Volcanic Gold update on drilling at Mila Gold Discovery, Guatemala
200 Burrard Street, Suite 650 Tel: 604.801.5432
Vancouver, BC V6C 3L6 Fax: 604.662.8829
TSX-V: VG
March 4, 2024
Volcanic Gold update on drilling at Mila Gold Discovery, Guatemala
News Release
Shares issued 45,551,210
VG close - C$0.255
Vancouver, British Columbia – Volcanic Gold Mines Inc. (TSXV-VG) (“Volcanic” or the “Company”)
and joint venture partner Radius Gold Inc. (TSXV: RDU) are pleased to present an update on the
first-pass drilling campaign that is ongoing at the Motagua Norte Project.
Drilling to date has confirmed that the broad area of boulder float with abundant visible gold and
bonanza grade assay results discovered by Company geologists is underlain by a serpentinite
package, and that all of the colluvial boulders of quartz and schists bearing the high-grade gold
values have likely moved downslope from a major structural corridor that we have name d the
Veta Madre Fault Zone.
The Veta Madre Fault contains a wide quartz vein that has been known for some time, and where
sampled, has returned relatively high silver and lead results but poor gold numbers. It is a
massive vein, forming in places a vertical , impassable wall. Flute marks and s lickensides on the
vein show near-vertical fault movement. However, in the area uphill from the Mila quartz float
field, the vein is not exposed . The drill program conducted to date has cut 6 m to 15 m of
colluvium composed of quartz and schist float, bearing visible gold in places, before passing from
this colluvium into a serpentinite package. With the drill data in hand it appears that the green
schists and serpentinite contact is at the Veta Madre Fault Zone , and the Mila zone within this
major structural corridor is the target to be tested. Drilling of this target is underway and drill
pads are being prepared along the strike of the structure.
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Map showing the extent of the colluvial fan of bonanza-grade gold mineralized quartz boulders at the foot
of a broken section of the Veta Madre Fault Zone. Drill pads (black circles) with planned drill direction to
the southwest (black lines) shown.
This presents a n exciting picture: the Motagua Norte project has geological similarities to the
Motherlode and Grassy Valley type orogenic systems of California, hosted in metamorphic rocks
along plate boundary faults, often in close association with serpentine rocks. These systems are
known for quartz veining with coarse visible gold and high -grade ore shoots, that can have
extensive vertical depth components. For example: the historic Empire Mine in California was
mined to over 1km depth and produced 5.8Moz at an average grade of 19 g/t Au1.
As we previously reported, the Mila discovery presents an unusual challenge for exploration but
an exceptional opportunity. The abundance of gold -mineralized quartz boulders covering the
surface makes it difficult to map -out, measure and model the gold minerali zed structures. Of
approximately 420 rock chip samples collected at surface across the area over one hundred
returned assays exceeding 10 g/t gold, including twenty-one of over 100 g/t gold and a maximum
of 692 g/t gold. With widely distributed gold-bearing quartz at surface it is difficult to distinguish
the in -situ quartz outcrop from boulder scree that has been locally transported downhill. In
1 Taylor, R.D., Monecke, T., Reynolds, T.J. and Monecke, J. 2021. Paragenesis of an orogenic gold
deposit: new insights on mineralizing processes at the Grass Valley District, California. Economic
Geology, v. 116, no. 2, p. 323–356.
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addition to the obvious quartz vein mineralization, gold has also been observed hosted within
sericite altered and micro-veined schist with samples returning assay results of up to 94 g/t gold,
indicating potential for significant wall rock mineralization.
The Veta Madre Fault vein exposed in a 20-30 m cliff immediately west of the Mila bonanza-grade quartz
boulder colluvium field. At this locality the Veta Madre Fault dips steeply to the north and bears fluting
and slickensides indicating dip-slip movement.
Simon Ridgway, Volcanic Gold Mines President and CEO, commented:
“The Volcanic team continues its dedication to the project; the more we work the more we learn.
This recent geological interpretation has signific ance for the belt as we see similar structural
settings in many of the zones we have sampled along the belt.
The team is facing the challenge of working within communities where some have been
persuaded by reports and information supplied by NGO’s that mining is bad . This challenge
requires a constant effort to inform the community to counteract misinformation and erroneous
assumptions. However, people want work, and they want to work in their own backyard and not
be drawn by necessity to travel to North America to feed their families. Exploration and mining
can provide work opportunities. The team is gathering support from all areas to inform and show
the positive influence that mining can bring to the area.”
About the Motagua Norte project
The Motagua Norte project is a gold system hosted by schists of the Motagua suture zone, an
east-west striking belt of metamorphic rocks that outcrops at the line of collision between the
North American and Caribbean tectonic plates.
Volcanic Gold Mines has an option agreement with Radius Gold Inc. to earn a 60% interest in the
Cirilo I exploration licence and other licences under applications and negotiation within the
Motagua Norte project , as well as the Holly Project where the joint venture has established a
high-grade epithermal gold resource 60km north of the Cer ro Blanco Gold Deposit. (See news
release Sept. 18, 2023).
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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.
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
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) 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”, “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 , the uncertainties inherent in the mineral resource estimates; whether the Company’s
planned exploration work will be proceed as intended; whether the Company’s plan for its property interests in
Guatemala will proceed as intended; changes in general econ omic 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 miner al 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.sedarplus.ca. 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
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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.