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Radius rockets on Amalia results

Radius Gold (TSXV: RDU) rocketed to a seven-year high yesterday on the latest results from Pan American Silver-funded drilling at the Amalia gold-silver joint venture in Mexico.
Radius rockets on Amalia results Radius rockets on Amalia results Radius rockets on Amalia results Radius rockets on Amalia results Radius rockets on Amalia results

Drilling at Amalia in Mexico hits 44m at 12.38g/t gold and 309.3g/t silver

Staff reporter

Radius reported a standout intercept, the first hole in second-round drilling at the project in Chihuahua state, of 44m grading 12.38g/t gold and 309.3g/t silver.

It was drilled 65m downdip of the December highlight of 26m at 7.08g/t gold and 517 g/t silver, which boosted Radius' share price 31% at the time to C12.5c.

Its shares rose 139.29% yesterday to C33.5c, valuing it at $29 million.

Radius had $5.2 million (US$3.9 million) in working capital at the start of the year.

It can earn 100% of Amalia by paying US$845,000 cash and issuing $15,000 in shares to the property owner over five years, with $25,000 paid to date according to its MD&A filed this week.

It granted Pan American (TSX: PAAS) the option last July to earn an initial 65% of Amalia by paying $1.5 million and spending $2 million on exploration over four years.

Pan American can earn another 10% by taking the property to preliminary feasibility.

Its shares are trading close to a 52-week low. They lifted slightly intraday but closed down 2% to C$16.70, capitalising Pan American at $3.5 billion.