Volcanic Gold intersects 11.4 g/t Au and 1,150 g/t Ag over 1.52 m within a broader interval of 10.68 m grading 2.07 g/t Au and 389 g/t Ag in the La Peña vein at Holly 2022-05-03 -VG - News Release Shares issued 45,543,710
200 Burrard Street, Suite 650 Tel: 604.801.5432
Vancouver, BC V6C 3L6 Fax: 604.662.8829
TSX-V: VG
FOR IMMEDIATE RELEASE May 3, 2022
Volcanic Gold intersects 11.4 g/t Au and 1,150 g/t Ag over 1.52 m within a
broader interval of 10.68 m grading 2.07 g/t Au and 389 g/t Ag in the La Peña
vein at Holly
2022-05-03 -VG - News Release
Shares issued 45,543,710
VG close - C$0.265, W/C +$7.5 million cash
Vancouver, British Columbia – Volcanic Gold Mines Inc. (TSXV-VG) (“Volcanic” or “the Company”) is
pleased to report additional drill results from the Holly Property, Guatemala. Complete assays have been
received for all previously pending drill holes. Full results table s and additional maps and geological
sections are available on the Volcanic website.
Highlights from recent drill results include:
La Peña vein Hole HDD-22-030 intersected 11 .4 g/t Au and 1,150 g/t Ag over 1.52m within a broader
interval of 10.68 m grading 2.07 g/t Au and 389 g/t Ag.
La Peña vein additional sampling of Hole HDD-22-022 reported 11.2 g/t Au and 522 g/t Ag over 1.53m
“The gold and silver discovery we have made at Holly is significant . T he new high-grade intercepts
demonstrate continuity within the La Pe ña vein system . Wit h final results in hand the Company is
working to complete a maiden resource calculation with the aim of showing the high value and minimal
impact of developing these resources and the concrete benefits and sustainable employment for our
local communities,” stated Simon Ridgway, President and CEO of Volcanic.
Drilling at Holly focused on extending the La Pe ña high-grade system at depth and along strike with a
goal of establishing a significant high-grade resource and improving understanding of the controls on
high-grade mineralization. The La Peña vein remains open in all directions. Several holes also cut high
grade gold in the Amber vein and Pino target at a shallow depth. The Amber vein, Pino veins, Alpha vein
and Jocotan splay targets all have significant potential and will be tested in future drill programs.
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Figure 1: La Peña Long Section with AuEq x Estimated True Width
Table 1: Holly Project: Recent drill hole assay results (HDD21-022* new results from additional sampling)
DRILLHOLE FROM
(m)
TO
(m)
INTERVAL
(m)
Est. True
Width
GOLD
(g/t)
SILVER
(g/t)
Target
HDD-21-022* 199.77 201.30 1.53 1.39 11.20 522 La Peña
HDD-21-024 56.42 57.95 1.53 0.011 207 NE
HDD-21-025 no significant intercepts NE
HDD-21-026 127 130 3.00 2.33 0.41 23 La Peña
HDD-21-028 55.6 57.95 2.35 2.14 97 Peña splay
and 247.7 248.75 1.05 0.85 2.75 112 La Peña
HDD-21-029 7.62 10.67 3.05 1.17 344 Pino
HDD-22-030 7.62 14.3 6.68 1.92 3 Peña splay
Including 9.15 12.6 3.45 3.54 3 Peña splay
HDD-22-030 28.8 29.8 1.00 0.71 8.64 10 Amber
HDD-22-030 160.12 170.8 10.68 9.81 2.07 389 La Peña
including 161.65 163.17 1.52 1.40 11.40 1150 La Peña
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Future work
The Company is working on a maiden resource calculation and will follow that with a preliminary
economic analysis aimed to show that the high -grade La Pe ña vein deposit could be mined from
underground, causing minimal surface disruption. It is envisaged that trucking of high-grade ore to a
nearby mill could minimise on-site processing and associated costs and impacts. The Company’s strategy
is to calculate an approximate value of the deposit and potential income and be able to offer concrete
benefits and much needed long term employment opportunities to the local communities. The Company
expects the Holly project can grow significantly through exploration , but at this time it is important to
define clearly the opportunity and potential impact of the project to all stakeholders. We plan to
establish significant value at Holly for all the stakeholders.
Elsewhere in Guatemala the Company is evaluating the land position optioned from Radius Gold Inc. in
May 2020. Several areas of significant promise have been identified and the Company is in the process
of getting those concessions granted and drill permitted.
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 m ulti-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
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% i nterest 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.
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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 exploration work in
Guatemala. Often, but not always, these forward looking statements can be identified by t he 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 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, 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 development goals; risks associated w ith 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 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.