04:15 EST on 01-24-2019   $0.09   +0.02   20 min delay
Rackla Metals Inc.
Scarlet East, Rackla Belt

Scarlet East

The property is located approximately 190 km east-northeast of Mayo, Yukon Territory, some 3 km north of the Stewart River, and 46 km east-southeast of the Rackla River airstrip. The Osiris occurrence, a Carlin type gold prospect being explored by Atac Resources Ltd., is located approximately four kilometers to the northwest of the property.

The Scarlet East property covers what is believed to be the eastern extension of the belt of rocks that host ATAC Resources' Osiris and Conrad discoveries.

Mineralization in the Rackla belt shares many of the characteristics of Carlin-type gold deposits, including similar alteration assemblages and association with the low-temperature arsenic sulphides, realgar and orpiment. In the eastern part of the belt, host rocks are two 150- to 250-metre-thick limestone debris flow and turbidite units, referred to by Atac Resources as the Osiris and Isis horizons. Preliminary mapping over the Scarlet East property has identified similar carbonate stratigraphy and fold patterns.

Radius conducted an exploration program in the 2011 summer season to target both claim blocks with geochemical surveys (stream sediment, soil and rock sampling), airborne geophysics (magnetic and radiometrics) and geological mapping.

First pass geological mapping of the property was undertaken and ridge-and-spur soil samples and stream sediment samples were collected at the Scarlet East property. Results from this program were disclosed in Radius's news releases of July 13 and 26, 2011. Based upon soil results anomalous in Au-As-Hg-Sb-Tl in an area of orange-weathering limestone, a full soil sampling grid based on 50 x 50 or 50 x 100 m sampling was undertaken on the Scarlet East property in August 2011. In total, over 8,700 soils were collected. Rock prospecting resulted in 164 rock samples and a stream sediment survey resulted in 239 samples. Management is of the view that strongly anomalous values in all the major elements were confirmed in the soil sampling program.

In March 2012, the Company signed a binding letter of intent with Strategic Metals Ltd. ("Strategic") granting Strategic the option to acquire an undivided 60% interest in the Scarlet East claim block. Strategic can exercise the option by completing not less than 1,000 meters of drilling on or before December 31, 2012 (fulfilled), and incurring $5,000,000 in exploration expenditures on the property over a period of four years.

Strategic Metals Ltd. reported in a news release dated September 5, 2012 that mapping and drilling at the Scarlet East Option identified favourable host rocks and several structurally complex zones that coincide with 2011 gold and arsenic soil geochemical anomalies. Although realgar was locally identified at surface within one of the soil anomalies no high gold values were returned from surface samples. A total of five drill holes (1,167.68 m) were drilled in the 2012 exploration season although no significant gold values were reported. Strategic terminated the option in October 2014.

The claims are in good standing until 2023 and the project is available for joint venture.