Radius Provides Update on Eastern Guatemala Gold/Silver District

http://www.prnewswire.com/news-releases/radius-provides-update-on-eastern-guatemala-goldsilver-district-121327179.html

Radius Provides Update on Eastern Guatemala Gold/Silver District

VANCOUVER, May 5 /PRNewswire/ – Radius Gold Inc. (TSX-V: RDU) is pleased to provide a comprehensive update on its recent exploration activities in the highly prospective low-sulphidation epithermal gold-silver district in eastern Guatemala. Radius holds over 1,500 sq. km. of granted concessions and concession applications in the region covering a virtually unexplored Tertiary volcanic belt that has recently been shown to host world class intermediate and low sulphidation silver/gold deposits.

Recent highlights of Radius’ work include:

  • Delineation of an impressive zone of high-level chalcedonic silica currently traced for over 400m along strike and over 100m wide locally within the Zapote trend of the HB property. Initial sampling of outcrop at Zapote has returned gold values from a low of 0.50 to a high of over 6.0 g/t Au. Trenching and extensive outcrop sampling are presently underway.
  • Identification of a high grade zone on the north side of the Holly ridge. Previous prospecting and sampling in this area discovered quartz boulders believed to be float, grading from just under 1 g/t Au up to 112 g/t Au and over 5,600 g/t Ag. Trenching in the area has revealed texturally-similar quartz veins in situ in the schists directly below the boulders. This is a significant find as little work has previously been done on the north side of the Jocotan fault, despite the presence of large, coherent, untested gold in soil anomalies there.
  • Completion of 14 diamond drill holes into the Pyramid Hill and M28 zones. Drill results are disappointing (see below). However, a structural study of drill core and outcrop by SRK confirms a strong northwest trending gold bearing fault zone with a strike of over 3km that has been tested only at very high levels. The study results indicate that Radius’ work has been focused above the “productive zone” of the epithermal system. Additional drilling is being planned to target substantially deeper levels than any previous work at HB.

Zapote Zone

The Zapote zone is southwest of, and probably parallel to the M28 / Pyramid Hill zones. At surface the zone is an impressive, steeply west-dipping vein exposed with a true thickness of between 5 to 10m, although the orientation is still uncertain. The distribution of float, subcrop, and small veinlet orientation suggests the presence of another mineralized vein with a different orientation to the one described above, although more work is necessary to confirm that.

Trenching is underway, and all samples collected to date are highly anomalous in Au (i.e. in the ppm range). The first 23 samples collected returned an average grade of 2.01 g/t Au, ranging from 0.50 to 6.0 g/t Au. Systematic sampling and trenching should help define the true width and nature of the vein(s).

Zapote appears to be high in a hydrothermal system: massive chalcedony dominates in outcrop. Radius’ geologists believe that there is potential at depth for better grades, which could present a very attractive drill target if the vein stays as thick as it appears to be at surface.

The Pino Zone

A data review by Radius highlighted 17 historic grab samples of electrum-bearing epithermal vein quartz collected from the Pino zone, a low sulphidation epithermal quartz vein hosted by schists on the northwestern side of the HB project. Gold assay results from the 17 samples ranged from just under 1 g/t Au to 112 g/t Au, with an average of 19.8 g/t Au. Silver values range from trace to 7,091.8 g/t Ag.

Radius’ historic exploration in the area focused on the younger volcanic rocks to the south of the major Jocotan fault. The grab samples reported below were collected from the schists on the northern side of the fault, and were previously interpreted as transported float rocks not in situ. Radius’ geologists have trenched below the float samples and encountered similar material hosted by the schists, suggesting that the high grade float reflects the presence of veins in the schists and is not transported material. Assay results are expected in the next 2 weeks from the trench samples and a table of the most significant historic grab sample results is given below:

Sample # Au (g/t) fire assay Ag (g/t)
18258 112.41 5,600.0
18256 79.28 7,091.8
18257 33.75 1,030.0
12296 27.98 1,423.4
18253 19.96 237.3
11093 14.38 880.7
18255 11.18 401.1
16067 7.67 258.6
18286 6.51 201.3
18254 4.46 97.0
18264 3.64 14.7
18289 3.15 35.9
16083 3.90 10.4
11092 3.49 18.8
17018 1.78 Tr
17038 1.30 Tr
17023 0.96 9.4

M28 / Pyramid Hill Drilling

Forty-nine holes have been drilled at Banderas since 2002 including 6 RC holes. Most drilling has targeted the M28 and Pyramid Hill zones, part of a 3 kilometre long, northwest-southeast-trending structural corridor that hosts zones of gold/silver-bearing quartz veins, vein breccias and quartz vein stockwork zones. A comprehensive in-house review of Radius’ full data set on the HB project is currently underway, and SRK Consulting (Canada) Inc. has been commissioned to complete a structural geological study of the project.

The initial findings of both studies, combined with the findings of a TerraSpec study on the alteration minerals present at surface and in core samples at HB, suggest that Radius’ drilling is still testing too shallow in the epithermal system and has not reached what would be termed the “productive horizon” where economic gold and silver grades would be expected to occur over mineable widths. The work is indicating that drilling needs to target between 300-700m vertically below the paleo water table. Interestingly, RC drill hole BRC04-024 cut an argentite-bearing quartz vein over 1.5m core length which graded 69.97 g/t Au + 516 g/t Ag, and is both the highest grade and deepest drill intersection on the Banderas property.

Consequently, Radius has stopped drilling at HB until the full data review is complete. Management currently anticipates that the project review will result in a recommendation for a major drill program to commence later in 2011 or early 2012.

Hole* From (m) To (m) Width (m) Au g/t Ag g/t
10-008 73.43 77.03 3.60 0.84 12.0
10-009 NSV**
10-010 NSV
10-010A NSV
10-011 NSV
10-012 192.32 193.60 1.28 0.32 36.6
10-013 61.53 62.53 1.00 38.35 159.9
10-013 68.75 75.30 6.55 0.56 239.8
incl. 68.75 69.75 1.00 1.34 95.4
10-014 25.08 27.43 2.35 1.46 14.0
10-014 74.00 75.10 1.10 0.82 48.1
10-014 136.64 137.64 1.00 12.3 37.3
10-014 179.65 181.00 1.35 18.1 20.9

*All holes carry the prefix BDD **NSV=No Significant Values (<250 ppb Au, <10 ppm Ag)

Background

The Holly and Banderas projects (HB) were discovered by Radius during a regional stream sediment sampling program in Eastern Guatemala conducted in 2001/2. The projects are close together and are now being considered as a single exploration project, the HB project.

Sampling Methodology, Quality Control, and Assurance  

The 2010/2011 diamond drill program used man-portable drills sampling NTW and HTW (5.6 cm/ 2.2″ and 7.11 cm/ 2.8″) core size. Core is cut and one-half sent to the lab for analysis, the other retained on site. Surface samples are from float, outcrop, and hand-dug trenches.

The core and surface samples are sent to the Inspectorate Guatemala sample preparation facility in Guatemala City for sample preparation, and pulps forwarded to the Inspectorate American Corporation laboratory facility in Sparks, Nevada, for analysis. Approximately 12% of the samples submitted consist of commercial standards, blanks, and duplicate samples. These are included with each batch sent to the analytical laboratory. Gold amounts for each sample are determined by fire assay, digested in aqua regia solution and analyzed by atomic absorption finish. Samples with over 1 g/t Au are re-analysed by gravimetric finish. Ag is analysed by aqua regia digestion followed by atomic absorption finish with overlimits analysed by fire assay with gravimetric finish. A 30 element suite is analysed by ICP.

Assay results reported here for surface grab samples from the Pino zone should be considered historic, as detailed QA/QC protocols are not available for the time period (2002-2003). Samples were analysed by Inspectorate, in Sparks, Nevada, by fire assay with atomic absorption or gravimetric finish for Au, and aqua regia digestion with ICP finish for a 30 element suite.

Drilling Sampling Protocol, Chain of custody, and Data Verification 

All sampling is conducted under the supervision of the Company’s on-site project geologist and the chain of custody from the drill to the logging facility is continually monitored. Samples are transported to the Inspectorate facility in Guatemala City directly by Company personnel. Data verification of the analytical results includes analysis of the duplicates, standards and blanks to ensure that they pass industry best practise guidelines for acceptability. All assays are reported as drilled intervals.

Qualified person

Roger Hulstein, BSc, is a member of the Association of Professional Engineers and Geoscientists of British Columbia and is the Company’s Qualified Person as defined by National Instrument 43-101. Mr. Hulstein is responsible for the accuracy of the technical information in this news release.

About Radius

Radius has been exploring for gold in Latin America for nearly a decade, and has assembled interests in a portfolio of promising gold projects throughout the region, including carried stakes in two small-scale developing gold projects in Guatemala and Nicaragua.  Radius also has a number of 100% owned exploration plays, including the HB property in Guatemala and several properties in the Rackla Belt and Sixty Mile placer gold district in the Yukon.

ON BEHALF OF THE BOARD
     “Simon Ridgway”
Simon Ridgway, President & CEO

Investor relations:  Ralph Rushton / Erin Ostrom
Symbol: TSXV-RDU; OTCBB-RDUFF
Shares Issued: 79.9-million

Forward-Looking Statement
Some of the statements in this news release contain forward-looking information that involves inherent risk and uncertainty affecting the business of Radius Gold Inc.  Actual results may differ materially from those currently anticipated in such statement.

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

SOURCE Radius Gold Inc.

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