Radius Gold Joint Venture
Radius Gold Inc. Joint Venture, Nicaragua
(B2Gold option to earn 60%)
B2Gold has an option to acquire a 60% interest in the Trebol, Pavon and San Pedro properties in Nicaragua, as part of its joint venture with Radius Gold, by spending a total of US$4 million on exploration on any one or more of the properties within 4 years from the date of the agreement. When B2Gold has spent the US$4 million, it will own a 60% interest in all of the properties and a joint venture will be formed whereby which each party will contribute its pro-rated share of the exploration costs.
The Company may also earn a 70% interest in certain additional areas by applying for concessions and expending US$2 million on the concession area within three years of the grant of a concession. In addition, the Company has the option to acquire a 100% interest in the Pavon resource property, which is comprised of a 1301 hectares exploration concession, by putting the property into production within three years of giving notice of its election to develop the property. In that event, Radius will be entitled to certain production payments on gold produced from the property based on the prevailing price of gold (e.g., US$150 per ounce at a price of US$1,000 per ounce of gold). The Company will be the operator for all exploration and development work.
Radius has drilled nine holes totalling 963 metres on the Trebol property. Thick intersections of mineralized rock cut by the drilling and trenching yielded intervals such as 23 metres of 1.5 grams per tonne gold in hole TRDH-001 and 11 metres of 3.9 grams per tonne gold in Trench 27. The 2011 exploration budget of US$2.1 million is to fund 3,000 metres of drilling to follow up good grade geochemical and trench results from the 2010 program.
The Trebol property, located in northeastern Nicaragua, is a low sulphidation epithermal hot springs district consisting of numerous strong gold anomalies spanning over 14 kilometres of strike length.
The Pavon resource property, located in central Nicaragua, is a low sulphidation system discovered by Radius in 2003. Several veins occurring over a strike length of 6 kilometres have been explored with 74 trenches and 71 diamond drill holes totalling approximately 10,700 metres. Historic results include up to 9.1 grams per tonne gold over 14.2 metres in Trench 1 and 10.3 grams per tonne gold over 16.8 metres in hole PADH-055 in the north zone and up to 6.7 grams per tonne gold over 11 metres in hole PADH-01 in the south zone. The Pavon property has a 2011 exploration budget of US$0.3 million to fund 1,000 metres of drilling. The drilling program is intended to evaluating the viability of open pit mining portions of the veins and shipping the ore to the mill at the Limon Mine.