Welcome!

News Feed Item

Radius Options Blue Hill Gold Project, Idaho From Otis Gold Corp

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 07/14/14 -- Radius Gold Inc. (TSX VENTURE:RDU)(OTCBB:RDUFF) is pleased to announce that it has signed an agreement for the right to acquire a 70% interest in the Blue Hill Gold Project (the "Property") from Otis Gold Corp (TSX VENTURE:OOO).

The Property hosts an epithermal hot-spring gold exploration target, is drill-ready, road-accessible, and is located in southeast Idaho, 24 km south of the town of Oakley and 4 km north of the Utah border. The property package consists of 36 federal lode mining claims located on federal land (comprising 295 hectares), and one Idaho State lease (comprising 33 hectares).

In July 2008, Otis completed a program of geologic mapping and sampling, as well as contracting Zonge Geosciences Inc. to perform a controlled-source audio magnetotelluric (CSAMT) geophysical resistivity survey over the target. Based on the results of Otis' work program, drilling was proposed but never carried out.

Gold mineralization on the Property was first discovered by geologist Stan Dodd and Meridian Minerals in 1985. Alteration and gold mineralization are hosted by capping chalcedonic sinters and strongly silicified tuffaceous rocks in the Cenozoic-aged Salt Lake Formation, which consists of epiclastic, sedimentary and tuffaceous volcanic rocks overlying older Paleozoic and Precambrian basement rocks. The area of sinter exposed at surface is approximately 1 km by 0.5 km in area, and contains surface gold-in-sinter concentrations of up to 2 ppm. Mineralization appears both disseminated in sinter and related to north- and northeast-trending, high-angle structures within a northwest trending graben. Local, post-mineral, northeast-trending faulting has displaced and buried mineralized sections to the northwest, some of which have yet to be drill tested.

Two drill programs were completed in the past: the first in 1986-1987 by Meridian, and the second in 1998 by Latitude Minerals Corp. Both programs were designed to test the Property for the presence of an economic low-grade, bulk-tonnage, near-surface target. A total 3665 m of drilling in 29 drill holes was carried out on the Property. The drill holes were all reverse circulation, with the exception of one core hole in the 1998 campaign. Drill results confirmed the presence of significant near-surface thicknesses of sinter-hosted epithermal hot-spring-type gold mineralization. Mineralization is characterized by various forms of clay, silica and 1 to 5 % primary fine-grained pyrite, now mostly oxidized to various iron oxides.

Results from the two drilling campaigns included intervals such as 61.0 m grading 0.91 ppm Au from 85.3 m to 146.3 m in drill hole BHC-86-09, 9.1 m grading 1.01 ppm Au from 48.8 to 57.9 m in drill hole BHC-86-04, 21.3 m grading 0.68 ppm Au from 112.8 m to 134.1 m in drill hole 98-LBC-1, and 25.9 m grading 0.61 ppm Au from 131.1 m to 157.0 m in drill hole 98-LBR-24. In all, 20 out of the 29 drill holes on the Property contained composite intervals longer than 3.0 m and grading over 0.5 ppm Au, confirming the overall mineralized character of the sinter terrace assemblage. The results, however, were not deemed economic from the point of view of a bulk tonnage target, and despite recognizing the potential for higher grade hydrothermal feeder systems under the sinter, no drilling has ever been focused on testing this target.

Radius' interpretation of the 2008 CSAMT survey results indicates the presence of several resistivity anomalies that are highly suggestive of structural feeder systems to the hot-spring sinter:

1.  A distinctive shallowly west-dipping low- to high-resistivity transition
    zone interpreted as representing the base of the Salt Lake Formation,
    structurally overlying older Paleozoic basement. This feature is
    permissive of a permeable detachment or shallowly dipping fault feeder
    system to the overlying sinters.
    
    

2.  Several localized high-resistivity undulations at the interpreted base
    of the Salt Lake Formation are associated with the sinter area, and are
    interpreted as high-angle structural features that may extend into the
    Paleozoic rocks. The association of mineralized sinter at surface and in
    drill core directly above one of these geophysical anomalies is
    particularly of interest.
    
    

3.  A steeply-dipping major feature bounding the eastern side of the sinter
    zone and present on several CSAMT sections is interpreted as a braided
    fault system probably associated the northwest-trending graben. It
    potentially represents the ultimate plumbing system to depth for the
    hydrothermal system regionally.
    

Radius's geologists believe the Property has significant potential for high-grade veins or vein breccias at depth below or near the mineralized sinters and associated with one or more of the geophysical features discussed above. These constitute the Company's exploration target on the Property. The presence of abundant sinter with anomalous concentrations of gold is unusual in hot-spring environments, and highly encouraging of targeting a deeper high grade feeder system. Importantly, none of the previous drilling has focused on the potential for high grade feeders associated with the mineralized sinters, and this represents a significant exploration opportunity for Radius.

The President and CEO of Radius, Simon Ridgway, commented: "I see similarities between the Blue Hill Project and our Cerro Blanco discovery in Guatemala. The surficial sinters at Cerro Blanco carried grades similar to those found at Blue Hill, up to about 1 g/t Au. The CSAMT survey at Cerro Blanco showed clear resistivity anomalies we interpreted as feeders, and this proved to be the case when we drilled. We encountered much higher grade mineralization below the sinter. The resource at Cerro Blanco (currently owned by Goldcorp Inc.) consists of an Indicated 1.27 Moz of Au (2.52 Mt grading 15.64 g/t Au), and an Inferred 0.67 Moz of Au (1.35 Mt grading 15.31 g/t). Our intentions with the Blue Hill Project are to follow a similar workflow and see whether analogous high grade mineralization exists below the sinter on the Property."

Cautionary statement: The Cerro Blanco resource is quoted from "Resources and Reserves, Goldcorp Inc., December 31, 2013", and has not been independently verified by Radius or its QP. The reader is cautioned that the similarities between the surficial sinters at Blue Hill and Cerro Blanco noted above do not necessarily imply that the Blue Hill sinter will itself be underlain by higher grade mineralization, or that any such mineralization discovered will be economic.

A first pass drill campaign is currently being planned and permitted, and is expected to commence in Q3 2014. Up to 2000 m of drilling are contemplated for this first pass program, with drill holes being designed to test the most prospective of the geophysical anomalies associated with the mineralized sinter.

Option Terms

The Company has been granted the option to acquire a 70% interest in the Property (subject to a 2.5% NSR royalty on a portion of the Property). The option may be exercised by making cash payments to Otis totaling US$525,000 and incurring exploration expenditures on the Property totaling US$5,000,000, over a period of four years.

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

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. Please call toll free 1-888-627-9378 or visit our web site (www.radiusgold.com) for more information.

ON BEHALF OF THE COMPANY

Simon Ridgway, President and CEO

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This news release may include certain "forward-looking information" within the meaning of Canadian securities legislation. Forward-looking statements include predictions, projections and forecasts and are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "forecast", "expect", "potential", "project", "target", "schedule", budget" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions and includes the negatives thereof. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are based on a number of material factors and assumptions. Important factors that could cause actual results to differ materially from the Company's expectations include actual exploration and development results, changes in project parameters as plans continue to be refined, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, uninsured risks, regulatory changes, delays or inability to receive required approvals, and other exploration or other risks detailed herein and from time to time in the documents filed by the Company from time to time on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ from those described in forward-looking statements, there may be other factors that cause such actions, events or results to differ materially from those anticipated. There can be no assurance that forward-looking statements will prove to be accurate and accordingly readers are cautioned not to place undue reliance on forward-looking statements which speak only as of the date of this news release. The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contacts:
Radius Gold Inc.
Simon Ridgway
604-801-5432
Toll free 1-888-627-9378
604-662-8829 (FAX)
[email protected]
www.radiusgold.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
In his session at @DevOpsSummit at 20th Cloud Expo, Kelly Looney, director of DevOps consulting for Skytap, showed how an incremental approach to introducing containers into complex, distributed applications results in modernization with less risk and more reward. He also shared the story of how Skytap used Docker to get out of the business of managing infrastructure, and into the business of delivering innovation and business value. Attendees learned how up-front planning allows for a clean sep...
In his session at 20th Cloud Expo, Brad Winett, Senior Technologist for DDN Storage, will present several current, end-user environments that are using object storage at scale for cloud deployments including private cloud and cloud providers. Details on the top considerations of features and functions for selecting object storage will be included. Brad will also touch on recent developments in tiering technologies that deliver single solution and an end-user view of data across files and objects...
In his session at @ThingsExpo, Arvind Radhakrishnen discussed how IoT offers new business models in banking and financial services organizations with the capability to revolutionize products, payments, channels, business processes and asset management built on strong architectural foundation. The following topics were covered: How IoT stands to impact various business parameters including customer experience, cost and risk management within BFS organizations.
Given the popularity of the containers, further investment in the telco/cable industry is needed to transition existing VM-based solutions to containerized cloud native deployments. The networking architecture of the solution isolates the network traffic into different network planes (e.g., management, control, and media). This naturally makes support for multiple interfaces in container orchestration engines an indispensable requirement.
"I will be talking about ChatOps and ChatOps as a way to solve some problems in the DevOps space," explained Himanshu Chhetri, CTO of Addteq, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Businesses and business units of all sizes can benefit from cloud computing, but many don't want the cost, performance and security concerns of public cloud nor the complexity of building their own private clouds. Today, some cloud vendors are using artificial intelligence (AI) to simplify cloud deployment and management. In his session at 20th Cloud Expo, Ajay Gulati, Co-founder and CEO of ZeroStack, discussed how AI can simplify cloud operations. He covered the following topics: why cloud mana...
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, discussed how they built...
In his session at 21st Cloud Expo, Michael Burley, a Senior Business Development Executive in IT Services at NetApp, described how NetApp designed a three-year program of work to migrate 25PB of a major telco's enterprise data to a new STaaS platform, and then secured a long-term contract to manage and operate the platform. This significant program blended the best of NetApp’s solutions and services capabilities to enable this telco’s successful adoption of private cloud storage and launching o...
Enterprises are universally struggling to understand where the new tools and methodologies of DevOps fit into their organizations, and are universally making the same mistakes. These mistakes are not unavoidable, and in fact, avoiding them gifts an organization with sustained competitive advantage, just like it did for Japanese Manufacturing Post WWII.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settl...
Docker containers have brought great opportunities to shorten the deployment process through continuous integration and the delivery of applications and microservices. This applies equally to enterprise data centers as well as the cloud. In his session at 20th Cloud Expo, Jari Kolehmainen, founder and CTO of Kontena, discussed solutions and benefits of a deeply integrated deployment pipeline using technologies such as container management platforms, Docker containers, and the drone.io Cl tool. H...
IoT solutions exploit operational data generated by Internet-connected smart “things” for the purpose of gaining operational insight and producing “better outcomes” (for example, create new business models, eliminate unscheduled maintenance, etc.). The explosive proliferation of IoT solutions will result in an exponential growth in the volume of IoT data, precipitating significant Information Governance issues: who owns the IoT data, what are the rights/duties of IoT solutions adopters towards t...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.