Volcanic advances exploration of artisanal gold workings at the Mandiana Project, Guinea; identifies further mineralized target zones
200 Burrard Street, Suite 650 Tel: 604.801.5432
Vancouver, BC V6C 3L6 Fax: 604.662.8829
TSX-V: VG
NEWS RELEASE
Volcanic advances exploration of artisanal gold workings at the Mandiana
Project, Guinea; identifies further mineralized target zones
July 26, 2017 – Vancouver, British Columbia – Volcanic Gold Mines Inc. (“Vol canic”) (TSXV: VG) is
pleased to report details of its mapping and prospecting program at its Mandiana Project in Guinea. Recent
field activities have focused on a linear zone of artisanal workings 6.3km in length and up to 550m in width
at Tadibakourou, at which coarse gold has been recovered from numerous shallow pits and shafts.
Figure 1 below illustrates the extent and orientation of ar tisanal activity at Tadibakourou relative to workings
and the current Resource at the Yagbelen and Woyandian zones (see Volcanic news release November 8,
2016). Mapping during the 2017 field program has led to the identification of numerous artisanal pits and
shafts from which gold is routinely recovered from vein quartz material by means of gravitational
concentration. Anecdotally, gold recoveries of up to 2kg per shaft – some of which extend to depths in
excess of 70m - are reported. The workings fall in close north-south alignment to one another, and
frequently associate with large, readily discernible haloes of white kaolinitic alteration (Figures 4, 5, 7 and 8)
which further facilitate their mapping. Mineralizatio n at Tadibakourou, Yagbele n and Woyandian is now
interpreted to relate to a series of sub-structures within a broader mineralizing structural trend, shown in red
on Figure 1. Figures 2 and 3 show workings at each of these deposits in greater detail, and from these,
important inference as to the resource potential of Tadi bakourou can be made. It is anticipated that further
structural and targeting detail will arise from Volcan ic’s forthcoming high-resolution airborne magnetic
survey of the property. The Tadibakourou deposit will be tested by means of air-core drilling in the final
quarter of 2017, as the next step moving the deposit to r esource definition. It is envisaged that a similar
exploration approach as deployed by Volcanic as at Ya gbelen (see news release July 12, 2017) be adopted in
drilling at Tadibakourou.
Of great significance is that artisanal working at Mandiana is seen to follow the same north-south
mineralized trend common in known deposits in the re gion, including the Siguiri Mine, 80km to the north.
Past drilling beneath approximately 1km of strike length of such workings at Mandiana led to definition of a
Resource, as well as numerous outlying bedrock and saprolitic gold occurrences. More recently, air-core
drilling by Volcanic has identified a mineralized strike projection of approximately 500m to both the north
and south of the Resource (news release July 12, 2017 ). Results of air-core drilling from a further 1,250m of
strike potential of this trend are awaited.
Artisanal workings are typically shallow, sparsely popul ated, and restricted to examination of laterite and
saprolite above the water table. Due to the shallow occurrence of coarse gold in the laterite, artisanal diggers
make highly effective and meticulous use of metal detectors in their sear ch for gold (Figure 9). Having
identified gold and quartz rubble, diggers then excavate in search of further vein material and gold. Many
kilometers of artisanal workings remain to be drill tested.
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About the Mandiana and WAMA Projects
In January 2017, Volcanic acquired an indirect 75% in terest in a Guinean entity, Guiord SA, which owns
100% of the Mandiana Project in Guinea. The remaini ng 25% interest in the Mandiana Project is held by
SOGUIPAMI, a Guinean government-owned business entity fo rmed to conduct mineral exploration projects.
In April 2017, Volcanic entered into a binding letter agreement to acquire 80% of WAMA, a private Guinean
company, the landholdings of which together adjoin th e entire length of the southern boundary of, and lie
within the same mineralized trends as Volcanic’s Mandiana Project.
The Mandiana and WAMA Projects are underlain by geology comparable to that of many other Birimian-age
volcano-sedimentary sequences in West Africa, in wh ich gold mineralization typically exhibits a strong
relationship with major structural and hydrothermal zones. At both the Mandiana and WAMA Projects the
gold mineralization associates with a network of quartz ve ins which appear to relate to such zones, and is
located at major lithological and structural breaks. In the near vicinity and of very similar geological
character is AngloGold Ashanti’s Siguiri Gold Mine (Measured and Indicated Resources of 3.37 Moz Au
and Inferred Resources of 2.14 Moz Au). Other signif icant gold deposits and mines in the neighbouring area
include Hummingbird Resources’ Yanfolila project, Avnel’s Kalana property, and Avocent’s Tri-K project.
In 2017 RC and diamond drilling were completed within, and in the immediate surroundings of the Inferred
Mineral Resource (the “Resource”) at Yagbelen, as prev iously defined by Sovereign Mines of Africa (news
release November 8, 2016). Initial RC results of this infill program include:
• 17GRC119 - 5m @ 2.68 g/t Au from 76m (including 2m @ 4.61 g/t Au from 78m)
• 17GRC120 - 1m @ 50 g/t Au from 1m
• 17GRC122 - 68m @ 2.01 g/t Au from 89m (including 9m @ 3.76 g/t Au from 91m, 6m @ 4.03 g/t
Au from 122m and 6m @ 4.93 g/t Au from 143m)
• 17GRC123 - 14m @ 2.73 g/t Au from 61m, and 15m @ 1.21 g/t Au from 79m
As well as serving to infill the Resource, the RC and diamond drilling has also allowed Volcanic to gather
extremely valuable information on the geological contro ls on mineralization. Based on work completed to
date, gold mineralization is seen to occur preferentially in a series of bedded sandstone units; these units are
repeated in all holes, and their characteristics will serv e as a key targeting tool in Volcanic’s forthcoming
resource drilling program.
Prior to cessation of work activities due to a shortage of market funding in 2013, Sovereign drilled 119 RC
and diamond drill holes for a total of 16,624 meters at the property. Drill testing included the four zones
(Yagbelen, Foulouni, Damantare and Woyondjan) that now form the basis of the Mineral Resource
calculation, as well as at other features, was completed. Results of Sovereign’s drilling programs completed
between 2011 and 2013 include:
• RCY07 - 28m @ 1.66 g/t Au from 103m
• RCY36 - 30m @ 3.15 g/t Au from 35m
• RCY37 - 40m @ 4.49 g/t Au from 150m
• RCY88 - 18m @ 1.93 g/t Au from 144m
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• RCY89 - 12m @ 2.89 g/t Au from 73m, and 19m @ 2.58 g/t Au from 104m
• RCY114 - 28m @ 6.44 g/t Au from 168m with a top cut of 30 g/t Au
One of the most notable mineralized occurrences within the WAMA Proj ect is the Farabakoura deposit.
During 2014 and 2015, WAMA drille d 89 inclined RC holes beneath lateritic artisanal workings at
Farabakoura, results1 of which include:
• FKRC003 - 7m @ 29 g/t Au from 64m (visible gold observed in RC chips)
• FKRC005 - 12m @ 40.1 g/t Au from 68m (visible gold observed in RC chips)
• FKRC006 - 6m @ 14.8 g/t Au from 74m
• FKRC035 - 4m @ 6.2 g/t Au from 52m and 6m @ 14.9g/t Au from 68m
• FKRC037 - 3m @ 9.1 g/t Au from 77m
• FKRC071 - 7m @ 103.5 g/t Au from 62m (visible gold observed in RC chips)
• FKRC074 - 6m @ 17 g/t Au from 71m
• FKRC075 - 6m @ 6.7 g/t Au from 69m
• FKRC076 - 6m @ 18.2 g/t Au from 81m
• FKRC087 - 6m @ 65.8 g/t Au from 43m
Air-core drilling has been successfully deployed in th e identification of extensions to the north, east and
south of the Yagbelen Resource, in which regard it has defined a further 1,000m of strike potential. Initial
air-core results clearly illustrate the strike con tinuation of a strongly anomalous gold mineralization
extending approximately 500m to both the north and south of the Resource, as well as laterally, 500m to its
east.
The weathering profile at the property extends in pla ces to depths in excess of 200m from surface, producing
friable, oxides material which beneath the lateritic profile is very easy to dig.
1The reader is advised that the above results are historic in nature and are yet to be verified by Volcanic.
About Volcanic
Volcanic brings together a deeply experienced and successful mining, exploration and capital markets team
focused on building a multi-million ounce gold resource in the underexplored West African country of
Guinea and its neighbouring countri es. Through the strategic acquis ition of mineral properties with
demonstrated potential for hosting gold resources, a nd by undertaking effectiv e exploration and drill
programs, Volcanic is seeking to become a leading junior gold resource company.
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Qualified Person
Mr. Simon Meadows-Smith is a Qualified Person as defined by “National Instrument 43-101 - Standards of
Disclosure for Mineral Projects” and has approved the disclosure of the scientific and technical information
contained in this news release. Mr. Meadows- Smith holds a BSc degree in geology from Nottingham
University, England, and has been involved in mineral exploration since 1988, including 20 years of
experience working in West Africa. He is a Fellow in good standing of the Institute of Materials, Minerals &
Mining in London.
For further information, contact Alex Langer, the Co mpany’s VP Capital Markets, at 604-765-1604, or visit
our website at www.volgold.com.
Volcanic Gold Mines Inc.
Jeremy Crozier, President
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 exploration plans for the Mandiana
Project. 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 exploration work on the Mandiana Project will 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 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 exploration work on the Mandiana Project will proceed
as intended; 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 forwar d-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.
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Figure 1: Mapping of artisanal workings and prospective mineralization at Mandiana and WAMA.
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Figure 2: Detailed mapping of the Yagbelen and Woyandian prospects showing distribution of
artisanal workings and drill targets relative to the Resource (in magenta).
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Figure 3: Detailed mapping of the Tadebakouro prosp ect showing distribution of artisanal workings,
vein occurrences in outcrop (in Yellow) and drill targets.
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Figure 4: Extensive artisanal workings in laterite at Tadibakourou. White kaolinitic clays seen in spoil
piles associate with quartz veining, and readily delineate linear mineralized trends.
Figure 5: Artisanal pitting south of existing Resou rce at Yagbelen. Pits are aligned perpendicular to
the strike of mineralized quartz veining, seen in abundance in spoil piles.