VLMZF - Volcanic Gold drills 4.58m at 79.84 g/t Au and 5053 g/t Ag in the Southern Extension of the High Grade La Pena Vein
(TheNewswire)
2021-10-19 -VG - NewsRelease
Shares issued 44,600,000
VG close - C$0.35c, W/C +$9 Million
Vancouver, British Columbia - TheNewswire –Volcanic Gold Mines Inc. (TSXV:VG) is pleased to report that resultsfrom drilling in the south extension of the La Peña vein at the Hollyproperty have returned bonanza high grades including 4.58 @ 79.84 g/tAu and 5,053 g/t Ag. Volcanic has received results from Holly drillholes HDD-21-021 and HDD-21-023 which targeted the La Peña vein alongstrike to the south and HDD-21-022, which targeted the vein to thenorth. The drill has moved over to Volcanic’s Banderas Propertyafter the termination of hole HDD-21-029 to allow the results of theHolly drilling to be received and the next program of holes to beplanned with full results in hand.
Holly Highlights:
HDD-21-022 from 21.35m to22.87m returns 1.52m @ 7.00 g/t Auand 48 g/t Ag
And 27.45m to 32.02mreturns 4.57m @ 1.05 g/t Au and 14g/t Ag
And 50.32m to 51.85mreturns 1.53m @ 5.34 g/t Au
HDD-21-023 from 196.72m to198.25m returns 1.53m @ 1.93 g/t Auand 171 g/t Ag
And 202.82m to 207.40mreturns 4.58m @ 79.84 g/t Au and5,053 g/t Ag
Including 204.45m to 205.70mreturns 1.25m @ 289.50 g/t Au and18,329 g/t Ag
The initial focus at the Peña vein system was to define the veinwithin the broad zone of the Jocotan fault breccia, extending themineralization down dip to the zone with consistent high grades thatwere intersected in holes HDD-21-017 and 019. HDD-21-021 andHDD-21-023 were drilled to cut the Peña vein to the south of theJocotan fault zone. HDD-21-021 cut minor upper-level veining withweaker mineralization including 1.18m of 0.19 g/t Au and 40 g/t Agfrom 53.37 to 54.55m within felsic tuffs. Roughly 80m down dip,HDD-21-023 cut the structure hosted in laminated mudstones where thevein returned 4.58m @ 79.84 g/t Au and 5,053 g/t Ag. This holeconfirms the strike extent of the Peña vein to the south anddemonstrates that the inter-beddedvolcanics and sediments are potentially good hosts for high grade goldand silver mineralization at Holly.
HDD-21-022 was drilled within the footwall of Peña and did notintersect the main structure. The significant results from 022 arefootwall splay veins off Peña. It appears some fault offsets made itmore challenging to extend mineralization to the north in thePaleozoic Phyllites, although results on holes HDD-21-026 and 027 tothe north are still pending.
The drill rig will be moving over to the nearby Banderas Property inthe next few days and drilling will commence promptly. Volcanic willbe targeting the deeper extensions of the major gold-silver rich veinswhere the source and potential convergence zones have never beentested.
Figure 1. La Peña Zone; Long Section:
Note: Reported intervals aredrilled width. Estimated true widths are published in intercept tableon website
Technical Information
Bruce Smith, M.Sc. (Geology), a member of theAustralian Institute of Geoscientists, is Volcanic’s QualifiedPerson as defined by National Instrument 43-101 - Standards ofDisclosure for Mineral Projects. Mr. Smith has 27 years of mineralexploration experience and has prepared and approved the technicalinformation contained in this news release.
Quality Assurance and QualityControl
Volcanic Gold follows industry standard procedures fordiamond core drilling and analysis. Drilling is carried out using NQand HQ size tooling. Drill core is cut in half using a rock saw withone-half of the core then taken as a sample for analysis. Sampleintervals are generally 1m intervals, producing samples of between 2to 9 kg. Half-core samples are delivered to the internationallycertified Bureau Veritas Mineral laboratory facilities in Nicaraguawhere the samples are prepared. Assays are completed by BureauVeritas certified laboratories. The samples are fire assayed for Auand are analyzed for Ag and multi-elements using method code ICPfollowing a four-acid digestion. Overlimits are analyzed using anappropriate method. Multi-element geochemical standards and blanksare routinely entered into the drill core sample stream to monitorlaboratory performance. Quality control samples submitted werereturned within acceptable limits.
Terms of Guatemala Radius Gold andVolcanic Gold Mines option
Pursuant to an option agreement signedin May 2020 with Radius Gold Inc. (TSXV:RDU), Volcanic can earn a 60%interest in the Holly and Banderas projects by spending the cumulativeamount of US$7.0 million on exploration of the properties within 48months from the date of the agreement. An initial US$1M must bespent on exploration within the 12 months of receiving the requireddrill permits, which expenditure will include a minimum 3,000m ofdrilling on the properties.
Following the exercise of the Option, Volcanic will enter into astandard 60/40 Joint Venture in order to further develop theProperties. Volcanic has also been granted an exclusive right toevaluate all other property interests of Radius in Guatemala with aright to acquire an interest in any or all other such properties onreasonable terms.
Volcanic brings together an experienced and successful mining,exploration and capital markets team focused on buildingmulti-million -ounce gold and silver resources inunderexplored 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 explorationwork 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, whether the Company’s planned exploration work will beproceed as intended; changes in general economic conditions andfinancial markets; the Company or any joint venture partner not havingthe financial ability to meet its exploration and development goals;risks associated with the results of exploration and developmentactivities, estimation of mineral resources and the geology, grade andcontinuity of mineral deposits; unanticipated costs and expenses; andsuch other risks detailed from time to time in the Company’squarterly and annual filings with securities regulators and availableunder 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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