2022-02-16 -VG - News Release Shares issued 45,543,710 VG close - C$0.41c, W/C +$7.5 Million cash
200 Burrard Street, Suite 650 Tel: 604.801.5432
Vancouver, BC V6C 3L6 Fax: 604.662.8829
TSX-V: VG
FOR IMMEDIATE RELEASE February 16, 2022
Volcanic Gold drills 4.57 meters @ 54.24 g/t Gold & 3,925 g/t Silver
2022-02-16 -VG - News Release
Shares issued 45,543,710
VG close - C$0.41c, W/C +$7.5 Million cash
Vancouver, British Columbia – Volcanic Gold Mines Inc. (TSXV-VG) is pleased to report another
exceptional intercept at depth on the Holly Property, Guatemala. Hole HDD -21-027 intersected 4.57
meters (or approx. 4.1m true width) returning over 54 g/t gold and over 3.9 Kg/t silver. This hole cut the
vein at the sam e depth in the system as hole HDD -21-23 that intercepted 4.58m of 79.84 g/t gold and
5,053 g/t silver 150m to the south ( see release 19 October 2021 ). Drilling is ongoing again at Holly,
focused on extending this high -grade system at depth and along strike to the south with a goal of
establishing a meaningful high -grade resource and improving confidence in the trend of the vein
structure. Several ot her veins in the area with similar orientation will be tested during this present
program.
“Management is very pleased the La Pena vein system continues to produce these exceptional grades ,”
states Simon Ridgway, CEO of the Company. “As the secti ons below indicate, we are defining ounces
quickly with high grade intercepts.”
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Hole HDD-21-028 failed to intersect the La Pena structure but management believes it was not drilled
to sufficient depth. The hole will be re-entered within the present program to test this theory. Results
are still pending for hole HDD-21-026 as the shipment of core and rock samples that contained this hole
was caught up in delays discussed in previous news releases. Management is optimistic future turn
around on drill core will be within 45 days. A preparation lab is being set up in the region for surface
rock and soil samples.
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Technical Information
Bruce Smith, M.Sc. (Geology), a member of the Austr alian 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 completed by
Bureau Veritas certified laboratories. The samples are fire assayed for Au and are analy zed for Ag and
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 lab oratory 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
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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 Proper ties. 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 pot ential 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
include, among others, whether the Company’s planned exploration work will be proceed as intende d; 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.
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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.