Volcanic Gold reports results and commencement of drilling at Holly Property 2022-02-03 VG-News Release Shares Issued 45,543,710 VG Close $0.43 W/C +$8.0 million
200 Burrard Street, Suite 650 Tel: 604.801.5432
Vancouver, BC V6C 3L6 Fax: 604.662.8829
TSX-V: VG
FOR IMMEDIATE RELEASE FEBRUARY 3, 2022
Volcanic Gold reports results and commencement of drilling at Holly Property
2022-02-03 VG-News Release
Shares Issued 45,543,710
VG Close $0.43
W/C +$8.0 million
Vancouver, British Columbia – Volcanic Gold Mines Inc. (TSXV:VG) reports results received from two
holes drilled in October 2021 at the Holly property, Guatemala.
“We are pleased to see results from the Holly property which provide positive information for our team,”
commented Simon Ridgway, President and CEO of Volcanic Gold. “We look forward to expanding the
system further with the pending assay results and the commencement of additional drilling this month.”
2021 Drilling Summary
Drillholes HDD-21-024 and 025 were drilled on the potential northern extension of the L a Peña vein
system, hosted in Paleozoic schistose rocks on the north side of the Jocotan fault zone. A trail of quartz
vein boulders, thought to be a combination of float and sub-crop, extended north downslope for over
500m. These two holes were drilled scissor under this boulder trail to confirm the northern extension of
the La Peña vein system. While apparent structural zones hosting weak mineralization were intersected
in both holes, with results up to 1.53m of 207 g/t Ag in hole 024, no significant gold mineralization was
returned from these holes.
With the continued drilling of the La Peña vein, Volcanic geologists have better defined the structure .
The vein’s strike and dip in relation to the topography would indicate the vein passes east of the quartz
float trail and drill holes HDD-21-024 and 025, and therefore, remains open and untested to the north in
the Paleozoic schistose rocks. However, apart from hole HDD-21-015 that cut 15.55m @ 7.67 g/t Au and
615 g/t Ag in the schistose rocks, no other holes have returned strong mineralization in this rock unit.
Results from holes HDD -21-026 to -029 are still pending . Like many companies in the sector, we are
suffering from significant laboratory turn-around times. To mitigate this, we have shipped equipment into
Guatemala in order to crush our own drill core and surface rock samples. This allows us to ship directly to
the assay laboratory eliminating the long waits at the preparatory lab.
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Upcoming Drilling Plan
Drilling will commence within the first week of February. The focus will be extending the La Pe ña vein
system to the south in the younger volcanics and sediments where hole HDD-21-023 cut 4.58m @ 79.84
g/t Au and 5,053 g/t Ag , 200m south of Hole HDD -21-015 reported above. We will also target
mineralization down dip along the 200m strike so far established.
Drill holes are also planned at the El Pino vein where previous drilling intersected significant results up to
4.23m @ 4.0 g/t Au, 136 g/t Ag from veins and veinlets at much higher elevations. Drilling is also planned
at the undertested large Ipala structure where anomalous gold/silver has been defined in soil and rock
samples over several hundred meters.
Regional Exploration
Regional work continues to identify new target areas, especially along the Motagua Norte structural zone
where prospects continue to demonstrate visible coarse gold in stream sediments and in rock crushed in
the field and panned . The delays in laboratory turn around time have allowed us to return to this basic
method that generated the gold rushes of old. Results of this work are indicating that this is an important
target area that we have mapped over several kilometers. The contact of serpentinite bo dies with
metamorphosed volcanic rocks appears to localize the quartz bearing fluids that are associated with free
gold yielding values up to 320 g/t Au.
The Company is working with environmental consultants to complete the stu dies needed to have the se
concessions granted with Q1 2022.
Banderas Property
At Banderas the Company continues the effort to regain the social licence in order to continue with the
exploration work that generated excellent result previously. The communities at Banderas suffer from
significant poverty and unemployment, and a large percentage of the local population would like to s ee
us return, generat e employment and assist with community development and infrastructure . The
Company has access agreements in place with the community covering the drill project, but further
consultation and work is required.
Technical Information
Bruce Smith, M.Sc. (Geology), a me mber 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
Diamond drilling at Holly project followed industry standard procedures for 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. Sa mple intervals are generally 1m intervals, producing
samples of between 2 to 9 kg. Half -core samples are delivered to the 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 analyzed 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 routinely entered into the
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drill core sample stream to monitor laboratory performance. Quality control samples submitted were
returned within acceptable limits.
About Volcanic
Volcanic brings together an experienced and s uccessful 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 s ilver
resources, and by undertaking effective exploration and drill programs, Volcanic intends to become a
leading gold -silver company. Volcanic is a member of the Gold Group of companies, led by Simon
Ridgway.
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 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 expl oration 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 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 e xploration 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
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hereof and the C ompany 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.