VANCOUVER, Jan. 25, 2012 /CNW/ - Radius Gold Inc. (TSXV: RDU) is pleased
to provide an update on exploration plans for the Company's extensive
land holdings in Guatemala. The Company has active precious metals
exploration and development projects in Guatemala and in Nicaragua. An
update on progress in Nicaragua will be given in the next few weeks.
In Guatemala, Radius is active on two fronts. In Eastern Guatemala the
Company has large land holdings and concession applications in the
volcanic belt that hosts the Escobal silver deposit. Closer to
Guatemala City, Radius's joint venture partner Kappes Cassiday and
Associates is operating the Tambor mine development project, with the
aim of beginning construction of a small but potentially high grade
The Zapote Zone is located approximately 1 km southwest of the Pyramid
Hill zone on the Banderas property (see Radius news release dated
February 3, 2011), and consists of a northwest-trending stockwork zone
exposed along a ridge and a southwest-facing cliff. The stockwork zone
consists of centimetre-scale epithermal quartz-chalcedony veins and
veinlets hosted in felsic volcanic and volcaniclastic rocks. The veins
show many different orientations, but generally trend north-northwest
with sub-vertical to steep east-northeast dips. Locally, within the
stockwork zone, small-scale hydrothermal breccia zones are developed,
characterized by felsic volcanic rock fragments hosted in a
Radius's early stage exploration results at Zapote are very positive:
Anomalous gold and silver mineralisation has been detected in rock and
soil samples over more than 600m strike length, and reconnaissance soil
sampling indicates that the zone may extend for up to 3 km in total.
250 samples, a mix of outcrop and float, were collected across a 500 m x
300 m area trending northwest along the exposed southwest facing cliff.
The samples returned gold values ranging from trace to 6.06 g/t Au, and
averaged 0.94 g/t Au. Of the samples taken, 55% graded > 0.5 g/t Au,
including 25% samples grading > 1 g/t Au.
Zapote has not yet been drilled and Radius is planning for an initial
drill program within the next 60 days. The program will start with a
pair of scissor holes beneath the main Zapote ridge to test the
orientation, thickness and grade distribution of the Zapote Zone.
Additional prospecting is also planned to push the zone along strike to
The Holly Zone
The Holly Zone overlies the major regional scale east-west trending
Jocotan continental transform fault, at the northern limits of the HB
property. Gold and silver mineralization occurs in association with
epithermal quartz and quartz-hematite veins both within the phyllites
north of the fault and in the volcanic rocks to the south. All previous
drilling at Holly focused to the south of the trace of the Jocotan
fault in the volcanic rocks. The most encouraging results were
obtained in holes HDD-001 and HDD-007 drilled in the western part of
the property, targeting the depth extension of outcropping veins and
quartz float aligned along a north-north-west orientation (see Radius
Explorations' news release dated December 17, 2002). A +/- ten meter
thick zone of epithermal veins and vein breccias was intersected in
both holes, with HDD-001 reporting 14 m @ 4.14 g/t Au and 150 g/t Ag
and hole HDD-007 returning 9 m @ 1.84 g/t Au and 45 g/t Ag, with hole
007 intercepting the zone 25m below hole 001. No follow-up drilling
has taken place on this structure since. Recent mapping of outcrop and
float has extended this zone over 700 meters to the north and it
remains open. Vein fragments in the cataclastic breccia observed in
drill core indicate the epithermal vein zone developed in the hanging
wall of an active fault zone. Follow-up drilling will take place in
the first quarter of this year targeting the depth and strike
extensions of the zone and exploring for dilatational jogs within the
fault, such as is seen at Tahoe Resources' world-class Escobal deposit,
located in a similar tectonic environment 60km to the west-southwest of
At the Ivy prospect, located 38 km due west of the Holly-Banderas
property and also spatially-associated with the Jocotan fault, gold
mineralization is associated with an altered diorite intrusive. The
prospect was identified during follow up of regional stream sediment
Radius' geologists have identified zones of brecciation and
silicification within a diorite body that carry significant gold
values. This is a very early stage prospect but initial results are
very encouraging, with gold values ranging from trace up to 14 g/t Au
in grab and channel samples with the intrusive body. A limestone unit
that appears to overlie the diorite, possibly a roof pendant to the
intrusive, shows silicification and jasperoid development with weakly
anomalous Au values (200 to 400 ppb). Further prospecting of the area
identified the brecciated diorite which returned the superior gold
A small soil sample grid was established the over the area and appears
to define the anomaly in rocks well. A larger soil grid is being laid
out and will be sampled in the coming months along with geological
mapping and rock chip sampling to better define the size of the target.
Tambor Development Project
Radius and its joint venture partner, Kappes Cassiday and Associates
continue to make progress at the Tambor mine development project in
southern Guatemala. With the recent election of a pro-investment
government in Guatemala, management is optimistic that construction of
the proposed Tambor mine will begin during the first part of 2012,
potentially giving Radius cash flow this year.
After the recent spin-out of Rackla Metals Inc., Radius's Board of
Directors has approved changes to the senior management structure of
the Company, to reflect Radius's return to a purely Central American
Mr. Simon Ridgway, the current President of Radius, is taking on the
role of Chief Executive Officer and Chairman of the Board of Directors.
Mr. Ridgway will maintain his close involvement in the Company's
Central American exploration programs.
Mr. Ralph Rushton, a director of the Company, will be moved from his
current position as VP Corporate Development to take on the role of
President of Radius. Mr. Rushton holds a B.Sc. in geology from
Portsmouth University in the UK, a Master's degree in economic geology
from the University of Alberta, and a Certificate in Business
Communications from Simon Fraser University. He has worked for Radius
since 2003 and is familiar with all aspects of the Company's
exploration programs. He has over 20 years' experience in mining and
exploration, much of which was gained working as a geologist for the
Anglo American group in Southern Africa, the Middle East and Eastern
As a new addition to the Radius team, Mr. David Clark will join Radius
in the position of Chief Geologist. He holds B.Sc. and M.Sc. degrees in
geology from McGill University, Montreal, Canada, and has been involved
in mineral exploration since 1999, working on magmatic sulphide
Ni-Cu-PGE, intrusion-hosted PGE, and orogenic and epithermal precious
metal deposits in Canada, Mexico, and Central America. Finally, Ms.
Sally Whittall, currently in charge of Corporate Compliance, will take
on the role of Corporate Secretary.
Sampling Methodology, Quality Control and Assurance
Surface samples from soils, float, outcrop, and hand-dug trenches are
sent to the Inspectorate Guatemala sample preparation facility in
Guatemala City for sample preparation, and pulps forwarded to the
Inspectorate American Corporation laboratory facility in Sparks,
Nevada, for analysis. Approximately 12% of the samples submitted
consist of commercial standards, blanks, and duplicate samples. These
are included with each batch sent to the analytical laboratory. Gold
amounts for each sample are determined by fire assay, digested in aqua
regia solution and analyzed by atomic absorption finish. Samples with
over 1 g/t Au are re-analysed by gravimetric finish. Ag is analysed by
aqua regia digestion followed by atomic absorption finish with
overlimits analysed by fire assay with gravimetric finish. A 30
element suite is analysed by ICP.
Roger Hulstein, B.Sc., P.Geo., is a member of the Association of
Professional Engineers and Geoscientists of British Columbia and is the
Company's Qualified Person as defined by National Instrument 43-101.
Mr. Hulstein has approved the disclosure of technical information
contained in this news release.
Radius has been exploring for gold in Latin America for nearly a
decade. It has assembled interests in a portfolio of promising gold
projects throughout the region, including carried stakes in two
small-scale gold mine development projects in Guatemala and Nicaragua,
and a number of 100% owned exploration plays, including the HB property
ON BEHALF OF THE BOARD
Simon Ridgway, Chairman and CEO
Investor relations: Jaclyn Ruptash
Symbol: TSXV-RDU; OTCBB-RDUFF
Shares Issued: 86.6-million
Neither the TSX Venture Exchange nor the Investment Industry Regulatory
Organization of Canada accepts responsibility for the adequacy or
accuracy of this release.
Some of the statements in this news release contain forward-looking
information that involves inherent risk and uncertainty affecting the
business of Radius Gold Inc. Actual results may differ materially from
those currently anticipated in such statement.
SOURCE Radius Gold Inc.
For further information:
on Radius and its properties, please call toll free 1-888-627-9378 or visit our web site (www.radiusgold.com).