October 04, 2017 Radius Gold options system of gold-silver rich diatreme breccias in Chihuahua, Mexico
Vancouver, Canada: Radius Gold Inc. (TSX-V: RDU) is pleased to announce that it has signed a binding agreement with a private Mexican company to option the 473-hectare Tarros Project which is host to several large gold silver mineralized diatreme breccia bodies. The Tarros Project is located 50km north of Radius's new Amalia discovery (see press release 19 September, 2017) in the Sierra Madre Gold Silver belt in the State of Chihuahua, Mexico.
The Tarros Project is apparently unexplored, apart from limited historic artisanal-scale mining of surface outcrops on several of the outcropping bodies. It has been reported that Noranda briefly held the property in 1992-1993 but no records of work are known. Epithermal Au-Ag mineralization has been sampled by Radius in several explosive hydrothermal or diatreme breccias bodies within an area roughly 3.5km x 1km. The size of the largest mineralized breccia bodies observed to date exceeds 250m x 250m.
Radius senior geologists visited the property in June 2017 during a regional prospecting trip and observed extensive exposures of volcanic hosted, highly altered explosive textured breccia that were cemented by silica and iron oxides. The breccia bodies were pocketed with pits, tunnels, shafts, glory holes and open cavities where material had been removed by artisanal miners and processed for gold. 26 rock chip samples were collected from three separate breccia bodies with different breccia compositions, of which 24 samples returned significant gold silver values. The average of all 26 samples assayed 1.42 g/t Au and 66 g/t Ag.
The large size potential combined with the disseminated and distributed nature of the gold-silver mineralization indicates potential to discover a large bulk tonnage deposit. During the initial property visit 7 distinct large breccias were observed. Brief descriptions of the main breccia bodies are set out below.
The Rosario Breccia is the northern most breccia body with an estimated minimum size of 150m x 60m. It is a large irregularly shaped breccia body, with several pits and tunnels where artisanal miners produced gold. It is hosted within and comprised of andesite volcanics, with clasts all highly altered and cemented by clay, silica and iron oxides. A continuous chip sample in an old pit on the eastern side of the breccia assayed 10m at 2.95 g/t Au and 18 g/t Ag (5 samples of 2m). The mineralization is open in all directions. 120m NW of the first channel on the margin of the breccia, a second continuous chip assayed 3m at 0.88 g/t Au and 139 g/t Ag (3 samples of 1m).
The Regalito Breccia has an irregular oval shape and is estimated at 200m x 150m. The breccia is hosted within and composed of andesite volcanics. The clasts are all strongly clay altered with variable sulphides, silica and iron oxides cementing the matrix. The breccia is zoned, with the western side intensely silicified with some stockwork veining. Radius collected 8 rock chip samples (2m each) of various breccias in a zone 100 x 20m, with 7 of the samples containing significant gold and silver mineralization. The average of the 8 samples graded 0.78 g/t Au and 101 g/t Ag.
La Bufa Breccia
La Bufa, on the western side of the Tarros Project, is elongated NS approximately 300m by 40m wide. It is the only breccia hosted within granodiorite intrusive. In general, the breccia is strongly silicified with broken quartz and veining, abundant disseminated pyrite and iron oxides. There are a few tunnels and small pits, but La Bufa has not been mined as intensely as the other volcanic hosted breccias. This breccia was not sampled in the first reconnaissance but was subsequently sampled by Radius and assays are pending.
San Nicolas Breccia
The San Nicolas Breccia forms a low hill and has an irregular shape roughly 250m long and 250m wide, hosted within and composed of andesite volcanics. Strong clay alteration of the breccia, zones of intense silicification and iron oxide cement are observed similar to the other breccias where Radius has sampled significant Au and Ag values. Historically the breccia was mined from several underground tunnels and pits. This breccia was not sampled in the first reconnaissance but was subsequently sampled by Radius and assays are pending.
San Miguel Breccia
The exposure of San Miguel Breccia is at minimum 200m x 50m elongate roughly NS. The breccia is full of many tunnels and pits where historic miners removed gold rich pods. Radius geologists walked the length of the breccia stopping at various intervals to sample the different breccias types. In total 9 samples were collected over 200m and all samples returned significant gold silver mineralization, averaging 1.48 g/t Au and 43 g/t Ag.
The Tarros system of hydrothermal breccias is a significant discovery and acquisition for Radius in Mexico. The scale of the breccias mapped to date is large with the 6 known breccias having a combined size of 14 hectares occurring over 3.5km x 1km, all with historic evidence of underground mining and surface pits where local miners report recovery of high grade gold and silver. The results of Radius's initial reconnaissance sampling, where 24 out of 26 rock chips returned significant gold and silver values, indicate the potential to discover a large bulk tonnage deposit. Radius plans to quickly secure access agreements with the local land owners and commence detailed grid based and channel sampling to define drill targets.
Maps and photos of the Tarros Project will be available on the Company's website.
Tarros Sample Table
Sample Type / length
San Miguel Breccia
dump select various breccias
San Miguel Breccia
side wall of big pit, strong clay si alt bx
San Miguel Breccia
tunnel with 2 short shafts clay bx mod fe si
San Miguel Breccia
large clastic breccia, strong clay alt and FeOx, cemented with silica
Radius can earn a 100% interest in the Tarros Project by making an immediate cash payment of US$5,000 and by completing staged payments over a period of 4 years totaling US$1,685,000 of which $1,200,000 is a final payment at the end of 4 years. The owners retain a 2% Net Smelter Royalty which can be purchased by Radius for US$1,000,000 for each 1%.
Bruce Smith, M.Sc. (Geology), a member of the Australian Institute of Geoscientists, is Radius's Qualified Person as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects. Mr. Smith visited the Tarros Project, participated in the reported programs and prepared and approved the technical information contained in this news release.
Sampling at Tarros followed a standardized protocol to ensure representative and unbiased quantities of material from across each sample. Chip samples were taken using hammer and chisel continuously along the walls of the underground mines and cleaned surface outcrops. Nominally widths were between 1 and 3 metres.
The Company utilizes industry-standard QA/QC program. Rock samples were prepared and analyzed at ALS laboratories in Mexico and Canada.
Radius has been exploring for gold in Latin America for over a decade. The Company has a strong treasury and is looking for investment and project acquisition opportunities across the globe. Please call toll free 1-888-627-9378 or visit our web site (www.radiusgold.com) for more information.
ON BEHALF OF THE BOARD
President and CEO
Contact: Simon Ridgway
200 Burrard Street, Suite 650
Vancouver, BC V6C 3L6
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Certain statements contained in this news release constitute forward-looking statements within the meaning of Canadian securities legislation. All statements included herein, other than statements of historical fact, are forward-looking statements which include, without limitation, statements about the Company's exploration plans for the Tarros Project; the Company's business strategy, plans and outlook; the merit of the Company's investments and properties; timelines; the future financial performance of the Company; expenditures; approvals and other matters. Often, but not always, these forward looking statements can be identified by the use of words such as "estimate", "estimates", "estimated", "potential", "open", "future", "assumed", "projected", "used", "detailed", "has been", "gain", "upgraded", "offset", "limited", "contained", "reflecting", "containing", "remaining", "to be", "periodically", or statements that events, "could" or "should" occur or be achieved and similar expressions, including negative variations.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any results, performance or achievements expressed or implied by forward-looking statements. Such uncertainties and factors include, among others, the Company's plans for exploring the Tarros Project; changes in general economic conditions and financial markets; the Company or any joint venture partner not having the financial ability to meet its exploration and development goals; risks associated with the results of exploration and development activities, estimation of mineral resources and the geology, grade and continuity of mineral deposits; unanticipated costs and expenses; and such other risks detailed from time to time in the Company's quarterly and annual filings with securities regulators and available under the Company's profile on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.
Forward-looking statements contained herein are based on the assumptions, beliefs, expectations and opinions of management, including but not limited to: that the Company's exploration activities at the Tarros Project will proceed as planned; that the Company's activities will be in accordance with its public statements and stated goals; that all required approvals will be obtained; that there will be no material adverse change affecting the Company or its investments or properties; and such other assumptions as set out herein. Forward-looking statements are made as of the date hereof and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by law. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on forward-looking statements.
You can view the Next News Releases item: Tue Nov 21, 2017, Radius Gold completes its summer exploration program at the Bald Peak Property, Nevada
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