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Overview

Volcanic has earned a 60% interest through an Option Agreement on a large land position in Eastern Guatemala from Radius Gold (TSX-V: RDU).

  • World class gold-silver terrain
  • Compelling projects:
    • Option Agreement with Radius Gold for Holly and Motague Norte projects
    • Holly project: initial resource defined on the La Peña vein
      • high grade gold, silver epithermal system
      • access via paved road
  • Huge regional land position
  • Multiple high-grade targets

Project History

  • Initial discoveries by Radius Gold’s geologists in 2002/3.
  • Exploratory drilling at Holly returned extensive high-grade drill intercepts indicating potential.
  • Weak gold market halts exploration.
  • In 2020 Volcanic Gold Mines entered into an option agreement to acquire Radius Gold’s properties in Guatemala.
  • Drilling re-commenced at Holly in 2021 and maiden high-grade mineral resource estimate announced in 2022.
  • Cirilo I exploration licence covering the Mila discovery granted in October 2023.
  • First pass exploratory drilling at the Mila discovery in H1 2024.

Terms of Guatemala option

The Company acquired an option agreement on a large land position in Eastern Guatemala from Radius Gold Inc with the opportunity to earn a 60% interest through the expenditure of US$7million on exploration.

On September 18, 2023, Volcanic Gold Mines and Radius Gold announced that they modified the Option Agreement signed in 2020 (see Volcanic Gold News Release September 3, 2020) to include Radius’s Motagua Norte project in exchange for the Banderas project. The work that the Volcanic team has completed to date has demonstrated that Motagua Norte is a high-grade orogenic gold system with compelling drill targets.

Highlights

Volcanic Gold fulfilled the modified Option Agreement (see News Release February 21, 2024) and earned a 60% interest in joint venture partner, Radius Gold Inc.’s Holly and Motagua Norte Properties in Guatemala by completing the required US$7 million in exploration expenditures (See News Release, August 19, 2024).

  • During the period July 2021 to July 2022 Volcanic invested over US$4.5 in exploration on the Holly Project, the majority of that was spent on drilling, and the joint venture established a high-grade epithermal gold-silver inferred mineral resource of 410,000oz at 9.6 g/t AuEq1.
  • The resource at Holly was established on the La Pena vein, which is open in all directions and is just one of many epithermal veins on the Holly property. Drilling results include exceptional high grade intercepts, such as 4.57m @ 54.24 g/t Au and 3925 g/t Ag in hole HDD-21-027 and 6.52m @ 11.72 g/t Au and 340 g/t Ag in hole HDD-21-019.
  • However, as has been previously stated, the joint venture has put exploration of the property on hold until there is advancement at the two significant precious metal deposits in Guatemala within 100 km of Holly where developments are on hold: the multi-million ounce Cerro Blanco gold deposit and the high grade silver-lead-zinc deposit at Escobal.
  • Going forward the Companies will share holding costs of the properties in Guatemala 60/40 until there is clarity of the Country’s approach to mineral exploration and mining.
  • The Volcanic team is presently reviewing opportunities in other jurisdictions.2
  1. The effective date of the Mineral Resource Estimate is June 7, 2022 and an NI43-101 Technical Report on the Holly property is filed on the Company’s website and SEDAR+ at sedarplus.ca with a reporting date of July 20, 2022.
  2. See News Release Volcanic Gold Mines Inc news release entitled: Volcanic Gold Mines completes earn-in on Guatemala properties, August 19, 2024.

Projects