(TheNewswire)
February 24, 2022 - TheNewswire - Vancouver,British Columbia - Volcanic Gold Mines Inc. (TSXV:VG) (OTC:VLMZF) regrets to report that a violent attackoccurred yesterday at the Holly Property in Eastern Guatemala wherethe Company has been drilling for the past several months. No onewas injured, however equipment was damaged.
A group of individuals, mostly young adults, gathered close to wherethe rig was working. Suddenly and without warning, a small group ofthese youngsters attacked the rig with fire bombs, setting light tothe rig, pumps and equipment, and the surrounding forest.
No one was hurt, however significant damage was done to the drill rigand equipment.
Background
In the latter part of 2021 and the first months of this year, a smallgroup of individuals from the area have been aggressively spreadingmis-information about our activities and the effects they say miningcan have in the region. The main communities covering the Hollyproject area have expressed their support of the project and theCompany has access agreements with community development councils andprivate land owners. Despite significant effort, the anti-mininggroup has been unable to gain wide community support or legally haltthe project. During the last 6 months approximately 70% of localresidents (approximately 1000 people) have attended Companyinformative tours of the project site and core shed, keeping peopleeducated about mining and informed of our activities which employ manypeople, gaining general support for the project and the Company. Unfortunately a small group has resorted to violent means to furthertheir cause.
Our team has also been making good progress working with Central andLocal governments and has set a date in March when the PresidentialCommission for Peace and Human Rights will hold a number of technicalsessions where all the parties can present the facts . The dialogue will be attended byChiquimula’s Governor and Mayors, and will be under the direction ofthe Commission. Representatives of the Ministry of Energy and Mines,Ministry of the Environment, Ministry of Health, as well as the localauthorities of the villages in the area of influence are expected toattend and address issues of concern.
Simon Ridgway, Volcanic’s President and CEO, commented: “This is avery unfortunate incident, and it certainly has implications in thenear term for the Company and for future drilling of the Hollyproperty. We have been organizing technical sessions to start inMarch where the Presidential Commission will hold round tables in thearea of Holly and Banderas to discuss the benefits of advancingmineral exploration in the region and provide opportunities for thesmall minority to present their concerns. We are looking forward tothose sessions and hope they will result in greater support for theCompany’s exploration work in the area.”
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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