Volcanic files NI 43-101 technical report for Initial Resource Estimate at Holly Project, Guatemala
200 Burrard Street, Suite 650 Tel: 604.801.5432
Vancouver, BC V6C 3L6 Fax: 604.662.8829
TSX-V: VG
FOR IMMEDIATE RELEASE July 27, 2022
Volcanic files NI 43-101 technical report for Initial Resource Estimate at Holly
Project, Guatemala
News Release
Shares issued 45,551,210
VG close - C$0.23
W/C +$6.5 million cash
Vancouver, British Columbia – Volcanic Gold Mines Inc. (TSXV-VG) (“Volcanic” or “the Company”) is
pleased to advise that it has filed on SEDAR a NI 43 -101 technical report in support of the recently
announced maiden Inferred Mineral Resource Estimate for the Holly property , Guatemala (see news
release June 9, 2022 ). The mineral resource estimate is effective June 7, 2022 and is reported in
accordance with the Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards (2014)
incorporated by reference in National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
Highlights
• A maiden Inferred Mineral Resource has been estimated for the first target, La Peña vein at the
Holly project, Guatemala.
• The high grade La Peña vein remains open to expansion along strike and importantly at depth,
where exceptionally high grade results have been returned.
• Multiple other drill targets remain un-tested at Holly with potential for new discoveries.
Table 1: Holly, Peña Vein Resource Estimate
(Effective date 7th June, 2022)
Category
Cut-off
grade
AuEq(2)
(g/t)
Tonnes
above
cutoff
(millions)
Gold
(g/t)
Silver
(g/t)
Gold
(oz)
Silver
(oz)
Gold
Equivalent(2)
(g/t)
Gold
Equivalent(2)
(oz)
Inferred 3.00 1.32 6.46 256 272,110 10,913,360 9.57 406,316
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Notes:
1. Resources estimated using a 3.0 g/t Gold equivalent cut-off grade and a top cap grade of 100 g/t Gold and 2,000
g/t Silver and presented on a 100%-basis
2. Gold Equivalent Au(eq) values based on Au US$1800 and Ag US$22 using formula (Au g/t + (Ag g/t*0.01222))
3. Mineral Resources which are not Mineral Reserves have not demonstrated economic viability. The estimate of
Mineral Resources may be materially affected by environmental, permitting, legal, marketing, or other relevant
issues. The mineral resources in this report were estimated using the Canadian Institute of Mining, Metallurgy
and Petroleum standards on mineral resources and reserves, definitions, and guidelines prepared by the CIM
standing committee on reserve definitions and adopted by the CIM council. Notwithstanding, to meet the
requirement that the reported Mineral Resources show “reasonable prospects for eventual economic
extraction”.
4. The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has
been insufficient exploration to define these Inferred Resources as an Indicated or Measured Mineral Resource.
It is uncertain if further exploration will result in upgrading them to an Indicated or Measured Mineral Resource
category.
5. Contained metal and tonnes figures in totals may differ due to rounding.
6. A technical report regarding the mineral resource estimation for the project will be filed by Volcanic on SEDAR
within 45 days.
The Mineral Resource Estimate is underpinned by data from 21 diamond drillholes totalling 3707m of drilling. Drill
spacing ranges between 20 and 100m. All sample data was composited to a 2D dataset (linear grade and true
thickness values) prior to analysis and estimation. The sample database and the topographic survey were reviewed
and validated by Bruce Smith, Ludving Monroy and Shawn Rastad prior to being supplied to John Arthur, an
independent UK based Resource Consultant. Such review and validation help to support the reliability of the estimate.
Geological domain modelling was completed by Bruce Smith and Dr John Arthur. Mineral Resource domain modelling,
grade interpolation, Mineral Resource classification and reporting of the Mineral Resource statement, was performed
by Dr John Arthur. Dr Arthur, Mr Smith, Mr Monroy and Mr Rastad are “qualified persons” within the meaning of
National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”). Block modelling was carried
out using cell dimensions of 32mE by 32mN by 8 mRL and was coded to reflect the surface topography and
mineralised zones. Density values were globally assigned into two zones, an upper zone between 50 to 100m from
surface had an average density of 2.33t/m³ and below this an average density of 2.52t/m³ was applied. The Mineral
Resource Estimate has been classified based on data density, data quality, confidence in the geological interpretation
and confidence in the robustness of the grade interpolation.
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 28 years of mineral exploration experience and has prepared and approved the technical
information contained in this news release.
Quality Assurance and Quality Control
Volcanic 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 were initially processed at a Volcanic Gold preparation facility. The
half core samples underwent primary crushing and split to produce a 250g sample under the supervision
of a company geologist and qualified person. The split sample was then air shipped to certified ALS
laboratories in Vancouver for further preparation and assay. All samples are fire assayed for Au and are
analyzed for Ag and multi -elements using method code ICP following a four-acid digestion. Overlimits
are analy zed using an appropriate method. Multi -element geochemical standards and blanks are
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routinely 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. In accordance
with the Option terms, Volcanic spent an initial US$1M on exploration within the 12 months of receiving
the required drill permits, which expenditures included 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 its property interests
in Guatemala. Often, but not always, these forward looking statements can be identified by the use of words suc h
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 act ual 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, the uncertainties inh erent in the mineral resource estimates; 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
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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 opinion s 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, excep t 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.