Radius Gold up 37% on Mexico drilling news
Exploration Manager, Bruce Smith, and Chief Geologist, Rodrigo Matias, during the discovery of Amalia. Source: Radius Gold Inc.
Radius Gold Inc. [RDU-TSXV; RDUFF-OTC] on Tuesday December 4 announced results from an initial drill program at the Amalia gold-silver project in Chihuahua, Mexico, where Pan American Silver Corp. [PAAS-TSX, NASDAQ] has the option to earn up to a 75% interest.
Radius said five drill holes tested the Campamento – San Pedro structural corridor, intercepting gold mineralization in all holes with the deepest hole cutting 26 metres of 7.08 g/t gold and 517 g/t silver.
Radius shares rallied on the news, rising 36.8% or $0.035 to 13 cents on volume of 1.74 million. The 52-week range is 18.5 cents and 9.0 cents.
The Amalia Project is located 25 km southwest of the historic Guadalupe y Calvo mining district in Chihuahua. Radius geologists discovered high-grade epithermal silver-gold mineralization in several veins, vein breccias and disseminated zones over 3.5 km of strike length and a 750-metre vertical interval after tracing a large regional fault zone.
Radius initially acquired the 380-hectare core license and subsequently staked an additional 9,070-hectare regional license covering multiple target areas. The Amalia gold-silver project is part of a basket of projects that Radius has acquired in the U.S. and Mexico, and which it continues to advance, utilizing partnerships, where necessary in order to conserve cash.
The nine-hole 1909-metre diamond drill program was completed by Radius and funded by Pan American Silver under a joint venture agreement, dated August 27, 2018.
Radius granted Pan American the option to earn an initial 65% interest in the Amalia Project by making cash payments to Radius of US$1.5 million and spending US$2 million on exploration over four years.
Pan American can earn an additional 10% stake by advancing the property to a preliminary feasibility study. Radius is currently the project operator.
On Tuesday, Radius said three target zones [Campamento/San Petro, Guadalupe and Dulces] were tested across a strike length of 1.8 km following the trace of a large regional fault and associated splays, hosting high level epithermal gold and silver mineralization.
Five holes were drilled between the Campamento and San Pedro targets, defining a 650-strike length of epithermal banded veining, stockworks and multiphase breccia with significant gold and silver mineralization.
This initial drill program was designed to test the targets between 50 and 150 metres below ground surface.
Mineralization in the Campamento Zone is open in all directions, the company said. On strike from Campamento, along the Amalia regional fault system, high-grade gold and silver mineralization outcrops at intervals vertically at least 600 metres below Campamento.
Similar style major epithermal mines of the Sierra Madre located in the same regional volcanic belt as Amalia are known to have mineralization occurring over large vertical intervals between 600 and 750 metres.
To date, the Radius and Pan American joint venture has tested a very limited part of the system and it is intended to follow the high-grade mineralization along strike and to depth with further drilling early in the New Year.