Radius Gold Inc.
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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

New geological model and silver mineralization

At Plata Verde, Radius's geological team have recently completed several weeks of detailed underground mapping and sampling of the historic Mina Real and Mina Mojonera.  Three distinct mineralization styles have been defined within the basaltic andesite volcanic host rock:
  1. Multiple large scale breccia zones with chimney type structures up to 75 m diameter and sampled on multiple mine levels. The breccias are cemented by massive to crustiform banded barite calcite with silver chlorides, sulphosalt minerals and native silver.
  1. Fracture fill and stockwork silver mineralization occurs as massive to crustiform banded barite calcite with silver chlorides, sulphosalt minerals and native silver.
  1. Disseminated style mineralization with fine silver sulphosats disseminated within the volcanic host with little to no brecciation, veining or fracture fill.
All three mineralization styles host significant silver grades, although the highest grades are related to intense brecciation and fracturing (Figures 1 and 2).

In total, 73 new 2 x 2 m panel samples were collected from the historic Mina Real and Mina Mojonera.  Each mine covers a shallow dipping anastomosing sequence of mining areas on at least 3 levels with Mina Real covering approximately 200x200 m and Mina Mojonera 150x150 m.  The latest results reported between 2 and 815 g/t Ag and averaging 185 g/t Ag.  Samples were collected to represent all rock types and mineralization styles.

Historic Mine

Rock chip samples

Average all rocks
(Silver g/t)

Breccia samples
(number)

Average breccia
(Silver g/t)

Mojonera

133

168

57

262

Real

122

143

17

244

Total

255

156

74

258


Table 1. Summary of underground rock chip sampling. Majority are 2 x 2 m rock panel samples.

The sampling completed within the historic mines shows that the mineralization is open to expansion in all directions.



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

Mina Real, located 150m south of Mina Mojonera, is an extensive network of anastomosing mining tunnels and cavities covering roughly 150m x 140m. The height of the excavation varies from 3 to 20m. Radius has collected a total of 75 prospecting rock chip samples from the walls and remaining pillars with silver grades ranging between 8 and 730 g/t Ag and averaged 276 g/t Ag.



Mina Real summary geology and rock chip sampling with silver assays in g/t Ag.

Regional geology and stream sediments

At Plata Verde, silver mineralization occurs as massive to crustiform banded barite calcite with silver chlorides, sulphosalt minerals and native silver infilling and cementing breccias and fractures 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 silver mineralization is covered by the overlying rhyolitic volcanics and is only exposed within the historic mines and at surface in a few areas along the length of a small creek.

Radius has recently conducted a geological mapping and stream sediment sampling program within the district which indicates that a north south orientated regional structural zone likely controls development of the mineralization at Plata Verde. Stream sediment sampling at Plata Verde clearly identifies the creek where the historic mines are exposed. There are also strong silver stream sediment anomalies (several times higher than background) that indicate potential for further mineralization 300 m to the east and 1000 m south of the known mines (Figure 3).



Plata Verde geology and surface rock chip and stream sediment sampling with silver assays in g/t Ag.



Plata Verde satellite imagery and rock chip sampling with silver assays in g/t Ag


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 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. Recent definition of breccia pipe style mineralization is an attractive underground bulk minable exploration target. Extensions of the known mineralization below the ignimbrite cover to the north, south, east and west are open, with stream sediment geochemistry highlighting the potential both east and south of the known mines.

Since discovery and acquisition of Plata Verde in March of this year Radius has rapidly expanded the known mineralized footprint and geological understanding of the project. Plata Verde is a compelling new silver discovery that Radius will continue to progress toward drilling as the current COVID-19 pandemic allows.

Due to COVID-19 and associated travel restrictions the project will not advance as quickly as normal. Radius has a Mexican geological team in Chihuahua and in the coming months our teams will decide how best to advance, based on the situation in Chihuahua and our team's personal and family safety. Radius has established a full camp at Plata Verde for field teams ready to ramp up work as soon as possible.