VG:CC - Volcanic Gold provides update on developments in Guatemala
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Shares issued 45,551,210
VG close - C$0.20
W/C +$6.5 million cash
September 28, 2022 – TheNewswire - Vancouver, British Columbia – Volcanic Gold Mines Inc. (TSXV:VG) (“Volcanic” or the “Company”) is pleased toprovide an update on events in Guatemala.
“We continue to have a strong commitment toprogressing our interests in Guatemala. We are very encouraged bythe optimism for success by Bluestone Resources at its Cerro BlancoGold deposit and by the Guatemalan government’s strong support for mining projects andassertion to be the arbitrators of the law as they stand firmlyagainst anti-mining groups and their biased commission,” statedSimon Ridgway, President & CEO of Volcanic. “Our focus remainson advancing our projects in Guatemala and working with the supportivecommunity and government to bring robust economic benefits to theregion in an environmentally safe and socially responsible way,”continued Mr. Ridgway.
The Company recently filed an NI 43-101 technicalreport (see news release July 27,2022 ) supporting an initial InferredMineral Resource of 406,316 oz Au Eq* estimated from the first target,La Peña vein at Holly. The high grade La Peña vein remains open toexpansion along strike and at depth and several other drill targetsremain to be tested at Holly with potential for new discoveries. Reporting the resource estimate for thediscovery at the Holly property was important to show the community inGuatemala that we are developing a viable resource that will lead to apositive economic influence on the area and offer well paying, muchneeded employment for members of the community.
* Gold Equivalent (AuEq) values based onUS$1800 Au and US$22 Ag, using formula: gold g/t + (silverg/t*0.01222)
As Volcanic previously stated (see news release Sept 1,2022 ), the Company intends to resume drilling at itsHolly property once Bluestone has been granted a permit to build amine at Cerro Blanco. Bluestone has issued an update on Cerro Blanco(see Bluestone news release Sept 19,2022 ).
Bluestone has made significant progress in advancingthe Cerro Blanco Project and as a result has drawn attention fromcertain anti-mining groups known in the region for spreadingmisinformation. According to Volcanic’s research, the leadanti-mining organization brought together opposition groups from ElSalvador and other parts of Guatemala to unfairly portray publicopinion on future mining activities within the municipal limits ofAsuncion Mitta where the Cerro Blanco deposit is located. This week,however, according to local news reports (Prensa Libre/26 September)the constitutional court of Guatemala has annulled the illegitimatecommunity consultation carried out by the anti-development groups,thereby establishing legal certainty that only the Guatemala miningministry is competent to perform such consultations.
Over 25% of people in Guatemalan communities earn lessthan $1.00 per day, hence many risk their lives to travel north to tryand enter the United States to find reasonable wages to support theirfamilies. And yet international organizations voice their objectionsto any development of the country’s natural resources withoutproviding any solutions to improve the livelihoods of Guatemalans.
Progress in Guatemala
Volcanic continues to work closely with the localcommunities toward creating employment opportunities and educationaloutreach. The community’s primary areas of interest are employmentand positive projects. The Company is diligently working with thevarious community participants and is encouraged by steps taken by theCommunity Councils for Urban and Rural Development (COCODE) of Guatemala to look for further discussion. TheCOCODE is configured as the coordinating entity for participation atthe community level and is made up of residents of the correspondingcommunities.
Volcanic is currently advancing various studies andreports for the Holly property, including a hydrogeological study, anenvironmental monitoring report, and a mine design and facilityreport.
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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