Radius Gold discovers gold mineralized “hotspring type” sinter and breccia pipe target in Fresnillo district, Zacatecas
news release
March 21, 2023
Radius Gold discovers gold mineralized “hotspring type” sinter and breccia pipe
target in Fresnillo district, Zacatecas
Vancouver, British Columbia – Radius Gold Inc. (TSXV: RDU) (“Radius” or the “Company”) is pleased to
announce the discovery and acquisition of a new gold minerali zed “hotspring type” sinter and breccia
pipe target within the Fresnillo district, Zacatecas, Mexico. Radius has entered into an option agreement
with local claim owners to acquire 100% of the new property named Tropico.
Tropico Location
The Tropico target is located 30 km northwest of Fresnillo city, Zacatecas, Mexico. The Fresnillo mining
district is one of the world ’s greatest epithermal systems and hosts the world’s oldest continuously
operating mines producing silver , gold, copper, lead, and zinc for approximately five centuries, since
1554. The district has over 150 veins, mantos and chimney deposits including +30 large scale ore
producers and it continues to deliver new discoveries. In 2005, the Juanicipio project was discovered by
MAG Silver Corp and Fresnillo Plc, located 8 km from Fresni llo city. This recent discovery is one of the
world’s highest grade and largest primary silver (plus gold) development projects [MAG Silver PEA
November 7, 2017].
The Tropico property is located 1 km off the paved national highway route 45 between Fresnill o and
Durango. The ground is flat and has easy access to all areas via farm tracks. The property is a mixture of
rocky pasture and bean fields. A pre-existing lease agreement that allows for exploration has been signed
with the local community.
Target Model
Chimney bodies in the Fresnillo district are often cylindrical shaped brecciated pipes that crosscut the
cretaceous volcano sedimentary host units and predate or are contemporaneous with silver , gold and
base metal veins. The vein systems at Fresnillo are most frequently “blind”, meaning they do not outcrop,
and the tops of the orebodies are concealed to a depth of approximately 150 to 300 m. Surface
expressions can include geochemical path finder halos, thin discontinuous quartz carbonate veinlets, and
critically low temperature chalcedonic silica and sinter.
Sinter is a formation of opaline silica deposited in a hotspring environment at surface. Sinter typically has
very low grade or barren preciou s metal content but can be the surface indication of a mineralized
system at depth. There are many famous examples of epithermal gold and silver mines located below
sinter deposits, both within the Fresnillo district and globally (e.g. Waihi – New Zealand, Lihir – PNG,
McLaughlin – USA).
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Geology and Geochemistry
Outcrop within the Tropico property is sparse. From limited outcrop and float Radius geologists have
identified an elliptical zone of intensely silicified hydrothermal breccias approximately 4 50 m x 250 m.
Several of the outcrops and float blocks are composed of chalcedonic and opaline sinter. The Tropico
breccia is hosted within finely bedded siltstones and dirty limestones, interpreted to be part of the
Proaño group which hosts the major Fresnillo deposits. There are known active hotspring and mercury
occurrences nearby.
Radius collected and assayed 28 rock chip samples from the area of the silica breccia and sinter. Gold
values ranged from 0.0 2 ppm to 0. 88 ppm Au, with an average of 0.28 ppm Au which is considered
significant for a sinter system. In actual sinter material the highest grade was 0.39 ppm Au. Mercury
values are very high, with several samples exceeding >100 ppm Hg (the upper limit of detection). Typical
epithermal path finde r elements were also highly anomalous with Sb between 64 and 1135 ppm, As
between 8 to 854 ppm, and Ag between 0.6 to 5.6 ppm.
Bruce Smith, President and CEO, comments:
“Tropico has every indication for the potential to make a great discovery. Located within sight of Fresnillo,
the worlds largest epithermal silver deposit, within the same host rocks . O ur team have located and
secured a gold rich breccia pipe of significant scale, rim med by sinter and yet to be drill tested. Access
and terrain are perfect, enabling low exploration costs. Radius will move quickly to acquire drill permits,
and conduct deep penetrating resistivity surveys to define the subsurface pipe shape and drill.”
Figure 1. Typical terrain at Tropico, flat fields, limited outcrop. CEO and Exploration Manager with gold rich sinter
block.
Fresnillo Mining
District
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Figure 2. Tropico location
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Figure 3. Tropico property and geochemistry
Agreement Terms
Radius has entered into an option agreement with a local Mexican group to acquire 100% of the 200 ha
Tropico claim. Payment on signing (completed) US$200,000. A further US$200,000 can be paid in 6
monthly installments over a period of 42 months, starting w ith US$25,000 at month 12 from signing in
order to maintain the property option. At month 48, Radius can acquire 100% of the property for
US$5,000,000. An additional milestone payment of US$5 million is conditional on delivering a compliant
feasibility study or at the start of mine construction. A further US$3 million to be paid if reserves exceed
2 million gold equivalent (Au + Ag) ounces. If Radius does not complete payment of the milestone US$5
million dollars within 8 years of signing, the property would return 100% to original owners.
Management Update
Bruce Smith, President & CEO of Radius Gold, has resigned his executive role as President at Rackla Metals
Inc, to focus on Radius and advancing its Tropico, Amalia, Plata Verde, and Motagua Norte properties and
as always discovery of new projects.
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Quality Assurance and Quality Control
Reported assays are rock chip samples taken by Radius geologists. Reported samples were delivered to
ALS in Chihuahua. The samples were analysed by ALS Geochemistry for Au by fire assay (Au-ICP21), and
Ag and multi-elements using a four-acid digestion with ICP-AES finish (ME-ICP61). ALS geochemistry is an
internationally certified labor atory. Radius routinely inserts multi -element geochemical standards and
into the sample stream to monitor laborator y performance. Quality control samples submitted were
returned within acceptable limits.
Technical Information
Bruce Smith, M.Sc. (Geology), a member o f the Australian Institute of Geoscientists, is Radius’ Qualified
Person as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects. Mr. Smith
collected the samples on site at Tropico and approved the technical information con tained in this news
release.
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 treasury. At the same
time, management is seeking out additional investment and project acquisition opportunities across the
globe. Radius is a member of the Gold Group of companies, led by Simon Ridgway.
ON BEHALF OF THE BOARD
Bruce Smith
President and CEO
Symbol: TSXV-RDU
Contact: Bruce Smith
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
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Certain statements contained in this news release constitute forward -looking statements within the meaning of
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looking statements and include, without limitation, statements about the results of exploration work and future
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