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Potential for 'significant discovery' grows at Amalia

Pan American Silver (Nasdaq: PAAS) has confirmed its interest in Radius Gold’s (TSXV: RDU) Amalia, as high-grade results continue from joint exploration at the gold-silver project in Mexico.
Potential for 'significant discovery' grows at Amalia Potential for 'significant discovery' grows at Amalia Potential for 'significant discovery' grows at Amalia Potential for 'significant discovery' grows at Amalia Potential for 'significant discovery' grows at Amalia

Core from AMDD19-015, which assayed 81m at 3.75g/t gold and 61g/t silver

Staff reporter

The latest highlights included 81m at 3.75g/t gold and 61g/t silver from 216.7m.

Radius said results continued to demonstrate the potential for "a significant discovery" at Amalia.

The exploration partners have completed two drill programmes at Amalia, totalling 15 holes.

Pan American recently paid the junior US$150,000 as part of its option agreement, confirming its continued interest in Amalia, Radius said.

Pan American can earn up to 65% of Amalia by paying $1.5 million and spending $2 million on exploration over four years.

It can earn a further 10% by taking the property to preliminary feasibility.

Radius meanwhile has paid $25,000 to date and issued $5,000 worth of shares, of the $845,000 to be paid over five years and $15,000 in shares, to earn 100% of Amalia from the original property owner.

The agreement with the individual covers 380ha of the 9,461ha project which Radius expanded by staking.

Radius had C$5.46 million (US$4.07 million) in working capital at the start of this quarter.

Its shares were worth 10c for much of last year but spiked to 46.5c last month after standout results in the first hold of second-round drilling.
 
Radius shares were unchanged on Friday at 24c, to capitalise it at $20.8 million (US$15.5 million).

Pan American Silver's Nasdaq-listed shares were off 0.5% to US$11.63, putting its market value at $1.78 billion.