Radius Gold defines new drill targets at Plata Verde silver project
news release
February 3, 2021
Radius Gold defines new drill targets at Plata Verde silver project
Vancouver, Canada: Radius Gold Inc. (TSX-V: RDU) is pleased to publish the results of recent geophysical
surveys completed at the Company’s Plata Verde silver project located in Chihuahua, Mexico . New
IP/Resistivity sections show significant structural zones extending to depth directly below the known large
scale historic silver mines . The structural zones are clearly connected with the historic mines and are
possibly feeders zones for the silver mineralizing system. Radius has now defined two priority targets:
1) Extensions and repetitions of the shallow dipping large scale silver rich breccias, stockworks
and disseminated silver mineralization exposed within the historic mines.
2) Sub-vertical feeder zones below the historic silver mines.
At Plata Verde, Radius geologists re -discovered an undocumented large scale underground bulk mining
operation where in the late 1800’s, historic miners hand excavated an extensive series of anastomosing
mines, producing silver bars at an associated smelter operation. The project was un-explored since the
historic miners ceased operations. Initial phases of rock chip sampling by Radius geologists returned
widespread silver mineralization between 5 and 1070 g/t Ag over a 200 x 500 metre area within the
historic mines. 255 rock chip and panel samples have been collected from the mines and average 156 g/t
silver, detailed in Radius’ press release 22 July, 2020. The silver mineralization is hosted within a shallow
dipping basaltic andesite exposed in a deeply incised drainage with principal extensions covered by
rhyolitic agglomerates. The silver mineralization is best exposed in the mines which extend hor izontally
up to 180 m under rhyolitic cover.
Plata Verde Geophysics
Radius has recently completed sampling and processing geophysical programs at Plata Verde, consisting
of 7.5 line km magnetic survey and 4.5 line km IP/Resistivity survey conducted by consultants, Geofisica
TMC. The program was designed to locate potential feeder systems below the historic silver mines and
successfully identified compelling drill targets below the known mines (figures 1 and 2). All relevant data
and sections from the geophysical surveys are available on the Radius website.
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Figure 1. Initial IP/Resistivity section through the historic Mina Real.
Figure 2. Initial IP/Resistivity section through the historic Mina Mojonera.
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Geological model, silver mineralization and exploration targets
Radius’s geological team have completed 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.
2. Fracture fill and stock work silver mineralization occurs as massive to crustiform banded barite
calcite with silver chlorides, sulphosalt minerals and native silver.
3. Disseminated style mineralization with fine silver sulphosa lts disseminated within the volcanic
host with little to no brecciation, veining or fracture fill.
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.
The barite/silver chloride mineralization appears to be a late stage low temperature mineralizing event
with the source and feeder systems 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. Extensions of the known mineralization
below the ignimbrite cover to the north, east and west are open. Potential feeder structures have been
clearly defined by the recent geophysics. Radius has completed an environmental study in support of drill
permits which have been recently filed. The Company looks forward to drill testing the compelling targets
once drill permits are granted.
The Agreement
Radius can earn a 100% interest in the project by making staged payments to the property owner totalling
US$800,000 over four years with a final payment of $400,000 due at the end of year four. A total of
$16,000 has been paid to date. The owner retains a 1% NSR which Radius can buy back for US$1,000,000.
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 worked in the field at Plata Verde, and prepared and approved the technical information contained in
this news release.
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. Reported samples were delivered to SGN Laboratories in Paral, Chihuahua. The samples were
crushed and pulverised. Two 100 gram splits were taken. Radius geologists removed and stor ed the
excess and a 100g split at the Radius offices. SGN proformed initial Ag and Au analysis. The second split
was subsequently sent to the ALS Geochemistry laboratory facilities in Chihuahua, Mexico and was
analysed for Ag and multi -elements using method code ME -ICP61 following a four -acid digestion.
Overlimits are analysed using an appropriate method. All assays reported above 30g/t Ag have been
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analysed by ALS Geochemistry. Radius routinely inserts multi-element geochemical standards and blanks
into the sample stream to monitor laboratories performance. Quality control samples submitted were
returned within acceptable limits. Comparisons between sample splits demonstrate acceptable accuracy
and precision.
Radius Gold Inc.
Radius has a portfolio of projects located in Mexico, United States and Guatemala 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
Bruce Smith
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 forwa rd-looking statements
which include, without limitation; the exploration plans for the Plata Verde Project and the Company’s right to acquire the Plata
Verde Project ; 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”, “remaining”, “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 plans for exploring the Plata
Verde Project and the Company’s right to acquire the Plata Verde 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
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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 the exploration activities at the Plata Verde 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. 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 materially from those anticipated in such st atements. Accordingly, investors should not place undue reliance on
forward-looking statements.