VANCOUVER, Feb. 27, 2012 /CNW/ - Radius Gold Inc. (TSX-V: RDU) is pleased to announce that it has been awarded the final permit needed to begin construction of its Tambor gold mine in southern Guatemala. Radius's joint venture partner, Kappes Cassiday and Associates (KCA) has commenced construction, and earth moving for the foundations for the plant is underway. KCA is aiming to begin gold production within 2 to 3 months after obtaining the mining permit.
KCA has constructed a modular mill, with a 150tpd ball mill and flotation cells, at its Reno Nevada facility, as a set of modular units mounted on 40-ft skids. KCA has engineered the mill for a target capacity of 150 tonnes/day or 52,500 tonnes/year.
Guapinol South Underground
KCA is planning to drive an incline suitable for small trackless mining equipment from the current face of the Guapinol South under-ground drift to the surface west of the Guapinol outcrop. The decline would parallel the ore in the hangingwall. Cross cuts into the mineralization will be driven on 12 meter vertical intervals, and then branched to become level drives in ore. Mineralization will be extracted using a simple shrinkage stoping method. The levels may be left open or backfilled depending on the stability of the walls.
Guapinol South Open Pit
About one-third of the mineralization in the Guapinol South shoot will be mined from surface, and this will be done simultaneously with the underground mining.
Poza Del Coyote
This area is not quite as well defined by drilling as Guapinol South, but appears to be a near-surface, more flat-lying system. Drilling indicates that Poza Del Coyote will provide about half the mill feed for the project mine life.
Radius discovered the Tambor orogenic lode gold system in 2000. It was drilled by Gold Fields, who defined a NI43-101 compliant resource, under a joint venture. Gold Fields drill tested the Guapinol, Laguna Norte, Poza del Coyote and Cliff zones, and a Technical Report prepared by Chlumsky, Armbrust and Meyer LLC of Lakewood Colorado (see Radius news release dated December 10, 2003) outlined a 43-101 compliant resource of 216,000 ounces of gold in inferred resources (2.55 million tonnes @ 2.64 g/t Au) and 57,800 ounces in indicated resources (456,000 tonnes @ 3.94 g/t Au) in three separate zones.
In 2007, an underground exploration drift and four cross cuts were completed at the Guapinol South zone, in order to provide information on the structural controls, continuity and grade of the high grade gold mineralization (see Radius news releases dated September 6 and October 22 2007). Crosscut CE-1, parallel to and 12.75m to the east of the main adit, intercepted a vein zone with 3 veins, where it assayed:
- 65.6 g/t Au over 4.45m from the vein zone on the East tunnel wall
- 25.8 g/t Au over 4.38m from the vein zone on the West tunnel wall
The main access adit also intercepted the vein on both sidewalls of the adit. The vein was sampled on both sidewalls of the adit and gave results of:
- 74.5 g/t Au over 3.40m* from the vein on the east tunnel wall
- 77.7g/t Au over 2.40m from the vein on the west tunnel wall
*includes 0.2m of quartz veining on HW
Mr. 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 verified that the technical information in this release is an accurate summary of the information provided by KCA to Radius; however, Radius has not independently verified the information provided by KCA.
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 developing gold projects in Guatemala and Nicaragua, and a number of 100% owned exploration plays, including the HB property in Guatemala. Please call toll free 1-888-627-9378 or visit our web site (www.radiusgold.com).
ON BEHALF OF THE BOARD
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.
For further information:
Please call toll free 1-888-627-9378 or visit our web site (www.radiusgold.com).