Holly and Motagua Norte projects

Volcanic has acquired an option 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
    • Motagua Norte project: Cirilo 1 exploration license granted & Volcanic Gold funding commitment through modified Option Agreement (Sept 2023)
    • Holly project: initial resource defined on the La Pena vein
  • 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.
  • Regional prospecting at Motagua Norte re-initiated in 2021 leads to discovery of bonanza-grade Mila prospect.
  • Exploration Licence covering the bonanza-grade Mila discovery in Motagua Norte granted in September 2023.

Terms of Guatemala option

The Company has acquired an option on a large land position in Eastern Guatemala from Radius Gold Inc.

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 as Volcanic has been unable to access the Banderas property due to social issues. 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.


  • Under the modified Option Agreement, Volcanic has an option to earn a 60% interest in the Holly project and the Motagua Norte projects by spending US$7M on exploration on the properties within 48 months from March 2021, that being the date drilling permits were granted for the Holly project.
  • To date Volcanic has invested US$4.5 in exploration on Holly and Motagua properties, and a further US$2.5 will need to be spend for the earn-in. Under the modified Option, a minimum of $2.0M of that will be directed at the exploration and drilling of Motagua Norte properties.
  • Volcanic’s geological team spent considerable time and resources evaluating Radius’s regional applications in eastern Guatemala and has identified the Motagua Norte prospect as a high-grade orogenic gold system with compelling drill targets.

The modified Option Agreement is subject to approval by the TSX Venture Exchange. As Volcanic and Radius have a common director and two common officers, Volcanic is a “non-arm’s length party” to Radius within the meaning of TSX Venture Exchange Policy 5.9. The modified option agreement is not, however, a “related party transaction” as defined in Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions (“MI 61-101”) and therefore the requirements of the Exchange’s Policy 5.9 and MI 61-101 do not apply. For more information, please see News Release: Volcanic Gold Mines and Radius Gold announce modification to Option Agreement to include the Motagua Norte project, September 18, 2023.

Volcanic is actively looking for new projects, with a focus on discovering multi-million ounce gold resources in underexplored countries. If you have an interesting project to submit, please contact us by email: info@volgold.com