Volcanic reports 14.8m @ 3.96 g/t gold and 1,097 g/t silver, including 2.2m @ 9.79 g/t gold and 2,035 g/t silver, and 1.85m @ 5.6 g/t gold and 2,801 g/t silver at Holly Project, Guatemala
Vancouver, British Columbia – Volcanic Gold Mines Inc. (TSXV: VG) is pleased to report further high grade drill results from La Peña vein at the Holly Project in Guatemala.
Hole HDD-21-004 at La Peña vein intersected 14.8m at 3.96 g/t Au and 1,097 g/t Ag. This is the deepest intercept on the La Pena vein system to date with silver grades increasing with each step down.
Additionally, below the La Peña vein drill hole 4 cut a zone of disseminated silver mineralization grading 378 g/t Ag over 9.15m within the footwall of the vein (not included in the reported intercepts). This silver mineralization was finely disseminated in altered volcanic rocks without significant veining. The overall silver interval with La Peña vein and footwall disseminated silver mineralization returned 34.6m at 574 g/t Ag. The hole stopped a few meters after the disseminated silver interval, with the final meters not assayed.
This new style of silver-only disseminated mineralization was not previously recognized on the property. Holly has a multi-phase mineralizing system with silver/gold ratios from 1-to-1 to 1,000-to-1 indicating multiple mineralizing pulses. As well, new veins are being intersected in the drilling unmapped at surface, with some exhibiting visible gold and ginguro banded sulfides in the core.
Simon Ridgway, Volcanic’s President and CEO, commented: “It is great to see La Peña vein developing as a robust gold/silver system. We are currently drilling hole HDD-21-021, stepping out along strike of La Peña vein which does not appear to be a narrow shoot.”
Assays received from holes HDD-21-005 / 006 / 007 / 008, which targeted the El Pino vein system, cut weaker mineralization. However the El Pino vein zone is exposed over 100m higher than La Peña, so it may warrant more work.
The next assays due to be received and reported are from holes HDD-21-009 through Hdd-21-012 which tested the Alpha vein zone over a 450m strike system. Drilling appears to have intersected a robust vein and breccia with good visible banded sulphides. Currently the drill rig is back on the La Peña vein stepping out on strike and down dip.
Figure 1. La Peña Zone; Cross Section:
Figure 2. La Peña Zone; Long Section:
Bruce Smith, M.Sc. (Geology), a member of the Australian Institute of Geoscientists, is Volcanics’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 the internationally certified Bureau Veritas Mineral laboratory facilities in Nicaragua where the samples are prepared. Assays are completed by Bureua Veritas in Canada. The samples are fire assayed for Au and are analysed for Ag and multi- elements using method code ICP following a four-acid digestion. Overlimits are analysed 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% 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.
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
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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.
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