Motagua Norte

In September 2023, a new exploration funding commitment from Volcanic Gold to earn 60% interest in Motagua Norte via Option Agreement. The Cirilo 1 exploration license was granted and a first pass drill program was completed in H1 2024.

On September 18, 2022, Volcanic Gold Mines and Radius Gold announced that they had modified the Option Agreement signed in 2020 (see Volcanic Gold News Release September 3, 2020) to include Radius’s Motagua Norte project as a replacement for the Banderas project. Initial exploration carried out the Volcanic team has demonstrated that Motagua Norte is a high-grade orogenic gold system with compelling drill targets.

Highlights

• 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.
• Under the modified Option Agreement, Volcanic has an option to earn a 60% interest in the Holly project and the Motagua Norte project 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$4.5M in exploration on the Holly and Motagua properties, and a further US$2.5M will need to be spent for the earn-in. Under the modified Option, a minimum of $2.0M of that will be directed towards exploration and drilling of the Motagua Norte properties.
• A first-pass exploratory drilling program was completed at the Mila target in H1 2024

Motagua Norte project:
86 km² land position

• 13.5 km² Cirilo 1 exploration license granted Sept 2023.
• 72.68 km² under application for exploration licences.
• Over 1000 rock chip sample proprietary geochemical data base.
• Excellent access to infrastructure.
• Sparsely populated semi-arid zone

About Motagua Norte

• Multiple vein-sets along 25 km trend in a Schistose belt associated with regional structures.
• High grade float and sub-crop samples up to 692 g/t gold and 298 g/t silver.
• Large high-grade surface gold-silver footprint covering a 550 m by 250 m area at the Mila target.
• Several drill targets defined including the Mila Gold Discovery,
• Exploratory drilling completed at the Mila Target in H1 2024
• 13 exploratory holes drilled in the first pass program testing the Mila gold-quartz boulder target1,2

As stated in the Volcanic Gold Mines May 22, 2024 News Release, the Company recognises jurisdictional risk associated with a change of government in Guatemala. Before committing further funds to Guatemala, Volcanic will monitor progress of the two significant precious metal deposits of other Operators: Cerro Blanco and Escobal, where developments are on hold.2

In the short term, Volcanic Gold Mines is assessing exploration or development opportunities elsewhere.²

(1) See Volcanic Gold Mines Inc. news release: Volcanic Gold Mines provides update on drilling at Motagua Norte property, Guatemala, April 25, 2024
2) See Volcanic Gold Mines Inc. news release: Volcanic Gold provides update on drilling at Motagua Norte property, and recent developments in Guatemala, May 22, 2024.