Radius Gold Inc. · TSXV:RDU
Radius Gold — Investor Presentation (January 2012)
36 slides from Radius Gold's investor presentation, January 2012
Slide 1: Central American Exploration
Central American Exploration
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Cautionary Notes and Disclaimers This presentation may contain forward-looking statements including, but not limited to, comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery
Slide 3: Radius Gold Inc
RADIUS GOLD INC Precious metals explorer with outstanding portfolio of advanced and early stage prospects Strategic 19.9% share holding in Rackla Metals Inc. Rackla holds a strong porfolio of Yukon gold & base metal projects, including claims in the Rackla Gold belt near Tahoe’s world-class Es
Slide 4: Rackla Metals Spin Out Terms
RACKLA METALS SPIN OUT TERMS • Radius transferred its Yukon assets & $1m in cash into a new company: Rackla Metals Inc (“Rackla”) • Shareholder approval granted December 2nd, 2011 • Radius shareholders receive 1 Rackla share and 1 warrant for every 3 Radius Gold shares • The warrant price set at 30c
Slide 5: Portfolio: Post Spin Out
PORTFOLIO: POST SPIN OUT Radius Gold Inc RDU owns 19.9% of Rackla Rackla Metals Inc Central American focused Yukon focused Guatemala Yukon • Tambor JV (development stage) • Sixty Mile (exploration stage) • HB Au-Ag (exploration stage) • Rackla Belt (exploration stage) • Ten Mile JV (exploration stag
Slide 6: Radius in Central America
RADIUS IN CENTRAL AMERICA Tlacolula: Fortuna Silver Property Overview Belize Mexico • 1,500sq.km of unexplored terrain in the Escobal silver/gold camp in Goldcorp: Marlin Guatemala eastern Guatemala Tambor: KCA • Multiple new discoveries HB Goldcorp: San Martin to advance, both Au/Ag & Ag/Pb/Zn Taho
Slide 7: Radius in Guatemala
Radius in Guatemala 7
Slide 8: Radius in Guatemala
RADIUS IN GUATEMALA • RDU’s Guatemalan exploration programs building on nearly two decades of Central American experience • Over 120,000ha of granted concessions and concession applications in the same belt as the world-class Escobal Ag discovery • Reconnaissance & advanced stage Au-Ag & base metal
Slide 9: Escobal District, Guatemala
Escobal District, Guatemala Radius is focusing exploration efforts in Central America on the volcanic belt that hosts Tahoe’s Escobal silver deposit. Indicated Resources 15.3m tonnes @ 500 g/t Ag (245.2 million Ag oz) Inferred Resources 8.3 m tonnes @ 271 g/t Ag (71.7 million Ag oz) • This discovery
Slide 10: The HB Project
THE HB PROJECT • A classic, low sulphidation Ag-Au rich epithermal system with multiple veins, alteration zones and anomalies over many kilometers of strike length. • Hosted by rhyolite flows and/or dikes, volcaniclastics, andesite flows and tuffs which appear to be cross cut by abundant mafic dykes
Slide 11: RDU's HB Targets in the Escobal District
RDU’s HB Targets in the Escobal District Pino Zone Ag in stream Ivy Trench results of 58.3g/t Au sediments Anomalous Au-Ag grab + 1,937g/t Ag over 5.1m samples up to 17g/t Au Pyramid RDU’s concession applications Hill Jocotan Fault Stream Sed’t Zapote survey planned Silver King Grab samples over 1km
Slide 12: HB Epithermal Veins
HB Epithermal Veins Eptihermal veins, hole BDD-10-005 Trenching on high grade Pino vein Epithermal textures in outcrop
Slide 13: The HB Project: Summary
THE HB PROJECT: SUMMARY • Radius & JV partner Glamis completed 49 drill holes (43 core, 6 RC) in 3 drill campaigns. Glamis were testing for bulk mineable gold in one zone at Banderas. • Most drilling targeted the M28 and Pyramid Hill zones confirming the continuity of the mineralization along strike
Slide 14: Development Projects: Tambor, Guatemala
Development Projects: Tambor, Guatemala Potential Cash Flow • A high grade, orogenic lode-gold system in southern Guatemala 30km northeast of Guatemala City. Underground sampling of the main vein in 4 locations returned: – 65.6 g/t Au over 4.45m – 25.8 g/t Au over 4.38m – 74.5 g/t Au over 3.40m – 77
Slide 15: Tambor JV Terms
Tambor JV Terms • KCA can earn a 51% interest by spending a total of $6.5M on the property within 4 years through staged annual expenditures, or by putting the property into production within 4 years. • Once KCA has earned its 51%, a joint venture will be formed between KCA and Radius. • Once commer
Slide 16: Tambor Development Project
Tambor Development Project Refurbished flotation cells Simon Ridgway & Dan Kappes examining Ball Mill at KCA Ball Mill Platform under construction
Slide 17: Tambor Project Upside
Tambor Project Upside • Extensive Au-in-soil anomaly covering many kilometers provides long term upside to the Tambor development project 500m Untested soil anomaly Basalt cover rocks Tambor project focused on small part of a major Au-in- soil anomaly Laguna resource Au in soil Anomaly
Slide 18: Radius in Nicaragua
Radius in Nicaragua
Slide 19: Radius in Nicaragua
RADIUS IN NICARAGUA • RDU’s entered Nicaragua in 2002 & built a first class portfolio of projects identified using an extensive sample data base • In 2008, as a response to the equity markets shutting down, RDU JVd its entire Nicaraguan portfolio to B2Gold • B2 have advanced the Trebol, Pavon and Sa
Slide 20: B2 Option Terms
B2 OPTION TERMS • June 2009 RDU optioned Nicaraguan portfolio to B2Gold. The deal consists of 3 parts: – Trebol, Pavon and San Pedro (B2 can earn 60% interest by spending $4m over 4 years) – Production from the Pavon Resource Property (if put into production in 3 years, RDU to receive cash flow acco
Slide 21: Nicaragua- B2Gold JV Projects
Nicaragua- B2Gold JV Projects • B2Gold advancing several gold projects in Nicaragua under a JV agreement with 100km Radius to earn 60% • B2 budgeted +$2 million for 2010 exploration Trebol of Radius JV’s- 3,000m drill program completed at Trebol • B2 5th largest employer in Nicaragua El Pavon (appro
Slide 22: Trebol JV- B2Gold
Trebol JV- B2Gold • Drilling underway- Shallow bulk Legend Santa Marta tonnage potential with high Interpreted Vein grade feeder zones • >30 holes completed to date • 22km long northeast trending belt of epithermal hot-spring type gold mineralization • Santa Marta area: highly anomalous gold-in-quar
Slide 23: Trebol Highlight Drill and Trench Results
Trebol Highlight Drill and Trench Results B2Gold From To Interval Au g/t Au (capped Drill Hole (m) (m) (m) at 25 g/t) Legend N TR-11-011 3.40 11.27 7.87 3.14 2.25 B2Gold 2011 Holes Paolo Norte Zone TR-11-047 including 5.45 5.85 0.40 42.38 25.00 RDU 2008 drill holes 11.41m @ 8.39 g/t Au Trench 24 (5.
Slide 24: Development Projects: Pavon, Nicaragua
Development Projects: Pavon, Nicaragua Potential Cash Flow • Low sulphidation quartz-adulari epithermal gold system, discovered by Radius in 2003, drilled under JV by Meridian Gold in 2005-2006, and then optioned to B2Gold in 2009 • Meridian defined a conceptual (non-43-101 compliant) resource on th
Slide 25: Development Projects: Pavon, Nicaragua
Development Projects: Pavon, Nicaragua At production, payments to Radius are Ave gold price during fiscal qtr in which gold Production payment to Radius / oz Au based on prevailing gold price: is produced (US$ / oz) per ounce gold mined The cash payment to Radius increases $1,300 to $1,399 $225 by $
Slide 26: Radius in Mexico
Radius in Mexico 26
Slide 27: Tlacolula Joint Venture: Fortuna Silver (FVI)
TLACOLULA JOINT VENTURE: FORTUNA SILVER (FVI) • RDU’s Tlacolula property covers 82,630ha in the State of Oaxaca, Mexico • FVI can earn a 60% interest by spending US$2 million, which includes a commitment to drill 1,500 meters within 3 years, and making staged annual payments of US$250,000 cash and U
Slide 28: 19.9% Shareholder in Rackla Metals Inc
19.9% Shareholder in Rackla Metals Inc 28
Slide 29: Rackla Metals Inc
Rackla Metals Inc • Strategic land position in the emerging Rackla Gold Belt: “Carlin North” • >20km strike length of the structural & geological trend hosting ATAC’s Osiris, Conrad and Eaton discoveries • 60 Mile Project: 2 drill campaigns completed in 2011 Alaska North West Territory • Several 100
Slide 30: Rackla Metals in the Rackla Belt, Yukon
Rackla Metals in the Rackla Belt, Yukon First pass exploration at Scarlet East found coincident Carlin-type geochemistry and a colour anomaly associated with orange-weathering rocks, along an east-west trending ridge Trend of anomalous Au-As-Hg- Sb-Tl in soils & rocks 30
Slide 31: Board of Directors
Board of Directors Simon Ridgway A prospector and a mining financier. Since starting out as a prospector in the Yukon Territory in the late 70s. President, CEO & Director Simon and the exploration teams under his guidance have discovered gold deposits in Honduras, Guatemala, Nicaragua. Companies ope
Slide 32: Senior Management
Senior Management Simon Ridgway Managed exploration companies in region for over 25 years. Founded several successful resource President, CEO & Director companies. Experienced financier & founder of the Gold Group of companies Ralph Rushton Business Development/Geologist. MSc in Economic Geology; 12
Slide 33: RDU Capital Structure & Trading
RDU Capital Structure & Trading Share Structure (RDU.TSX.V: RDUFF. OTCBB) Management & Insiders Volume and Price Range Warrants 10.2m 50-75c range Issued 7.6% TSX-V: 120k per day Options 5.8m 26-81c range Fully Diluted 10.1% OTCBB: 35k per day Issued 86.7m 12 Mth price range 44c-97c Fully diluted 10
Slide 34: Radius Gold Inc
RADIUS GOLD INC • Precious Metals Explorer with outstanding portfolio of advanced and early stage prospects in Central America • Radius offers exposure to near term gold production & exploration in Guatemala’s Escobal silver camp • 19.9% shareholding in Rackla Metals Inc spin off provides exposure t
Slide 35: Radius Gold Inc
Radius Gold Inc A Gold Group Company Gold Group management has raised over $375m in equity financings since 2003 www.goldgroup.com 35
Slide 36: Contacts
Contacts Ralph Rushton/ Jaclyn Ruptash Suite 650 -200 Burrard Street Vancouver, BC Canada V6C 3L6 Tel. 604-801-5432 Fax. 604-662-8829 Toll Free. 1-888-627-9378 info@goldgroup.com www.radiusgold.com 36