Motagua Norte- Guatemala

• Overview
• Maps & Figures
• Photos
• Mila Target

• • In September 2023, a new exploration funding commitment from Volcanic Gold to earn 60% interest in Motagua Norte via Option Agreement and granting of Cirilo 1 exploration license . This was followed by a first pass drill program in H1 2024.

  On September 18, 2022, Radius Gold and Volcanic Gold Mines announced that they had modified the Option Agreement signed in 2020 (see Radius Gold News Release September 3, 2020) to include Radius’s Motagua Norte project as a replacement for the Banderas project. Initial exploration carried out the Volcanic team has demonstrated that Motagua Norte is a high-grade orogenic gold system with compelling drill targets.

  Highlights

  • • Volcanic’s geological team spent considerable time and resources evaluating Radius’s regional applications in eastern Guatemala and identified the Motagua Norte prospect as a high-grade orogenic gold system with compelling drill targets.
    • Under the modified Option Agreement, Volcanic has an option to earn a 60% interest in the Holly project and the Motagua Norte project by spending US$7M on exploration on the properties within 48 months from March 2021, that being the date drilling permits were granted for the Holly project.
    • To-date Volcanic has invested US$4.5M in exploration on the Holly and Motagua properties, and a further US$2.5M will need to be spent for the earn-in. Under the modified Option, a minimum of $2.0M of that will be directed towards exploration and drilling of the Motagua Norte properties.
    • Maiden drilling program commenced at the Mila target, February 2024

  Motagua Norte project:
  86 km² land position

  • • 13.5 km² Cirilo 1 exploration license granted Sept 2023.
    • 72.68 km² under application for exploration licences.
    • Over 1000 rock chip sample proprietary geochemical data base.
    • Excellent access to infrastructure.
    • Sparsely populated semi-arid zone

  About Motagua Norte

  • • Multiple vein-sets along 25 km trend in a Schistose belt associated with regional structures.
    • High grade float and sub-crop samples up to 692 g/t gold and 298 g/t silver.
    • Large high-grade surface gold-silver footprint covering a 550 m by 250 m area.
    • Several drill targets defined including the Mila Gold Discovery,
    • Total of 13 holes were drilled in the first pass program testing1,2
    • Final results pending.

  (1) See Radius Gold Inc. news release: Radius Gold provides update on drilling at Motagua Norte property, Guatemala, April 25, 2024
  2) See Radius Gold Inc. news release: Volcanic Gold provides update on drilling at Motagua Norte property, and recent developments in Guatemala, May 22, 2024.

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• First explorer opportunity on a bonanza-grade gold belt discovery at the Mila Target, Motagua Norte

  On October 11, 2023, Radius Gold and Volcanic Gold Mines announced the discovery of bonanza -grade gold in surface colluvial material covering wide areas at the Mila target that is part of the Cirilo-1 exploration license at the Motagua Norte project (See news release Oct. 11, 2023). This was followed by a first pass drill program in H12024.

  Highlights of the gold discoveries at the Mila prospect:

  • • Concentration of bonanza-grade and visible gold in quartz veins over a 250 x 570 m area.
    • Continuous line rock chip sampling across quartz boulder fields returned 34 m averaging 42 g/t gold and 24 m averaging 54 g/t gold.
    • High-grade gold in both quartz veins and stockwork quartz suggests wide zones of gold mineralisation.
    • Visible gold in quartz veins identified in new areas to the south and west of Mila.
    • Orogenic gold-silver with significant depth potential.

  After initial prospecting and return of exceptional samples, the company wanted to understand if the very high gold grades (many samples above 1 oz gold / tonne) were the result of selective sampling or widespread across the target zones. A program of continuous 2 m chip sampling was conducted across the quartz boulder field confirmed the presence of abundant high-grade gold mineralised quartz float concentrated at the Mila prospect.

  Map of the Cirilo 1 exploration licence showing the location and gold grade of 513 rock chip samples collected during initial prospecting.

  

  High-grade gold assays and visible gold occur in both quartz veins, and in wallrock quartz stockwork zones suggesting that the gold mineralised float is derived from a significant system with mineralisation apparently likely occurring in both veins and the wallrock stockwork zones.

  

  

  Exploration potential and First Pass Drilling, H1 2024

  Visible gold in quartz veins were discovered south and west of Mila prospect in on-going prospecting and rock chip sampling:

  • • 9.34 g/t and 29.6 g/t gold in two gold quartz veins approximately 500 m south of the Mila prospect.
    • Up to 60.2 g/t gold in quartz veins between 800 metres and 1700 metres west of the Mila prospect (along the regional Motagua Norte trend).

  A total of 13 holes were drilled in the first pass program testing. Final   results are pending.^1,2

  (1) See Radius Gold Inc. news release: Radius Gold provides update on drilling at Motagua Norte property, Guatemala, April 25, 2024
  2) See Radius Gold Inc. news release: Radius Gold provides update on drilling at Motagua Norte property, and recent developments in Guatemala, May 23, 2024.