2021-09-09 -VG - News Release Shares issued 44,600,000 VG close - C$0.39c, W/C +$9 Million
200 Burrard Street, Suite 650 Tel: 604.801.5432
Vancouver, BC V6C 3L6 Fax: 604.662.8829
TSX-V: VG
FOR IMMEDIATE RELEASE SEPTEMBER 9, 2021
Volcanic Gold Drills 6.52m @ 16.31 g/t Au at Holly
2021-09-09 -VG - News Release
Shares issued 44,600,000
VG close - C$0.39c, W/C +$9 Million
Vancouver, British Columbia – Volcanic Gold Mines Inc. (TSXV: VG) is pleased to report further high grade
drill results from step out drilling from La Peña vein at the Holly Project in Guatemala.
Highlights:
HDD-21-017 from 134.25 to 139.00 returns 8.83m @ 8.81 g/t Au and 355 g/t Ag
HDD-21-019 from 171.90 to 178.42 returns 6.52m @ 16.31 g/t Au and 55* g/t Ag
HDD-21-020 from 61.70 to 67.10 returns 5.40m @ 5.91 g/t Au and 70* g/t Ag
Results from the Holly project drilling have been received for holes up to HDD -21-020 and consistently,
the deeper holes return better results, with mineralization open to the south/north and down dip.
A table of 2021 holes drilled at La Peña is set out below:
DRILLHOLE
FROM
(m)
TO
(m)
INTERVAL
(m)
GOLD
(g/t)
SILVER
(g/t)
HDD-21-001 46.10 47.70 1.60 24.10 568
and 53.70 60.60 6.90 4.90 85
HDD-21-002 95.15 106.27 11.12 6.29 282
including 95.15 98.00 2.85 15.50 342
including 102.35 105.22 2.87 8.08 633
HDD-21-003 101.85 112.50 10.65 5.29 256
HDD-21-004 119.5 143.50 24 3.10 694
including 131.40 133.67 2.27 9.79 2035
including 136.00 137.85 1.85 5.60 2801
HDD-21-004 154.02 163.17 9.15 - 380
HDD-21-14 52.22 54.75 2.53 2.90 108
including 57.70 59.80 2.10 3.60 92
HDD-21-015 108.65 124.20 15.55 7.67 615
including 108.65 115.90 7.25 16.20 848
HDD-21-016 77.00 79.00 2.00 4.15 154
HDD-21-017 134.25 143.08 8.83 8.81 355
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HDD-21-018 71.67 73.20 1.53 1.81 57
HDD-21-019 28.97 30.50 1.53 100* 100*
and 171.90 178.42 6.52 16.31 55*
including 172.90 176.60 3.70 28.31 73*
HDD-21-020 61.70 67.10 5.40 5.91 70*
including 63.00 64.00 1.00 29.41 100*
and 131.00 134.20 3.20 - 100*
Note: As indicated by * symbols, some samples from HDD -21-019 and HDD -21-020 are still
pending final results that returned over 100 g/t silver and or 100 g/t gold . Final gold and silver
assay results are expected soon and will likely increase the weighted averages for these intercepts.
Reported intervals are drilled width. True width is estimated at 80% of true width.
To date the La Peña vein has been tested over a strike length of 220m and a vertical depth up to 200m.
Drilling has encountered variable gr ades within the vein although most holes that intercept the vein
deeper return high grades. The drill will be turning again on the 15th of September and the focus of the
program will be to confirm depth and strike continuity to establish a high grade maiden resource.
The La Peña is one of many north -south veins that cross the regional Jocotan plate bounding fault.
Mineralization controls at the Holly project are still not well understood but consistently where drilling
intersects the north-south veins within Jocotan fault breccia, the mineralization and gold-silver grades are
the strongest. A major focus of the upcoming drilling will be to not only confirm mineralization in La Pena
and other veins, but to test the extensive breccia in the plate bounding Jocotan fault.
Figure 1. La Peña Zone; Long Section:
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Technical Information
Bruce Smith, M.Sc. (Geology), a member of the Australian Institute of Geoscientists, is Volcanics’s
Qualified Person as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
Mr. Smith has 27 years of mineral exploration experience and has prepared and approved the technical
information contained in this news release.
Quality Assurance and Quality Control
Volcanic Gold follows industry standard procedures for diamond core drilling and analysis. Drilling is
carried out using NQ and HQ size tooling. Drill core is cut in half using a rock saw with one -half of the
core then taken as a sample for analysis. Sample intervals are generally 1m intervals, producing samples
of between 2 to 9 kg. Half-core samples are delivered to the internationally certified Bureau Veritas
Mineral laboratory facilities in Nicaragua where the samples are prepared. Assays are completed by
Bureau Veritas in Canada . The samples are fire assayed for Au and are analysed for Ag and multi -
elements using method code ICP following a four-acid digestion. Overlimits are analysed using an
appropriate method. Multi -element geochemical standards and blanks are rout inely entered into the
drill core sample stream to monitor laboratory performance. Quality control samples submitted were
returned within acceptable limits.
Terms of Guatemala Radius Gold and Volcanic Gold Mines option
Pursuant to an option agreement signed in May 2020 with Radius Gold Inc. (TSXV:RDU), Volcanic can
earn a 60% interest in the Holly and Banderas projects by spending the cumulative amount of US$7.0
million on exploration of the properties within 48 months from the date of the agreement. An initial
US$1M must be spent on exploration within the 12 months of receiving the required drill permits, which
expenditure will include a minimum 3,000m of drilling on the properties.
Following the exercise of the Option, Volcanic will enter into a standard 60/40 Joint Venture in order to
further develop the Properties. Volcanic has also been granted an exclusive right to evaluate all other
property interests of Radius in Guatemala with a right to acquire an interest in any or all other such
properties on reasonable terms.
About Volcanic
Volcanic brings together an experienced and successful mining, exploration and capital markets team
focused on building multi-million-ounce gold and silver resources in underexplored countries. Through
the strategic acquisition of mineral properties with demonstrated potential for hosting gold and silver
resources, and by undertaking effective exploration and drill programs, 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
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Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts
responsibility for the adequacy or accuracy of this release.
Forward-looking statements
Certain statements contained in this news release constitute forward -looking statements within the meaning of
Canadian securities legislation. All statements included herein, other than statements of historical fact, are forward-
looking statements and include, without limitation, statements about the Company’s plans for exploration work in
Guatemala. Often, but not always, these forward looking statements 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”, or statements that events, “could” or “should” occur or be achieved 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 different from any results,
performance or achievements expressed or implied by forward -looking statements. Such uncertainties and factors
include, among others, whether the Company’s planned exploration work will be proceed as intended; changes in
general economic conditions and financial markets; the Company or any joint venture partner not having the
financial ability to meet its exploration and development goals; risks associated with the results of exploration and
development activities, estimation of mineral resources and the geology, grade and continuity of mineral deposits;
unanticipated costs and expenses; and such other risks detailed from time to time in the Company’s quarterly and
annual filings with securities regulators and available under the Company’s profile on SEDAR at www.sedar.com.
Although the Company has attempted to identify important factors that could cause actual actions, events or results
to diffe r materially from those described in forward -looking statements, there may be other factors that cause
actions, events or results to differ from those anticipated, estimated or intended.
Forward-looking statements contained herein are based on the assumpt ions, beliefs, expectations and opinions of
management, including but not limited to: that the Company’s stated goals and planned exploration and development
activities will be achieved; that there will be no material adverse change affecting the Company or its properties; and
such other assumptions as set out herein. Forward -looking statements are made as of the date hereof and the
Company disclaims any obligation to update any forward-looking statements, whether as a result of new information,
future events or results or otherwise, except as required by law. There can be no assurance that forward -looking
statements will prove to be accurate, as actual results and future events could differ materially from those anticipated
in such statements. Accordingly, investors should not place undue reliance on forward -looking statements.