Radius Joint Ventures Rubi Gold-Silver Project, Peru to International Minerals
Wed Oct 8, 9:01 AM
ca.news.finance.yahoo.com
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 8, 2008) - Simon Ridgway, President of Radius Gold Inc. (TSX VENTURE: RDU.V)(OTCBB: RDUFF.OB), is pleased to announce an agreement with International Minerals Corporation ("IMC") (TSX: IMZ.TO) for further exploration of its Rubi project, located in south-eastern Peru.
Rubi is an undrilled gold-silver property associated with a system of epithermal veins and breccias that outcrop over a 1 km strike length. In August 2007, Radius optioned the Project from a private Peruvian company and carried out a systematic exploration program comprising property-scale geological mapping and rock chip geochemical sampling (see Radius press release dated August 28, 2007).
Under a revised agreement with the claim holders, Radius and IMC, as joint venture partners in a newly formed Peruvian company ("NEWCO"), can earn 100% of the Rubi and San Sebastien claims (total 2,200 hectares) by making a series of payments and exploration expenditure commitments, comprising:
- US$75,000 on signing of the revised agreement
- Investing US$400,000 in exploration and paying US$150,000 on the first anniversary
- Investing US$600,000 in exploration and paying US$300,000 on the 2nd Anniversary
- Investing US$1,000,000 in exploration and paying US$600,000 on the 3rd Anniversary
- Investing US$1,000,000 in exploration and paying US$1,875,000 on the 4th anniversary
The vendor will also retain a 2 percent Net Smelter Return royalty, with NEWCO retaining a right of first offer to purchase such royalty.
IMC can earn its 60% interest in the project by paying the initial signing fee and by funding the first year's exploration expenditures, for a total of US$475,000. The exploration and cash payments over the remainder of the term will be funded by NEWCO (60% IMC, 40% Radius) with each party subject to standard dilution requirements for non-contribution of funds.
The planned program for the first year will include additional sampling and mapping, followed by drilling.
IMC is an emerging precious metal producer, whose mines and projects include the Pallancata high-grade silver mine in Peru and the Rio Blanco and Gaby gold development deposits in Ecuador.
Project Background
Gold and silver mineralization at Rubi is present as a system of quartz-carbonate veins and breccias that outcrop over a 1 x 0.5km area. The site was host to a former producing Au-Ag mine in the 1980's and 1990's when it was held by the Peruvian State for 15 years. Mineralization comprises a swarm of robust NNW and EW trending quartz-carbonate veins and breccias. Surface pits and shallow underground workings are extensive, with numerous veins and at least three vein trends evident with individual veins at surface reaching widths of over 4m.
The principle structure exploited at Minas Rubi was Rica Chorla, a NNE-trending calcite-quartz vein traceable for approximately 400m, with widths up to 3m on surface and appreciable grades in gold and silver. Surface channel sampling of veins by Radius returned assays ranging from trace to 20.8 g/t Au and 356 g/t Ag over 2m, and 3 g/t Au and 373 g/t Ag over 3.9m.
Assay Protocol & Qualified Person
All sample preparation and analyses were conducted by ALS Chemex Labs in Lima. Samples were analyzed for Au, using a 30 gram pulp with Fire Assay and AAS with gravimetric finish for samples over 10 g/t Au. Silver was analyzed by ICP, with AAS for samples over 100 g/t Ag.
The technical information in this release was prepared under the supervision of Mr. David Cass, Radius' Vice-President of Exploration, who is a member of the Association of Professional Engineers and Geoscientists of British Columbia, and a "Qualified Person" in accordance with National Instrument 43-101.
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, President
Shares Issued: 53.5-million
The TSX Venture Exchange has not reviewed and does not take responsibility for the adequacy or accuracy of this release.
Contacts
Ralph Rushton
Radius Gold Inc.
Investor Relations
(604) 801-5432 or Toll Free: 1-888-627-9378
Erin Ostrom
Radius Gold Inc.
Investor Relations
(604) 801-5432 or Toll Free: 1-888-627-9378
(604) 662-8829 (FAX)
Email: info@radiusgold.com
Website: www.radiusgold.com |
