Funding To Complete Acquisition of Cerro Las Minitas Property, Mexico

 

VANCOUVER - Radius Gold Inc. has advanced CAD $800,000 to Southern Silver Exploration Corp. in order to fund Southern Silver's final option payment to acquire the Cerro Las Minitas mineral claims in Mexico.

The Cerro Las Minitas property is located about 70 kilometers to the northeast of the city of Durango in Durango State, Mexico, and is accessed easily by road. The property comprises 19 concessions covering approximately 13,700 hectares, and lies within heart of the Faja de Plata (Belt of Silver) of north central Mexico. The belt is one of the most significant silver producing regions in the world.

Management of Radius, after reviewing the past three years' historical drill results provided to the Company by Southern Silver, feels that this property has the potential to host a significant silver deposit. This secured loan grants Radius the exclusive right to conduct an in-depth review of the exploration data and to enter into a joint venture with Southern Silver contingent on positive due diligence.

Since its acquisition of an option to purchase the claims in 2010, Southern Silver and its former joint venture partner, Freeport-McMoran Exploration Corporation, have conducted 23,310 meters of diamond drilling in 75 core holes together with surface geochemical and biogeochemical sampling, airborne magnetics, and IP-resistivity and gravity geophysical surveys. Aggregate acquisition and exploration costs incurred on the property total approximately USD $9.2 million. Over the course of exploring the project, two new zones of mineralization have been discovered on the claims, the Blind zone and the El Sol zone. The mineralization has been traced at nominal 50 to 80 meter drill spacing for a cumulative 820 meters strike-length in a northwest-southeast direction and to depths of up to 550 meters in some drill holes.