Radius Gold Inc. provide an update on exploration work conducted by JV partner, Volcanic Gold Mines on Radius's high-grade Mila prospect in the Motagua Norte project in Guatemala. Volcanic's initial prospecting samples returned exceptional gold grades at Mila prospect. In order to determine whether the very high gold grades (many samples above 1 oz gold /tonne) were the result of selective sampling or widespread across the target zones, a program of continuous 2 m chip sampling was conducted across mixed terrain of outcrop, subcrop and float boulders.

In these areas it is not possible to be sure of true widths, and sampling was conducted to define the distribution of gold mineralization and target trench and drill priorities. High-grade gold assays and visible gold occur in both quartz veins, and in wallrock quartz stockwork zones. Multiple quartz veins with at least two different orientations are recognized; north-south and northwest- southeast striking.

The principal mineralized quartz veins form prominent mounds and ridges of collapsed outcrop boulder piles with quartz boulders up to 2 m in diameter and outcrops up to 4 m or more in width. Continuous chip channel sampling across one prominent ridge has returned average grades of up to 95 g/t gold across a 10 m width of collapsed quartz vein boulders, each sample representing a 2 m long segment of the line. Significantly wider quartz boulder fields occur where multiple, close-spaced veins reach surface.

Continuous lines of 2 m long chip channel samples of mixed outcrop and colluvium have returned average grades of 42 g/t gold along a 34 m line, and 54 g/t gold over a 24 m line from two parallel lines 70 m apart in one boulder field at the centre of the prospect area. The distribution of mineralized boulder float, supported by limited outcrop data, suggests that the high- grade gold mineralization in the Mila prospect is concentrated in two north-south structures approximately 200 m apart, each structure at least 250 m strike in length. The current interpretation is that one or both structures support multiple quartz veins across a width of at least 25 to 50 m. Trenching and drilling will be required to look beneath the quartz boulder cover and establish the true geometry, width and grade of the mineralized veins and wallrock stockwork zones in the Mila prospect.

Beyond the Mila prospect ongoing prospecting and rock chip sampling continues to identify additional mineralized veins within the licence area: Two gold quartz veins have already been identified approximately 500 m to the south of the Mila prospect with two high-grade rock chip samples of 9.34 g/t and 29.6 g/t gold some 280 m apart. Quartz veins grading up to 60.2 g/t gold have also been identified at a couple of locations further along the regional Motagua Norte trend between 800 and 1700 m to the west of the Mila prospect.