Radius Gold Inc.
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Projects

Amalia Project

Amalia location - Sierra Madre gold belt, Mexico.
One of the best exploration environments in the world

Historic production estimated:
40Moz Au and 2Boz Ag

New discoveries in last
20 years estimated:
 
33Moz Au and 1Boz Ag

Major Mines and Deposits
Dolores — Pan American Silver
Mulatos — Alamos Gold
La India — Agnico Eagle
Pinos Altos — Agnico Eagle
Ocampo — Minera Frisco
Orisyvo  — Fresnillo
El Sauzal — Goldcorp
Palmerejo — Couer D ’Alene Mines
Almo Dorado — Pan American Silver
San Julian — Fresnillo
Guanacevi — Endeavour Silver
Topis — Great Panther
La Cienega — Fresnillo

The Amalia Project is located 25 km SW of the historic Guadalupe y Calvo mining district in Chihuahua. Radius geologists discovered high grade epithermal silver-gold mineralization in several veins, vein breccias and disseminated zones over 3.5km of strike length and a 750m vertical interval following the trace of a large regional fault zone.  Radius initially acquired the 380 hectare core license and subsequently staked an additional 9070 hectare regional license covering multiple target areas.  In July 2018 Radius entered into an agreement with Pan American Silver Corp. (“Pan American”) to drill and explore the project.

Geological Setting

The main targets at Amalia project are located along a large regional scale NW trending fault system, which at Amalia separates the upper rhyolite volcanics from the lower andsite volcanics.  Radius has identified outcropping mineralization over 3.5k along this structural break.  The principal target at Campamento, outcrops as a 500m x 70m zone of intense epithermal silicification, and brecciation with massive and stockwork veining occurring at the contact between the upper rhyolite and lower andesite volcanic sequence.

Stage One Drilling

A nine hole 1909m diamond drill program was completed by Radius and funded by Pan American Silver in December 2018. Three target zones (San Pedro, Guadalupe and Dulces) were tested across a strike length of 1.8km following the trace of the large regional fault and associated splays which host high level epithermal gold and silver mineralization.

Five drill holes (AMD001 / 003 / 007 / 008 / 009) were drilled at San Pedro targets defining a 650m strike length of epithermal banded veining, stockworks and multiphase breccia with significant gold and silver mineralization. This initial drill program was designed to test the targets between 50 and 150m below ground surface. Considering the topography the drill holes cut mineralization in a range between 1988 m above sea level (asl) and 1882m asl, effectively testing the mineralization over a 100m vertical interval. AMD001 cut the zone highest in the system at 1988m asl. AMD009 cut the system at the deepest level (1908m als) and recorded the best widths (24m) and highest grades with bonanza intervals, including 5m at 14.71 g/t Au and 1378 g/t Ag.

Phase Two Drilling

Phase two drilling commenced April 2019 and completed 6 diamond holes AMDD19-010 to AMDD19-015 totalling 1756m, shown in the plan map below.

The phase two drill program has expanded multi-phase gold and silver mineralization with two high grade mineralized shoots identified to date along the San Pedro structure and confirmed the down dip expansion of the high grade mineralization intersected in phase one drillhole AMDD18-009.

Spectacular high grade results include;

AMDD19-010 44m grading 12.38 g/t Au and 309 g/t Ag
including 11m grading 39.9 g/t Au and 323 g/t Ag.

AMDD19-014 assayed 28m at 2.3 g/t Au and 126 g/t Ag,
including 3m at 9.85 g/t Au and 761 g/t Ag.

AMDD19-015 assayed 81m at 3.75 g/t Au and 61 g/t Ag,
including 21m at 7.91 g/t Au and 65 g/t Ag.


Close up core, from 1m sample grading 284 g/t Au and 599 g/t Ag (from 010 215.7m) intense electrum mineralization within quartz sulphide stockwork zone.


Close up core, from 1m sample grading 49 g/t Au and 905 g/t Ag (from 010 - 220.7m) intense electrum mineralization within quartz sulphide stockwork zone.

Phase Two Drill Result Summary

AMDD19-010 intersected 44m grading 12.38 g/t Au and 309 g/t Ag with estimated true width of 34m. Mineralization is hosted within the hanging wall of the San Pedro fault with disseminated fine black sulphides and sulphide veining commencing within rhyolitic ignimbrites, and transitioning to intense silicification, stockwork veining and brecciation.

AMDD19-011 was drilled approximately 100m south of 010 and 50m below 003 (hole 003 returned 30m at 0.3g/t Au and 65 g/t Ag) targeting the San Pedro structure. Hole 011 intersected multiple zones of variable white chalcedonic stockworks, amythyst, silicification, hydrothermal breccias and diorite dykes and returned a broad zone of anomalous Au and Ag in the hanging wall of the fault, however no potentially economic mineralization was encountered.

AMDD19-012 was drilled 200m south of 010 targeting the San Pedro structure approximately 50m below 008 (hole 008 returned two intervals within a 33m wide mineralized zone (1m at 2.28 g/t Au and 521 g/t Ag and 5m at 0.59 g/t Au and 571 g/t Ag). Hole 012 intersected 5m at 647 g/t Ag and 1m at 0.35 g/t Au and 140 g/t Ag within a zone of variable white chalcedonic stockworks, silicification and hydrothermal breccias. 

AMDD19-013 was drilled 100m north of 010. The hole cut 17m of moderate to strong silica and adularia alteration, brecciation and traces of fine black sulphides, however no potentially economic mineralization was encountered.

AMDD19-014 was drilled 50m north of 010. The hole intersected 28m at 2.3 g/t Au and 126 g/t Ag, including 3m at 9.85 g/t Au and 761 g/t Ag within a zone of strong silicification, brecciation, and stockwork veining with moderate fine disseminated black sulphides and quartz sulphide veinlets. Estimated true thickness is 24m.

AMDD19-015 was drilled on section of 009 - 010 approximately 50m down dip from 010. Hole 015 intersected 81m at 3.75 g/t Au and 61 g/t Ag, including 21m at 7.91 g/t Au and 65 g/t Ag, within a zone of strong silica adularia alteration, brecciation, stockwork veining with fine black sulphide mineralization, disseminated, within stockwork veins and cementing breccias. Estimated true thickness is 65m, although the hole remains open to expansion. From 297.7m to the end of the hole at 322.5m (an interval of 24m) the hole transitions to the lower Tarahumara formation andesite and was initially not thought to be significantly mineralized, hence was not fully and systematically sampled. Within the 24m interval, only four check samples were assayed. Two out of the four check samples returned significant grades including 6.33 g/t Au and 422 g/t Ag. Subsequently all 24m will be cut and submitted for assay and reported when available. 

San Pedro zone simplified geological sections.

Table 1. Drill results for San Pedro Zone, Amalia Project

Hole Collar, WGS84       Estimated Au g/t Ag g/t
From To Interval TRUE
UTM E UTM N (m) (m) (m) width (m)
AMDD18-001 295,998 2,863,234 44.4 56.4 12m 9.5m 0.1 44
AMDD18-003 296,025 2,863,269 107.4 137.4 30m 24m 0.3 65
AMDD18-007 296,234 2,862,867 129.1 133.1 4m 3m 0.29 229
AMDD18-008 296,077 2,863,172 98.7 99.7 1m 0.8m 2.28 521
and     126.7 131.7 5m 4m 0.59 571
AMDD18-009 295,988 2,863,347 144.4 170.4 26m 22m 7.08 517
including     165.4 170.4 5m 4m 14.71 1378
AMDD19-010 295,978 2,863,560 210.7 254.7 44m 34m 12.38 309
AMDD19-011 296,019 2,863,477 170.5 176.5 6m 4 1.05 24
AMDD19-012 296,090 2,863,401 176.9 181.9 5m 4 - 647
AMDD19-013 295,878 2,863,631 no significant result
AMDD19-014 295,964 2,863,626 235.7 263.7 28 24 2.3 126
including     256.7 259.7 3 2.6 9.85 761
AMDD19-015 295,978 2,863,560 216.7 297.7 81 65 3.75 61
including     234.7 255.7 21 17 7.91 65

Drill holes AMD002 / 004 / 005 / 006 targeted mineralization at the Guadalupe and Dulces zones.  These drill holes did not intercept significant gold/silver mineralization.

Discussion

Radius and its partner Pan American Silver Corp have now completed two drill programs totalling  3665m in 15 drillholes. The phase two drill program has expanded multi-phase gold and silver mineralization with two high grade mineralized shoots identified to date along the San Pedro structure.  Geological controls on the mineralization are complex with multiple events of gold and silver mineralization within veins, stockworks and hydrothermal breccias.  The dominant San Pedro structure trends 320/60E and can be traced for several kilometers.  San Pedro is a large robust fault zone separating Tertiary rhyolitic ignimbrites from the Late Cretaceous Tarahumara andesite volcaniclastics with gold and silver mineralization typically occurring within the hanging wall of the fault zone.  High grade shoot control is still uncertain but appears to be located by cross faults.  Exploration drilling at this stage is wide spaced and large areas remain untested.  With drilling on just five sections covering 850m strike and testing a vertical component limited to approximately 200m down dip.

On strike from San Pedro, along the Amalia regional fault system, high grade gold and silver mineralization outcrops at intervals vertically at least 600m below San Pedro.  Similar style major epithermal mines of the Sierra Madre (e.g. Palmerejo, Pinos Altos, La Cienga) located in the same regional volcanic belt as Amalia are known to have mineralization occurring over large vertical intervals up to 1000m. Radius believes the system is wide open and shows potential for a significant discovery.


Exploration Manager, Bruce Smith and Chief Geologist, Rodrigo Matias during the discovery of Amalia.

Technical Information

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 participated in the reported drill program and prepared and approved the technical information contained in this project summary.

Quality Assurance and Quality Control

Drilling is carried out using NQ and HQ size tooling.  Drill core is cut in half using a rock saw with one half of the core then taken as a sample for analysis.  Sample intervals are generally between 1m and 1.5m producing samples of between 2 to 9 kg.  Half-core samples are delivered to the ALS Geochemistry laboratory facilities in Chihuahua, Mexico.  The samples are fire assayed for Au and are analysed for Ag and multi-elements using method code ME-ICP61 following a four-acid digestion.  Overlimits are analysed using an appropriate method. Radius routinely inserts multi-element geochemical standards and blanks into the drill core sample stream to monitor laboratory performance.  Quality control samples submitted to ALS were returned within acceptable limits.