VG:CC - Volcanic Gold update on drilling at Mila Gold Discovery Guatemala
(TheNewswire)
News Release
Shares issued 45,551,210
VG close - C$0.255
March 4, 2024 – TheNewswire - Vancouver, British Columbia – Volcanic Gold Mines Inc.(TSXV-VG) (“Volcanic” or the “Company”) and joint venturepartner Radius Gold Inc. (TSXV: RDU) are pleased to present an updateon the first-pass drilling campaign that is ongoing at the MotaguaNorte Project.
Drilling to date has confirmed that the broad area ofboulder float with abundant visible gold and bonanza grade assayresults discovered by Company geologists is underlain by aserpentinite package, and that all of the colluvial boulders of quartzand schists bearing the high-grade gold values have likely moveddownslope from a major structural corridor that we have named the VetaMadre Fault Zone.
The Veta Madre Fault contains a wide quartz vein thathas been known for some time, and where sampled, has returnedrelatively high silver and lead results but poor gold numbers. It isa massive vein, forming in places a vertical, impassable wall. Flutemarks and slickensides on the vein show near-vertical fault movement.However, in the area uphill from the Mila quartz float field, the veinis not exposed. The drill program conducted to date has cut 6 m to15 m of colluvium composed of quartz and schist float, bearing visiblegold in places, before passing from this colluvium into a serpentinitepackage. With the drill data in hand it appears that the greenschists and serpentinite contact is at the Veta Madre Fault Zone, andthe Mila zone within this major structural corridor is the target tobe tested. Drilling of this target is underway and drill pads arebeing prepared along the strike of the structure.
Map showing the extent of thecolluvial fan of bonanza-grade gold mineralized quartz boulders at thefoot of a broken section of the Veta Madre Fault Zone. Drill pads(black circles) with planned drill direction to the southwest (blacklines) shown.
This presents an exciting picture: the Motagua Norteproject has geological similarities to the Motherlode and GrassyValley type orogenic systems of California, hosted in metamorphicrocks along plate boundary faults, often in close association withserpentine rocks. These systems are known for quartz veining withcoarse visible gold and high-grade ore shoots, that can have extensivevertical depth components. For example: the historic Empire Mine inCalifornia was mined to over 1km depth and produced 5.8Moz at anaverage grade of 19 g/t Au 1 .
As we previously reported, the Mila discovery presentsan unusual challenge for exploration but an exceptional opportunity. The abundance of gold-mineralized quartz boulders covering thesurface makes it difficult to map-out, measure and model the goldmineralized structures . Of approximately 420 rock chip samples collected at surface acrossthe area over one hundred returned assays exceeding 10 g/t gold,including twenty-one of over 100 g/t gold and a maximum of 692 g/tgold. With widely distributed gold-bearing quartz at surface it isdifficult to distinguish the in-situ quartz outcrop from boulder screethat has been locally transported downhill. Inaddition to the obvious quartz veinmineralization, gold has also been observed hosted within sericitealtered and micro-veined schist with samples returning assay resultsof up to 94 g/t gold, indicating potential for significant wall rockmineralization.
The Veta Madre Fault vein exposed ina 20-30 m cliff immediately west of the Mila bonanza-grade quartzboulder colluvium field. At this locality the Veta Madre Fault dipssteeply to the north and bears fluting and slickensides indicatingdip-slip movement.
Simon Ridgway, Volcanic Gold Mines President and CEO,commented:
“ TheVolcanic team continues its dedication to the project; the more wework the more we learn. This recent geological interpretation hassignificance for the belt as we see similar structural settings inmany of the zones we have sampled along the belt.
The team is facing the challenge ofworking within communities where some have been persuaded by reportsand information supplied by NGO’s that mining is bad. This challengerequires a constant effort to inform the community to counteractmisinformation and erroneous assumptions. However, people want work,and they want to work in their own backyard and not be drawn bynecessity to travel to North America to feed their families.Exploration and mining can provide work opportunities. The team isgathering support from all areas to inform and show the positiveinfluence that mining can bring to the area.”
About the Motagua Norteproject
The Motagua Norte project is a gold system hosted byschists of the Motagua suture zone, an east-west striking belt ofmetamorphic rocks that outcrops at the line of collision between theNorth American and Caribbean tectonic plates.
Volcanic Gold Mines has an option agreement with RadiusGold Inc. to earn a 60% interest in the Cirilo I exploration licenceand other licences under applications and negotiation within theMotagua Norte project, as well as the Holly Project where the jointventure has established a high-grade epithermal gold resource 60kmnorth of the Cerro Blanco Gold Deposit. (See news release Sept. 18,2023).
Technical Information
Luc English PhD, who is a Chartered Geologist andFellow of the Geological Society of London, is the Company’sQualified Person as defined by National Instrument 43-101 - Standardsof Disclosure for Mineral Projects. Dr. Englishhas reviewed and approved the technical information contained in thisnews 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.
Simon Ridgway, President and CEO
Neither the TSX Venture Exchange nor i ts Regulation Services Provider (asthat term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy oraccuracy of this release.
Forward-looking statements
Certain statements contained in this news releaseconstitute forward-looking statements within the meaning of Canadiansecurities legislation. All statements included herein, other thanstatements of historical fact, are forward- looking statements andinclude, without limitation, statements about the Company’s plansfor its property interests in Guatemala. Often, but not always, theseforward-looking statements can be identified by the use of words suchas “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 negativevariations.
Forward-looking statements involve known and unknownrisks, uncertainties and other factors which may cause the actualresults, performance or achievements of the Company to be materiallydifferent from any results, performance or achievements expressed orimplied by forward-looking statements. Such uncertainties and factorsinclude, among others, the uncertainties inherent in the mineralresource estimates; whether the Company’s planned exploration workwill be proceed as intended; whether the Company’s plan for itsproperty interests in Guatemala will proceed as intended; changes ingeneral economic conditions and financial markets; the Company or anyjoint venture partner not having the financial ability to meet itsexploration and development goals; risks associated with the resultsof exploration and development activities, estimation of mineralresources and the geology, grade and continuity of mineral deposits;unanticipated costs and expenses; and such other risks detailed fromtime to time in the Company’s quarterly and annual filings withsecurities regulators and available under the Company’s profile onSEDAR+ at www.sedarplus.ca . Although the Company hasattempted to identify important factors that could cause actualactions, events or results to differ materially from those describedin forward-looking statements, there may be other factors that causeactions, events or results to differ from those anticipated, estimatedor intended.
Forward-looking statements contained herein are basedon the assumptions, 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 willprove to be accurate, as actual results and future events could differmaterially from those anticipated in such statements. Accordingly,investors should not place undue reliance on forward-lookingstatements.
1 Taylor, R.D., Monecke,T., Reynolds, T.J. and Monecke, J. 2021. Paragenesis of an orogenicgold deposit: new insights on mineralizing processes at the GrassValley District, California. Economic Geology,v. 116, no. 2, p. 323–356.
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