VLMZF - Volcanic reports further high grade results from Holly Project including 15.55m @ 7.67 g/t gold and 615 g/t silver
(TheNewswire)
August 24, 2021 – TheNewswire - Vancouver,British Columbia – Volcanic Gold Mines Inc. (TSXV:VG) (OTC:VLMZF) is pleased to report further high gradedrill results from La Peña vein at the Holly Project in Guatemala.
The last hole reported from La Peña zone was hole HDD21-004, whichintersected an impressive 14.8m at 3.86 g/t Au and 1,097 g/t Ag (pressrelease July 16, 2021 ). Core adjacent to the reportedintercept that was not sampled in the original program has recentlybeen sampled and assayed. This extended the intercept in holeHDD21-004 to 24.0m @ 3.1 g/t Au and 694 g/t Ag.
Hole HDD21-014, the next hole to target La Peña structure, cut thevein zone approximately 50m below surface, 70m higher that hole 004.The hole cut broad silver intercept of 28.3m @ 42 g/t Ag with stronglyanomalous mercury and antimony with two narrow gold intervalsincluding 2.53m @ 2.90 g/t Au and 108g/t Ag, and 2.1m @ 3.60 g/t Auand 92 g/t Ag. The interpretation is that this hole cut La Peñastructure above the main ore shoot.
Hole HDD21-015 targeted La Peña structure at an elevation of 875m,50m down dip from 014 and 40m north of hole HDD21-004, within thePaleozoic phyllites. Hole HDD21-015 returned 15.55m @ 7.67 g/t Au and615 g/t Ag, including 7.25m @ 16.20 g/t Au and 848 g/t Ag.
As with the results in previous holes, gold / silver ratios from 1 to50 to 1 to 1000 indicate multiple mineralizing events.
For example: interval 108.65m to 109.65m returned 39 g/t Au and2,400 g/t Ag
interval 117.42m to118.95m returned 240ppb Au and 1,200 g/t Ag
Results to date indicate the La Peña system is improving at depthwith wider intervals and better grades than compared with the nearsurface intercepts.
Holes HDD21-016 to HDD21-025 have tested the La Peña structure over astrike length of over 300m and to depths of 200m, and the systemremains open in all directions. Results from these holes are expectedin the next two weeks.
Figure 1. La Peña Zone; Long Section:
Steep terrain at Holly Ridge requires a large local work force tomanage portable rig moves on the steep slopes. With the first rains ofthe planting season, the local workers requested and the Companyagreed that they will take time to sow their crops. As well, thedrill rig will undergo needed maintenance. The break will allowmanagement time to receive results for the ten holes pending and toplan targeting the deeper more complex intersections of the JocotanFault breccia and the La Peña vein system.
Drill holes HDD21-005 through HDD21 -013 tested El Pino and the Alphastructures. Narrow intercepts of medium and anomalous gradegold/silver were intersected. These holes tested historic surfaceanomalies. Drilling at El Pino cut the vein zone significantlyhigher than intercepts at La Peña and that may account for the narrowresults. At the Alpha zone, the system was not targeted within the200m wide Jocotan fault breccia, which drilling at La Peña indicatesmay be a key control on the mineralizing system.
Drilling will re-commence once results of holes HDD21-016 to HDD21-025have been received and the planting season is complete, likelymid-September.
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 bespent on exploration within the 12 months of receiving the requireddrill permits, which expenditure will include a minimum 3,000m ofdrilling on 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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