Radius Gold Inc.
TSX VENTURE : RDU
OTC Bulletin Board : RDUFF

Radius Gold Inc.

January 08, 2008 09:15 ET

Radius Provides Update on Exploration Programs and Outlines Plans for 2008

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 8, 2008) - Simon Ridgway, the President of Radius Gold Inc. (TSX VENTURE:RDU)(OTCBB:RDUFF), is pleased to review the Company's 2007 exploration programs and to provide a brief outline of plans for the coming year.

Radius has early stage exploration programs in five Latin American countries, including Mexico, Nicaragua, Guatemala, Ecuador and Peru.

Key Accomplishments in 2007 and Objectives for 2008

- In Nicaragua, the Company received encouraging initial results from trenching at its 100% owned Trebol property, returning up to 35.2m at 4.9 g/t, including 8.35m at 17.6 g/t Au. Plans are to complete surface exploration and carry out preliminary drill testing on the property in 2008.

- The La Flor and Estrella de Oro concessions, totaling 61,825 hectares, were new acquisitions to Radius's Nicaraguan project portfolio. Objectives in 2008 are to continue surface exploration on these properties and carry out preliminary drilling where warranted.

- In Guatemala an underground exploration drift and four cross cuts were completed at the Tambor property, confirming the continuity of the Guapinol South mineralized structure and providing information on the structural controls of the mineralization. Radius will continue to search for a partner in order to advance this high grade mesothermal vein system via a production/exploration scenario.

- In Peru, Radius established an exploration office and will continue to review new opportunities throughout the country in 2008. During 2007 the Company optioned the Rubi property and signed a Letter Agreement for the Artemisas property, both in south-eastern Peru.

Nicaragua

Trebol

Trebol is a gold-bearing epithermal system discovered by Radius during reconnaissance exploration in the Region Autonoma Atlantico Norte (RAAN). To date, a total of 13 trenches have defined a system of alteration and gold mineralization associated with low-lying silicified ridges and topographic highs over a strike extent of at least 5km. Most of the trenches start and end in alteration and low grade mineralization characterized by multi-directional system of quartz veins and associated stockworks hosted in strongly altered volcanic rocks. Best trench results were as follows:

Trench 2 - 10.4m at 1.3 g/t Au

Trench 3 - 34m at 1.0 g/t Au

Trench 4 - 35.25m at 4.9 g/t Au inc. 17.6 g/t Au over 8.35m

Trench 5 - 11.65m at 2.73 g/t Au

Trench 13 - 6m at 1.73 g/t Au

Immediate plans are to expand existing trenches and excavate new trenches in order to better define the grade and widths of mineralization and prioritize targets for preliminary drilling. Many of the trenches show well-developed quartz stockwork mineralization which indicate potential for bulk-tonnage mineralization. Consultation with local communities and drill companies is underway to secure permissions and a drill rig.

Estrella de Oro

This is an epithermal gold property located 17km west of Siuna, near the historical Bonanza District in north-central Nicaragua. The concession comprises 46,000 hectares and covers a historic gold operation centered along two parallel, northeasterly trending zones of quartz veins and breccias, hosted within altered crystal lithic tuffs. The southerly vein zone is approximately 12m wide and exposed in old trenches and pits. Rock channel samples assayed trace to 21.5 g/t Au over 2m and 22.4 g/t Au over 1m, and visible gold was noted in some samples (see Radius release dated October 16, 2007). Permits have been received for exploration work to commence and camp installation is near completion, with work to start in January 2008.

The work program will consist of trenching and sampling of the old workings, plus soil surveys to define the extensions of the known mineralized zones, followed by drilling of the best zones. A drainage geochemical survey will be undertaken over the rest of the 46,000 hectare concession to identify additional mineralized areas.

La Flor

La Flor is located 10km to the south of Trebol. Trenching, rock and soil sampling were completed during the latter part of 2007 in the Linda Ventura, Tamarinda, Nazaret and Bufalo zones, including 30 line kms of soil sampling, with the majority of assays still awaited. At Linda Ventura the main vein has been traced for 1.1km, and additional veins were exposed by trenching. The best trench sampled to date averaged 6m @ 4.82 g/t Au.

San Pedro

San Pedro is a large epithermal gold system that was discovered by Radius in 2004. Five main zones of gold mineralization occur within a 12km by 4km area. Low-sulphidation epithermal veins are hosted by what is interpreted to be an eroded caldera cut by major regional structures. The Company is seeking a joint venture partner to advance the property.

La India Norte

The La India Norte project is located in west-central Nicaragua, approximately 70km north of Managua. The discovery by Radius of gold-bearing stockworks associated with rhyodacite domes possibly represents the upper parts of a mineralized vein system similar to those at the nearby La India mining camp, where high grade veins were mined at lower elevations. The strike length of the La India Norte system is at least 2km and up to 30m wide, and is an attractive target for drilling. The Company is seeking a joint venture partner to advance the property.

Peru

Radius established an exploration office in Lima during 2007 in order to increase its Latin American exposure and take advantage of opportunities in this prospective country. Radius' focus is the identification of un-drilled gold prospects that can be evaluated rapidly.

Rubi

The Rubi property comprises seven mineral concessions totaling 3,000 hectares and covers a 9km long north-south corridor where gold and silver-bearing veins outcrop within three broad areas called San Andres, Virgin de Chapi and Minas Rubi. The property was acquired by Radius in August 2007 and a systematic exploration program was completed between September and December 2007. Work comprised regional geological mapping and detailed evaluation of the Minas Rubi, San Andres, Minas Chapi and San Sebastien areas. A total of 594 rock samples were taken with approximately half of assay results received to date, mainly from the Minas Rubi area where gold-silver mineralization is associated with oxide quartz-carbonate veins and breccias. At Minas Rubi, gold grades from trace up to 12.4 g/t Au and 663 g/t Ag over 1.2m were received from surface outcrops of veins. However similar high grades were not seen in samples taken from rehabilitated underground workings, and suggest a strong surface enrichment effect particularly in silver associated with manganese oxides. New vein swarms were mapped to the east and south east, with sampling returning generally poor assays. No further work is warranted at Minas Rubi, and results from other areas on the property are awaited. Results and maps will be available shortly on the Radius website - www.radiusgold.com.

Artemisas

The Company signed a Letter Agreement with Kingsgate Consolidated Ltd. for this sediment-hosted disseminated gold system located in southeastern Peru, 1,000km southeast of Lima. A formal option and joint venture Agreement is currently being finalized. The project consists of four contiguous concessions totaling 3,300 hectares. Targets for this area include epithermal gold-copper mineralization of high sulphidation type and porphyry-skarn deposits at depth.

Elsewhere in Peru, the Company continues to review opportunities and submittals.

Guatemala

Tambor

Tambor was discovered by Radius in 2000 and advanced by Gold Fields through a joint venture until 2003. The property has a 43-101 compliant resource of 216,000 ounces of gold in inferred resources (2.55 million tonnes @ 2.64 g/t Au) and 57,800 ounces in indicated resources (456,000 tonnes @ 3.94 g/t Au) in three separate zones.

In 2007, an underground exploration drift and four cross cuts were completed at the Guapinol South zone, in order to provide information on the structural controls, continuity and grade of the high grade gold mineralization. These objectives were achieved and all four cross cuts intercepted the zone, including 74.5 g/t Au over 3.4m, providing a context for the orientation and continuity of the vein system.

The Company is looking to advance the property through a combined development/exploration scenario with a joint venture partner.

Mexico

Several areas were assessed in 2007 and several concessions were staked with confirmation of title awaited from the Mexican Ministry of Mines. Exploration programs in Chiapas and Oaxaca will continue during 2008, and will involve further regional targeting via structural interpretation and remote-sensing methods.

Ecuador

Cerro Colorado

Radius continues to seek community support for this drill-ready high sulphidation gold system 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 Cuenca in the middle of a 100km long belt of epithermal gold deposits which includes several recent gold discoveries. Radius can earn 70% of the project by incurring exploration expenditures of US$3-million on or prior to the third anniversary of the commencement of drilling on the project.

Assay Protocol & Qualified Person

Sample preparation and analyses were conducted by Actlabs in Lima, Peru and CAS Laboratories in Tegucigalpa, Honduras. Samples were analyzed for Au, using a 30 gram pulp with Fire Assay. Check assays are undertaken by Acme Laboratories in Vancouver.

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 43-101 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 that specializes in grassroots exploration in under-explored, prospective areas of Latin America. 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.

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.

Contact Information

  • Radius Gold Inc.
    Ralph Rushton
    Investor Relations
    (604) 801-5432 or Toll Free: 1-888-627-9378
    or
    Radius Gold Inc.
    Erin Ostrom
    Investor Relations
    (604) 801-5432 or Toll Free: 1-888-627-9378
    (604) 662-8829 (FAX)
    Email: info@radiusgold.com
    Website: www.radiusgold.com