Focused on Discovering World-Class Precious Metal Deposits
This Volcanic Gold profile is part of a paid investor education campaign.*
Volcanic Gold Mines Inc. (TSXV:VG, FWB:CKC1) is a Canadian exploration company focusing on high-yield precious metals exploration and development in a mining-friendly region of Central America. Volcanic Gold’s primary projects are located in the highly favorable jurisdiction of Guatemala, with involved mining experience and regional expertise in the country since 1998. The company’s management consists of a highly experienced mining and capital markets team that intends to leverage its deep domain expertise to identify favorable acquisition targets.
Guatemala shares the same geological belt as Mexico and the same world-class potential for precious metals discoveries. With minimal investment into this highly favorable jurisdiction, high-grade discoveries, such as Escobal and Cerro Blanco, have led to increased excitement and funding through a new wave of mining investments.
In 2019, Pan American Silver invested US$1 billion into acquiring control of Tahoe and Bluestone and announced an additional US$92 million in financing. The diverse portfolio of company shareholders demonstrates international interest, with Silvercorp electing to maintain 19.9 percent of the company and insiders and owners holding approximately 40 percent of shares.
Volcanic Gold Mines is strategically positioned for success in Guatemala with the added interests of a new pro-mining government as of January 2020. With permitting processes taking only 60 to 90 days, operational efficiency is optimized and quite clear.
In the region, there is a favorable mix of established exploration companies and new explorers. This includes the Gold Group Management and their 25 years of experience with the same geological and management team and new mining campaigns in high-grade gold and silver discoveries that are ready for resource definition.
Volcanic Gold Mines has also acquired an option on a large land position in Eastern Guatemala from Radius Gold (TSXV:RDU). The company can earn a 60 percent interest by spending the cumulative amount of US$7 million on exploration programs on the Holly and Banderas projects within 48 months from the date of the agreement. However, an initial US$1M must be spent on exploration within the 12 months of receiving the required drill permits.
Following the exercise of the option, Volcanic Gold Mines will enter into a standard 60/40 joint venture and can continue exploration. During this time, the company has also been granted an exclusive right to evaluate and acquire Radius’s other property interests in Guatemala on reasonable terms which covers an additional 30,000 Hectares of highly prospective ground.
The company’s primary Holly and Bandera projects are operating on data from past discoveries by Radius geologists in 2003 and Goldcorp’s Escobal silver discovery in 2007. Both projects indicate the potential for extensive high-grade drill intercepts with multiple targets open for expansion or testing by drilling. With a proprietary geochemical database, positioning of targets allows streamlined operations of the large project land package.
Volcanic Gold Mines’ experienced and tenured management team has collectively discovered, finance and developed multiple mines worldwide. In Central America alone, this team have discovered six favorable mines and that demonstrates high potential for further precious metal discoveries in the region.
Volcanic Gold Mines’ Company Highlights
- Volcanic Gold Mines Inc is an exploration company focused on the strategic acquisition of mineral properties with a potential for hosting gold and silver resources. The company currently has primary projects in the highly favorable jurisdiction of Guatemala.
- Sharing the same geological belt as Mexico, Guatemala has become a highly prospective target for new investment and international interests, including recent investments by Bluestone and Pan American Silver into mining in the region.
- With a proprietary geochemical database, positioning of targets allows streamlined operations of the primary project sites.
- In June 2020, Volcanic Gold Mines signed an agreement with Radius Gold Inc., where the company acquired an option on a large land position in Eastern Guatemala, which region hosts the Escobal silver mine and high-grade Cerro Blanco gold deposit.
- The Holly project and Banderas project sites demonstrate high grade mineralization and multiple targets open for expansion by drilling.
- Volcanic Gold Mines brings together a world-class team with years of experience in mining, exploration and capital markets globally.
Volcanic Gold Mine Key Projects
Both Volcanic Gold Mines’ Holly and Banderas projects are located in an established gold-silver region that was first discovered between 2002 and 2003 by Radius Geologists. Initial discovery was the the Cerro Blanco gold deposit. which is presently being developed by Bluestone Resources Inc. Further gold/silver discoveries occurring in 2007, Escobal, indicate the world class potential of this region.
The Company is well financed, well managed, in a mining friendly jurisdiction with multiple high grade drill targets.
The Holly Project is located at the intersection of the Jocotan fault and Ipala graben fault in eastern Guatemala. The project has shown high-grade mineralization with a possible fast track to establishing high-grade gold resources. At present, best drilling has been at six meters of near-surface intercept grading 43.56 g/t gold and 1,618 g/t silver being returned. With just 15 shallow historic drill holes completed to date, The company intends to complete a significant drill program at Holly in the coming months with the intention of defining a high grade gold/silver resource.
Drawing from initial discoveries by Radius Geologists in 2002 and 2003 and the world-class silver discovery in Escobal by Goldcorp in 2007, Holly demonstrates the potential for multiple targets open for expansion or testing by drilling. This expansion effort is optimized by the accessibility of the project site in relation to Bluestone’s planned processing plant, a short 60-kilometer drive by paved road.
The Banderas project has demonstrated high-grade mineralization in multiple drill intercepts over approximately a four-kilometer strike length. Additional undrilled gold-silver geochemical targets exist along this trend. It is a large caldera and rhyolite dome complex that contains gold and silver-rich epithermal veins and vein breccias extending over nine square kilometers. These Banderas veins are predicted to merge at depth, indicating a deep source. The brecciated dome margin targets at Zapote indicate another exciting target area to be drill tested.
Like the Holly project, Banderas demonstrates high-grade mineralization in multiple drill intercepts, including 70 g/t gold and 516 g/t silver at 1.5 meters and 4g/t gold and 70 g/t silver at 6.7 meters. The last drill campaign at Banderas was in 2011, in total 49 holes have been drilled to date with multiple high grade intercepts. However, with less than 200 vertical meters tested so far, these highly prospective targets warrant a significant exploration program.
Michael Povey—Director & Chairman
Mike Povey is a mining engineer with over 40 years of worldwide experience in the resource sector in a wide range of commodities. He has held senior management positions in various public companies including Rio Tinto and Anglo American, with surface and underground mining operations in Africa, North America, and Australia. Over the past 20 years, Povey has held positions as Chairman, Managing Director and Technical Director of several ASX and AIM-listed companies. He has led project acquisitions, exploration programs, JV negotiations and equity raisings. Povey is a Chartered Engineer and a Member of the Australasian Institute of Mining and Metallurgy and holds a number of Certificates of Competency, including a West Australian Mine Managers Certificate.
Charles Straw—Director & CEO
Charles Straw is an economic geologist with over 20 years of global experience in the mining and natural resource industries. He has held executive management positions in public and private mineral explorers and led the successful exploration and evaluation of precious and base metal projects in Australia, South America, North America, and China. He has an international network of technical and financing relationships providing both project flow and project finance. Straw is a member of the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) and the Australasian Institute of Mining and Metallurgy (AusIMM).
Simon Ridgway—Founder & Director
Simon Ridgway is a co-founder of Fortuna Silver Mines Inc., a prospector, a mining financier and a Casey Research Explorer’s League inductee. Ridgway and the exploration teams under his guidance have discovered gold deposits in Honduras, Guatemala and Nicaragua and a silver/gold deposit in Mexico. His companies have raised over CAD$450 million for exploration and development projects since 2003. Ridgway is the Chairman of Fortuna Silver and CEO of Radius Gold Inc., Rackla Gold Metals Inc.
Kevin Bales has over 20 years of financial reporting experience in the mining and information technology industries. He currently serves as CFO for several public junior exploration companies with operations in Canada, the U.S., Latin America and Europe. Bales holds a Bachelor of Management degree with a major in accounting from the University of Lethbridge.
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The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Volcanic Gold and seek advice from a qualified investment advisor.