Vancouver, Canada: Radius Gold Inc. (TSX-V: RDU) is pleased to announce that together with JV partner, Volcanic Gold Mines, the companies have received final approval from the Ministerio de Ambiente y Recursos Naturales (Ministry of Environment and Natural Resources) to conduct drilling on the Holly Project in eastern Guatemala.
In 2003 a short scout drill program at Holly intersected several high-grade Au-Ag veins, including 10.6m at 7.7 g/t gold and 263 g/t silver. These high grade drill intercepts never received follow-up drilling. The high grade veins strike perpendicular to the large altered and mineralized Jocotán fault zone. The Jocotan fault or the vein intersections with the fault have never been drill tested (see figure 1). Volcanic Gold Mines will fully fund a significant program at Holly.
Drilling is expected to commence shortly after the Easter break. The emphasis will be on exploring for high grade shoots associated with the intersection of the Jocotan Fault Zone zone and the NW-SE trending high grade vein systems, El Piño and La Peña. Sampling at El Pino has returned grades of up to 2m at 110.3 g/t Au and 3508 g/t Ag, and the La Peña vein, which crops out 620m to the west, sampling has returned 2m at 44 g/t Au and 88 g/t Ag. Surface rock and soil geochemistry indicates these two parallel quartz veins each have over a 600m strike potential.
Figure 1: Holly Exploration Targets and historic drill-holes
The Agreement
Terms of Guatemala Radius Gold and VolcanicGold Mines option:
Volcanic can earn a 60% interest in the Holly and the Banderas projects by spending the cumulative amount of US$7.0 million on exploration of the Properties within 48 months from the date of the agreement. An initial US$1M must be spent on exploration within the 12 months of receiving the required drill permits, which expenditure will include a minimum 3,000m of drilling on the properties.
Following the exercise of the Option, Volcanic will enter into a standard 60/40 Joint Venture with Radius 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 mutually acceptable terms.
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 prepared and approved the technical information contained in this news release.
Radius Gold Inc.
Radius has a portfolio of projects located primarly in Mexico 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
Bruce Smith
President and CEO
Symbol: TSXV-RDU
Contact: Bruce Smith
200 Burrard Street, Suite 650
Vancouver, BC V6C 3L6
Tel: 604-801-5432; Toll free 1-888-627-9378; Fax: 604-662-8829
Email: [email protected]
Website: www.radiusgold.com
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
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; the plans for exploration work at the Holly Project and Volcanic’s right to acquire an interest in the Company’s Guatemala 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 plans for exploring the Holly Project and 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 the exploration activities at the Holly Project 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.
Original Article: http://www.radiusgold.com/s/NewsReleases.asp?ReportID=898402&_Type=News-Releases&_Title=Radius-Gold-JV-partner-receives-drill-permits-for-Holly-project-Guatemala
