Volcanic enters into option agreement to acquire gold properties in the Ivory Coast
200 Burrard Street, Suite 650 Tel: 604.801.5432
Vancouver, BC V6C 3L6 Fax: 604.662.8829
TSX-V: VG
NEWS RELEASE
Volcanic enters into option agreement to acquire gold properties in the Ivory
Coast
March 5, 2018 – Vancouver, British Columbia – Volcanic Gold Mines Inc. (“Volcanic”)
(TSXV: VG) is pleased to report that it has entered into a binding Memorandum of
Understanding (the “Agreement”) to acquire up to 100% of JOFEMA Mineral Resources SARL
(“JOFEMA”), a private company registered in the Ivory Coast . The assets of JOFEMA under
option consist of near-adjacent exploration permits and exploration permit renewals known as La
Debo and Soubr é (the “Properties”), which together cover an area in excess of 600 sq km, and
fall on a major mineralizing shear zone within one of West Africa’s fastest developing gold
provinces (Fig 1). JOFEMA holds a direct 100% interest in the Properties.
This acquisition will complement Volcanic’s existing property holdings in the Mandiana district
of Guinea, and allow the Company to benefit from a valuable consolidation opportunity in a
leading African mining jurisdiction . The Company remains committed to the advancement of its
Guinean assets.
JOFEMA has completed over 18,000 m of reverse-circulation and diamond drilling at La Debo,
as well as nearly 40,000 m of RAB, air -core and auger drilling at the property . In 2016 an
Inferred Mineral Resource1 of 9.5 million tonnes at a grade of 1.3 g/t for 396,000 ounces of gold
was defined in two small isolated bodies. This Resource has not been verified by Volcanic and
is therefore historic in nature. Over 7,500 surface geochemical samples were collected at La
Debo, and on the basis of these data , in combination with limited RAB drilling results, a number
of large, consistent targets are observable along strike from the historic Resource , and remain
largely untested (Fig 2).
Of particular interest are extensive and continuous soil geochemical anomalies occurring within
recognizable and persistent structural zones in proximity to igneous intrusions at La Debo, and
Soubré (Fig 3 ). Importantly, such a combination of circumstances gives rise to gold
mineralization of economic proportion elsewhere within the Birimian rocks of the Ivory Coast, a
notable example being the nearby Bonikro Mine (Indicated Mineral Resource of 1.3 million
ounces at 1.4 g/t Au and Inferred Mineral Resource of 0.77 million ounces at 0.92 g/t Au in
20102). The anomalies at La Debo and La Debo South cover a continuous area of approximately
10 sq km, and have been subject of minimal drill testing, which leave important mineralized
structures open laterally and at depth. At La Debo, for example, four consecutive shallow RAB
holes at 20 m intervals within the soil anomaly end in >1 g/t Au assays ; however, to date no
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follow-up of this target has occurred, and elsewhere follow -up is minimal. Further extensive
gold in soil anomalism is observed at Soubré, where it is similarly juxtaposed to geological
structures. Each of these targets provide s Volcanic with the opportunity to potentially grow its
resource1 base using existing data and low-cost conventional exploration drilling techniques.
The Properties are located in southwestern Ivory Coast, approximately 140 km southwest of the
capital, Yamoussoukro, and are accessible via all -weather roads. A power line crosses La Debo
in the vicinity of the historic Resource. In 2016 the Fraser Institute ranked the Ivory Coast first
in Africa for Investment Attractiveness (https://www.fraserinstitute.org/sites/default/files/survey-
of-mining-companies-2016.pdf).
1 The reader is advised that these results are historic in nature and are yet to be verified by Volcanic.
2 http://www.newcrest.com.au/media/resource_reserves/2011/Bonikro_Mineral_Resource_Competent_Persons_Statemen
t_250111.pdf
The Agreement
Subject to Volcanic completing satisfactory due diligence and to stock exchange approval ,
Volcanic will have the exclusive right to acqui re up to 100% of the issued shares of JOFEMA,
by incurring exploration expenditures (“Expenditures”) on the Properties over a period of three
years totaling US$5 million, and making cash and share payments to JOFEMA. Within 90 days
of the fulfilment of the Expenditures, Volcanic shall have the right to either:
(a) acquire an initial 65% interest in JOFEMA by paying US$2,000,000 in cash and
US$2,000,000 in shares of Volcanic to JOFEMA, and thereafter, continuing to fund further
exploration of the Properties . The other shareholders (the “Minority Shareholders”) of
JOFEMA may elect to co-fund such exploration pro rata to their own shareholding. Where
the Minority Shareholders do not co- fund further exploration, then Volcanic may dilute
them to 10% by incurring an additional US$3,750,000 in Expenditures.
If the Minority Shareholders are diluted to a holding of less than 10% of the total issued
share capital of JOFEMA, then Volcanic may, at any time thereafter , purchase the
remaining equity of the Minority Shareholders for US$2,000,000 in cash and
US$2,000,000 in share s of Volcanic, or Volcanic must, at the Minority Shareholders’
election at any time after a period of 6 months from when their shareholding has been
diluted, purchase the remaining JOFEMA equity for US$2,000,000 in cash and
US$2,000,000 in shares of Volcanic.
or:
(b) acquire a 100% interest in JOFEMA by paying JOFEMA US$4,000,000 in cash, and
US$4,000,000 in shares of Volcanic.
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Qualified Person
Mr. Simon Meadows -Smith is Volcanic’s 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 and Mining in London.
About Volcanic
Volcanic brings together a deeply experienced and successful mining, exploration and capital
markets team focused on building multi -million ounce gold resources in the underexplored West
African countr ies of Guinea , the Ivory Coast and their neighbouring countries. Through the
strategic acquisition of mineral properties with demonstrated potential for hosting gold resources,
and by undertaking effective exploration and drill programs, Volcanic looks to become a leading
junior gold resource company.
For further information, contact Alex Langer , the Company’s VP Capital Markets, at 604-765-
1604, or visit our website at www.volgold.com.
Volcanic Gold Mines Inc.
Jeremy Crozier, 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 li mitation, statements about the Company’s possible acquisition of
an interest in the Properties. 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 will complete the acquisition of an interest in the Properties as
planned; changes in general economic conditions and financial markets; t he 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; unantic ipated 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
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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 will complete the acquisition of an interest in the
Properties as planned; 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.
Figure 1 : Location of the La Debo and Soubré properties in the Ivory Coast relative to major
producing gold mines, and major mineralizing shear zones (represented as broken black lines).
1 The reader is advised that these results are historic in nature and are yet to be verified by Volcanic.
3,5 http://www.perseusmining.com/reserves_and_resources.66.html
4 http://www.randgoldresources.com/reserves-and-resources
6 https://www.endeavourmining.com/our-portfolio/reserves-and-resources/default.aspx
7 http://www.newcrest.com.au/media/resource_reserves/2016/December_2016_Resources_and_Reserves_Statement.pdf
Figure 2: Distribution of Historic Mineral Resources, large scale structures and principal targets at
La Debo, notably the scale and extent of geochemical feature within the structural zone.
Figure 3: Distribution of Historic Mineral Resources, and principal mineralized targets relative to
large scale structures and intrusive igneous features at La Debo and Soubré, noting that such a
combination of circumstances gives rise to gold mineraliza tion of economic proportion elsewhere
within the Birimian rocks of the Ivory Coast.