VANCOUVER, Aug. 19 /CNW/ - Radius Gold Inc. (TSX-V: RDU) is pleased to announce that Solomon Resources Limited ("Solomon") has informed the Company that it has retained a drill contractor for the Ten Mile Creek gold property, Yukon and drilling is expected to commence within the next two weeks.
Solomon states in its news release issued today that it has completed the first phase of its 2010 field exploration program on the property. That work consisted of soil geochemical surveys, geophysical surveys and mechanical trenching. The objective of their program was to verify the results reported by former operators and refine diamond drill targets for drilling this season.
The Ten Mile Creek property is located within the Dawson Range of Canada's Yukon Territory approximately thirty kilometres north-northwest of the Kinross White Gold property. Solomon can earn a 51% interest in the property by spending $2.5 million 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:
Deadline Cash Shares Expenditures
-------- ---- ------ ------------
TSXV approval 500,000 (received)
May 21, 2010 $100,000 (received) 100,000 (received)
May 21, 2011 $150,000 150,000
May 21, 2012 $250,000 250,000
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.
Solomon's work confirms the results obtained by previous operators in the area which identified anomalous gold values in stream sediment, soil and rock samples. 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. See Solomon's news release dated August 19, 2010 for more detail about their results.
Rivier Claims, Yukon
Radius is also pleased to announce that it has been granted an option to acquire a 100% interest in the Rivier claims located in the Watson Lake Mining District, Yukon. The geological setting and anomalous geochemical values found at the Rivier target are consistent with the possible presence of intrusion related gold deposits.
The 100 claims optioned to Radius cover an area of roughly 7km by 15km over a series of anomalous gold + arsenic in stream sediment samples taken from streams that drain a Mid Cretaceous pluton, intruding siliciclastics of the Nasina subterrane and Slide Mountain rocks.
To exercise the option, which is subject to Exchange approval, Radius must pay to the property owner a total of $175,000 cash and issue a total of 200,000 shares over four years.
David Cass, Radius's Vice-President of Exploration, 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. Cass is responsible for the accuracy of the technical information in this news release and has verified that it is an accurate summary of the reports provided to Radius by Solomon. Radius has not independently verified Solomon's exploration results.
Radius has been exploring for gold in Latin America for nearly a decade, and has assembled interests in a portfolio of promising gold projects throughout the region, including carried stakes in two small-scale developing gold projects in Guatemala and Nicaragua. Radius also has two 100% owned exploration plays, the HB property in Guatemala and Sixty Mile property in the Yukon Territory - with drilling campaigns for 2010 in the planning stages.
ON BEHALF OF THE BOARD
Simon Ridgway, President & CEO
Investor relations: Ralph Rushton / Erin Ostrom
Symbol: TSXV-RDU; OTCBB-RDUFF
Shares Issued: 72.9-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 and its properties, please call toll free 1-888-627-9378 or visit our web site (www.radiusgold.com)