Radius Gold Inc.
TSX.V: RDU     $0.10

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.

Drilling

A nine hole 1909m diamond drill program was completed by Radius and funded by Pan American Silver.  Three target zones (Campamento/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 between the Campamento and San Pedro targets (Campamento Zone) 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 and was still within the upper rhyolite host.  AMD009 cut the system within the andesite host 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.

➨ View Plans and Sections

Table 1. Drill results for Campamento Zone, Amalia Project

Hole Collar, NAD 27, Zone 13 from to interval Au g/t Ag g/t Elevation
UTM E UTM N m asl*
AMDD18-001 295,998 2,863,234 44.35 56.35 12m 0.1 44 1988
AMDD18-003 296,025 2,863,269 107.44 137.44 30m 0.30 65 1937
AMDD18-007 296,234 2,862,867 129.1 133.1 4m 0.29 229 1950
AMDD18-008 296,077 2,863,172 98.65 99.65 1m 2.28 521 1976
and     126.65 131.65 5m 0.59 571 1950
AMDD18-009 295,988 2,863,347 144.35 170.35 26m 7.08 517 1908
including     165.35 170.35 5m 14.71 1378 1882

*: elevations are given as meters above sea level at the top of the reported interval.  Drill holes were drilled perpendicular to the mineralized zone and reported intervals are thought to approximate true width.

Mineralization at the Campamento Zone is open in all directions.  Drill holes AMD002 / 004 / 005 / 006 targeted mineralization at the Guadalupe and Dulces zones.  These drill holes did not intercept significant gold/silver mineralization.

Photographic record of the high-grade zone in AMD009 with meter by meter assay:

Complete photographic record of the mineralized interval in AMD009 with meter by meter assay:

Complete photographic record of the mineralized interval in AMD008 with meter by meter assay:

Discussion

On strike from Campamento, along the Amalia regional fault system, high grade gold and silver mineralization outcrops at intervals vertically at least 600m below Campamento.  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 between 600 and 750m.  To date the Radius / Pan American JV has tested a very limited part of the system and it is intended to follow the high-grade mineralization along strike and to depth with further drilling early in the new year.

Regional Prospecting

Radius is continuing to prospect and explore in the Sierra Madre gold silver belt.  Our team has been together for +20 years working in Mexico and Central America.  We are still walking further and going deeper looking for new high grade gold and silver discoveries.


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.