The Mandiana Project


The Mandiana Project consists of two contiguous prospecting permits (Mandiana North and Mandiana South), or “Permis de Recherche” as shown in Figure 1. Together these permits cover an area of over 300 square kilometres and are in good standing with the Centre for Mining Promotion and Development (CPDM) of the Republic of Guinea. The CPDM falls under the authority of the Ministry of Mines and serves as an interface between investors and the local administration. The permits give Guiord SA the right to explore for gold and other associated minerals.

Figure 1: Location of the Mandiana Project

1Mineral Resource and Ore Reserve Report, 2015, Anglo Gold Ashanti, per internal Competent Persons
2Competent Persons’ Report, Yanfolila Project, Mali, Goldfields Limited 31 December 2012 (SAMREC standards)
3Kouroussa NI 43-101 Preliminary Economic Assessment, SRK Consulting (UK) Limited, February 2012
4Competent Persons’ Report, 31 December 2014 (JORC standards)
5NI 43-101 Report on the Kalana Main Project, Kalana, Mali, Snowden Group, 30 March 2016 

Background and Work Completed

The Mandiana Project is underlain by geology comparable to that of many other Birimian-age volcano-sedimentary sequences in West Africa (Figure 2), in which gold mineralization typically exhibits a strong relationship with major structural and hydrothermal zones. At Mandiana the gold mineralization associates with a network of quartz veins which appear to relate to such zones, and is located at major lithological and structural breaks. In the near vicinity and of very similar geological character is AngloGold Ashanti’s Siguiri Gold Mine (Measured and Indicated Resources of 3.37 Moz Au and Inferred Resources of 2.14 Moz Au; see Figure 1). Other significant gold deposits and mines in the neighboring area include Hummingbird Resources’ Yanfolila project, Avnel’s Kalana property, and Avocent’s Tri-K project.

Prior to cessation of work activities due to a shortage of market funding in 2013, Sovereign drilled 119 RC and diamond drill holes for a total of 16,624 meters at the property, leading to the definition of an Inferred Resource of 16.1 Mt @ 1.18 g/t for 612,000 oz Au (SRK, 2016; see Resources for further information). Exploration data suggest that mineralization is potentially open to north, east, south and at depth. Sensitivity analysis by SRK suggests an increase in deposit grade with cut-off, for example 5.7 Mt @ 2.27 g/t for 417,000 oz Au at a higher cut-off grade of 1.0 g/t Au.

Drill testing included the four zones (Yegbelen, Foulouni, Damantare and Woyondjan) that now form the basis of the Mineral Resource calculation, as well as at other features, was completed. Sovereign made use of a very effective preliminary strategy of mapping out the active areas of orpaillage - which display a very strong north-south preferred lineation in the project area. These areas were covered by geochemical soil sampling grids, from which the most anomalous areas were then selected for drill testing. Having identified and drilled the Yegbelen and Woyondjan structures, it became clear that these structures extend south into open ground, as evidenced by the extensive orpaillage seen in this area, and it was that led Sovereign to secure the Mandiana South permit. Drilling was however completed within the Mandiana North permit only, as at the time of the program title to Mandiana South had yet to be secured.

The weathering profile at the property extends in places to depths in excess of 200m from surface, producing friable, oxides material which beneath the lateritic profile is very easy to dig.

Figure 2: Geological Setting of the Mandiana Project

Drilling Highlights

Results of Sovereign’s drilling programs (Figure 3) completed between 2011 and 2013 include:

  • RCY07 - 28m @ 1.66 g/t Au from 103m
  • RCY36 - 30m @ 3.15 g/t Au from 35m
  • RCY37 - 40m @ 4.49 g/t Au from 150m
  • RCY88 - 18m @ 1.93 g/t Au from 144m
  • RCY89 - 12m @ 2.89 g/t Au from 73m, and 19m @ 2.58 g/t Au from 104m
  • RCY114 - 28m @ 6.44 g/t Au from 168m with a top cut of 30 g/t Au

Further drilling results may be found at [Link].

Figure 3: Drilling highlights from the Yagbelen deposit

Volcanic’s Opportunity

Drilling and surface geochemical data suggest that the Resource at Mandiana is open to the north, east, south and at depth. As noted by Sovereign, a strong north-south lineation is discernible in artisanal workings (or orpaillages) throughout the project area. The orpaillages project in either direction from the Resource: most notably the present Resource was discovered using this form of artisanal working as a targeting guide, and only a relatively small portion of these lineaments has been tested by drilling. Moreover, the lineaments form three distinct trends, each of up to 15 km in length (Figure 4), and are furthermore reflected in surface geochemical data, which exhibit similar linearity. As such, the potential to define and test further drill targets, in particular view of the regional metallogenic context, is significant.

In most cases the orpaillages consist of nothing more than shallow, ephemeral excavations of the laterite by small groups of orpailleurs. The recovery of coarse gold in the form of nuggets from such workings - regularly identified using metal detectors - was reported by Sovereign and forms a ready, low-cost prospecting guide. The north-south orientation of the orpaillages is of particular interest and significance, as it is concordant with the dominant structural element that gives rise to mineralization both in the Siguiri Basin, and at the Siguiri Mine1, approximately 60 km to the north of the Project.

In its summer 2017 exploration program, Volcanic will pursue an initial program of RC and oriented diamond drilling in and around the existing Yagbelen deposit area to test extensions to the system and very importantly, to obtain information on controlling structures to mineralization. This will be accompanied by an aggressive program of property-scale mapping of orpaillages, geochemical sampling, auger drilling, geophysical surveying, and equally aggressive follow up drilling in the order of 10,000m. Preliminary metallurgical recovery testing will also be initiated. Volcanic is adequately funded to pursue these programs.

1Erwann Lebrun, John Miller, Nicolas Thébaud, Stanislav Ulrich, and T. Campbell McCuaig, Structural Controls on an Orogenic Gold System: The World-Class Siguiri Gold District, Siguiri Basin, Guinea, West Africa, in Economic Geology, v. 112, pp. 73–98.

Selected Drill Intervals


Table 1: Mineral Resource Statement1,2, Mandiana Gold Project, Guinea

CategoryDomainQuantity (Mt)Gold Grade (g/t)Gold (000’oz)

1Independent Technical Report for the Mandiana Gold Project, Guinea, SRK Consulting (Canada) Inc., December 23 2016
2Mineral Resources are reported in relation to a conceptual pit shell. Mineral Resources are not mineral reserves and have not demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimate. Open pit Mineral Resources are reported at a cut-off grade of 0.3 g/t gold. Cut-off grades are based on a price of US$1,550 per ounce of gold and recovery of 95%.

SRK further noted that the Mineral Resources of the Mandiana Gold Project are sensitive to the selection of the reporting cut-off grade, for example 5.7 Mt @ 2.27 g/t for 417,000 oz Au at a higher cut-off grade of 1.0 g/t Au3. To illustrate this sensitivity, the model quantities and grade estimates are presented in Table 2 at different cut-off grades. The reader is cautioned that the figures presented in this table should not be misconstrued with a Mineral Resource Statement. The figures are only presented to show the sensitivity of the block model estimates to the selection of cut-off grade.

Table 2: Quantities and Grade Estimates at Various Cut-off Grades (Pit Constrained)4

Cut-off Grade (g/t gold)Quantity (Mt)Gold Grade (g/t)Contained Gold (000’oz)

3Not to be misconstrued as a Mineral Resource Statement
4The reader is cautioned that the figures presented in this table should not be misconstrued as a Mineral Resource Statement. The figures are only presented to show the sensitivity of the block model estimates to the selection of cut-off grade

Forward Looking Statements

This presentation may contain forward-looking statements including, but not limited to, comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles or permits, potential mineral recovery processes, and other related matters. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Volcanic Gold’s projects are at an early stage and all estimates and projections are based on limited, and possibly incomplete, data. More work is required before the Projects’ economic aspects can be confidently modelled. Actual results may differ materially from those currently anticipated in this presentation. No representation or prediction is intended as to the results of future work, nor can there be any promise that the estimates and projections herein will be sustained in future work or that the Project will otherwise prove to be economic.