VLMZF - Volcanic Gold Reports on Drilling at Holly Guatemala
(TheNewswire)
Vancouver, British Columbia - TheNewswire - May 26, 2021 – VolcanicGold Mines Inc. (TSXV:VG) is pleased to report that the drilling atthe Holly property in eastern Guatemala is progressing well. Havingcompleted four holes at the La Pena vein zone, the rig has now beenmoved 600m east along the trace of the Jocotan Fault Zone (JFZ) totest the El Pino vein zone.
The plan for initial drilling at La Pena and El Pino targets is totest the down dip potential of the vein zones, following up on theinitial drilling that was conducted there in 2002/3. The first holein 2002 at La Pena (HDD-01) intersected a broad 14.2m intersect of 4.5g/t Au and 151g/t Ag. The follow-up hole HDD-07 drilled to cut thevein zone 25m below returned a lower grade 3m @ 3.1 g/t Au and 61 g/tAg. No further drilling has been conducted at the Holly property since2003.
It is management’s belief that the 2002/3 drilling was very limited,high in the epithermal system, and did not test the system forstructural intersections with the regional scale Jocotan fault. Volcanic’s well funded, systematic drill program targeting thedown dip potential of these shoots will lead to a better understandingof the controls on the gold mineralization within the Holly property.
The four holes completed in the present program at LaPena indicate that the narrow (0.2m to 0.3m) high grade gold/silverveins that carried the grade in the 2002 program appear to converge atdepth, indicating a potentially robust epithermal sytem exists at LaPena. However, assay results for the first three drill holes arestill 3 to 4 weeks away, and there is no guarantee that the goldcontent will continue to depth.
A cross section sketch of the recently completeddrilling at La Pena will be posted on Volcanic’s website, as well asphotographs of the core in the main zones of interest.
The Company is currently moving forward with logisticsplanning to mobilize a second drill to Guatemala to commence drillingin early June on the Banderas property, where we believe that as withHolly, historic drilling was too shallow and did not test theextensive structural zones identified.
Figure 1: Holly section showingholes HDD21-001 to 004
Technical Information
Bruce Smith, M.Sc. (Geology), a member of theAustralian Institute of Geoscientists, is Volcanics’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.
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 be spenton exploration within the 12 months of receiving the required drillpermits, which expenditure will include a minimum 3,000m of drillingon 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.
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 willproceed 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.
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