VLMZF - Volcanic reports 14.8m @ 3.96 g/t gold and 1097 g/t silver including 2.2m @ 9.79 g/t gold and 2035 g/t silver and 1.85m @ 5.6 g/t gold and 2801 g/t silver at Holly Project Guatemala
(TheNewswire)
July 16, 2021 - TheNewswire - Vancouver, BritishColumbia – Volcanic Gold Mines Inc. (TSXV:VG) (OTCVLMZF) is pleased to report further high gradedrill results from La Peña vein at the Holly Project in Guatemala.
Hole HDD-21-004 at La Peña vein intersected 14.8m at 3.96 g/t Au and1,097 g/t Ag. This is the deepest intercept on the La Pena veinsystem to date with silver grades increasing with each step down.
Additionally, below the La Peña vein drill hole 4 cut a zone ofdisseminated silver mineralization grading 378 g/t Ag over 9.15mwithin the footwall of the vein (not included in the reportedintercepts). This silver mineralization was finely disseminated inaltered volcanic rocks without significant veining. The overallsilver interval with La Peña vein and footwall disseminated silvermineralization returned 34.6m at 574 g/t Ag. The hole stopped a fewmeters after the disseminated silver interval, with the final metersnot assayed.
This new style of silver-only disseminated mineralization was notpreviously recognized on the property. Holly has a multi-phasemineralizing system with silver/gold ratios from 1-to-1 to 1,000-to-1indicating multiple mineralizing pulses. As well, new veins are beingintersected in the drilling unmapped at surface, with some exhibitingvisible gold and ginguro banded sulfides in the core.
Simon Ridgway, Volcanic’s President and CEO, commented: “It isgreat to see La Peña vein developing as a robust gold/silver system. We are currently drilling hole HDD-21-021, stepping out along strikeof La Peña vein which does not appear to be a narrow shoot.”
Assays received from holes HDD-21-005 / 006 / 007 / 008, whichtargeted the El Pino vein system, cut weaker mineralization. Howeverthe El Pino vein zone is exposed over 100m higher than La Peña, so itmay warrant more work.
The next assays due to be received and reported are from holesHDD-21-009 through Hdd-21-012 which tested the Alpha vein zone over a450m strike system. Drilling appears to have intersected a robustvein and breccia with good visible banded sulphides. Currently thedrill rig is back on the La Peña vein stepping out on strike and downdip.
Figure 1. La Peña Zone; CrossSection:
Figure 2. La Peña Zone; LongSection:
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.
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 Bureua Veritasin Canada. The samples are fire assayed for Au and are analysed forAg and multi-elements using method code ICP following a four-aciddigestion. Overlimits are analysed using an appropriate method. Multi-element geochemical standards and blanks are routenely enteredinto the drill core sample stream to monitor laboratory performance. Quality control samples submitted were returned within acceptablelimits.
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 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.
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