VLMZF - Volcanic Gold Mines Commence Drilling at Holly Project Guatemala
(TheNewswire)
Vancouver, British Columbia – TheNewswire - April 28,2021 – Volcanic Gold MinesInc. (TSXV:VG) is pleased to announce thatdiamond drilling has commenced at the high-grade gold silver HollyProject located in Guatemala. Volcanic plans a minimum 3000m diamondcore drilling and the current drill program will be fully funded byVolcanic pursuant to its option to earn an interest in the Holly andBanderas projects in Guatemala.
Drill Targets
The initial drill targets at Holly will focus on theintersection of the EW trending Jocotan fault zone with the NWtrending La Pena and Pino vein systems (figure 1).
The Holly property is transected by the regional-scaleJocotan fault which forms part of the plate boundary between NorthAmerican and Caribbean tectonic plates. At Holly, the Jocotan faultforms a well-defined east-west trending ridge up to 200m wideconsisting of variable to intensely altered, silicified andmineralized breccias and fault related conglomerates. The Jocotanfault is associated with a 1.5km long trend of strong gold in soil androck chip geochemistry that has not yet been drill tested.
Historic exploration at Holly focused on the La Penaand Pino veins that cross-cut the Jocotan fault and has somespectacular high grade gold and silver intersects in limited trenchingand shallow drilling.
Simon Ridgway, Volcanic’s CEO, commented: “Shallowhistoric drilling at Holly ridge tested the NW striking high-gradeveins and returned great gold and silver mineralized intervals. Thehistoric holes were drilled parallel to the EW Jocotan fault, which isup to 200m wide and typically intensely altered. The intersection ofthe high-grade veins with the Jocotan regional fault system creates aperfect target for a large-scale gold-silver discovery, which we planto systematically test in the coming months.”
Figure 1. Holly project multiplehigh grade vein systems cutting the Jocotan fault with selectedhistoric trench and drill results.
Terms of Guatemala Option
Volcanic can earn a 60% interest in the Holly and theBanderas projects of Radius Gold Inc. 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 willenter into a standard 60/40 Joint Venture with Radius in order tofurther develop the Properties.
Volcanic also has an exclusive right to evaluate allother property interests of Radius in Guatemala with a right toacquire an interest in any or all other such properties on mutuallyacceptable terms.
Technical Information
The technical contents of this press release have beenreviewed by Matthew Booth, a Qualified Person for the purposes of NI43-101. Mr. Booth has over 17 years of mineral exploration experienceand is a Qualified Person member of the American Institute ofProfessional Geologists (CPG 12044).
Volcanic brings together an experienced and successfulmining, exploration and capital markets team focused on building multi-million -ounce gold and silver resources in underexplored countries. Through the strategic acquisition of mineral properties withdemonstrated potential for hosting gold and silver resources, and byundertaking effective exploration and drill programs, Volcanic intendsto 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 northe Investment Industry Regulatory Organization of Canada acceptsresponsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
Certain statements contained in thisnews release constitute forward-looking statements within the meaningof Canadian securities legislation. All statements included herein,other than statements of historical fact, are forward- lookingstatements and include, without limitation, statements about the plansfor exploration work in Guatemala, and the Company’s option toacquire an interest in the Holly and Banderas Projects. Often, but notalways, these forward looking statements can be identified by the useof 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”, or statements that events,“could” or “should” occur or be achieved and similarexpressions, including negative variations.
Forward-looking statements involveknown and unknown risks, uncertainties and other factors which maycause the actual results, performance or achievements of the Companyto be materially different from any results, performance orachievements expressed or implied by forward-looking statements. Suchuncertainties and factors include, among others, whether the plannedexploration work by Volcanic will be proceed as intended; whether theCompany will acquire an interest in the Holly and Banderas Projects;changes in general economic conditions and financial markets; theCompany or any joint venture partner not having the financial abilityto meet its exploration and development goals; risks associated withthe results of exploration and development activities, estimation ofmineral resources and the geology, grade and continuity of mineraldeposits; unanticipated costs and expenses; and such other risksdetailed from time to time in the Company’s quarterly and annualfilings with securities regulators and available under the Company’sprofile on SEDAR at www.sedar.com. Although the Company has attemptedto identify important factors that could cause actual actions, eventsor results to differ materially from those described inforward-looking statements, there may be other factors that causeactions, events or results to differ from those anticipated, estimatedor intended.
Forward-looking statements containedherein are based on the assumptions, beliefs, expectations andopinions of management, including but not limited to: that theVolcanic’s exploration plans in Guatemala will proceed as planned;that the Company’s stated goals and planned exploration anddevelopment activities will be achieved; that there will be nomaterial adverse change affecting the Company or its properties; andsuch other assumptions as set out herein. Forward-looking statementsare made as of the date hereof and the Company disclaims anyobligation to update any forward-looking statements, whether as aresult of new information, future events or results or otherwise,except as required by law. There can be no assurance thatforward-looking statements will prove to be accurate, as actualresults 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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