VLMZF - Volcanic Gold Drills 6.52m @ 16.31 g/t Au at Holly
(TheNewswire)
2021-09-09 -VG - NewsRelease
Shares issued 44,600,000
VG close - C$0.39c, W/C +$9 Million
September 9, 2021 - TheNewswire - Vancouver,British Columbia - Volcanic Gold Mines Inc. (TSXV:VG) is pleased toreport further high grade drill results from step out drilling from LaPeña vein at the Holly Project in Guatemala.
Highlights:
HDD-21-017 from 134.25 to 139.00 returns 8.83m @ 8.81 g/t Au and 355 g/t Ag
HDD-21-019 from 171.90 to 178.42 returns 6.52m @ 16.31 g/t Au and 55* g/t Ag
HDD-21-020 from 61.70 to 67.10 returns 5.40m @ 5.91 g/t Au and 70* g/t Ag
Results from the Holly project drilling have been received for holesup to HDD-21-020 and consistently, the deeper holes return betterresults, with mineralization open to the south/north and down dip.
A table of 2021 holes drilled at La Peña is set out below:
| DRILLHOLE |
| FROM (m) |
| TO (m) |
| INTERVAL (m) |
| GOLD (g/t) |
| SILVER (g/t) |
| HDD-21-001 |
| 46.10 |
| 47.70 |
| 1.60 |
| 24.10 |
| 568 |
| and |
| 53.70 |
| 60.60 |
| 6.90 |
| 4.90 |
| 85 |
| HDD-21-002 |
| 95.15 |
| 106.27 |
| 11.12 |
| 6.29 |
| 282 |
| including |
| 95.15 |
| 98.00 |
| 2.85 |
| 15.50 |
| 342 |
| including |
| 102.35 |
| 105.22 |
| 2.87 |
| 8.08 |
| 633 |
| HDD-21-003 |
| 101.85 |
| 112.50 |
| 10.65 |
| 5.29 |
| 256 |
| HDD-21-004 |
| 119.5 |
| 143.50 |
| 24 |
| 3.10 |
| 694 |
| including |
| 131.40 |
| 133.67 |
| 2.27 |
| 9.79 |
| 2035 |
| including |
| 136.00 |
| 137.85 |
| 1.85 |
| 5.60 |
| 2801 |
| HDD-21-004 |
| 154.02 |
| 163.17 |
| 9.15 |
| - |
| 380 |
| HDD-21-14 |
| 52.22 |
| 54.75 |
| 2.53 |
| 2.90 |
| 108 |
| including |
| 57.70 |
| 59.80 |
| 2.10 |
| 3.60 |
| 92 |
| HDD-21-015 |
| 108.65 |
| 124.20 |
| 15.55 |
| 7.67 |
| 615 |
| including |
| 108.65 |
| 115.90 |
| 7.25 |
| 16.20 |
| 848 |
| HDD-21-016 |
| 77.00 |
| 79.00 |
| 2.00 |
| 4.15 |
| 154 |
| HDD-21-017 |
| 134.25 |
| 143.08 |
| 8.83 |
| 8.81 |
| 355 |
| HDD-21-018 |
| 71.67 |
| 73.20 |
| 1.53 |
| 1.81 |
| 57 |
| HDD-21-019 |
| 28.97 |
| 30.50 |
| 1.53 |
| 100* |
| 100* |
| and |
| 171.90 |
| 178.42 |
| 6.52 |
| 16.31 |
| 55* |
| including |
| 172.90 |
| 176.60 |
| 3.70 |
| 28.31 |
| 73* |
| HDD-21-020 |
| 61.70 |
| 67.10 |
| 5.40 |
| 5.91 |
| 70* |
| including |
| 63.00 |
| 64.00 |
| 1.00 |
| 29.41 |
| 100* |
| and |
| 131.00 |
| 134.20 |
| 3.20 |
| - |
| 100* |
Note: As indicated by * symbols,some samples from HDD-21-019 and HDD-21-020 are still pending finalresults that returned over 100 g/t silver and or 100 g/t gold . Finalgold and silver assay results are expected soon and will likelyincrease the weighted averages for these intercepts. Reportedintervals are drilled width. True width is estimated at 80% of truewidth.
To date the La Peña vein has been tested over a strike length of 220mand a vertical depth up to 200m. Drilling has encountered variablegrades within the vein although most holes that intercept the veindeeper return high grades. The drill will be turning again on the15th of September and the focus of the program will be to confirmdepth and strike continuity to establish a high grade maiden resource.
The La Peña is one of many north-south veins that cross the regionalJocotan plate bounding fault. Mineralization controls at the Hollyproject are still not well understood but consistently where drillingintersects the north-south veins within Jocotan fault breccia, themineralization and gold-silver grades are the strongest. A majorfocus of the upcoming drilling will be to not only confirmmineralization in La Pena and other veins, but to test the extensivebreccia in the plate bounding Jocotan fault.
Figure 1. La Peña Zone; Long Section:
Technical Information
Bruce Smith, M.Sc. (Geology), a member of theAustralian Institute of Geoscientists, is Volcanics’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 sawwith one-half of the core then taken as a sample for analysis. Sample intervals are generally 1m intervals, producing samples ofbetween 2 to 9 kg. Half-core samples are delivered to theinternationally certified Bureau Veritas Mineral laboratory facilitiesin Nicaragua where the samples are prepared. Assays are completed byBureua Veritas in Canada. The samples are fire assayed for Au andare analysed for Ag and multi-elements using method code ICP followinga four-acid digestion. Overlimits are analysed using an appropriatemethod. Multi-element geochemical standards and blanks are routenelyentered into the drill core sample stream to monitor laboratoryperformance. Quality control samples submitted were returned withinacceptable 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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