Radius Gold Inc.
TSX.V: RDU     $

Plata Verde Project

Highlights
  • High-grade silver mineralization up to 1070 g/t Ag.
  • Large scale historic underground bulk mining operation from 1800's.
  • Newly re-discovered by Radius, never explored
  • 100% Radius


Mina Reales, hand excavated in late 1800's using hammer chisel and black powder explosives.

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




The Plata Verde project located in Chihuahua, Mexico, north of Radius Gold's Amalia Gold-Silver project and east of the historic Batopilas silver mining district (1708 to 1920) which reputedly produced over 300 million ounces of silver from high grade veins and structures. The property is accessible by road, with a 4 hour hike required to access the historic mines.

History

Radius geologists in January 2020 re-discovered an undocumented large scale underground bulk mining operation where in its estimated in the late 1800's, historic miners hand excavated an extensive series of anastomosing caverns, producing silver bars at an associated smelter operation. The project appears to be un-explored since the miners ceased their operations, and no references to the project have been found within the Mexican Geological Survey. The few local residents have no knowledge of exploration companies working in the area and there are no indications of prior exploration within the mines or surrounding outcrops. There was a pre-existing mineral concession covering the area, but the owners of the concession had never visited the property and were happy to option the property to Radius.


Remains of historic smelter and processing facility on river margins 1km from the Plata Verde mines.


Remains of crushing circuit 1km from the Plata Verde mines.


Silver "bars" 0.5kg each found by local residents within the project area.

Geology and Mineralization

At Plata Verde, silver mineralization occurs as massive to crustiform banded barite calcite with silver chlorides, sulphosalt minerals and native silver infilling and cementing fractures and breccia within a basaltic/andesite extrusive volcanic. The basaltic/andesite host occurs at the base of the Upper Rhyolitic Volcanics of the Northern Sierra Madre. In general the host volcanics and associated silver mineralization is covered by the overlying rhyolitic ignimbrites and is only exposed along the length of a small creek.

On the eastern side of the creek a number of small entrances, hardly visible, lead to an extensive network of anastomosing mining tunnels and cavities. The mining and excavation was done by hand with hammer, chisel and black powder explosives, leaving behind large underground cavities up to 50m x 50m x 30m high. Throughout the mines roman numerals painted on the walls record up to 58 mining areas. The mining excavations define a strike extension of over 500m and up to 100m wide. The host volcanic unit is at least 60m thick. The southern extension is abruptly cut by a fault which forms a large cliff face. To the north, east and west the host volcanic flows and silver mineralization is covered by the ignimbrites, but remains open to unknown extent in these directions. On the opposite western side of the creek exposures of the mineralized unit host good silver grades.


Plata Verde typical mineralization textures, crustiform banded barite calcite with silver chlorides, sulphosalt minerals and native silver infilling and cementing fractures and breccia. Note green silver chloride oxides after which the project was named.


Crustiform banded barite calcite with silver chlorides, sulphosalt minerals and native silver infilling and cementing fractures and breccia

Geochemical sampling results

Radius geologists have collected 110 prospecting rock chip samples with silver grades ranging between 5 and 1070 g/t Ag. Within the largest mining area, which has been named Mina Mojonera, 35 rock chip samples were collected from the walls and remaining pillars (2 x 2m panel samples or 2m chip channel samples) at stations approximately 10 to 20m apart covering the irregularly shaped +5000m2 mining area. These samples ranged from 5 to 849 g/t Ag and averaged 276 g/t Ag. The silver mineralization contains no gold, low Sb and As and trace amounts of Pb, Zn and Cu.


Mina Mojonera rock chip sampling with silver assays in g/t Ag.


Plata Verde historic mines and silver rock chip sampling.

A hidden mining camp.

The historic mines at Plata Verde were large scale underground bulk mining operation where in the late 1800's, historic miners hand excavated an extensive series of anastomosing caverns, covering a strike length of at least 500m, and width known to date of +200m. Despite the large scale of excavations, the project has remained undocumented and unknown for over 100 years due to some unique geological features. Firstly there is low sulphur in the system and the dominant silver minerals are silver chlorides. This means no scandalous alteration, no red iron oxides in the creeks. The oxides of silver are green and camouflaged. The smelters and processing facilities were located at the waters edge of a large river, and with floods over the last 100 years most traces of the buildings and all of the tailings dumps were washed away. Lastly the mineralized basaltic andesites are largely covered by post mineral ignimbrite, all assisting to hide the project until Radius recent re-discovery.


Hidden Mojonera Mine


Panorama of Plata Verde project area


Mina Mojonera rock 2m chip channel sample results. Approximately 10 to 20m between samples.

Exploration Targets

The priority for Radius is to define the outcropping extents of the mineralization and to map and sample in detail all the known mineralized areas and mines. Most of the extensions are covered by rhyolitic ignimbrite volcanics so outcrop is limited. As the host basaltic/andesites are magnetic, and cover rhyolites are not, Radius plans to fly an airborne magnetic survey to help define the extensions of the host rocks under cover.

The barite/silver chloride mineralization appears to be a late stage low temperature mineralizing event with the source and feeder systems as yet unknown and an attractive exploration target. Barite and silver chloride are often part of the upper levels or supergene zone around large silver deposits. The solubility of barite and silver chlorides is low, and hence the source zone is likely to be close by or directly below.

At the Plata Verde project Radius has rapidly secured the property rights, completed formal access agreements with the local landowners and constructed a camp and communications. Detailed geological mapping and prospecting has commenced. Radius looks forward to expanding its knowledge of this exciting new discovery and developing drill targets.

The Agreement

Radius can earn a 100% interest in the project by making staged payments totalling US$800,000 over four years with the final payment equal to $400,000 at the end of year four. An $8000 signing payment has already been paid. The owner retains a 1% NSR which Radius can buy back for US$1,000,000.

Quality Assurance and Quality Control

Reported assays are rock chip and channels samples taken by Radius geologists and trained sampling teams. Sample intervals are generally 2m chip channels or 2x2m panels producing samples of between 2 to 9 kg. 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 sample stream to monitor laboratory performance. Quality control samples submitted to ALS were returned within acceptable limits.