Radius Acquires Option on Ecuadorian Gold Project
Friday November 17, 9:00 am ET
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 17, 2006) - Simon Ridgway, President of Radius Gold Inc (TSX VENTURE:RDU - News; OTCBB:RDUFF - News; "Radius") is pleased to announce that Radius has acquired an option to earn a 70% interest in the Cerro Colorado high sulphidation gold project located in southern Ecuador.
The project lies at an elevation of 3,200m to 3,400m and is situated 80km south of the city of Cuerco in the middle of a 100km long belt of epithermal gold deposits which includes several recent gold discoveries.
The area of interest at Cerro Colorado is defined by a 6km long silica-rich alteration zone forming numerous ridges and bars. The silica ridges form broad stockworks within an extensive area of silica-pyrite-alunite alteration. The distribution of highly anomalous gold, arsenic, mercury, antimony and copper values related to silica-alunite alteration are all indicative of potential for high sulphidation-type gold mineralization. The project has never been drill tested.
Under the agreement with Minera Cachabi C. Ltda. ("Mineca"), an Ecuadorian company, Radius can earn 70% of the Cerro Colorado gold project by incurring exploration expenditures of US$3-million on or prior to the third anniversary of the commencement of drilling on the project. In addition Radius must make staged cash payments to Mineca of US$1-million, with US$100,000 paid on signing of the agreement, a further $125,000 payable when Radius begins drilling on the Project, and additional cash payments totalling $775,000 to be made up to and including the third anniversary of commencement of drilling. Radius must also fund and prepare a feasibility study on or before the fifth anniversary of the start up of drilling. Once Radius has earned its 70% interest in the project, Radius and Mineca will form a joint venture to develop the project. Further information about Cerro Colorado will be available shortly on Radius's website (www.radiusgold.com).
This acquisition does not indicate a departure from Radius's Central American programs, but is rather a natural extension of the work Radius has been doing. Management believes this is a unique opportunity for Radius, fitting well with the specific exploration, social and environmental skills that Radius's team has developed in Central and Latin America over the last decade.
Qualified Person
The information in this release was prepared under the supervision of Mr. Harmen Keyser, P.Geol., who is a Director of the Company and a "Qualified Person" in accordance with National Instrument 43-101.
ON BEHALF OF THE BOARD
Simon Ridgway, President
Shares Issued: 53.3-million
biz.yahoo.com |
