Radius Gold, Inc. (RDU.V) Tlacolula Property in Mexico Returns High-Grade Gold/Silver Results, Exploration of Two Main Identified Veins Planned
Radius Gold, which has already established a strong precious metal acreage footprint in Guatemala, Nicaragua, Peru, and Mexico, reported today on completion of work at the company’s 100%-owned Tlacolula Property in a resource-rich district of Oaxaca, Mexico, by Fortuna Silver Mines Incorporated (which has the option to acquire up to a 60% interest via staged annual payments of $250k in cash and stock, the outlay of at least $2M in CAPEX at the site, and some 4,921 feet of drilling within three years).
[The kind of high-grade silver, as well as gold-bearing low sulphidation epithermal vein mineralization that characterizes the regional geology, in addition to the presence of several other active mining operations in the vicinity, including in the proximal Taviche District, where these sources have been mined since the 16th century, are strong indications of the production potential at Tlacolula. The Tlacolula silver project itself is some 204k plus acres of prime territory in the heart of this low sulfidation epithermal veining that characterizes the Tlacolula area of central Oaxaca and the findings by Fortuna largely reinforce the established portrait for Tlacolula.
Surface mapping and channel sampling efforts by Fortuna have yielded a broad array of hearty data for us to look at, including some really nice intervals, like 20.7 feet at 19.34 g/t Au and 986 g/t Ag (channel starts and/or ends in mineralization), 31.5 feet at 0.13 g/t Au and 295 g/t Ag (also an “open” channel), and 3.3 feet at 4.28 g/t Au and 367 g/t Ag.
The channel samples should be giving us a clear picture of the true widths of mineralized resource structures, as they are sub-perpendicular to the vein systems. Drilling to further define the structures is slated for the middle of July. The company will be going after the two main vein structures spotlighted by this latest data (in conjunction with prior analysis), which appear to be some 5,577 feet along strike in total and fall within the project area. Further exploration should help extend the veins as new data comes in regarding the overall extent of mineralization and Radius will be issuing a report on Tlacolula once discovery efforts have progressed.
NI 43-101 Qualified Person for the report breakdown was APEGBC (Association of Professional Engineers and Geoscientists of British Columbia) member, David Clark, M.Sc., P.Geo., who has verified the technical accuracy of the report data as provided to Radius (Radius has not yet independently verified the results).
With over a decade exploring for gold in Latin America, an expansive regional joint venture window, and the company’s core Holly-Banderas gold/silver project outside Guatemala City under their belts, Radius Gold has come full circle with a solid development strategy and a fistful of 100%-owned exploration plays.
A day out from the Institute for Supply Management’s globally dismal Purchasing Managers Indexes (including the lowest U.S. figure in three years), we are looking at the inescapability of interest rate cuts/easing with investors eyeing top central banks like the FRS, ECB, Bank of England, as well as the Chinese central bank, the People’s Bank of China, for metal rally catalysts. One thing is certain, in a world of increasing uncertainty about currency stability and sovereign debt, all roads lead to gold and silver.
For more information on the company’s rapidly expanding resource footprint in Latin America, or to learn more about Radius Gold, please visit the company’s website at: www.RadiusGold.com
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