Vancouver, Canada – TheNewswire - April 28, 2021 - Radius Gold Inc. (TSXV:RDU) (OTC:RDUFF) is pleased to announce that diamond drilling has commenced at Radius’s high-grade gold silver Holly Project located in Guatemala. Volcanic Gold Mines Inc. is operating the Project and plans a minimum 3000m diamond core drilling. The current drill program will be fully funded by Volcanic pursuant to its option to earn an interest in Radius’s Holly and Banderas projects in Guatemala.
The initial drill targets at Holly will focus on the intersection of the EW trending Jocotan fault zone with the NW trending La Pena and Pino vein systems (figure 1).
The Holly property is transected by the regional-scale Jocotan fault which forms part of the plate boundary between North American and Caribbean tectonic plates. At Holly, the Jocotan fault forms a well-defined east-west trending ridge up to 200m wide consisting of variable to intensely altered, silicified and mineralized breccias and fault related conglomerates. The Jocotan fault is associated with a 1.5km long trend of strong gold in soil and rock chip geochemistry that has not yet been drill tested.
Historic exploration at Holly focused on the La Pena and Pino veins that cross-cut the Jocotan fault and has some spectacular high grade gold and silver intersects in limited trenching and shallow drilling.
Simon Ridgway, Volcanic’s CEO, commented: “Shallow historic drilling at Holly ridge tested the NW striking high-grade veins and returned great gold and silver mineralized intervals. The historic holes were drilled parallel to the EW Jocotan fault, which is up to 200m wide and typically intensely altered. The intersection of the high-grade veins with the Jocotan regional fault system creates a perfect target for a large-scale gold-silver discovery, which we plan to systematically test in the coming months.”
Figure 1. Holly project multiple high grade vein systems cutting the Jocotan fault with selected historic trench and drill results.
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.
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 prepared and approved the technical information contained in this news release.
Radius Gold Inc.
Radius has a portfolio of projects located primarily in Mexico 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 project acquisition opportunities across the globe.
ON BEHALF OF THE BOARD
President and CEO
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
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
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 “should” 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; changes 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 differ 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 assumptions, 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.
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