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Radius Acquires Sediment-Hosted Gold Project in Peru
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Vancouver, Canada: Simon Ridgway, the President of Radius Gold Inc.
(TSX-V: RDU), is pleased to announce the signing of a Letter Agreement
to acquire the Artemisas gold project, located in southeastern Peru.
The geological setting and mineralization at Artemisas shows
characteristics of a sediment-hosted disseminated gold system of
probable high-sulphidation type.
Gold mineralization at Artemisas is hosted within a sequence of
Jurassic and Cretaceous-aged sandstones, shales and fine grained
quartzites belonging to the Hualhuani Formation. Strongly silicified
hydrothermal breccias are developed both as bedding-parallel mantos and
along steeply dipping fault zones, some of which were exploited for
gold in colonial times. Host rocks are equivalent to the Chimu
Formation in northern Peru that hosts several important gold deposits
such as Santa Rosa, La Arena and Llagunas Norte.
Under the terms of a Letter Agreement with Kingsgate Peru S.R.L.,
Radius can earn up to 70% in the project by spending $2 million in
exploration over a period of 3 years, with 50% of costs to be expended
on drilling. Once Radius has vested its 70% a joint venture will be
formed where both parties fund their share of exploration on a pro-rata
basis. If either party dilutes to less than a 10% interest, it will be
converted into a 1% Net Smelter Royalty.
The project is situated in the District of Chuquibambilla, Department
of Apurimac, and some 1,000km southeast of Lima. It lies at an
altitude of 4,700m and consists of 4 contiguous exploration concessions
totaling 3,300 hectares.
The property was staked in 2006 by Kingsgate Peru S.R.L. who conducted
surface rock sampling which concentrated in a 1.5km by 0.75km area
called Millococha. Surface channel samples taken by Kingsgate in this
area gave values from trace to 11.6 g/t Au over 2m. Gold
mineralization exhibits a strong structural and lithological control
and is associated with 0.5 -- 3m wide zones of strong silicification,
brecciation and fracturing with secondary iron oxides after sulphides.
Additional mineralized zones were identified elsewhere on the property
and require follow-up.
Exploration targets include epithermal gold-copper mineralization of
high sulphidation type and conceptual porphyry-skarn deposits at depth.
Planned work will comprise compilation of existing data, geological
and structural mapping, geochemistry and geophysics, followed by
drilling.
Property maps and photos will be available shortly on the Radius
website.
Assay Protocol & Qualified Person
Sample preparation and analyses were conducted by Actlabs in Lima,
Peru. Samples were analyzed for Au, using a 30 gram pulp with Fire
Assay.
Mr. David Cass, P.Geo., a member of the Association of Professional
Engineers and Geoscientists of BC, is the Company's Qualified Person as
defined by National Instrument 43101 and is responsible for the
technical and scientific information in this news release.
About Radius
Radius Gold is a well-funded, Canadian junior gold explorer with a
portfolio of exploration properties in Mexico, Nicaragua, Guatemala,
Ecuador and Peru. The Company's strategy is to build value for
shareholders by the identification, acquisition and exploration of
early-stage properties that show significant potential for the
discovery of gold.
For further information on Radius Gold Inc., please call toll free
1-888-627-9378 or visit our web site (www.radiusgold.com).
The TSX Venture Exchange has not reviewed and does not take
responsibility for the adequacy or accuracy of this release
ON BEHALF OF THE BOARD
"Simon Ridgway"
Simon Ridgway, President
Investor relations: Ralph Rushton / Erin Ostrom Symbol: TSXV-RDU;
OTCBB-RDUFF Shares Issued: 53.5-million
Associated File:
http://www.radiusgold.com/i/pdf/RadiusPR-Nov142007.pdf
36 KB in size, approx. 8 seconds to download at 56.6Kbps
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Copyright (c) 2007 RADIUS GOLD INC. (RDU) All rights reserved. For
more information visit our website at http://www.radiusgold.com/ or
send mailto:info@radiusgold.com
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