VLMZF - Volcanic Gold Mines Exploration Update
(TheNewswire)
November 16, 2020 - TheNewswire - Vancouver, British Columbia - Volcanic Gold Mines Inc. (TSXV:VG)("Volcanic" or the "Company") is pleased to reporton progress on its Guatemala property package. Since completing theagreement with Radius Gold for an option on Radius's large landholdings in Eastern Guatemala, the Company has raised sufficient fundsfor an aggressive exploration campaign in this highly prospectivegold/silver district.
Operations and Permitting
Since Guatemala's international borders opened inSeptember, the Company has made significant progress establishing apresence in the country. Mr. Pedro Garcia has been appointed CountryManager to oversee the permitting and social development in theregion. Drill planning and corresponding environmental reports fordrilling at Holly and Banderas projects have recently been completedand drill permit applications for Holly submitted to the responsibleauthority. Banderas drill permit applications will be filed in thecoming days. The Company has conducted formal meetings with themunicipalities covering the Holly and Banderas targets which have beenpositively received. Access agreements with private land owners areongoing, with a majority already signed at Holly and agreements atBanderas to follow. With a new geological, community relations,logistics and administrative team, Volcanic is building capacity for alarge multi-target drill program in early 2021.
Holly Project: Drill Targets
Volcanic has defined compelling drill targets at HollyRidge zone through analysis of all historic geological and geophysicaldata and comparison with recent discoveries in the region.
The Holly Ridge target is an east-west orientatedtopographic high at the fault boundary between Tertiary volcanics tothe south and Paleozoic meta-sediments to the north. The Jocotanfault zone outcrops as an approximately 2km long by 50m wide zone ofintensely clay/silica altered and stockwork veined breccia andconglomerate. A high grade gold in soil anomaly is co-incident withthis target. The Jocotan fault at Holly is cut by a series of NEorientated high-grade gold and silver veins and veinlets. It wasthese NE veins and their extensions to the south of the ridge in theVolcanic rocks that were targeted by former explorers. This workresulted in several high-grade intercepts, including:
HDD-001 14.2 m @ 4.14 g/t Au, 151 g/t Ag
HDD-005 3.6 m at 22.03 g/t Au, 697 g/t Ag
Of the 15 short historic drill holes at Holly project,14 drill holes were drilled entirely within the volcanic rocks to thesouth of the Jocotan fault. Only one drill hole was located in theJocotan fault conglomerate / breccia zone. This hole cut 23 meters ofsilicified and veined conglomerate / breccia that graded 3.78 g/t Auand 133 g/t Ag. No follow-up holes have been conducted to date and nodrilling has tested the main structure or targeted the intersection ofthe EW orientated fault breccia zone and the NE orientated high gradeveins/stockworks. Recent geophysical modelling has shown strongresisters at depth directly below the trace of the fault zone. A5,000 meter drill program is planned for Holly and will commence upongranting of the permit, which is expected in 45 working days.
Property Package
Volcanic Gold is earning a 60% interest in the Hollyand Banderas projects in Guatemala and has an exclusive option toevaluate Radius Gold's 240,000 hectares of applications for mineralconcessions. The property package covers a majority of the highlyprospective terrain between Pan American Silver's world class Escobal Mine and Bluestone Resource's CerroBlanco development project, where recent bonanza grade drill resultscontinue to highlight the potential of the district. Holly andBanderas projects host high grade epithermal gold-silver drill readytargets.
Technical Information
Bruce Smith, M.Sc. (Geology), a member of theAustralian Institute of Geoscientists, is the Company's QualifiedPerson as defined by National Instrument 43-101 - Standards ofDisclosure for Mineral Projects. Mr. Smith has prepared and approvedthe technical information contained in this news release.
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, andby undertaking effective exploration and drill programs, Volcanicintends to become a leading gold-silver company.
For further information, visit our website at www.volgold.com .
Volcanic Gold Mines Inc.
Charles Straw, Director/CEO
Neither the TSX Venture Exchange northe Investment Industry Regulatory Organization of Canada acceptsresponsibility for the adequacy or accuracy of this release.
Certain statements contained in thisnews release constitute forward-looking statements within the meaningof Canadian securities legislation. All statements included herein, other thanstatements of historical fact, are forward-looking statements andinclude, without limitation, statements about the proposed PrivatePlacement. Often, but not always, these forward looking statementscan 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", or statements thatevents, "could" or "should" occur or be achievedand similar expressions, 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 Company'sexploration plans in Guatemala will proceed as anticipated; changes ingeneral economic conditions and financial markets; t he Company or any joint venture partnernot 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 regulators andavailable under the Company's profile on SEDAR atwww.sedar.com . Although theCompany has attempted to identify important factors that could causeactual actions, events or results to differ materially from thosedescribed in forward-looking statements, there may be other factorsthat cause actions, events or results to differ from thoseanticipated, estimated or intended.
Forward-looking statements containedherein are based on the assumptions, beliefs, expectations andopinions of management, including but not limited to: that theCompany's exploration plans in Guatemala will proceed as anticipated;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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