Volcanic Gold Commissions Technical Report on Holly Project as Part of Permit Upgrade and Continues with Stakeholder Engagement
200 Burrard Street, Suite 650 Tel: 604.801.5432
Vancouver, BC V6C 3L6 Fax: 604.662.8829
TSX-V: VG
FOR IMMEDIATE RELEASE February 8, 2023
Volcanic Gold Commissions Technical Report on Holly Project as Part of Permit
Upgrade and Continues with Stakeholder Engagement
News Release
Shares issued 45,551,210
VG close - C$0.20
Vancouver, British Columbia – Volcanic Gold Mines Inc. (TSXV-VG) (“Volcanic” or the “Company”)
is pleased to announce it has continued to advance mining studies on the flagship Holly Project
in preparation to upgrade the exploration license to an exploitation license. The Holly project has
an inferred Mineral Resource of 1.3 Mt at 6.5 g/t for 270,000 oz contained gold and 260 g/t silver
for 11 Moz contained silver, which equates to 9.6 g/t at 410,000 oz gold equivalent* (see news
release July 27, 2022). The mineral resource is supported by excellent infrastructure with a paved
road passing through the project area and is located less than 70 km from Bluestone Resources’
Cerro Blanco gold mine development project. Resource drilling and sub-surface exploration is at
an early stage: the mineralization remains open along strike and at depth, and there are several
additional mineralized veins identified at surface that have not yet been drill tested.
The Company considers that the demonstrated high-grade and good access to a nearby mine
development project means that the Holly Project has a good chance of being developed. Further
drilling will determine whether Holly will support a stand -alone mill , or if the ore should be
processed elsewhere. Based on this positive outlook the Company is applying to upgrade the
Holly exploration license to an exploitation license.
Technical studies to support the application are underway. Volcanic is continuing to monitor and
build environmental , hydrogeological, and social baseline studies for the Holly property.
Guatemalan and Mexican-based engineering companies have been commissioned to compile the
technical studies and civil engineering design for an underground mining project, with assumed
processing off-site. This study is expected to be completed in the first Quarter . The mine design
will be an early-stage concept for permitting purposes and will not meet the requirements of a
preliminary economic assessment.
-2-
As stated in previous news releases (see news releases Sep 1 and Sep 28, 2022), the Company
intends to resume drilling at the Holly property once Bluestone has been granted a permit to
build a mine at Cerro Blanco. Bluestone has issued an update on Cerro Blanco (see Bluestone
news release Oct 3, 2022). Successful permitting of the Cerro Blanco Project will demonstrate
that the Authorities and communities are ready to develop Guatemala’s consid erable precious
metal resource potential and provide the confidence required for Volcanic to resume exploration
and resource definition at Holly.
Simon Ridgway, Volcanic Gold Mines President and CEO, commented:
“Within the last 12 months, the Company has released an initial, high -grade Mineral Resource
estimate on the Holly Project and commissioned a technical report in support of applying to
upgrade the Project’s exploration license to a n exploitation license. The project would be well
serviced by the infrastructure surrounding it in a development and production scenario and these
engineering studies reflect our confidence in the future potential of this project and the steps that
we are taking to work collaboratively with the government and communities to create a brighter
future for economic and social development in the area.”
Volcanic continues to engage with local stakeholders. The Company is working hard to inform
and educate the local communities on the potential impac ts of mining exploration and
development operations with transparent and constructive dialogue regarding the job
opportunities and overall economic benefits that would be generated. At the same time, Volcanic
is actively working with the local communities to further develop and deliver impactful
community programs.
Technical Information
Luc English PhD, who is a Chartered Geologist and Fellow of the Geological Society of London, is
the Company’s Qualified Person as defined by National Instrument 43 -101 - Standards of
Disclosure for Mineral Projects. Dr English has reviewed and approved the technical information
contained in this news release.
* Gold Equivalent (AuEq) values based on US$1800 Au and US$22 Ag, using formula: gold g/t + (silver g/t*0.01222).
The Holly project mineral resource has an effective date 7 June 2022.
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$1800 and Ag$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.
-3-
About Volcanic
Volcanic brings together an experienced and successfu l 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 such
as “estimate”, “estimates”, “estimated”, “potential”, “open”, “future”, “assumed”, “projected”, “used”, “detailed”,
“has been”, “gain”, “upgraded”, “offset”, “limited”, “contained”, “reflecting”, “containing”, “remainin g”, “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, the uncertainties inherent in the mineral resource estimates; whether the Company’s
planned exploration work will be proceed as intended; whether the Company will acquire any new property interests
in Guatemala; changes in general economic conditions and finan cial 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 geol ogy, 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 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.