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

Radius Gold Inc.

September 25, 2007 11:27 ET

Radius Commences Exploration at the Rubi Gold-Silver Property, Peru

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 25, 2007) - Simon Ridgway, President of Radius Gold Inc. (TSX VENTURE:RDU)(OTCBB:RDUFF) is pleased to announce that the Company has commenced exploration on its recently acquired Rubi gold-silver property, located 16 km east of the town of Puquio, Department of Ayacucho, in south-central Peru.

A comprehensive work program comprising surface and underground mapping, trenching and geochemical sampling is being undertaken to characterize the geological setting and extent of the known high-grade veins, and identify additional target areas for exploration. On the Minas Rubi property, several of the old adits are being rehabilitated to allow for underground surveying, mapping and sampling. Land surface permissions have been agreed with local communities, and permitting has been initiated for a preliminary drill program planned for late 2007.

The Rubi property comprises 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, Virgen de Chapi and Minas Rubi. Historically, the Spanish mined bonanza-grade veins in all three areas and more recently local informal miners have mined small tonnages of high grade gold and silver ore. Initial sampling results were announced in the Company's press release dated August 28, 2007 and included:



Minas Rubi 20.8 g/t Au, 356 g/t Ag over 2m (surface sample)
3 g/t Au, 373 g/t Ag over 3.9m (surface sample)
Virgen de Chapi 52.5 g/t Au, 843 g/t Ag over 0.8m (surface sample)
556 g/t Au, 1,205 g/t Ag (grab sample of stockpile from
underground)
San Andres 25.6 g/t Au, 932 g/t Ag over 1.0m (Esperanza Vein,
underground sample)
15.8 g/t and 299 g/t Ag over 1.6m (Esperanza Vein,
surface sample)
6.2 g/t Au and 433 g/t Ag over 1.25m (Chirulin Vein,
underground sample)


No drilling is known to have been carried out on the claims, which lie within a northwest trending belt of Tertiary-age volcanic rocks that hosts several producing precious metal mines.

Under an agreement with Exploraciones Andinas S.A.C. ("Andinas"), a private Peruvian company, Radius can purchase 100% of the property by incurring exploration expenditures of US$1.75 million and making staged cash payments to Andinas of US$1.65 million and 450,000 shares in Radius on or prior to the third anniversary, with US$100,000 and 50,000 shares paid on signing. By the fourth anniversary Radius will have the option to purchase the claims outright by paying $4 million, with the vendor retaining a 1.5% NSR. Additional reserves defined after this payment will be subject to a $5/oz gold equivalent payment to the vendor. Finder's fees of $10,000 and 25,000 shares each are payable to two individuals in connection with the project.

A more detailed description of the Rubi project, including photos, is available on the Radius website - www.radiusgold.com.

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.

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's 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.

ON BEHALF OF THE BOARD

Simon Ridgway, President

Shares Issued: 53.4-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