Radius Gold Inc.
TSX.V: RDU     $0.25

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 September 23, 2009
Radius Gold Options Tlacolula Silver Project in Mexico to Fortuna Silver Mines Inc.

 Vancouver, Canada: Simon Ridgway, the President of Radius Gold Inc. (TSX-V: RDU) is pleased to announce that the Company optioned its Tlacolula silver project in Oaxaca, Mexico to Fortuna Silver Mines Inc. ("Fortuna"). Fortuna can earn a 60% interest by spending US$2 million, which includes a commitment to drill 1,500 meters within 3 years, and making staged annual payments of US$250,000 cash and US$250,000 in common stock according to the following schedule:
  • $20,000 cash and $20,000 cash equivalent in shares upon signing.
  • $30,000 cash and $30,000 cash equivalent in shares by the first year anniversary.
  • $50,000 cash and $50,000 cash equivalent in shares by the second year anniversary.
  • $50,000 cash and $50,000 cash equivalent in shares by the third year anniversary.
  • $100,000 cash and $100,000 cash equivalent in shares by the fourth year anniversary.
The Tlacolula property is located 14km E-SE of the city of Oaxaca, 20km north of the Taviche District, where high-grade silver and gold-bearing low sulphidation epithermal vein mineralization has been mined since Spanish colonial times. The property lies some 16km west of the Cobre Grande Cu-Mo-Zn-Ag skarn project (Linear Metals Corporation) and 30km northeast of Fortuna's 100% owned San Jose silver-gold development project.

The project area is roughly 12,000 ha in size and is largely underlain by Tertiary rhyolitic to andesitic tuffs and minor flows, underlain by Cretaceous limestones, sandstones and siltstones, with the basement formed by the Oaxaca metamorphic complex, which is locally exposed by thrust faulting. Tertiary granodiorites-granites intrude the sequence.

A stream sediment sampling program carried out by Radius generated a number of anomalies ranging up to 819 ppb Ag and up to 53 ppb Au. Follow up work identified a NW trending zone of argillic alteration in andesites some 30 to 40m wide, with veins and breccia zones composed of mainly calcite and lesser quartz. Disseminated pyrargyrite, acanthite, and pyrite were observed in the veins and in the breccias. The vein zone has been traced for over 1.5km. Continuous chip samples along stream channels and local road cuts in these veins and breccia zones returned up to:

Sample length (m)

Ag (g/t)

21.5

130.8

including 12.1

183.4

3.2

294.5

including 1.5

465  

0.3

1,335   



These results were first published in Radius' news release dated February 4, 2008 (please see www.radiusgold.com for more details.)

Qualified Person

The scientific and 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.

About Radius

Radius Gold Inc. has been exploring for gold in Central America for nearly a decade, and management is currently assembling a portfolio of royalties and joint ventures on promising gold projects across the Americas. In Guatemala, under joint venture with Kappes Cassidy, Radius is developing a small, high grade gold mining operation on the Tambor project. In Nicaragua, B2Gold is exploring Radius' extensive land holdings and investigating early gold production opportunities from the Pavon project. Radius recently optioned the Nueva California project in Peru for 1-million shares in Focus Ventures and royalty interests in any future production from the project.

For further information on Radius Gold Inc. and its properties, please call toll free 1-888-627 9378 or visit our web site (www.radiusgold.com).


ON BEHALF OF THE BOARD

"Simon Ridgway"
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.
 
 

You can view the Next News Releases item: Thu Sep 24, 2009, Radius Gold Receives 1-million Focus Ventures Shares

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