Amalia Project

The Amalia Project is located 25 km SW of the historic Guadalupe y Calvo mining district in Chihuahua (Figure 1). Radius geologists discovered high grade epithermal silver-gold mineralization in several veins, vein breccias, and disseminated zones over 3.5 km of strike length and a 750 m vertical interval following the trace of a large regional fault zone. Radius initially acquired the 380 hectare core license and subsequently staked an additional regional license covering multiple target areas (Figure 2) that totals 10,250 hectares. In July 2018 Radius entered into an agreement with Pan American Silver Corp. ("Pan American") to drill and explore the project.

The Agreement

Pursuant to an option agreement signed in June 2018, Pan American Silver Corp. was granted the right to earn an initial 65% interest in the Amalia Project by making cash payments to Radius totalling US$1.5 million (paid) and expending US$2 million on exploration over four years (completed). Pan American may earn an additional 10% by advancing the property to preliminary feasibility. 

Mining Property

The 10,250 hectare property includes the Amalia, California and El Cuervo major vein systems. Within these major vein systems are multiple targets, outlined in Figure 3, all of which are included in Radius's consolidated concessions that extend for more than 10 km of strike length of the regional fault.

Structures:

• Amalia Vein, 3 km length with high grade Au-Ag, includes drill defined San Pedro high grade zone (Figure 4, 5, 6)

• California Vein, 2 km length with high grade Au-Ag on surface and in drilling (Figure 7)

• El Cuervo Vein, 1 km length with anomalous Ag-Au (Figure 8, 21, 22, 23).

Geology and Mineralization:

The main targets at Amalia are located along a large regional scale NW trending fault system, which separates the upper rhyolite volcanics from the lower andesite volcanics. Radius has identified outcropping mineralization over 3.5 km along this structural break. The principal target at San Pedro, outcrops as a 500 m x 70 m zone of intense epithermal multiphase silicification, and brecciation with stockwork veining occurring at the contact between the upper rhyolite and lower andesite volcanic sequence. Figure 9 showcases multiphase silicification events in drill core from San Pedro. See Figures 10 and 11 for 1 m core samples with electrum mineralization within the quartz sulphide stockwork zone. 

Summary of Drilling

67 drill holes totalling 23,058 m has been completed at the Amalia project. 10,588 m in 31 drillholes has been completed on the Amalia vein system, and 3,814 m in 14 drillholes completed in the California vein system and 8,656 in 22 drill holes has been completed at the El Cuervo zone. The current drill program is focused on the sub-parallel El Cuervo structure where stockwork veining and breccias up to 40 m wide have been defined semi-continuously for 1.5 km and surface rock chip samples returned up to 637 g/t Ag and 2.24 g/t Au.

Within the greater Amalia project there are many targets remaining to drill test including: Oro Viejo, La Caverna, California SE, El Durazno and Palmillas.

With the San Pedro zone drill defined and infill and expansion drilling planned for this year at California, Radius will be in a position to define a significant resource at the Amalia Property and is excited by the possibility of new discoveries at multiple targets that remain to be drill tested.

Table of Intercepts – Amalia Vein System

The most recent program targeted the California vein system defining wide Au-Ag mineralization across 1 km of strike length. The initial shallow drilling has intersected multiphase breccias and stockwork veins with significant widths up to 50 m and high grades with individual samples up to 4210 g/t Ag and 33.1 g/t Au. See Figure 12 for a drill core photo of Ag-Au mineralization from the California vein. See Figures 15 to 20 for cross sections of the drilling at California vein system with results.

Table of Intercepts – California Vein System

At El Cuervo, all drill holes have been collared from 2 platforms with the holes fanned out testing approximately 350 m of strike extent and 300 m depth. The El Cuervo structure remains open to expansion along strike and to depth. Assay results for holes AMDD22-055 to AMDD22-060 are still pending. The full table of results as well as plan maps showing the El Cuervo drilling to date are presented below. 

Table of Intercepts – El Cuervo Vein System 

Exploration Targets

Palmillas Target

The Palmillas target is a small historic working 1.5 km along the Amalia Fault from the San Pedro zone. At Palmillas, Radius took a 4 m section that assayed 9.5 g/t Au and 73 g/t Ag, and a 10.5 m section that assayed 1.54 g/t Au and 58 g/t Ag. Mineralization is hosted within fault-controlled quartz vein breccias similar in style to San Pedro (Figure 14).

Within the 10,250 hectare Amalia Property are multiple prospects including Palmillas, Dulces, Guadalupe and Durazno, which have been prospected and are developing as future drilling targets.

Oro Viejo, La Caverna, California SE, El Pando

Untested vein breccia targets along the California vein system, with gold grades from below detection to 27 g/t

Quality Assurance and Quality Control

Pan American Silver has been the operator on Amalia since Q3 of 2019; all their surface samples and drill core have been analyzed at an ISO/IEC accredited ALS Geochemistry laboratory.

Previous rock samples are acquired by Radius Gold's geologists and trained sampling teams under the supervision of the geologists. Majority of the rock samples consist of chip channels ranging from 0.5 to 3m. These samples are forwarded to an ALS Geochemistry laboratory for analysis of Au, Ag and other elements using ALS codes Au-ICP21 and ME-ICP61. Au-ICP21 is a fire assay method with an ICP-AES finish for Au. ME-ICP61 is a 34 multi-element (includes Ag) analysis that uses a four acid-digestion with an ICP-AES finish. For over-limits of Au or Ag, analysis using a fire assay method with gravimetric finish is automatically conducted. Quality control samples (blankets, standards etc.) are included with the field samples at regular intervals. The QA samples' results are monitored to ensure the returned results are within the acceptable range.