Radius Gold Inc. announced the discovery and acquisition of a new gold mineralized hotspring type sinter and breccia pipe target within the Fresnillo district, Zacatecas, Mexico. Radius has entered into an option agreement with local claim owners to acquire 100% of the new property named Tropico. Tropico Location: The Tropico target is located 30 km northwest of Fresnillo city, Zacatecas, Mexico.

The Fresnillo mining district is one of the epithermal systems and hosts the world's oldest continuously operating mines producing silver, gold, copper, lead, and zinc for approximately five centuries, since 1554. The district has over 150 veins, mantos and chimney deposits including +30 large scale ore producers and it continues to deliver new discoveries. In 2005, the Juanicipio project was discovered by MAG Silver Corp.

and Fresnillo Plc, located 8 km from Fresnillo city. The Tropico property is located 1 km off the paved national highway route 45 between Fresnillo and Durango. The ground is flat and has easy access to all areas via farm tracks.

The property is a mixture of rocky pasture and bean fields. A pre-existing lease agreement that allows for exploration has been signed with the local community. Target Model: Chimney bodies in the Fresnillo district are often cylindrical shaped brecciated pipes that crosscut the cretaceous volcano sedimentary host units and predate or are contemporaneous with silver, gold and base metal veins.

The vein systems at Fresnillo are most frequently "blind", meaning they do not outcrop, and the tops of the orebodies are concealed to a depth of approximately 150 to 300 m. Surface expressions can include geochemical path finder halos, thin discontinuous quartz carbonate veinlets, and critically low temperature chalcedonic silica and sinter. Sinter is a formation of opaline silica deposited in a hotspring environment at surface. Sinter typically has very low grade or barren precious metal content but can be the surface indication of a mineralized system at depth.

There are many famous examples of epithermal gold and silver mines located below sinter deposits, both within the Fresnillo district and globally. Geology and Geochemistry: Outcrop within the Tropico property is sparse. From limited outcrop and float Radius geologists have identified an elliptical zone of intensely silicified hydrothermal breccias approximately 450 m x 250 m. Several of the outcrops and float blocks are composed of chalcedonic and opaline sinter.

The Tropico breccia is hosted within finely bedded siltstones and dirty limestones, interpreted to be part of the Proano group which hosts the major Fresnillo deposits. There are known active hotspring and mercury occurrences nearby. Radius collected and assayed 28 rock chip samples from the area of the silica breccia and sinter.

Gold values ranged from 0.02 ppm to 0.88 ppm Au, with an average of 0.28 ppm Au which is considered significant for a sinter system. In actual sinter material the highest grade was 0.39 ppm Au. Mercury values are very high, with several samples exceeding >100 ppm Hg (the upper limit of detection).

Typical epithermal path finder elements were also highly anomalous with Sb between 64 and 1135 ppm, As between 8 to 854 ppm, and Ag between 0.6 to 5.6 ppm. Agreement Terms: Radius has entered into an option agreement with a local Mexican group to acquire 100% of the 200 ha Tropico claim. Payment on signing (completed) USD 200,000.

A further USD 200,000 can be paid in 6 monthly installments over a period of 42 months, starting with USD 25,000 at month 12 from signing in order to maintain the property option. At month 48, Radius can acquire 100% of the property for USD 5,000,000. An additional milestone payment of USD 5 million is conditional on delivering a compliant feasibility study or at the start of mine construction.

A further USD 3 million to be paid if reserves exceed 2 million gold equivalent (Au + Ag) ounces. If Radius does not complete payment of the milestone USD 5 million dollars within 8 years of signing, the property would return 100% to original owners.