Radius Gold Acquires Option on Margarita Silver Property

VANCOUVER, BC - Radius Gold Inc. has acquired an option to earn a 100% interest in the Margarita Silver Project in the State of Chihuahua, Mexico.

The Margarita Property consists of two mining exploration licenses comprising a total of 125 hectares and located approximately 115 km NW of the historic silver mining city of Parral, Chihuahua, in the Mexican Silver Belt.

Mineralization on the Margarita Property is hosted in a series of parallel, steeply-dipping, northwest-trending veins, the most important of which, the El Tren-Margarita vein, outcrops prominently as an oxidized ochre-coloured banded quartz-limonite vein. It is exposed over a strike length of 1.7 km within the property boundaries, and is known to strike over 4 km onto adjacent ground.

The El Tren-Margarita vein is a classic banded epithermal quartz vein with an apparent thickness of between 1 and 5 meters. Recent project due diligence work by Radius geologists included chip channel sampling across a five meter in situ exposure of the vein.

There is evidence on the Margarita Property of near-continuous artisanal-scale surface and near-surface mining along the entire strike length of the vein, but there is no physical or recorded evidence of diamond drilling or other signs of modern exploration works. The Company considers the exploration potential for a vein-hosted high grade silver deposit to be excellent.

The Margarita Property is located in the boundary region of the Sierra Madre Occidental volcanic province and the Mesozoic Chihuahua sedimentary basin. District geology is dominated by a thick sequence of Cenozoic felsic volcanic rocks divided into two units: the Lower and Upper Volcanic Groups. The Margarita Property lies towards the northern end of a prolific belt of silver deposits, which includes Fresnillo's San Julian mine, Silver Standard's Pitarilla project, Fresnillo's Fresnillo mine, and many others.

The Company has the option to acquire a 100% interest in the Margarita Project by making cash payments to the property owners, two private Mexico corporations, and totaling US$3,000,000 over a period of five years following issuance of a drill permit for the Project.