Vancouver — Drilling at the Holly prospect in eastern Guatemala confirms the presence of low-sulphidation, high-grade gold and silver veins, as well as bulk-style disseminated gold mineralization.
The 7-hole, 1,000-metre program was launched by joint-venture partners
In early August, Lalo inked a deal to earn a half-interest in the project by spending $2.5 million over three years. By early September, with Radius as the operator, the rig was turning to test six targets in a low sulphidation epithermal gold system. The partners had set their sights on structurally controlled gold mineralization in volcanosediments and lagoonal calcareous mudstones on the northern side of a rhyolite dome.
By October, after drilling seven holes totalling 975 metres, Radius was informed that Lalo was unable to raise enough funds to cover exploration costs and, as a result, Lalo’s option to earn into the property was terminated.
Lalo disputed that it was in default of the option agreement.
In the meantime, Radius, with a large land package in Guatemala, was running short of funds and so arranged a non-brokered private placement of 4.8 million units priced at 20 each. A unit consists of one share and one warrant entitling the holder to buy an additional share at 25 for two years.
Radius says the dispute with Lalo has now been settled and that it, Radius, holds the property in its entirety. No details of the settlement were given.
By mid-December, encouraging drill results began to be reported, including the following values from three separate zones of mineralization:
o Hole 1 — 14.2 metres grading 4.14 grams gold and 150 grams silver per tonne in a 21-metre zone averaging 13.74 grams gold and 544 grams silver.
o Hole 4 — 6 metres grading 43.56 grams gold and 1,617 grams silver in a broader interval of 21 metres running 13.74 grams gold and 544 grams silver.
o Hole 5 — 10.6 metres grading 7.95 grams gold and 263.4 grams silver.
Also, hole 7 tested the mineralization in hole 1 some 35 metres lower, returning 9 metres grading 1.84 grams gold and 45.1 grams silver.
The results sent shares in Radius up from the low 20 range to more than 50.
More drilling is planned for the new year.
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