Vancouver, Canada - TheNewswire - Radius Gold Inc. (TSXV:RDU) is pleased to provide an exploration update for all projects and plans for fourth quarter exploration. The Company has had an active month with geological teams completing field evaluations of 5 new properties, with over 280 rock chip samples currently awaiting laboratory analysis. In the first half of 2020, during the initial stages of the COVID-19 pandemic, the Company's field work, permitting and advancing contracts were all significantly impacted. In the last two months the Company has re-established field and permitting operations in Mexico, Guatemala and USA using our local field and administrative teams and utilizing strategies that minimize contacts and COVID-19 risks.
New property evaluations with due diligence field visits and sampling have been conducted on gold and silver projects in Chihuahua, Sinaloa and Durango in Mexico and also in Utah and Montana, USA. 280 rock chip samples have been collected and are in varying stages of analysis. Radius expects to be able to announce a new project discovery or acquisition from this work in the coming months. Exploration for new targets by our regional teams, as always, is ongoing.
Radius's high grade gold-silver Amalia project phase 4 drilling funded by JV partner Pan American Silver remains on stand-by due to COVID-19. Semarnat, the permitting agency in Chihuahua, has returned to work on a limited scale and Pan American has recently provided updated information requested by Semarnat. The required drill permits are expected promptly.
Plata Verde Silver Project:
Radius is developing compelling drill targets at Plata Verde and recently announced the definition of large scale silver mineralized breccias within a 200m x 500m mineralized zone (see press July 22, 2020). Radius is also advancing in signing agreements to expand the property package that had been hampered by COVID-19 travel restrictions. The next phase of field work will consist of geophysical programs to identify feeder systems and expansions of the known mineralization under the thin (>100m) cover volcanics.
During the last quarter Radius negotiated an option agreement with Volcanic Gold Mines Inc. being granted the right to earn a 60% interest in Radius's Holly and Banderas projects located in Guatemala. Volcanic is working closely with the technical personnel Radius has in Guatemala who have invaluable expertise that will provide essential support and local knowledge, allowing geological teams to commence surface exploration and to enable Volcanic to apply for new drill permits.
The Pan American Agreement
Pursuant to the option agreement signed in June 2018, Pan American Silver Corp. has the option to earn up to an initial 65% interest in Radius's Amalia Project and Palmillas Properties by making cash payments to Radius totaling US$1.5 million (of which US$400,000 has been received) and expending over four years US$2 million on exploration and reimbursement of Radius's costs to maintain its option agreements with the owners of Amalia and Palmillas. Pan American may earn an additional 10% by advancing the project to preliminary feasibility.
The Plata Verde Agreement
Radius can earn a 100% interest in the project by making staged payments totalling US$800,000 over four years with a final payment of US$400,000 due at the end of year four. An US$8,000 signing payment has been paid. The owner retains a 1% NSR which Radius can buy back for US$1,000,000.
The Volcanic Agreement
Radius has granted Volcanic an option to earn a 60% interest in the Holly and Banderas properties by completing a minimum C$3 million financing and spending US$7 million on exploration of the properties within 48 months from the date drilling permits are granted (see Radius press release June 1, 2020). An initial US$1 million must be spent on exploration within 12 months of receiving the required drill permits, including a minimum 3,000m of drilling. Volcanic has completed a CAD$5 million financing to fund this initial exploration. The transaction has been approved by the TSX Venture Exchange and Radius has received a CAD$100,000 signing payment from Volcanic. Following the exercise of the Option, Volcanic will enter into a 60/40 joint venture with Radius in order to further develop the properties.
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 reviewed and approved the technical information contained in this news release.
Radius Gold Inc.
Radius has a portfolio of projects located primarily in Mexico, United States 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: Simon Ridgway
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 which include, without limitation, statements about the possible acquisition by Pan American of an interest in the Amalia and Palmillas properties; the exploration plans for the Company's properties; the Company's business strategy, plans and outlook; the merit of the Company's investments and properties; timelines; the future financial performance of the Company; expenditures; approvals and other matters. 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, the possible acquisition by Pan American of an interest in the Amalia and Palmillas properties; the possible acquisition by Volcanic of an interest in the Holly and Banderas properties; the plans for exploring the Company's properties; 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 Pan American will acquire an interest in the Amalia and Palmillas properties; that Volcanic will acquire an interest in the Holly and Banderas properties; that the exploration activities at the Company's properties will proceed as planned; that the Company's activities will be in accordance with its public statements and stated goals; that all required approvals will be obtained; that there will be no material adverse change affecting the Company or its investments or 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.