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 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.

Stage Two Drilling

Stage two drilling commenced April 2019 and is on-going.

The first hole of 2019, AMDD19-010 has intersected 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. Estimated true width of the mineralized zone is 34m. Spectacular high grade intervals include 1m at 284 g/t Au and 599 g/t Ag (from 215.7m) and 1m at 49 g/t Au and 905 g/t Ag (from 220.7m) are depicted in the photos below.


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


Figure 2. Close up core, from 1m sample grading 49 g/t Au and 905 g/t Ag (from 220.7m) intense electrum mineralization within quartz sulphide stockwork zone.

Hole AMDD19-010 intersected the San Pedro structure directly below hole AMDD18-009 approximately 65 meters down dip. Mineralization observed in both 009 and 010 is hosted within an epithermal breccia and quartz sulphide stockwork vein zone located on or near to the contact between overlying Tertiary rhyolitic ignimbrites and the footwall andesite volcaniclastics of the Late Cretaceous Tarahumara Formation. Mineralized diorite dykes and intrusive bodies are observed associated with mineralization at the fault contact zone at San Pedro, as depicted in the figure below.

San Pedro zone simplified geological section holes AMD18-009 and AMD19-010

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

Hole Collar, NAD 27, Zone 13 From To Interval Estimated
true
width
Au ppm Ag ppm Elevation
UTM E UTM N m asl*
AMDD18-001 295,998 2,863,234 44.4 56.4 12m 9.5m 0.1 44 1988
AMDD18-003 296,025 2,863,269 107.4 137.4 30m 24m 0.3 65 1937
AMDD18-007 296,234 2,862,867 129.1 133.1 4m 3m 0.29 229 1950
AMDD18-008 296,077 2,863,172 98.7 99.7 1m 0.8m 2.28 521 1976
and     126.7 131.7 5m 4m 0.59 571 1950
AMDD18-009 295,988 2,863,347 144.4 170.4 26m 22m 7.08 517 1908
including     165.4 170.4 5m 4m 14.71 1378 1882
AMDD19-010 295,983 2,863,568 210.7 254.7 44m 34m 12.38 309 1830
including     212.7 223.7 11m 8.5m 39.9 323 1829
including     215.7 216.7 1m 0.8m 284 599 1825

Note: elevations are given as meters above sea level at the top of the reported interval. True thickness estimates from holes 1, 3, 7, 8 and 9 have been re-estimated based on recently drilled holes and new core logs.

Mineralization at San Pedro 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.

Amalia Potential

Discussion

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 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.


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.