Radius Gold options system of gold-silver rich diatreme breccias in Chihuahua, Mexico
news release
October 4, 2017
Radius Gold options system of gold-silver rich diatreme breccias in
Chihuahua, Mexico
Vancouver, Canada: Radius Gold Inc. (TSX -V: RDU) is pleased to announce that it has signed
a binding agreement with a private Mexican company to option the 473-hectare Tarros Project
which is host to several large gold silver mineralized diatreme breccia bodies. The Tarros Project
is located 50km north of Radius’s new Amalia discovery (see press release 19 September, 2017)
in the Sierra Madre Gold Silver belt in the State of Chihuahua, Mexico.
Tarros Project
The Tarros Project is apparently unexplored, apart from limited historic artisanal-scale mining of
surface outcrops on several of the outcropping bodies. It has been reported that Noranda briefly
held the property in 1992- 1993 but no records of work are known. Epithermal Au -Ag
mineralization has been s ampled by Radius in several explosive hydrothermal or diatreme
breccias bodies within an area roughly 3.5km x 1km. The size of the largest mineralized breccia
bodies observed to date exceeds 250m x 250m.
Radius senior geologists visited the property in June 2017 during a regional prospecting trip and
observed extensive exposures of volcanic hosted, highly altered explosive textured breccia that
were cemented by silica and iron oxides. The breccia bodies were pocketed with pits, tunnels,
shafts, glory holes and open cavities where material had been removed by artisanal miners and
processed for gold. 26 rock chip samples were collected from three separate breccia bodies with
different breccia compositions, of which 24 samples returned significant gold silver values. The
average of all 26 samples assayed 1.42 g/t Au and 66 g/t Ag.
The large size potential combined with the disseminated and distributed nature of the gold- silver
mineralization indicates potential to discover a large bulk tonnage deposit. During the initial
property visit 7 distinct large breccias were observed. Brief descriptions of the main breccia
bodies are set out below.
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Rosario Breccia
The Rosario Breccia is the northern most breccia body with an estimated minimum size of 150m
x 60m. It is a large irregularly shaped breccia body, with several pits and tunnels where artisanal
miners produced gold. It is hosted within and comprised of andesite volcanics, with clasts all
highly altered and cemented by clay , silica and iron oxides. A continuous chip sample in an old
pit on the eastern side of the breccia assayed 1 0m at 2.95 g/t Au and 18 g/t Ag (5 samples of
2m). The mineralization is open in all directions. 120m NW of the first channel on the margin
of the breccia, a second continuous chip assayed 3m at 0.88 g/t Au and 139 g/t Ag (3 samples of
1m).
Regalito Breccia
The Regalito Breccia has an irregular oval shape and is estimated at 200m x 150m. The breccia
is hosted within and composed of andesite volcanics. The clasts are all strongly clay altered with
variable sulphides, silica and iron oxides cementing the matrix. The breccia is zoned , with the
western side intensely silicified with some stockwork veining . Radius collected 8 rock chip
samples (2m each) of various breccias in a zone 100 x 20m , with 7 of the samples containing
significant gold and silver mineralization. The average of the 8 samples graded 0.78 g/t Au and
101 g/t Ag.
La Bufa Breccia
La Bufa, on the western side of the Tarros P roject, is elongated NS approximately 300m by 40m
wide. It is the only breccia hosted within granodiorite intrusive. In general, the breccia is
strongly silicified with broken quartz and veining, abundant disseminated pyrite and iron oxides.
There are a few tunnels and small pits, but La Bufa has not been mined as intensely as the other
volcanic hosted breccias . This breccia was not sampled in the first reconnaissance but was
subsequently sampled by Radius and assays are pending.
San Nicolas Breccia
The San Nicolas B reccia forms a low hill and has an irregular shape roughly 250m long and
250m wide, hosted within and composed of andesite volcanics. Strong clay alteration of the
breccia, zones of intense silicification and iron oxide cement are observed similar to the other
breccias where Radius has sampled significant Au and Ag values . Historically the breccia was
mined from several underground tunnels and pits . This breccia was not sampled in the first
reconnaissance but was subsequently sampled by Radius and assays are pending.
San Miguel Breccia
The exposure of San Miguel Breccia is at minimum 200m x 50m elongate roughly NS. The
breccia is full of many tunnels and pits where historic miners removed gold rich pods. Radius
geologists walked the length of the breccia stopping at various interval s to sample the different
breccias types. In total 9 samples were collected over 200m and all samples returned significant
gold silver mineralization, averaging 1.48 g/t Au and 43 g/t Ag.
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Discussion
The Tarros system of hydrothermal breccias is a significant discovery and acquisition for Radius
in Mexico. The scale of the breccias mapped to date is large with the 6 known breccias having a
combined size of 14 hectares occurring over 3.5km x 1km , all with historic evidence of
underground mining and surface pits where local miners report recovery of high grade gold and
silver. The results of Radius ’s initial reconnaissance sampling, where 24 out of 26 rock chips
returned significant gold and silver values, indicate the potential to discover a large bulk tonnage
deposit. Radius plans to quickly secure access agreements with the local land owners and
commence detailed grid based and channel sampling to define drill targets.
Maps and photos of the Tarros Project will be available on the Company’s website.
Tarros Sample Table
Sample Location Sample Type / length Description Au g/t Ag g/t
SM005 San Miguel
Breccia Grab dump select various breccias 0.71 16
SM006 San Miguel
Breccia Chip 1m side wall of big pit, strong clay si
alt bx 0.73 5
SM007 San Miguel
Breccia Chip 1.5m tunnel with 2 short shafts clay bx
mod fe si 0.63 4
SM008 San Miguel
Breccia Chip 2m
large clastic breccia, strong clay alt
and FeOx, cemented with silica
0.85 6
SM009 San Miguel
Breccia Chip 3m 0.56 19
SM010 San Miguel
Breccia Chip 2m 7.23 7
SM011 San Miguel
Breccia Chip 3m
Adit. Strong silicified andesite, bx,
abundant sulphides (chalcopyrite,
pyrite, lead) FeOx, fluorite
0.88 71
SM012 San Miguel
Breccia Chip 1.5m 0.57 22
SM013 San Miguel
Breccia Chip 1.5m 1.20 236
SM014 Realito Breccia Chip 2m
Silicified tuff, brecciated, leached
zones, pyrite, disseminated +
fractures with FeOx.
0.10 11
SM015 Realito Breccia Chip 2m Silicified tuff, brecciated, leached
zones, pyrite, disseminated +
fractures with FeOx.
0.41 18
SM016 Realito Breccia Chip 1.5m 2.57 217
SM017 Realito Breccia Chip 2m
Silicified tuff, brecciated, broken,
leached zones, abundant
disseminated pyrite, fractures
with FeOx.
1.56 414
SM018 Realito Breccia Chip 2m 1.03 69
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SM019 Rosario Breccia Continuous Chips 0-2m Weakly-medium silicified
porphyritic andesite, brecciated,
leached zones, abundant
sulphides (pyrite) local massive,
fractures with abundant FeOx.
1.50 54
SM020 Rosario Breccia Continuous Chips 2-4m 1.76 16
SM021 Rosario Breccia Continuous Chips 4-6m 5.69 7
SM022 Rosario Breccia Continuous Chips 6-8m 3.76 7
SM023 Rosario Breccia Continuous Chips 8-10m 2.04 7
SM024 Rosario Breccia Continuous Chips 0-1m Medium silicified porphyritic
andesite, brecciated, local druzy
quartz with massive and
disseminated py + fractures filled
with py, FeOx.
0.81 99
SM025 Rosario Breccia Continuous Chips 1-2m 1.10 150
SM026 Rosario Breccia Continuous Chips 2-3m 0.73 168
SM027 Rosario Breccia Continuous Chips 3-5m 0.01 6
SM028 Realito Breccia Chip 2m
Pit, Silicified tuff, brecciated,
leached zones, pyrite,
disseminated + fractures with
FeOx.
0.28 19
SM029 Realito Breccia Chip 2m Strong clay altered breccia,
abundant disseminated pyrite +
FeOx
0.30 55
SM030 Realito Breccia Chip 2m 0.03 4
Average of 26 samples 1.42 66
The Agreement
Radius can earn a 100% interest in the Tarros P roject by making an immed iate cash payment of
US$5,000 and by completing staged payments over a period of 4 years totaling US$1,685,000 of
which $1,200,000 is a final payment at the end of 4 years . The owners retain a 2% Net Smelter
Royalty which can be purchased by Radius for US$1,000,000 for each 1%.
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 visited the Tarros Project, participated in the reported programs and
prepared and approved the technical information contained in this news release.
Sampling at Tarros followed a standardized protocol to ensure representative and unbiased
quantities of material from across each sample. Chip samples were taken using hammer and
chisel continuously along the walls of the underground mines and cleaned surface outcrops.
Nominally widths were between 1 and 3 metres.
The Company utilizes industry-standard QA/QC program. Rock samples were prepared and
analyzed at ALS laboratories in Mexico and Canada.
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About Radius
Radius has been exploring for gold in Latin America for over a decade. The Company has a
strong treasury and is looking for investment and project acquisition opportunities across the
globe. Please call toll free 1-888-627-9378 or visit our web site (www.radiusgold.com) for more
information.
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 Company’s exploration plans for
the Tarros Project; the Company’s business strategy, plans and outlook; the merit of the Company’s investments
and properties; timelines; the future financial performan ce 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 Company’s plans for exploring the Tarros Project; changes in general economic
conditions and financial markets; the Company or any j oint 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 miner al 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 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.
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Forward-looking statements contained herein are based on the assumptions, beliefs, expectations and opinions of
management, including but not limited to: that the Company’s exploration activities at the Tarros 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 statements. Accordingly, investors should not place undue reliance on
forward-looking statements.