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

Radius Gold Inc.

March 19, 2008 09:30 ET

Radius Options Its San Pedro Gold Project to Vannessa Ventures

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 19, 2008) - Simon Ridgway, the President of Radius Gold Inc. (TSX VENTURE:RDU)(OTCBB:RDUFF), is pleased to announce that Radius has agreed to option its San Pedro epithermal gold project located in east-central Nicaragua to Vannessa Ventures Ltd. (TSX VENTURE:VVV).

Under the terms of the agreement, Vannessa can acquire a 50% interest in the property by spending a cumulative total of US$3,000,000 on exploration over a period of four years. Once it has exercised its option, Vannessa can earn an additional 20% by funding a bankable feasibility study, or may opt to further develop the property under a 50:50 joint venture with Radius. In the event that either party elects not to contribute, then standard dilution clauses will apply and if either party's interest drops below 10%, this will be converted into a 1% Net Smelter Royalty.

Background

Gold mineralization at San Pedro occurs as low-sulfidation epithermal quartz veins, breccias, and associated stockworks that have been identified over a 12km by 4km area. Mineralization appears to be associated with rhyolite domes associated with an eroded caldera that is cut by regional extensional structures.

The project was discovered by Radius' field teams investigating reports of old workings in the area. Gold anomalies have been defined by soil geochemistry and trenching over a 12km extent (see Radius news release dated April 19, 2005). The initial program to be carried out by Vannessa will be to better define the geology and surface expression of the mineralization by additional surface trenching and extending existing trenches, followed by drilling. This initial work will be largely supported by infrastructure and staff that Radius Gold already has in Nicaragua.

Qualified Person

The scientific and 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.

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