Otis will benefit from cash payments and continued exploration on their property, but if Radius ends up of with poor results they may be inclined to pull out, leaving Otis with a “dead” property. This is an inherent risk of most option agreements.
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VANCOUVER, BRITISH COLUMBIA–(Marketwired – Sept. 2, 2014) – Radius Gold Inc. (TSX VENTURE:RDU)(OTCQB:RDUFF) is pleased to announce that it has commenced a diamond drill operation on the Blue Hill Gold Project (the “Property”) in southeast Idaho. Radius holds an option to earn a 70% interest in the Property from Otis Gold Corp., for cash payments of US $525,000 and incurring exploration expenditures on the Property totalling US $5,000,000 over a period of four years (see Radius news release of July 14th, 2014). This first phase drill program is expected to be completed within 30 to 50 days.
[box type=”note” align=”aligncenter” ]Radius Gold is a junior exploration company that has been actively exploring in Latin America over the last decade. The company has branched into North America and has optioned to explore the Blue Hill Gold project in Idaho, USA. The Blue Hill Gold project is currently owned by Otis Gold Corp and in July 2014, Radius Gold signed an option agreement that could see them earn a 70% interest in the property. Radius has agreed to make cash payments of up to $525,000 and carry out up to $5,000,000 in exploration over the next four years. Otis Gold will benefit from cash payments and continued exploration work on their property, but if Radius ends up of with poor results from their exploration work they may be inclined to pull out, leaving Otis with a “dead” property. This is an inherent risk of most option agreements. A company or prospector may try to mitigate that risk by insisting on involvement with exploration or by setting out the type of work and a work schedule that must be adhered to, but it’s not always possible to make those types of demands.[/box]
The Property hosts an epithermal hot-spring gold system in Cenozoic-aged volcanic and volcanosedimentary rocks, with surface and near-surface sinters assaying up to 2 ppm Au. The Cenozoic rocks overlie deeper Paleozoic quartzite and limestone and are interpreted as being structurally emplaced on the basement rocks. Two drill programs in the 1980s and 1990s tested the near surface sinters for bulk tonnage, low grade gold mineralization, but the potential for deeper high grade gold mineralization associated with a plumbing system to the sinters was not tested.
[box type=”note” align=”aligncenter” ]The property has been interpreted to be host to an epithermal gold system. The prospect is hosted in near-suface “sinters” that contain trace amounts of gold. Sinters form as hydrothermal fluids reach the surface within hot springs or geysers and deposit a silicon or calcium-rich “crust”. Some modern day examples of sinters can be found at the Orakei Korako hot spring in New Zealand or the geysers and hot springs at Yellowstone National Park in Wyoming, USA.[/box]
Radius has re-interpreted a 2008 CSAMT resistivity survey completed by Otis and has identified a number of resistivity anomalies its geophysicist believes are highly suggestive of structural feeder systems to the overlying hot-spring sinters. A 2000 m diamond drill program has been planned to test Radius’ geological model, targeting resistivity anomalies at the Cenozoic/Paleozoic interface or deeper in the Paleozoic rocks, and at depths greater than 75 m below the deepest previous drilling. A minimum of four 500 m drill holes are planned for the first phase program, with subsequent drilling to be undertaken if the initial program yields positive results.
[box type=”note” align=”aligncenter” ]A CSAMT survey (controlled source audio-frequency magnetic telluric) survey is a near-surface geophysical technique to map subtle variations in the earth’s magnetic and electrical fields. Otis Gold Corp completed a survey back in 2008 and Radius Gold decided have a second look at the data. A Radius Gold geophysicist identified areas of resistivity that could be structural corridors beneath the sinters, leading to the source of the gold. The company plans a 2,000 m diamond drill program to test these anomalies.[/box]
Qualified Person
David Clark, M.Sc., P.Geo. (APEGBC), is the Company’s Qualified Person as defined by National Instrument 43-101, and has approved the disclosure of the technical information contained in this news release.
About Radius
[box type=”note” align=”aligncenter” ]Radius Gold is currently trading at $0.11, halfway between it’s 52-week range of $0.085 and $0.15.[/box]
Radius has been exploring for gold in Latin America for over a decade. The Company has a strong treasury as a result of exploration asset sales and is looking for project acquisition opportunities across the globe.
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