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Volcanic Gold Mines

TSXV:VG

Focused on Discovering World-Class Precious Metal Deposits

Press Releases

Overview

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.
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