Volcanic reflects on recent news regarding Bluestone and the Cerro Blanco gold deposit in Guatemala, and the implications for the Holly gold discovery
200 Burrard Street, Suite 650 Tel: 604.801.5432
Vancouver, BC V6C 3L6 Fax: 604.662.8829
TSX-V: VG
FOR IMMEDIATE RELEASE 10th July, 2023
Volcanic reflects on recent news regarding Bluestone and the Cerro Blanco gold
deposit in Guatemala, and the implications for the Holly gold discovery
News Release
Shares issued 45,551,210
VG close - C$0.16
Vancouver, British Columbia – Volcanic Gold Mines Inc. (TSXV-VG) (“Volcanic” or the “Company”) On July
6, 2023, Bluestone Resources Inc. (TSX-V: BSR) outlined plans for its Cerro Blanco feasibility stage gold and
silver project in Guatemala in a news release entitled “Bluestone Announces Strategic R eview Process”.
The Bluestone news release announced that: “… the Company has commenced a process to explore and
evaluate potential strategic alternatives to further advance the Cerro Blanco gold project ” and states
further that: “These alternatives could include, among other things, the sale of part or all of the assets of
the Company, a sale of the Company, a merger or other business combination with another party, or other
strategic transaction.”1
After reviewing the news release from Bluestone, Simon Ridgway, Founder, President and CEO of Volcanic
Gold Mines stated that: “ Jurisdiction aside, the Cerro Blanco gold deposit is probably one of the more
economically attractive gold deposits in today’s market . This is a high -margin gold deposit, whether
viewed as an underground mine, with an impressive measured and indicated mineral resource of 1.41 Moz
at 10.3 g/t Au1 and 4.1 Moz at 35.6 g/t Ag2 or, as an open pit scenario with measured and indicated mineral
resources total 3.1 Moz grading at 1.5 g/t Au3 and 13.4 Moz at 6.6 g/t Ag3.”
The Cerro Blanco’s initial 2019 feasibility study, that proposed mining the deposit as an underground
mine, provided impressive economics that included an after-tax IRR of 34% and AISC of US$579/oz using
a base case of US$1250/oz gold and US$18/oz silver4.”
Volcanic Gold’s Holly discovery is located on private land about 60 km north of Cerro Blanco along a paved
highway. It has a maiden inferred mineral resource on La Peña vein, (one of many veins) of 1.3 Mt at
6.5 g/t for 270,000 oz contained gold and 11 Moz at 260 g/t contained silver, which equates to 9.6 g/t at
410,000 oz gold equivalent.*,5
As has been stated in a previous news release 6, Volcanic Gold is committed to engaging with local
stakeholders and actively working with communities to further develop and deliver impactful community
programs. Simon Ridgway, CEO commented: “Drilling was stopped at Holly due to past social unrest, when
-2-
anti-mining groups invaded the project. However, twelve months of community work appears to have
reached hearts and minds of the local population and I believe the tide is turning.”
In a mining scenario, the Holly proje ct would be mined as an underground operation with processing of
the ore remote from the location of the project. More drilling is required to determine the full extent of
the underground mineral resource: the deepest hole drilled yet on the La Peña Vein cut 4.58m of 79.84
g/t Au and 5,053 g/t Ag7 (see news release February 16, 2022). However, the Company has stated it would
not drill at Holly again until Cerro Blanco had a clear way to production, and that remains the Company’s
position.
Volcanic holds the property at Holly under a joint venture agreement with Radius Gold Inc. (TSX-V: RDU).
The Company also holds other properties in Guatemala under that same J/V agreement, and other
important discoveries have been made on that J/V property that are pendin g the granting of a mineral
concession. “While things are moving slowly, progress is being made on that front” , commented Simon
Ridgway.
Simon Ridgway further states: “ While we continue to review opportunities in other jurisdictions, we are
committed to continue our efforts in Guatemala. I have been instrumental in both the Cerro Blanco and
Holly gold discoveries, and I believe there are many more discoveries to be made in Eastern Guatemala.
Mining could create a vibrant economy in the region, creating employment while protecting the beautiful
landscape and the waters.”
(1) News Release, Bluestone Resources Inc: Bluestone Announces Strategic Review Process, July 6, 2023.
(2) News Release, Bluestone Resources Inc.: Bluestone Announces Updated Resource Estimate at Cerro Blanco;
Increases Measured & Indicated resources by 18% to 1.41Moz at 10.3 g/t Au, November 6, 2019.
(3) News Release, Bluestone Resources Inc.: Bluestone Increases Cerro Blanco Mineral Resources to 3.1Moz
gold and 13.4Moz silver, July 19, 2021.
(4) News Release, Bluestone Resources Inc., Bluestone Announces Positive Feasibility Study at Cerro Blanco
Gold Project – 34% After-Tax IRR and AISC of US$579/oz, January 19, 2019.
(5) News Release, Volcanic Gold Mines Inc. Volcanic files NI 43-101 technical report for Initial Resource
Estimate at Holly Project, Guatemala, July 27, 2022.
(6) News Release, Volcanic Gold Mines Inc, Volcanic Gold Commissions Technical Report on Holly Project as
Part of Permit Upgrade and Continues with Stakeholder Engagement, February 8, 2023.
(7) News Release, Volcanic Gold Mines Inc. -Volcanic Gold drills 4.57 meters @ 54.24 g/t Gold & 3,925 g/t Silver,
February 16, 2022.
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.
-3-
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.
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 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 goal s; 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
-4-
attempted to id entify 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.