Volcanic Gold Provides Exploration Update 2021-11-04 - VG - News Release Shares issued 44,878,000 VG close - C$0.64c, W/C +$8.6 Million
200 Burrard Street, Suite 650 Tel: 604.801.5432
Vancouver, BC V6C 3L6 Fax: 604.662.8829
TSX-V: VG
FOR IMMEDIATE RELEASE NOVEMBER 4, 2021
Volcanic Gold Provides Exploration Update
2021-11-04 - VG - News Release
Shares issued 44,878,000
VG close - C$0.64c, W/C +$8.6 Million
Vancouver, British Columbia – Volcanic Gold Mines Inc. (TSXV: VG) reports on the progress of its
exploration activities in Guatemala.
Holly Project
The next round of drilling at Holly will focus on resource definition at La Peña vein system which has to
date delivered high-grade and consistent drill results, including recently published:
HDD-21-017 8.83m @ 8.81 g/t Au and 355 g/t Ag (Sep 9, 2021)
HDD-21-019 1.53m @ 191.8 g/t Au and 539 g/t Ag (Oct 5, 2021)
And 6.52m @ 11.72 g/t Au and 340 g/t Ag
HDD-21-020 5.40m @ 4.38 g/t Au, 350 g/t Ag (Oct 5, 2021)
HDD-21-023 4.58m @ 79.84 g/t Au and 5,053 g/t Ag (Oct 19, 2021)
Field crews have continued detailed mapping and sampling at Holly project. This work has identified
new drill targets on splay structures of the Jocotan fault where 2 large zones of mineralized breccia have
been mapped and are coincident with high grade soil and rock chip results (Figure 1).
The Company plans systematic drill testing of these new targets including the Jocotan splay faults and to
continue testing the extensions, both strike and dip, of La Peña vein system. Assays are still pending on
drill holes HDD-21-024 to 028 and the samples from the detailed rock chip sampling of the Jocotan splay
targets. Drilling will recommence at Holly once outstanding assays have been received and interpreted.
As part of the ongoing community support programs, the Company is currently working with the local
communities around Holly to increase water supply. Several wells in the region are dry and good water
supply is a significant issue for the local villages. In co -operation with the local communities, the
Company is working on water resource and hydrogeological studies and assisting with improving the
water infrastructure of the communities at the Holly project.
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Figure 1: Holly Project geological Map with Au geochemistry
Banderas Project
At Banderas the planned drill program has been suspended while the Company works on access
agreements with an adjoining community. The Company has access agreements in place with the
community covering the drill project at Banderas, but further consultation and work is required with an
adjoining community to ensure the benefits of the project are spread out and all affected communities
in the area consent.
Regional Exploration
Evaluation of the Volcanic / Radius joint venture ’s regional license applications has resulted in the
discovery of the first new project for advancement. Along the Motagua fault , 40km north of Holly
project, the Company has identified two large areas (150m x 200m and 200m x 200m) covered by sub-
cropping quartz vein boulders with exceptionally high-grade gold mineralization . The entire area is
densely covered by b oulders rang ing in size up to maximum 3 m diameter . Samples range from
anomalous gold up to 3 20 g/t. Within these two distinct zones a total of 60 subcrop rock chip samples
have been assayed. 26 samples grade over 10 g/t Au including 17 samples over 30 g/t Au, of which 13
are over 50 g/t Au . Mineralization is hosted in massive quartz veining and stockwork veining within
sericite altered schist and is interpreted to be mesothermal shear hosted gold and silver. The project has
low population density with the main target areas having large farms with just a few private owners. The
Company has submitted environmental permits for drilling and granting of the exploration titles and is
working on formal landowner access agreements.
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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 27 years of mineral exploration experience and has prepared and approved the technical
information contained in this news release.
Quality Assurance and Quality Control
Volcanic Gold 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 are delivered to th e internationally certified Bureau Veritas
Mineral laboratory facilities in Nicaragua where the samples are prepared. Assays are completed by
Bureau Veritas certified laboratories. The samples are fire assayed for Au and are analy zed for Ag and
multi-elements using method code ICP following a four-acid digestion. Overlimits are analyzed using an
appropriate method. Multi -element geochemical standards and blanks are rout inely entered into the
drill core sample stream to monitor lab oratory 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. An initial
US$1M must be spent on exploration within the 12 months of receiving the required drill permits, which
expenditure will include 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 pot ential 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
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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 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 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 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 diffe r 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 assumpt ions, 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.