Radius Gold provides exploration update
news release
September 3, 2020
Radius Gold provides exploration update
Vancouver, Canada: Radius Gold Inc. (TSX -V: RDU) is pleased to provide an exploration update for all
projects and plans for fourth quarter exploration. The Company has had an active month with geological
teams completing field evaluations of 5 new properties, with over 2 80 rock chip samples currently
awaiting laboratory analysis. In the first half of 2020, during the initial stages of the COVID-19 pandemic,
the Company’s field work, permitting and advancing contracts were all significantly impacted. In the last
two months the Company has re-established field and permitting operations in Mexico, Guatemala and
USA using our local field and administrative teams and utilizing strategies that minimize contacts and
COVID-19 risks.
New property evaluations with due diligence field visits and sampling have been conducted on gold and
silver projects in Chihuahua, Sinaloa and Durango in Mexico and also in Utah and Montana, USA. 280 rock
chip samples have been collected and are in varying stages of analysis. Radius expects to be able to
announce a new project discovery or acquisition from this work in the coming months. Exploration for
new targets by our regional teams, as always, is ongoing.
Amalia Project:
Radius’s high grade gold-silver Amalia project phase 4 drilling funded by JV partner Pan American Silver
remains on stand -by due to COVID-19. Semarnat, the permitting agency in Chihuahua , has returned to
work on a limited scale and Pan American has recently provided updated information requested by
Semarnat. The required drill permits are expected promptly.
Plata Verde Silver Project:
Radius is developing compelling drill targets at Plata Verde and recently announced the definition of large
scale silver mineralized breccias within a 200m x 500m mineralized zone (see press July 22, 2020). Radius
is also advancing in signing agreements to expand the property package that had been hampered by
COVID-19 travel restrictions. The next phase of field work will consist of geophysical programs to identify
feeder systems and expansions of the known mineralization under the thin (>100m) cover volcanics.
Guatemala Project:
During the last quarter Radius negotiated an option agreement with Volcanic Gold Mines Inc. being
granted the right to earn a 60% interest in Radius’s Holly and Banderas projects located in Guatemala .
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Volcanic is working closely with the technical personnel Radius has in Guatemala who have invaluable
expertise that will provide essential support and local knowledge, allowing geological teams to commence
surface exploration and to enable Volcanic to apply for new drill permits.
Property Agreements:
The Pan American Agreement
Pursuant 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$400,000 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.
The Plata Verde Agreement
Radius can earn a 100% interest in the project by making staged payments totalling US$800,000 over four
years with a final payment of US$400,000 due at the end of year four. An US$8,000 signing payment has
been paid. The owner retains a 1% NSR which Radius can buy back for US$1,000,000.
The Volcanic Agreement
Radius has granted Volcanic an option to earn a 60% interest in the Holly and Banderas properties by
completing a minimum C$3 million financing and spending US$7 million on exploration of the properties
within 48 months from the date drilling permits are granted (see Radius press release June 1, 2020). An
initial US$1 million must be spent on exploration within 12 months of receiving the required drill permits,
including a minimum 3,000m of drilling. Volcanic has completed a CAD$5 million financing to fund this
initial exploration. The transaction has been approved by the TSX Venture Exchange and Radius has
received a CAD$100,000 signing payment from Volcanic. Following the exercise of the Option, Volcanic
will enter into a 60/40 joint venture with Radius in order to further develop the properties.
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 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
Simon Ridgway
President and CEO
Symbol: TSXV-RDU
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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 ab out the possible acquisition by Pan American of
an interest in the Amalia and Palmillas properties; the exploration plans for the Company’s 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”, “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 possible acquisition by Pan American of an interest in the Amalia and Palmillas properties; the possible
acquisition by Volcanic of an interest in the Holly and Ba nderas properties; the plans for exploring the Company’s
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; 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 avai lable 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 Volcanic will acquire an interest in the Holly and Banderas properties; that the exploration activities
at the Company’s 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 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 f orward-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.