VANCOUVER, Sept. 22 /CNW/ - Radius Gold Inc. (TSX-V: RDU) is pleased to announce that it has agreed to option the Ten Mile Creek project to Solomon Resources Limited. Solomon can earn a 51% interest in the property by spending $2.5m on exploration and making staged cash and share payments of $500,000 cash and 1 million shares over 3 years, according to the following schedule:
- Issuing to Radius 500,000 shares upon signing and TSX approval of the
- Paying $100,000 in cash and issuing 100,000 common shares of Solomon
Resources to Radius on May 21st, 2010, and committing to spend
$350,000 during the 2010 exploration season;
- Paying $150,000 cash and issuing 150,000 common shares of Solomon
Resources to Radius on May 21st, 2011, and committing to spend
$650,000 during the 2011 exploration season;
- Paying $250,000 cash plus issuing 250,000 common shares of Solomon
Resources on May 21st, 2012, and committing to spend $1,500,000
during the 2012 exploration season.
On completion of the earn-in, a 51/49 joint venture would be formed going forward. The joint venture would cover all costs related to the project on a pro rated basis.
Ten Mile Creek is an active placer-gold-producing creek with significant historic production. The headwaters of Ten Mile drain an area underlain by an intrusive complex of probable Cretaceous age. Work by previous operators in the area identified anomalous gold values in stream sediment, soil and rock samples. The area has never been drill tested.
In 1998, Teck Resources Limited staked over 200 claims in the area, and in the following three seasons it carried out a reconnaissance program of geological mapping, soil and rock sampling, and a minor trenching program on the property. This work outlined five gold mineralized zones hosted in and adjacent to two Mesozoic quartz monzonite intrusive bodies. Teck's final report summarizes the gold zones as follows.
Jual Vein System
Numerous northwesterly trending, flat to moderately dipping quartz veins, stockworks and fault zones occur, with many (gold) values in the range of eight to 16 grams per tonne (g/t) gold. Strong northwest-trending gold-in-soil anomalies (values from less than five to 670 parts per billion gold) cover a 1.4-by-0.6-kilometre area on the Val/Jual grid. Trenching of lower-order gold-in-soil anomalies, peripheral to the preceding, yielded results of 1.6 g/t gold over 25 metres (including 11.1 g/t gold over three metres) and 1.0 g/t gold over 19 metres (including 8.5 g/t over 1.5 metres).
This zone, similar to the Jual, lies three kilometres to the west and contains mineralized float to 3.5 g/t gold. Quartz and altered intrusive boulders, with disseminated sulphide, were uncovered over a 600-metre-by-500-metre area near Twenty Mile Creek. Galena is the most common sulphide, with minor pyrite. The Jual vein system and the Cupid zone may be connected on the basis of gold-anomalous streams and reconnaissance soils with values up to 70 parts per billion gold.
An open-ended, 1.6-kilometre-long gold/arsenic soil anomaly, with values up to 255 parts per billion gold and 1,280 parts per million arsenic, occurs 4.5 kilometres to the southeast of the Cupid zone. The anomaly covers the contact between a metasedimentary unit and an intrusion. The strong correlation between gold and arsenic on the anomaly suggests that the style of mineralization here is distinct from that exposed in the Jual vein system.
Quartz vein float with values up to 3.76 g/t gold, and reconnaissance soil anomalies to 150 parts per billion gold and 220 parts per million arsenic occur two kilometres to the southwest of the Ten grid. The gold/arsenic signature and presence of arsenopyrite suggest a similarity and possible continuity between the Ten grid and Ten West zones.
Galena Creek-Five Mile
At the south end of the property, sheeted quartz veins with values up to 3.98 g/t gold, quartz stringers carrying 5.36 g/t gold, anomalous reconnaissance soils and local stream sediments exceeding one g/t gold occur along trend of anomalies.
The historic results reported in this release were outlined in Teck's January, 2001 assessment report entitled, "2000 Geological and Geochemical report on the Ten Mile Creek Property," filed with the Mining Recorder's Office, Dawson, Yukon, in January, 2001.
The reader is cautioned that Radius has not yet completed sufficient work to verify Teck's results. However, Teck's exploration work is believed to be of high quality. Samples were prepared and assayed at Eco-Tech Labs, Kamloops. Gold was assayed by fire assay/AAS finish and multi-element geochemistry by ICP aqua regia.
The scientific and technical information in this release was prepared under the supervision of David Cass, Radius Gold's Vice-President of Exploration, who is a member of the Association of Professional Engineers and Geoscientists of British Columbia, and a Qualified Person in accordance with National Instrument 43-101.
Radius Gold Inc. has been exploring for gold in Central America for nearly a decade, and management is currently assembling a portfolio of royalties on promising gold projects across the Americas. In Guatemala, under joint venture with Kappes Cassidy, Radius is developing a small, high grade gold mining operation on the Tambor project. Radius recently optioned the Nueva California project in Peru for 1-million shares in Focus Ventures and royalty interests in any future production from the project.
ON BEHALF OF THE BOARD
Simon Ridgway, President
Investor relations: Ralph Rushton/Erin Ostrom
Symbol: TSXV-RDU; OTCBB-RDUFF
Shares Issued: 53.5-million
Neither the TSX Venture Exchange nor the Investment Industry Regulatory
Organization of Canada accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Radius Gold Inc.
For further information: For further information: on Radius Gold Inc. and its properties, please call toll free 1-888-627-9378 or visit our web site (www.radiusgold.com)