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home / news releases / VLMZF - Volcanic Gold Provides Exploration Update


VLMZF - Volcanic Gold Provides Exploration Update

(TheNewswire)



2021-11-04 - VG - NewsRelease
Shares issued 44,878,000
VG close - C$0.64c, W/C +$8.6 Million

Vancouver, British Columbia – TheNewswire - NOVEMBER 4, 2021 –Volcanic Gold Mines Inc. (TSXV: VG) reports on the progress of itsexploration activities in Guatemala.

Holly Project

The next round of drilling at Holly will focus on resource definitionat La Peña vein system which has to date delivered high-grade andconsistent drill results, including recently published:

HDD-21-017 8.83m @ 8.81 g/t Au and 355 g/t Ag( Sep 9, 2021)

HDD-21-019         1.53m @ 191.8 g/t Au and 539 g/tAg (Oct 5, 2021)

And 6.52m @ 11.72 g/t Auand 340 g/t Ag

HDD-21-020         5.40m @ 4.38 g/t Au, 350 g/t Ag ( Oct 5, 2021)

HDD-21-023 4.58m @ 79.84 g/t Au and 5,053 g/t Ag ( Oct 19,2021)

Field crews have continued detailed mapping and sampling at Hollyproject.  This work has identified new drill targets on splaystructures of the Jocotan fault where 2 large zones of mineralizedbreccia have been mapped and are coincident with high grade soil androck chip results (Figure 1).

The Company plans systematic drill testing of these new targetsincluding the Jocotan splay faults and to continue testing theextensions, both strike and dip, of La Peña vein system.  Assays arestill pending on drill holes HDD-21-024 to 028 and the samples fromthe detailed rock chip sampling of the Jocotan splay targets. Drilling will recommence at Holly once outstanding assays have beenreceived and interpreted.

As part of the ongoing community support programs, the Company iscurrently working with the local communities around Holly to increasewater supply. Several wells in the region are dry and good watersupply is a significant issue for the local villages. In co-operationwith the local communities, the Company is working on water resourceand  hydrogeological studies and assisting with improving the waterinfrastructure of the communities at the Holly project.

Figure 1 : Holly Project geologicalMap with Au geochemistry


Click Image To View Full Size

Banderas Project

At Banderas the planned drill program has been suspended while theCompany works on access agreements with an adjoining community. TheCompany has access agreements in place with the community covering thedrill project at Banderas, but further consultation and work isrequired with an adjoining community to ensure the benefits of theproject are spread out and all affected communities in the areaconsent.

Regional Exploration

Evaluation of the Volcanic / Radius joint venture’s regional licenseapplications has resulted in the discovery of the first new projectfor advancement.  Along the Motagua fault, 40km north of Hollyproject, the Company has identified two large areas (150m x 200m and200m x 200m) covered by sub-cropping quartz vein boulders withexceptionally high-grade gold mineralization. The entire area isdensely covered by boulders ranging in size up to maximum 3m diameter.Samples range from anomalous gold up to 320 g/t. Within these twodistinct zones a total of 60 subcrop rock chip samples have beenassayed. 26 samples grade over 10 g/t Au including 17 samples over 30g/t Au, of which 13 are over 50 g/t Au. Mineralization is hosted inmassive quartz veining and stockwork veining within sericite alteredschist and is interpreted to be mesothermal shear hosted gold andsilver. The project has low population density with the main targetareas having large farms with just a few private owners.  The Companyhas submitted environmental permits for drilling and granting of theexploration titles and is working on formal landowner accessagreements.

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.

About Volcanic

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.

Copyright (c) 2021 TheNewswire - All rights reserved.

Stock Information

Company Name: Volcanic Metals Corp
Stock Symbol: VLMZF
Market: OTC
Website: volgold.com

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