VG:CC - Volcanic Gold Mines commences drilling at the Mila Gold Discovery Guatemala
(TheNewswire)
News Release
Shares issued 45,551,210
VG close - C$0.215
February 15, 2024 – TheNewswire - Vancouver, British Columbia – Volcanic Gold Mines Inc.(TSXV:VG) (“Volcanic” or the “Company”) and joint venturepartner Radius Gold Inc. (TSXV: RDU) are pleased to announce that afirst-pass drilling campaign has commenced on the Mila Gold Discoverylocated within the Motagua Norte Project.
The Mila prospect to date is defined over a 250 m by600 m area of quartz outcrop, subcrop and boulder float with abundantvisible gold and bonanza grade assays discovered by Company geologistsin Central Guatemala. A diamond core drilling rig has mobilized to commence exploration of thecompelling gold targets developed at Mila. Drill holes are designed toestablish the width, grade and geometry of gold mineralization. TheCompany anticipates drilling between 1000 and 3000 m of diamond corein the first campaign.
The Mila discovery presents an unusual challenge forexploration but an exceptional opportunity. The abundance ofgold-mineralized quartz boulders covering the surface makes itdifficult to map-out, measure and model the gold mineralizedstructures . Ofapproximately 420 rock chip samples collected at surface across thearea over one hundred returned assays exceeding 10 g/t gold, includingtwenty-one of over 100 g/t gold and a maximum of 692 g/t gold. Withwidely distributed gold-bearing quartz at surface it is difficult todistinguish the in situ quartz outcrop from the boulder piles thatform at the base of collapsed vein outcrops and from boulder screethat has been locally transported downhill. Inaddition to the obvious quartz veinmineralization, gold has also been observed hosted within sericitealtered and micro-veined schist with samples returning assay resultsof up to 94 g/t gold, indicating potential for significant wall rockmineralization.
The north-south striking quartz ridge which returnedrock chip assays of up to 116 g/t gold is being tested in the firstfew drill holes.
Sericite altered schist with quartz stockwork veinletscropping-out on the eastern wall of the north-south quartz ridgereturned assay results of up to 118 g/t gold is also being targeted inthe first few drill holes.
Geological mapping of outcrops combined withinterpretation of topographic features suggests that there aremultiple quartz veins in at least two different orientations:north-south and northwest-southeast striking, with the best assayresults concentrated in north-south trends. Continuous chip channel sampling across the best-definednorth-south structure, a 250 m long ridge running through the centreof the prospect area, returned average grades of 95 g/t gold across a10 m width of collapsed quartz vein boulders. This structure, and atleast two more less well-defined parallel quartzboulder ridges are interpreted as north-southstriking veins. True thickness and dip direction of these veins is notyet understood and will be tested in the initial drilling.
Drilling will also test a 100m-wide dense quartz boulder field on the west side of the centralnorth-south structure continuous lines of 2 mlong chip channel samples of mixed outcrop, subcrop and colluvium returned average grades of 42 g/t gold along a 34m line, and 54 g/t gold along a 24 m long line . The surficial quartz in this area isinterpreted as the expression of multiple, close-spaced quartz veins.The number of veins and their geometry are undefined.
The initial drill programme is exploratory in natureand aims to establish the number of zones, width, grade and geometryof the gold bearing structures .
Simon Ridgway, Volcanic Gold Mines President and CEO,commented:
“ TheVolcanic team's dedication has resulted in the discovery of greathigh-grade drill targets and secured licenses, permits and communitysupport for the Motagua Norte project. The team is enthusiastic tocommence drilling the first holes into the multiple gold targets inthe Mila prospect. The results of several rock chip sampling programsconducted in recent months along the belt has revealed several newareas of interest where we are seeing similar high grades. Asuccessful drill program at Mila will reinforce my belief that theMotagua Suture Zone has the potential to become a prolific gold camp.”
About the Motagua Norteproject
The Motagua Norte project is a gold system hosted byschists of the Motagua suture zone, an east-west striking belt ofmetamorphic rocks that outcrops at the line of collision between theNorth American and Caribbean tectonic plates.
Volcanic Gold Mines has an option agreement with RadiusGold Inc. to earn a 60% interest in the Cirilo I exploration licenceand other licences under applications and negotiation within theMotagua Norte project, as well as the Holly Project where the jointventure has established a high grade epithermal gold resource 60kmnorth of the Cerro Blanco Gold Deposit (see news release September 18,2023).
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.
About Volcanic
Volcanic brings together an experienced and successfulmining, exploration and capital markets team focused on buildingmulti-million-ounce gold and silver resources in underexploredcountries. Through the strategic acquisition of mineral propertieswith demonstrated potential for hosting gold and silver resources, and by undertaking effective exploration and drillprograms, Volcanic intends to become a leading gold-silvercompany.
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 i ts Regulation Services Provider (asthat term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy oraccuracy of this release.
Forward-looking statements
Certain statements contained in this news releaseconstitute forward-looking statements within the meaning of Canadiansecurities legislation. All statements included herein, other thanstatements of historical fact, are forward- looking statements andinclude, without limitation, statements about the Company’s plansfor its property interests in Guatemala. Often, but not always, theseforward-looking statements can be identified by the use of words suchas “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 negativevariations.
Forward-looking statements involve known and unknownrisks, uncertainties and other factors which may cause the actualresults, performance or achievements of the Company to be materiallydifferent from any results, performance or achievements expressed orimplied by forward-looking statements. Such uncertainties and factorsinclude, among others, the uncertainties inherent in the mineralresource estimates; whether the Company’s planned exploration workwill be proceed as intended; whether the Company’s plan for itsproperty interests in Guatemala will proceed as intended; changes ingeneral economic conditions and financial markets; the Company or anyjoint venture partner not having the financial ability to meet itsexploration and development goals; risks associated with the resultsof exploration and development activities, estimation of mineralresources and the geology, grade and continuity of mineral deposits;unanticipated costs and expenses; and such other risks detailed fromtime to time in the Company’s quarterly and annual filings withsecurities regulators and available under the Company’s profile onSEDAR+ at www.sedarplus.ca . Although the Company hasattempted to identify important factors that could cause actualactions, events or results to differ materially from those describedin forward-looking statements, there may be other factors that causeactions, events or results to differ from those anticipated, estimatedor intended.
Forward-looking statements contained herein are basedon the assumptions, 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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