Jonco Silver Project
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Epithermal Polymetallic Ag-Au-Zn-Pb System | Ancash, Peru
Project Highlights:
- Located within the Cordillera Negra metallogenic belt, along the same regional trend as Pierina (8.5 Moz Au, 20.6 Moz Ag)
- Surrounded by major deposits including Yanacocha, Lagunas Norte, Shahuindo, Poderosa, Parcoy, and Quiruvilca
- 3,830 hectares covering multiple high-priority drill and geophysical targets
- 11 historic drill holes totaling 3,195 m
- Mineralization from surface to 250 m depth, shows potential for a large polymetallic Ag-Au-Zn-Pb system
- Only minor previous exploration outside historic drill area
Project Overview
The Jonco Silver Project hosts a bulk-tonnage polymetallic Ag-Au-Pb-Zn epithermal system associated with dacite flow domes and hydrothermal breccias, and diatreme structures within Miocene Volcanic Belt of northern Peru. Historical exploration has confirmed widespread mineralization from surface to depths exceeding 250m, indicating the potential for a large polymetallic system.
The project lies approximately 25-30 km southwest of the past-producing Pierina Gold Mine operated by Barrick Gold Corporation, which produced approximately 8.5 Moz Au and 20.6 Moz Ag.
Radius Gold Inc. has entered into an option agreement to acquire a 100% interest in the Jonco Silver Project through staged payments totaling US$4.15 million, US$7.0 million in exploration expenditure, and the issuance of 250,000 Radius common shares.
Historical Exploration and Drilling
Exploration at the Joncojirca area has been conducted intermittently since the mid-1990s.
Early geological work, trenching, geochemistry, geophysics and drilling were carried out by Minera Britannia Gold S.A. in1998. The program was through joint exploration initiatives involving Compañia de Minas Buenaventura and Cyprus Amax Minerals.
Subsequent exploration drilling was conducted between 2004 and 2009 by Silex Peru S.A.C., a subsidiary of Apex Silver Mines Ltd., a Canadian-listed mining company at the time.
In total, historical drilling includes 11 diamond drill holes totaling approximately 3,195 metres, targeting both the polymetallic silver-rich zones and the associated gold-bearing structures.
Historical drilling highlights include:
- Silver Zone:
SAB-03: 254.5 m @ 27.0 g/t Ag, 0.42 % Pb, 0.71 % Zn - Gold Zone:
SAB-01: 85.5 m @ 0.43 g/t Au, 14.1 g/t Ag, 0.56 % Pb, 1.26 % Zn
and 90.0 m @ 0.32 g/t Au, 31.3 g/t Ag, 0.20 % Pb, 0.56 % Zn
These intercepts demonstrate the presence of wide zones of disseminated and breccia-hosted polymetallic mineralization.
Historical drill results are based on prior operator reporting and have not been independently fully verified by Radius. See “Historical Drill Data and QA/QC” below. Reported intervals are interpreted to approximate true widths; further works are required to confirm this.
Figure 1- Jonco long section showing drilling in the Eastern Silver Zone and Western Gold Zone
Jonco Silver Project - Drill Holes WGS84 UTMz18S (EPSG: 32718) Prospect Drill Hole Azimuth Dip Depth Year X (Easting) Y (Northing) Jonco JNDH-01 360.0 -60.0 380.50 2006 203739 8929231 Jonco JNDH-02 180.0 -60.0 387.65 2006 204146 8929148 Jonco JNDH-03 180.0 -50.0 202.35 2006 204029 8928818 Jonco JNDH-04 180.0 -60.0 320.70 2006 204168 8928753 Jonco JNDH-06 90.0 -60.0 141.25 2006 204594 8928641 Jonco JNDH-07 360.0 -60.0 383.00 2006 204041 8929271 Jonco JNDH-08 360.0 -50.0 271.65 2006 203563 8928848 Jonco JNDH-09 0.0 -90.0 190.70 2006 203739 8929230 Jonco SAB-01 360.0 -45.0 370.00 1998 203391 8928834 Jonco SAB-02 180.0 -45.0 271.50 1998 203900 8929221 Jonco SAB-03 180.0 -45.0 276.00 1998 203740 8929231 * JNDH-05 Not drilled; X, Y values shall be considered approximate (not recently surveyed) Jonco Silver Project - Drilling Highlights Drill Hole From (m) To (m) Interval (m) Gold (g/t) Silver (g/t) Lead (%) Zinc (%) JNDH-01 1.2 129.3 128.1 0.09 28.8 0.62 0.56 JNDH-01 210.0 235.0 25.0 0.11 21.1 0.55 0.52 JNDH-04 34.5 93.0 58.5 0.10 8.3 0.14 0.50 JNDH-07 149.5 158.5 9.0 0.16 13.6 0.39 1.16 JNDH-08 66.0 142.5 76.5 0.13 5.1 0.11 0.18 JNDH-09 0.5 107.5 107.0 0.07 30.7 0.63 0.66 including 0.5 79.0 78.5 0.09 35.9 0.73 0.78 SAB-01 121.0 206.5 85.5 0.43 14.1 0.56 1.26 SAB-01 269.5 359.5 90.0 0.32 31.3 0.20 0.56 including 296.5 356.5 60.0 0.40 41.9 0.29 0.82 SAB-03 6 260.5 254.5 0.10 27.0 0.42 0.71 Historical Drill Data and QA/QC
The historical drilling data used by Radius were generated by previous operators and pre-date the Company’s involvement in the project.
The 1998 drilling campaign conducted by Britannia Gold predates the implementation of National Instrument 43-101. Later drilling was completed by Silex (Apex Silver Mines Ltd.) were carried out after the adoption of NI43-101 reporting standards.
Radius has reviewed available assay certificates, geological reports, and drill logs. Selected core has been relogged. Project site inspection have confirmed the presence of mineralizaed outcrops, trenches, and drill collar locations consistent with historical reporting
While the Company considers the historical drilling data results to be relevant and reliable for exploration purposes, a Qualified Person has not independently verified all aspects of the historical sampling, analytical procedures, or QA/QC protocols. Additional drilling and modern QA/QC procedure will be required to confirm these results.
Geological Model and Exploration Upside
Mineralization at the Jonco project is interpreted as a large-scale polymetallic epithermal system characterized by:
- Disseminated and replacement-style Ag-Pb-Zn ±Au mineralization.
- Hydrothermal breccia and diatreme structures
- Manto-style stratabound mineralization associated with felsic sill contacts
- Structurally controlled mineralization along major NW and EW fault systems.
Recent geological modeling suggest that the system may represent a telescoped epithermal-porphyry environment, where shallow epithermal mineralization overlies deeper porphyry-style mineralization.
Geophysical survey (IP and magnetics), combined with geochemical data and structural interpretation, have identified multiple untested exploration targets across the property.
Significant portions of the system remain largely unexplored outside the historical drilling area.
Figure 2: Jonco Cross Section - Polymetallic Ag-Au-Zn-Pb Bulk Disseminated Target
Note: The cross section integrates historical drilling with mineralization model used to outline the current interpreted extent and distribution of polymetallic mineralization. The model is a geological visualization tool only. It is not a mineral resource estimate, does not incorporate recoveries, mining or processing costs, and does not determine economic viability. Additional drilling and technical studies are required before any mineral resource can be defined.
Comparable disseminated polymetallic Ag–Pb–Zn (±Au) systems include Iska Iska in Bolivia, Peñasquito in Mexico, Chinchillas in Argentina and Bowen's Silver deposit in Australia. These bulk-tonnage epithermal systems demonstrate that disseminated silver-rich polymetallic mineralization of similar grade tenor can achieve excellent economics where continuity and thickness are established.
Infrastructure and Access
The Jonco Project is located in a well-established mining district in northern Peru with access from Lima via both coastal and highland routes.
The project can be reached via:
- Lima -Huaraz-Cajamarquilla route through the Cordillera Negra
- Lima – Casma coastal route with access via regional roads
Nearby in infrastructure includes major ports including Callao, Chancay and Pisco, providing long-term logistical advantages for potential project development .
Transaction Terms
Under a binding Letter of Intent, Radius may earn a 100% interest in the Jonco Silver Project over five years through staged cash payments totaling US$4.15 million, US$7.0 million in exploration expenditures, and the issuance of 250,000 Radius common shares.
Key terms include:
- On signing of the formal Option Agreement (subject to TSXV approval):
US$50,000 and 50,000 Radius shares - Upon grant of drill permits (FTA and Inicio de Actividades):
US$150,000 and 50,000 Radius shares - By the First Anniversary following drill permit grant:
US$1.0 million exploration expenditures and 50,000 Radius shares - By the Second Anniversary:
US$250,000; 50,000 Radius shares; and US$1.5 million exploration expenditures - By the Third Anniversary:
US$1.0 million; 100,000 Radius shares; and US$2.0 million exploration expenditures - By the Fourth Anniversary:
US$1.2 million and US$2.5 million exploration expenditures - By the Fifth Anniversary:
Final payment of US$1.5 million to earn 100% ownership
Upon exercise of the Option and acquisition of a 100% interest in the Project, the vendor will retain a 2% Net Smelter Return royalty. Radius may purchase up to 0.5% of the NSR for US$1.0 million. Radius also holds an exclusive right to negotiate the purchase of an existing 1.25% NSR royalty.
Community and Permitting
Previous drill permits associated with historical exploration programs have expired.
Prior to initiating a new drilling program, the Radius will complete the standard permitting process required under Peruvian mining regulations, including:
- community surface access agreements
- environmental approval through a Ficha Técnica Ambiental (FTA)
- drill permits issued by the Ministry of Energy and Mines (MINEM)
The Company has initiated formal engagement with the Comunidad Campesina de Cajamarquilla, which holds surface rights over portions of the project area. Meetings have been conducted with community leadership and sector representatives to present the exploration program, address questions, and outline potential collaboration frameworks. Engagement to date has been constructive, and the Company is working through the community’s established internal procedures to obtain the required authorization. In parallel, technical and environmental preparations are advancing in anticipation of drill permitting.
Next Steps/Work Plans
- Geological mapping and systematic surface geochemistry
- Integration of historical drilling and geophysical data
- Drill permit updates and preparation for initial drill program
The Jonco Silver Project represents an advanced-stage Ag-Au-Zn-Pb exploration opportunity with substantial scale potential.
Additional geological and project information is available on the Radius Corporate Presentation.
