VG:CC - Volcanic Gold provides update on activities in Guatemala
(TheNewswire)
News Release
Shares issued 45,551,210
VG close - C$0.235
W/C +$6.5 million cash
Vancouver, British Columbia – TheNewswire – September 1, 2022 - Volcanic Gold Mines Inc. (TSXV:VG) (“Volcanic” or “the Company”) is pleasedto provide an update on the Company’sactivities in Guatemala.
“During the summer of 2022, Volcanic delivered ourfirst inferred mineral resource estimate of over 400,000 ounces goldequivalent*,” stated Simon Ridgway, President & CEO of VolcanicGold Mines Inc. “Reporting the resource estimate for the discoveryat the Holly property was important to show the community in Guatemalathat we are developing a viable resource that will lead to a positiveeconomic influence on the area and offer well paying, much neededemployment for members of the community. We look forward to advancingour projects in Guatemala and being a positive influence towardcreating wealth and strong employment opportunities in the comingyears,” continued Mr. Ridgway.
Holly Property
The Company filed on SEDAR an NI 43-101 technicalreport (see news release July 27,2022 ) in support of the previouslyannounced maiden Inferred Mineral Resource Estimate for the Hollyproperty, Guatemala (see news release June 9,2022 ). The Mineral Resource Estimateis effective June 7, 2022 and is reported in accordance with theCanadian Institute of Mining, Metallurgy and Petroleum Definition?Standards (2014) incorporated by reference in National Instrument43-101 - Standards of Disclosure for Mineral Projects. A maidenInferred Mineral Resource of 406,316 oz Au Eq* has been estimated forthe first target, La Peña vein at Holly. The high grade La Peña veinremains open to expansion along strike and at depth. Several otherdrill targets remain to be tested at Holly with potential for newdiscoveries.
Volcanic continues to work closely with the localcommunities toward employment opportunities and educational outreach.The community’s primary areas of interest are more employment andpositive projects. The Company is diligently working with the variouscommunity participants and is encouraged by the Community Councils for Urban and Rural Development (COCODE)of Guatemala looking for further discussion. The COCODE is configuredas the coordinating entity for participation at the community leveland is made up of residents of the corresponding community.
* Gold Equivalent (AuEq) values based onUS$1800 Au and US$22 Ag, using formula: gold g/t + (silverg/t*0.01222)
Volcanic is currently advancing various studiesand reports for the Holly property including ahydrogeological study, an environmental monitoring report and a minedesign and facility report.
The Company intends to resume drilling once BluestoneResources has been granted a permit to build a mine at Cerra Blanco. Bluestone states that it continues to advanceits community engagement and socialization efforts to safeguard socialacceptance for the development of Cerro Blanco. The Company iscommitted to demonstrating responsible mining practices andformalizing social acceptance to continue advancing the Hollyproperty. Maintaining and building social acceptance in support ofachieving the environmental permit amendment by year-end remains themain objective of the Company. This permitting would be a significantevent for the Holly property.
Motagua Norte Project
At Motagua Norte, the first regional prospecting areadiscovery resulting from the Company’s 2020 agreement with RadiusGold Inc., multi-element rock chip and soil geochemistry have defineda continuous 2-3 kilometre long elevated gold trend. Samples includeanomalous gold up to 692 g/t. A substantialamount of surface work is being analyzed and interpreted. As a resultof the extremely high gold numbers coming from the surface sampling,the Company’s next step after the property concessions are grantedwill be a trenching campaign in advance of drilling. The Company iscurrently considering terms for a possible option of the Project fromRadius Gold.
The Motagua Norte Project has low population densitywith the main target areas having large farms with a few privateowners. Formal landowner access agreements are in place. Volcanic hasprepared and submitted environmental permits and is working withRadius Gold to prioritize the granting of these concessions.
Banderas Property
The Company has advanced its application for anExploitation License at the Banderas property. This includes preparinga work plan and a Mining Environmental Management plan. The Company continues to work on access agreements with anadjoining community prior to commencing any drilling at Banderas.Consultation work is required with the community to ensure thebenefits of the project are spread out and all affected communities inthe area consent.
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 reviewed and approvedthe technical information contained in this news release.
Volcanic brings together an experienced andsuccessfu l mining, exploration and capitalmarkets team focused on building multi-million -ounce gold and silver resources in underexplored 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 its propertyinterests 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, the uncertainties inherent in the mineralresource estimates; whether the Company’s planned explorationwork will be proceed as intended; changes in general economicconditions and financial markets; the Company or any joint venturepartner not 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 regulatorsand available under 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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