Radius Gold has entered into an agreement with Pan American Silver to drill and explore Radius’s high-grade gold-silver Amalia Project located in the State of Chihuahua, Mexico.
Image: A gold mineral. Photo: courtesy of carlos aguilar/Freeimages.com.
Radius has recently received drill permission for the Amalia Project from the local authorities and expects to commence drilling funded by Pan American within the coming months.
Amalia Project
The 9450 hectare Amalia Project is located 25 km SW 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 3.5km of strike length and a 600m vertical interval following the trace of a large regional fault zone. Several drill targets have been developed:
Campamento target is a 500m x 70m zone of intense silicification and brecciation with massive and stockwork veining. A chip channel (reported Sept 19, 2017) across the middle of Campamento graded 62m at 0.43 g/t Au and 98 g/t Ag from 30 continuous rock chip samples. In March 2018, Radius reported high grade zones at Campamento including a continuous rock chip channel assaying 4.5m at 10.3 g/t Au and 202 g/t Ag. The exposed Campamento system is Rhyolite hosted, high level banded chalcedonic silica veins and breccias. Radius and Pan American plan to initially test 100m to 250m below Campamento where mineralization is expected to transition to andesite hosted higher grade sulphide rich breccias as exposed along strike and deeper in the system at Guadalupe target.
Guadalupe target is a high grade andesite hosted structurally controlled breccia zone that outcrops 450m south along strike from Campamento and 250m lower in the geological section. Guadalupe sampling includes the previously published (Radius news Sept 19, 2017) continuous rock chip results: Guadalupe shaft – 7m at 3.62 g/t Au and 1048 g/t Ag, and Guadalupe tunnel – 4m at 3.92 g/t Au and 888 g/t Ag.
Dulces target is located 800m NE of Campamento, at similar elevation. The poorly exposed Dulces vein occurs within an extensive area of argillic altered andesite volcanics and related gold in soil anomaly. The main vein varies from 1 to 1.5m wide and with chip samples returning: 1m at 34 g/t Au and 13 g/t Ag, and 1.5m at 114.5 g/t Au and 57 g/t Ag (Radius news Sept 19, 2017).
Geologically similar gold-silver epithermal deposits of the Sierra Madre belt have mineralization defined over a vertical interval of 600 to 700m. The transition from upper rhyolite hosted mineralization into higher grade andesite host at depth is commonly observed. Radius and Pan American plan drilling to target high grade mineralization at depth below the Campamento silica zone and at the Guadalupe and Dulces targets.
The Agreement
Radius has granted to Pan American the option to earn up to an initial 65% interest in the Amalia Project by making cash payments to Radius totaling US$1.5 million (of which US$100,000 has been received) and expending US$2 million on exploration over four years. Pan American may earn an additional 10% by advancing the property to preliminary feasibility. Initially Radius will be the project operator.
Source: Company Press Release