VG:CC - Volcanic Gold Commissions Technical Report on Holly Project as Part of Permit Upgrade and Continues with Stakeholder Engagement
(TheNewswire)
Vancouver, B C - TheNewswire - February 8, 2023 - Volcanic Gold Mines Inc. (TSXV:VG) (“ Volcanic ” or the“ Company ”) is pleased to announce it has continued to advancemining studies on the flagship Holly Project in preparation to upgradethe exploration license to an exploitation license. The Holly project has an inferred Mineral Resource of 1.3 Mtat 6.5 g/t for 270,000 oz contained gold and 260 g/t silver for 11 Mozcontained silver, which equates to 9.6 g/t at 410,000 oz goldequivalent* (see news release July 27, 2022). The mineral resource is supported by excellent infrastructurewith a paved road passing through the project area and is located lessthan 70 km from Bluestone Resources’ Cerro Blanco gold minedevelopment project. Resource drilling and sub-surface exploration isat an early stage: the mineralization remains open along strike and atdepth, and there are several additionalmineralized veins identified at surface that have not yet been drilltested.
The Company considers that the demonstrated high-gradeand good access to a nearby mine development project means that theHolly Project has a good chance of being developed. Further drillingwill determine whether Holly will support a stand-alone mill, or ifthe ore should be processed elsewhere. Based on this positive outlookthe Company is applying to upgrade the Holly exploration license to anexploitation license.
Technical studies to support the application areunderway. Volcanic is continuing to monitor andbuild environmental, hydrogeological, and social baseline studies forthe Holly property. Guatemalan and Mexican-basedengineering companies have been commissioned to compile the technicalstudies and civil engineering design for an underground miningproject, with assumed processing off-site. This study is expected tobe completed in the first Quarter. The mine design will be anearly-stage concept for permitting purposes and will not meet therequirements of a preliminary economic assessment .
As stated in previous news releases (see news releasesSep 1 and Sep 28, 2022), the Company intends to resume drilling at theHolly property once Bluestone has been granted a permit to build amine at Cerro Blanco. Bluestone has issued an update on Cerro Blanco(see Bluestone news release Oct 3, 2022). Successful permitting of the Cerro Blanco Project willdemonstrate that the Authorities and communities are ready to developGuatemala’s considerable precious metal resource potential andprovide the confidence required for Volcanic to resume exploration andresource definition at Holly.
Simon Ridgway, Volcanic Gold Mines President and CEO,commented:
“Within the last 12 months, theCompany has released an initial, high-grade Mineral Resource estimateon the Holly Project and commissioned a technical report in support ofapplying to upgrade the Project’s exploration license to anexploitation license. The project would be well serviced by theinfrastructure surrounding it in a development and production scenarioand these engineering studies reflect our confidence in the futurepotential of this project and the steps that we are taking to workcollaboratively with the government and communities to create abrighter future for economic and social development in the area.”
Volcanic continues to engage with local stakeholders.The Company is working hard to inform and educate the localcommunities on the potential impacts of mining exploration anddevelopment operations with transparent and constructive dialogueregarding the job opportunities and overall economic benefits thatwould be generated. At the same time, Volcanic is actively workingwith the local communities to further develop and deliver impactfulcommunity programs.
Technical Information
Luc English PhD, who is a Chartered Geologist andFellow of the Geological Society of London, is the Company’sQualified Person as defined by National Instrument 43-101 - Standardsof Disclosure for Mineral Projects. Dr English has reviewed andapproved the technical information contained in this newsrelease.
* Gold Equivalent (AuEq) values based on US$1800 Au andUS$22 Ag, using formula: gold g/t + (silver g/t*0.01222).
The Holly project mineral resource has an effectivedate 7 June 2022.
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Resources estimatedusing a 3.0 g/t Gold equivalent cut-off grade and a top cap grade of100 g/t Gold and 2,000 g/t Silver and presented on a 100%-basis
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Gold Equivalent Au(eq) values based on Au$1800 andAg$22 using formula (Au g/t + (Ag g/t*0.01222))
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Mineral Resources which are not Mineral Reserves havenot demonstrated economic viability. The estimate of Mineral Resourcesmay be materially affected by environmental, permitting, legal,marketing, or other relevant issues. The mineral resources in thisreport were estimated using the Canadian Institute of Mining,Metallurgy and Petroleum standards on mineral resources and reserves,definitions, and guidelines prepared by the CIM standing committee onreserve definitions and adopted by the CIM council. Notwithstanding,to meet the requirement that the reported Mineral Resources show“reasonable prospects for eventual economic extraction”.
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The quantity and grade of reported Inferred resourcesin this estimation are uncertain in nature and there has beeninsufficient exploration to define these Inferred Resources as anIndicated or Measured Mineral Resource. It is uncertain if furtherexploration will result in upgrading them to an Indicated or MeasuredMineral Resource category.
Volcanic brings together an experienced andsuccessfu l mining, exploration and capitalmarkets team focused on building multi-million -ounce gold and silver resources in underexplored countries. Through the strategic acquisition ofmineral properties with demonstrated potential for hosting gold andsilver resources, and by undertaking effective exploration and drillprograms, Volcanic intends to become a leading gold-silver company.
For further information, visit our website at www.volgold.com .
Volcanic Gold Mines Inc.
Simon Ridgway, President and CEO
Neither the TSX Venture Exchange nor the Investment IndustryRegulatory Organization of Canada accepts responsibility for theadequacy or accuracy of this release.
Forward-looking statements
Certain statements contained in this news release constituteforward-looking statements within the meaning of Canadian securitieslegislation. All statements included herein, other than statements ofhistorical fact, are forward- looking statements and include, withoutlimitation, statements about the Company’s plans for its propertyinterests in Guatemala. Often, but not always, these forward-lookingstatements can be identified by the use of words such as“estimate”, “estimates”, “estimated”, “potential”,“open”, “future”, “assumed”, “projected”, “used”,“detailed”, “has been”, “gain”, “upgraded”,“offset”, “limited”, “contained”, “reflecting”,“containing”, “remaining”, “to be”, “periodically”, orstatements that events, “could” or “should” occur or beachieved and similar expressions, including negative variations.
Forward-looking statements involve known and unknown risks,uncertainties and other factors which may cause the actual results,performance or achievements of the Company to be materially differentfrom any results, performance or achievements expressed or implied byforward-looking statements. Such uncertainties and factors include,among others, the uncertainties inherent in the mineralresource estimates; whether the Company’s planned explorationwork will be proceed as intended; whether the Company will acquire anynew property interests in Guatemala; changes in general economicconditions and financial markets; the Company or any joint venturepartner not having the financial ability to meet its exploration anddevelopment goals; risks associated with the results of explorationand development activities, estimation of mineral resources and thegeology, grade and continuity of mineral deposits; unanticipated costsand expenses; and such other risks detailed from time to time in theCompany’s quarterly and annual filings with securities regulatorsand available under the Company’s profile on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors thatcould cause actual actions, events or results to differ materiallyfrom those described in forward-looking statements, there may be otherfactors that cause actions, events or results to differ from thoseanticipated, estimated or intended.
Forward-looking statements contained herein are based on theassumptions, beliefs, expectations and opinions of management,including but not limited to: that the Company’s stated goals andplanned exploration and development activities will be achieved; thatthere will be no material adverse change affecting the Company or itsproperties; and such other assumptions as set out herein.Forward-looking statements are made as of the date hereof and theCompany disclaims any obligation to update any forward-lookingstatements, whether as a result of new information, future events orresults or otherwise, except as required by law. There can be noassurance that forward-looking statements will prove to be accurate,as actual results and future events could differ materially from thoseanticipated in such statements. Accordingly, investors should notplace undue reliance on forward-looking statements.
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