2021-10-19 -VG - News Release Shares issued 44,600,000 VG close - C$0.35c, 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 OCTOBER 19, 2021
Volcanic Gold drills 4.58m @ 79.84 g/t Au and 5,053 g/t Ag, in the southern
extension of the high grade La Peña vein
2021-10-19 -VG - News Release
Shares issued 44,600,000
VG close - C$0.35c, W/C +$9 Million
Vancouver, British Columbia – Volcanic Gold Mines Inc. (TSXV: VG) is pleased to report that results from
drilling in the south extension of the La Peña vein at the Holly property have returned bonanza high
grades including 4.58 @ 79.84 g/t Au and 5,053 g/t Ag. Volcanic has received results from Holly drill holes
HDD-21-021 and HDD-21-023 which targeted the La Peña vein along strike to the south and HDD-21-022,
which targeted the vein to the north. The drill has moved over to Volcanic’s Banderas Property after the
termination of hole HDD-21-029 to allow the results of the Holly drilling to be received and the next
program of holes to be planned with full results in hand.
Holly Highlights:
HDD-21-022 from 21.35m to 22.87m returns 1.52m @ 7.00 g/t Au and 48 g/t Ag
And 27.45m to 32.02m returns 4.57m @ 1.05 g/t Au and 14 g/t Ag
And 50.32m to 51.85m returns 1.53m @ 5.34 g/t Au
HDD-21-023 from 196.72m to 198.25m returns 1.53m @ 1.93 g/t Au and 171 g/t Ag
And 202.82m to 207.40m returns 4.58m @ 79.84 g/t Au and 5,053 g/t Ag
Including 204.45m to 205.70m returns 1.25m @ 289.50 g/t Au and 18,329 g/t Ag
The initial focus at the Peña vein system was to define the vein within the broad zone of the Jocotan fault
breccia, extending the mineralization down dip to the zone with consistent high grades that were
intersected in holes HDD-21-017 and 019. HDD-21-021 and HDD-21-023 were drilled to cut the Peña vein
to the south of the Jocotan fault zone. HDD -21-021 cut minor up per-level veining with weaker
mineralization including 1.18m of 0.19 g/t Au and 40 g/t Ag from 53.37 to 54.55m within felsic tuffs.
Roughly 80m down dip, HDD -21-023 cut the structure hosted in laminated mudstones where the vein
returned 4.58m @ 79.84 g/t Au and 5,053 g/t Ag. This hole confirms the strike extent of the Peña vein to
the south and demonstrates that the inter-bedded volcanics and sediments are potentially good hosts for
high grade gold and silver mineralization at Holly.
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HDD-21-022 was drilled within the footwall of Peña and did not intersect the main structure. The
significant results from 022 are footwall splay veins off Peña. It appears some fault offsets made it more
challenging to extend mineralization to the north in the Paleozoic Phyllites, although results on holes HDD-
21-026 and 027 to the north are still pending.
The drill rig will be moving over to the nearby Banderas Property in the next few days and drilling will
commence promptly. Volcanic will be targeting the deeper extensions of the major gold-silver rich veins
where the source and potential convergence zones have never been tested.
Figure 1. La Peña Zone; Long Section:
Note: Reported intervals are drilled width. Estimated true widths are published in intercept table on website
Technical Information
Bruce Smith, M.Sc. (Geology), a member of the Australian Institute of Geoscientists, is Volcanic’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 compl eted by
Bureau Veritas certified laboratories. The samples are fire assayed for Au and are analy zed for Ag and
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multi-elements using method code ICP following a four-acid digestion. Overlimits are analyzed 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
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
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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 d eposits;
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 differ 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 assumptions, 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.