Radius Gold and Pan American Silver to commence phase 3 work at Amalia Project, Mexico
news release
September 9, 2019
Radius Gold and Pan American Silver to commence phase 3 work at Amalia
Project, Mexico
Vancouver, Canada: Radius Gold Inc. (TSX -V: RDU) is pleased to announce that Pan American S ilver
Corp. has elected to operate the next phase of exploration at Radius’s high -grade gold -silver Amalia
Project located in Chihuahua, Mexico, and will reinitiate work in Q3 of 2019. The work program at
Amalia will focus on preparation and execution of the phase 3 drilling program which includes an
additional 2,500 m of diamond drilling.
Amalia Project
The Amalia Project covers 9,450 hectares and 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 3.5 km of strike length and a
600 m vertical interval following the trace of a large regional fault zone. An agreement to explore Amalia
Project with Pan American Silver Corp. was signed in July 2018. Radius and Pan American Silver have
since completed two drill programs totaling 3665 m in 15 drill holes.
Phase 1 drilling intersected wide high grade gold-silver mineralization at the San Pedro zone (see Radius
news December 4, 2018), with drill hole AMDD18-009 intersecting 26 m at 7.08 g/t Au and 517 g/t Ag,
including 5 m at 14.71 g/t Au and 1378 g/t Ag.
Phase 2 drilling expanded high grade gold and silver mineralization with two mineralized shoots
identified at San Pedro zone , with significant results achieved in drill holes 10, 12, 14, and 15 (see
Radius news June 13, 2019):
AMDD19-010 assayed 44 m at 12.38 g/t Au and 309.3 g/t Ag
AMDD19-012 assayed 5 m at 647 g/t Ag
AMDD19-014 assayed 28 m at 2.3 g/t Au and 126 g/t Ag
AMDD19-015 assayed 81 m at 3.75 g/t Au and 61 g/t Ag
Geological controls on the mineralization are complex with multiple events of gold and silver
mineralization within veins, stockworks and hydrothermal breccias. The dominant Amalia structure
trends 320/60E and can be traced for several kilometers. The Amalia fault is a large, robust fault zone
separating Tertiary rhyolitic ignimbrites from the Late Cretaceous Tarahumara andesite volcaniclastics
with gold and silver mineralization typically occurring within the hanging wall of the fault zone. High
grade shoot control is still uncertain but appears to be located at cross faults. Exploration drilling at this
stage is wide spaced and large areas remain untested. With drilling on just five sections covering 850 m
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strike and testing a vertical component limited to approximately 200 m down dip, Radius believes the
system is still wide open and shows potential for a significant discovery.
Pan American S ilver intends to complete further geological mapping, re -logging of previous drill core,
and drilling an additional 2,500 m as part of the phase 3 program.
The Pan American Agreement
Radius has granted to Pan American Silver Corp. the option to earn up to an initial 65 % interest in the
Amalia Project by making cash payments to Radius totaling US$1.5 million (of which US$ 250,000 has
been received) and expending US$2 million on exploration over four years . Pan American may earn an
additional 10% by advancing the property through pre-feasibility study.
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 programs and prepared and approved the technical
information contained in this news release.
Note 1. Reported drill hole intervals are drilled widths. Full drill data, locations and estimated true widths are
published on http://www.radiusgold.com/s/amalia.asp.
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.
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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 Project; the exploration plans for the Amalia Project; the Company’s business
strategy, plans and outlook; the merit of the Company’s investm ents 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”, “est imated”, “potential”,
“open”, “future”, “assumed”, “projected”, “used”, “detailed”, “has been”, “gain”, “upgraded”, “offset”,
“limited”, “contained”, “reflecting”, “containing”, “remaining”, “to be”, “periodically”, or statements that
events, “could” or “s hould” 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 Proje ct; the plans for
exploring the Amalia Project; 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; risks associated
with the results of exploration and development activities, estimation of mineral resources and the geology, grade
and continuity of mineral deposits; unanticipated 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 fro m 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, e xpectations and opinions of
management, including but not limited to: that Pan American will acquire an interest in the Amalia Project; that the
exploration activities at the Amalia Project 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 material adverse change affecting the Company or its investments or properties; and such other assumptions
as set out herein. Forw ard-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 materially from those anticipated in such statements.
Accordingly, investors should not place undue reliance on forward-looking statements.