Radius Gold and Pan American Silver include 800 ha Palmillas Properties within the Amalia Gold-Silver JV in Chihuahua, Mexico
news release
February 24, 2020
Radius Gold and Pan American Silver include 800 ha Palmillas Properties
within the Amalia Gold-Silver JV in Chihuahua, Mexico
Vancouver, Canada: Radius Gold Inc. (TSX-V: RDU) is pleased to report that Pan American Silver Corp. has
elected to exercise a right to include the 800ha Palmillas Properties within the Amalia Project joint
venture. The Palmillas Properties host multiple exploration targets, including high-grade silver -gold
mineralization, outcropping 1.8km northwest along strike from the drill defined high-grade zone at San
Pedro.
Radius Gold acquired an option on the Palmillas Properties in November 2019 from a local family. Pan
American, as the operator will fund and manage the expanded project according to its option agreement
with Radius. New drill permits for Amalia have been submitted, and phase four drilling is expected to
commence in the second quarter of 2020.
Palmillas Properties
Adjoining the core Amalia concessions and surrounded by the Amalia 4 property, the Palmillas concessions
cover the northwestern and southeastern extension of the Amalia fault zone. The Amalia fault has been
traced over 10 km trending northwest and separates upper rhyolitic volcanics from lower andesite
dominant volcaniclastics. The Amalia fault hosts gold and silver mineralization , including the San Pedro
zone with high-grade gold and silver drill results.
The priority target within the Palmillas properties is located on the Amalia fault 2 km northwest of San
Pedro, where Radius geologists have sampled outcrop and historic mining adits including a 4 m section
that assayed 9.5 g/t Au and 73 g/t Ag, and a 10.5 m section that assayed 1.54 g/t Au and 58 g/t Ag.
Mineralization is hosted with in fault-controlled quartz vein breccias similar in style to San Pedro. The
Palmillas Properties are largely unexplored and contain several targets and historic mining areas that will
be explored in the coming months.
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Figure 2. Recently acquired Palmillas concessions and Radius’s Position along the Amalia fault zone .
The Pan American Agreement
According to the option agreement signed in June 2018, Pan American Silver Corp. has the option to earn
up to an initial 65% interest in Radius’s Amalia Project and Palmillas Properties by making cash payments
to Radius totaling US$ 1.5 million (of which US$250,000 has been received) and expending over four years
US$ 2 million on exploration and reimbursement of Radius’s costs to maintain its option agreements with
the owners of Amalia and Palmillas. Pan American may earn an additional 10% by advancing the project
to preliminary feasibility.
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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
has reviewed and approved the technical information contained in this news release.
Radius Gold Inc.
Radius has a portfolio of projects located primarily in the United States and Mexico which it continues to
advance, utilizing partnerships where appropriate in order to retain the Company’s strong treasury. At
the same time, management is seeking out additional investment and project acquisition opportunities
across the globe.
ON BEHALF OF THE BOARD
Simon Ridgway
President and CEO
Symbol: TSXV-RDU
Contact: Simon Ridgway
200 Burrard Street, Suite 650
Vancouver, BC V6C 3L6
Tel: 604-801-5432; Toll free 1-888-627-9378; Fax: 604-662-8829
Email: [email protected]
Website: www.radiusgold.com
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts
responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
Certain statements contained in this news release constitute forward -looking statements within the meaning of
Canadian securities legislation. All statements included herein, other than statements of historical fact, are forward-
looking statements which include, without limitation, statements about the possible acquisition by Pan American of
an interest in the Amalia and Palmillas properties; the exploration plans for the Amalia and Palmillas properties; the
Company’s business strategy, plans and outlook; the merit of the Company’s investments and properties; timelines;
the future financial performance of the Company; expenditures; approvals and other matters. Often, but not always,
these forward looking statements can be identified by the use of words such as “estimate”, “estimates”, “estimated”,
“potential”, “open”, “future”, “assumed”, “projected”, “used”, “detailed”, “has been”, “gain”, “upgraded”, “offset”,
“limited”, “contained”, “reflecting”, “containing”, “remai ning”, “to be”, “periodically”, or statements that events,
“could” or “should” occur or be achieved and similar expressions, including negative variations.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Company to be materially different from any results, performance
or achievements expressed or implied by forward-looking statements. Such uncertainties and factors include, among
others, the possible acquisition by Pan American of an interest in the Amalia and Palmillas properties; the plans for
exploring the Amalia and Palmillas properties; changes in general economic conditions and financial markets; the
Company or any joint venture partner not having the financial ability to meet its exploration and development goals;
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risks associated with the results of exploration and development activities, estimation of mineral resources and the
geology, grade and continuity of mineral deposits; unanticipa ted costs and expenses; and such other risks detailed
from time to time in the Company’s quarterly and annual filings with securities regulators and available under the
Company’s profile on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors
that could cause actual actions, events or results to differ materially from those described in forward -looking
statements, there may be other factors that cause actions, events or results to differ from those anticipated,
estimated or intended.
Forward-looking statements contained herein are based on the assumptions, beliefs, expectations and opinions of
management, including but not limited to: that Pan American will acquire an interest in the Amalia and Palmillas
properties; that the exploration activities at the Amalia and Palmillas properties will proceed as planned; that the
Company’s activities will be in accordance with its public statements and stated goals; that all required approvals
will be obtained; that there will be no m aterial adverse change affecting the Company or its investments or
properties; and such other assumptions as set out herein. Forward-looking statements are made as of the date hereof
and the Company disclaims any obligation to update any forward -looking statements, whether as a result of new
information, future events or results or otherwise, except as required by law. There can be no assurance that forward-
looking statements will prove to be accurate, as actual results and future events could differ mate rially from those
anticipated in such statements. Accordingly, investors should not place undue reliance on forward -looking
statements.