Radius JV partner Volcanic Gold Mines provides update on Holly Project, Guatemala
news release
February 9, 2021
Radius JV partner Volcanic Gold Mines provides update on Holly Project,
Guatemala
Vancouver, British Columbia – Radius Gold Inc. (TSXV: RDU) is pleased to publish a progress report from
joint venture partner, Volcanic Gold Mines Inc ., on exploration work at the Holly project in Guatemala.
Volcanic’s exploration teams have been ground proofing the extensive historic data collected by Radius
Gold since initial discovery in 2002, and the reprocessing and reinterpretation of the geophysical data
acquired at Holly has led to well defined drill targets. Drill permits are expected to be received in Febuary
with drilling planned to commence before month end.
The Holly property straddles the regional -scale Jocotan Fault which forms part of the Motagua Suture
Zone, a 400km long and up to 80km wide deformation zone that separate s the North American and
Caribbean tectonic plates.
At Holly, t he Jocotan Fault forms a well defined east -west trending ridge, separating older
metamorphosed, foliated sedimentary rocks to the north from much younger volcanic rocks to the south.
Exploration programs conducted by Radius outlined a number of very high grade silver/gold occurrences
along the trace of the ridge. Initial trench ing and drilling of these targets returned excellent results,
however no follow-up work was done on the extension of these mineralized zones along the ridge and to
the north. These zones remain open for resource definition. (see Figure 1 below)
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Figure 1: Exploration Targets and Jocotan Fault Zone
Volcanic Gold reprocessed the data from IP surveys conducted on the property in 2002 and 2008, and the
updated models have improved the data quality . Ground proofing of these targets has defined several
exciting drill ready targets:
• Two NW striking high -resistivity anomalies are identified. These anomalies appear to be
associated with NW striking faults that host very high-grade gold-silver veins:
Selected trench samples results from Holly Ridge:
Trench ID Interval m Au g/t Ag g/t
El Pino # 1 5.1 58.3 1937
Stockwork 40 2.0 7.0
La Pena # 1 14 3.5 43.0
La Pena # 2 6 25.8 121.7
Jocotan FZ
IVY
Holly
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Selected drill results from Holly Ridge:
Hole ID From m To m Interval m Au g/t Ag g/t
HDD-001 34.8 49 14.2 4.14 150.6
HDD-005 19.1 29.7 10.6 7.95 263.4
HDD-007 88.5 97.5 9.0 1.84 45.1
• A large resistivity high tracks the trace of the Jocotan Fault at depth and is coincident gold in rock
and soil anomaly 1,200m long X 400m wide. This indicates a large epithermal system has been
emplaced along the Jocotan Fault system.
Simon Ridgway, Volcanic’s CEO, commented: “Our IP modelling has revealed compelling drill targets at
Holly. Three out of four historic drill holes completed at Holly testing the high-grade veins returned great
gold and silver mineralized intervals, and we’ve always believed that the Jocotan Fault has the potential
to host a significant mineralized system. No drill holes have tested the stru cture at depth, and the
coincident restivity high and soil gold geochemistry is set to be the focus of drilling at Holly.
Volcanic’s geologists have initiated an extensive mapping and sampling program along the 60km strike
length of the Jocotan Fault zone that occurs within the properties that Volcanic has optioned from Radius.
Several other mineralized zones have been identified by Radius’ historic sampling programs.”
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
approved the technical information contained in this news release.
Terms of Guatemala Radius Gold and Volcanic Gold Mines option
Volcanic can earn a 60% interest in the Holly and the Banderas projects by spending the cumulative
amount of US$7.0 million on exploration of the Properties within 48 months from the date of the
agreement. An initial US$1M must be spent on exploration within the 12 months of receiving the required
drill permits, which expenditure will include a minimum 3,000m of drilling on the properties.
Following the exercise of the Option, Volcanic will enter into a standard 60/40 Joint Venture with Radius
in order to further develop the Properties.
Volcanic has also been granted an exclusive right to evaluate all other property interests of Radius in
Guatemala with a right to acquire an interest in any or all other such properties on mutually acceptable
terms.
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 proj ect acquisition opportunities
across the globe.
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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
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 and include, without limitation, statements about the plans for exploration work in Guatemala.
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 “sho uld” 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, whether the planned exploration work by Volcanic will be proceed as intended; c hanges 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 diffe r 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 assumpt ions, beliefs, expectations and opinions of
management, including but not limited to: that the Volcanic’s exploration plans in Guatemala will proceed as
planned; that the Company’s stated goals and planned exploration and development activities will be achieved; that
there will be no material adverse change affecting the Company or its 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.