF
Shares Issued: 53.5-million
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
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