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(TheNewswire)
Vancouver, British Columbia TheNewswire - April 28, 2021 Volcanic Gold Mines Inc. (TSXV:VG) is pleased to announce that diamond drilling has commenced at the high-grade gold silver Holly Project located in Guatemala. Volcanic plans a minimum 3000m diamond core drilling and the current drill program will be fully funded by Volcanic pursuant to its option to earn an interest in the Holly and Banderas projects in Guatemala.
Drill Targets
The initial drill targets at Holly will focus on the intersection of the EW trending Jocotan fault zone with the NW trending La Pena and Pino vein systems (figure 1).
The Holly property is transected by the regional-scale Jocotan fault which forms part of the plate boundary between North American and Caribbean tectonic plates. At Holly, the Jocotan fault forms a well-defined east-west trending ridge up to 200m wide consisting of variable to intensely altered, silicified and mineralized breccias and fault related conglomerates. The Jocotan fault is associated with a 1.5km long trend of strong gold in soil and rock chip geochemistry that has not yet been drill tested.
Historic exploration at Holly focused on the La Pena and Pino veins that cross-cut the Jocotan fault and has some spectacular high grade gold and silver intersects in limited trenching and shallow drilling.
Simon Ridgway, Volcanic's CEO, commented: "Shallow historic drilling at Holly ridge tested the NW striking high-grade veins and returned great gold and silver mineralized intervals. The historic holes were drilled parallel to the EW Jocotan fault, which is up to 200m wide and typically intensely altered. The intersection of the high-grade veins with the Jocotan regional fault system creates a perfect target for a large-scale gold-silver discovery, which we plan to systematically test in the coming months."
Figure 1. Holly project multiple high grade vein systems cutting the Jocotan fault with selected historic trench and drill results.
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Terms of Guatemala Option
Volcanic can earn a 60% interest in the Holly and the Banderas projects of Radius Gold Inc. by spending the cumulative amount of US$7.0 million on exploration of the properties within 48 months from the date of the agreement. An initial US$1M must be spent on exploration within the 12 months of receiving the required drill permits, which expenditure will include a minimum 3,000m of drilling on the properties.
Following the exercise of the option, Volcanic will enter into a standard 60/40 Joint Venture with Radius in order to further develop the Properties.
Volcanic also has an exclusive right to evaluate all other property interests of Radius in Guatemala with a right to acquire an interest in any or all other such properties on mutually acceptable terms.
Technical Information
The technical contents of this press release have been reviewed by Matthew Booth, a Qualified Person for the purposes of NI 43-101. Mr. Booth has over 17 years of mineral exploration experience and is a Qualified Person member of the American Institute of Professional Geologists (CPG 12044).
About Volcanic
Volcanic brings together an experienced and successful mining, exploration and capital markets team focused on building multi-million -ounce gold and silver resources in underexplored countries. Through the strategic acquisition of mineral properties with demonstrated potential for hosting gold and silver resources, and by undertaking effective exploration and drill programs, Volcanic intends to become a leading gold-silver company.
For further information, visit our website at www.volgold.com .
Volcanic Gold Mines Inc.
Simon Ridgway, President and CEO
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
Certain statements contained in this news release constitute forward-looking statements within the meaning of Canadian securities legislation. All statements included herein, other than statements of historical fact, are forward- looking statements and include, without limitation, statements about the plans for exploration work in Guatemala, and the Company's option to acquire an interest in the Holly and Banderas Projects. Often, but not always, these forward looking statements can be identified by the use of words such as "estimate", "estimates", "estimated", "potential", "open", "future", "assumed", "projected", "used", "detailed", "has been", "gain", "upgraded", "offset", "limited", "contained", "reflecting", "containing", "remaining", "to be", "periodically", or statements that events, "could" or "should" occur or be achieved and similar expressions, including negative variations.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any results, performance or achievements expressed or implied by forward-looking statements. Such uncertainties and factors include, among others, whether the planned exploration work by Volcanic will be proceed as intended; whether the Company will acquire an interest in the Holly and Banderas Projects; changes in general economic conditions and financial markets; the Company or any joint venture partner not having the financial ability to meet its exploration and development goals; risks associated with the results of exploration and development activities, estimation of mineral resources and the geology, grade and continuity of mineral deposits; unanticipated costs and expenses; and such other risks detailed from time to time in the Company's quarterly and annual filings with securities regulators and available under the Company's profile on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.
Forward-looking statements contained herein are based on the assumptions, beliefs, expectations and opinions of management, including but not limited to: that the Volcanic's exploration plans in Guatemala will proceed as planned; that the Company's stated goals and planned exploration and development activities will be achieved; that there will be no material adverse change affecting the Company or its properties; and such other assumptions as set out herein. Forward-looking statements are made as of the date hereof and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by law. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on forward-looking statements.
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Figure 1: Project Location: Urban-Barry Greenstone Belt
Figure 2: Drill targets in the northern part of the Mosseau property (Geology)
Figure 3: Drill targets in the central part of the Mosseau property (Geology)
Figure 4: Drill targets in the central part of the Mosseau property (Magnetics)