Holly Project- Guatemala
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The Holly property straddles the regional Jocotan Fault which forms part of the Motagua Suture Zone, 400 km long by up to 80 km wide deformation zone that separates the North American and Caribbean plates. At Holly the Jocotan is mineralized and forms a distinct east-west trending ridge separating older metamorphosed sediments to the north and much younger volcanics to the south. Radius has discovered multiple high grade gold and silver occurrences along and crosscutting this portion of the Jocotan and has had success in drilling completed to date (Figure 1).The Holly and Montagua Norte properties are under a joint venture agreement with Volcanic Gold Mines.
Holly Project Highlights
- Low sulphidation gold silver epithermal system
- Multiple high-grade quartz veins intersecting wide mineralized Jocotan fault zone
- Located in eastern Guatemala in a terrain with world class gold-silver mines and deposits
- Key features of both Escobal and Cerro Blanco deposits
- High-grade gold-silver mineralization
- Surface results to 396 g/t gold and 7092 g/t silver
- 2002 drill results to 6.00 m @ 43.56 g/t gold and 1,618 g/t silver
- Ongoing drilling producing results to 4.58 m @ 79.84 g/t gold, 5,053 g/t silver
- Limited drilling to date of the Jocotan fault zone and most of the cross-cutting veins
- Only one vein, La Pena, has more than 4 drill holes
- A maiden Inferred Mineral Resource has been estimated for the first target, La Peña vein.
- The high grade La Peña vein remains open to expansion along strike and importantly at depth, where exceptionally high grade results have been returned.
- Multiple other drill targets remain un-tested at Holly with potential for new discoveries.
- Joint Venture with Volcanic Gold Mines Inc.
- Holly is 60km by paved road to Bluestone’s planned processing plant.
Terms of Guatemala Radius Gold Inc and Volcanic Metals Inc option
On September 3, 2020 Radius Gold announced that Volcanic Gold Mines Inc had entered into an Option Agreement to acquire an interest in Radius’ Holly and Banderas properties. On September 18, 2023, it was announced that Volcanic would maintain the Option on the Holly property but that Radius’s Motagua Norte project would be substituted in exchange for the Banderas project. All properties are located in Guatemala.
- Under the modified Option Agreement, Volcanic has an option to earn a 60% interest in the Holly and Motagua Norte projects if Volcanic spends US$7M on exploration of the properties within 48 months from March 2021, being the date drilling permits were granted for the Holly project.
- Volcanic has invested ~US$4.29M in exploration on Holly, and under the modified Option, a minimum of $2.0M will be directed at the exploration and drilling of Motagua Norte.
- Agreement subject to shareholder approval expected December 2023
Following the exercise of the Option, Volcanic will enter into a standard 60/40 Joint Venture 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 reasonable terms.
The modified Option Agreement is subject to approval by the TSX Venture Exchange. As Radius and Volcanic have a common director and two common officers, Volcanic is a “non-arm’s length party” to Radius within the meaning of TSX Venture Exchange Policy 5.9. The modified option agreement is not, however, a “related party transaction” as defined in Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions (“MI 61-101”) and therefore the requirements of the Exchange’s Policy 5.9 and MI 61-101 do not apply. For more information, please see News Release: Radius Gold and Volcanic Gold Mines announce modification to Option Agreement to include the Motagua Norte project, dated September 18, 2023.
Holly Project Overview:
Table 1: Holly, Peña Vein Resource Estimate1
(effective date 7th June, 2022)
CATEGORY
CUT-OFF GRADE AUEQ² (G/T)
TONNES ABOVE CUTOFF (MILLIONS)
GOLD (G/T)
SILVER (G/T)
GOLD (OZ)
SILVER (OZ)
GOLD EQUIVALENT² (G/T)
GOLD EQUIVALENT² (OZ)
INFERRED
3.00
1.32
6.46
256
272,110
10,913,360
9.57
406,316
Notes:1
Resources estimated using a 3.0 g/t Gold equivalent cut-off grade and a top cap grade of 100 g/t Gold and 2,000 g/t Silver and presented on a 100%-basis
- Gold Equivalent Au(eq) values based on Au US$1800 and Ag US$22 using formula (Au g/t + (Ag g/t*0.01222))
- Mineral Resources which are not Mineral Reserves have not demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, marketing, or other relevant issues. The mineral resources in this report were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum standards on mineral resources and reserves, definitions, and guidelines prepared by the CIM standing committee on reserve definitions and adopted by the CIM council. Notwithstanding, to meet the requirement that the reported Mineral Resources show “reasonable prospects for eventual economic extraction”.
- The quantity and grade of reported Inferred Resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred Resources as an Indicated or Measured Mineral Resource. It is uncertain if further exploration will result in upgrading them to an Indicated or Measured Mineral Resource category.
- Contained metal and tonnes figures in totals may differ due to rounding.
- The effective date of the Mineral Resource Estimate is June 7, 2022 and a Technical Report on the Holly property is filed on the Company’s website and SEDAR.
The Mineral Resource Estimate is underpinned by data from 21 diamond drillholes totaling 3,707m of drilling. Drill spacing ranges between 20 and 100m. All sample data was composited to a 2D dataset (linear grade and true thickness values) prior to analysis and estimation. The sample database and the topographic survey were reviewed and validated by Bruce Smith, Ludving Monroy and Shawn Rastad prior to being supplied to John Arthur, an independent UK based Resource Consultant. Such review and validation help to support the reliability of the estimate. Geological domain modelling was completed by Bruce Smith and Dr John Arthur. Mineral Resource domain modelling, grade interpolation, Mineral Resource classification and reporting of the Mineral Resource statement, was performed by Dr John Arthur. Dr Arthur, Mr. Smith, Mr. Monroy and Mr. Rastad are “qualified persons” within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”). Block modelling was carried out using cell dimensions of 32mE by 32mN by 8 mRL and was coded to reflect the surface topography and mineralized zones. Density values were globally assigned into two zones, an upper zone between 50 to 100m from surface had an average density of 2.33t/m³ and below this an average density of 2.52t/m³ was applied. The Mineral Resource Estimate has been classified based on data density, data quality, confidence in the geological interpretation and confidence in the robustness of the grade interpolation. The effective date of the Mineral Resource Estimate is June 7, 2022 and a Technical Report on the Holly property is filed on the Volcanic Gold Inc. website and SEDAR+ at sedarplus.ca.
Significant Drill Results
DRILLHOLE FROM (m) TO (m) INTERVAL (m) GOLD (g/t) SILVER (g/t) Est. True Width HDD-001 (2001) 34.8 49 14.20 4.14 151 13.43 HDD-004 (2001) 39.1 46.6 7.50 3.47 220 6.03 HDD-004 (2001) 54.1 60.1 6.00 43.56 1618 4.82 HDD-005 (2001) 19.1 22.7 3.60 22.03 697 2.93 HDD-007 (2001) 88.5 90 1.50 7.19 123 1.40 HRC-001 (2002) 50.3 61 10.70 4.83 265 8.76 HRC-002 (2002) 76.2 79.3 3.10 2.30 125 1.99 HDD-21-001 46.10 47.70 1.60 24.10 568 1.55 HDD-21-001 53.70 60.60 6.90 4.90 85 6.68 HDD-21-002 95.15 106.27 11.12 6.29 282 10.78 including 95.15 98 2.85 15.50 342 2.76 including 102.35 105.22 2.87 8.08 633 2.78 HDD-21-003 101.85 112.5 10.65 5.29 256 9.85 HDD-21-004 119.5 143.5 24 3.10 694 17.66 including 131.4 133.67 2 9.79 2035 1.68 including 136 137.85 2 5.60 2801 1.37 HDD-21-004 154.02 163.17 9.15 380 6.79 HDD-21-005 no significant intercepts HDD-21-006 35.07 39.3 4.23 4.00 136 3.39 HDD-21-007 42.05 45.22 3.17 2.93 284 1.36 HDD-21-008 no significant intercepts HDD-21-009 80.82 82.35 1.53 2.19 150 1.23 HDD-21-010 no significant intercepts HDD-21-011 209.2 210.05 0.85 0.548 65.4 0.65 HDD-21-012 60.00 62.00 2.00 2.82 141 1.63 HDD-21-012 71.80 74.82 3.02 1.73 109 2.45 HDD-21-013 no significant intercepts HDD-21-014 51 79.3 28.3 42 including 52.22 54.75 2.53 2.90 108 2.12 including 57.70 59.80 2.10 3.60 92 1.76 HDD-21-015 108.65 124.20 15.55 7.67 615 13.13 including 108.65 115.90 7.25 16.20 848 6.12 HDD-21-016 77 79 2.00 4.15 154 1.67 HDD-21-017 134.25 143.08 8.83 8.81 355 6.82 HDD-21-018 71.67 73.2 1.53 1.81 57 1.37 HDD-21-019 28.97 30.5 1.53 191.80 539 1.39 HDD-21-019 171.9 178.42 6.52 11.72 340 5.91 including 172.9 176.6 3.70 20.36 576 3.36 HDD-21-020 61.7 67.1 5.40 4.38 350 5.09 including 63 64 1.00 20.70 1616 0.94 HDD-21-020 131 134.2 3.20 255 2.98 HDD-21-021 53.37 54.55 1.18 0.19 40 0.97 HDD-21-022 21.35 22.87 1.52 7.00 48 1.38 HDD-21-022 27.45 32.02 4.57 1.05 14 4.14 including 28.97 30.9 1.93 1.86 12 1.75 HDD-21-022 50.32 51.85 1.53 5.34 5 1.39 HDD-21-022 199.77 201.30 1.53 11.30 522 1.39 HDD-21-023 196.72 198.25 1.53 1.93 171 1.50 HDD-21-023 202.82 207.4 4.58 79.84 5053 4.50 including 204.45 205.7 1.25 289.50 18329 1.23 HDD-21-024 56.42 57.95 1.53 0.011 207 HDD-21-025 No significant intercepts HDD-21-026 127 130 3.00 0.41 23 2.33 HDD-21-027 210.45 215.02 4.57 54.24 3925 HDD-21-28 55.6 57.95 2.35 2.14 97 And 247.7 248.75 1.05 2.75 112 0.85 HDD-21-029 7.62 10.67 3.05 1.17 344 HDD-22-030 7.62 14.3 6.68 1.92 3 Including 9.15 12.6 3.45 3.54 3 HDD-22-030 28.8 29.8 1.00 8.64 10 0.71 HDD-22-030 160.12 170.8 10.68 2.07 389 9.81 Including 161.65 163.17 1.52 11.40 1150 1.40
For La Peña Zone Cross Section see Figure 2. For La Peña Zone Long Section see Figure 3.For the Holly Project plan view with drill colars and traces click here.
For Holly project geological map with gold geochemistry see Figure 4.
Technical Information
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 has 28 years of mineral exploration experience and has prepared and approved the technical information contained in this news release.
Quality Assurance and Quality Control
Volcanic Gold follows industry standard procedures for diamond core drilling and analysis. Drilling is carried out using NQ and HQ size tooling. Drill core is cut in half using a rock saw with one-half of the core then taken as a sample for analysis. Sample intervals are generally 1m intervals, producing samples of between 2 to 9 kg. Half-core samples were initially processed at a Volcanic Gold preparation facility. The half core samples underwent primary crushing and split to produce a 250g sample under the supervision of a company geologist and qualified person. The split sample was then air shipped to certified ALS laboratories in Vancouver for further preparation and assay. All samples are fire assayed for Au and are analyzed for Ag and multi-elements using method code ICP following a four-acid digestion. Overlimits are analyzed using an appropriate method. Multi-element geochemical standards and blanks are routinely entered into the drill core sample stream to monitor laboratory performance. Quality control samples submitted were returned within acceptable limits.
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HDD21-001 to HDD21-003
