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Volcanic Gold Mines Inc T.VG


Primary Symbol: V.VG Alternate Symbol(s):  VLMZF

Volcanic Gold Mines Inc. is a Canada-based company, which is engaged in the acquisition and exploration of mineral properties, focused on building multi-million-ounce gold and silver resources in under-explored countries. The Company has a 60% interest in two highly prospective gold-silver projects in Guatemala: Holly deposit and Motagua Norte project. The Holly deposit is an advanced-stage, high-grade gold-silver deposit with demonstrated underground mine potential. The Holly property straddles the regional Jocotan Fault which forms part of the 400 kilometers (km) long by up to 80 km wide deformation zone that separates the North American and Caribbean plates. The Motagua Norte project has a bonanza-grade gold-silver quartz vein system. The Motagua Norte project covers an area of over 86 square kilometers (km2) land position. The Cirilo 1 exploration license covers an area of over 13.5 km2 and includes the Mila gold anomaly. The 72.68 km2 is under application for exploration licenses.


TSXV:VG - Post by User

Bullboard Posts
Comment by cigarsailoron Aug 31, 2010 12:35am
564 Views
Post# 17398208

RE: Last news release

RE: Last news releaseThre press release reported the results accurately - no deception.  They are required to report assayed intervals and the high grade zone was obviously a selected core length interval that was assayed separately. They have an established cut-off for what constitutes "mineralized" so although they had a rich central core at 366 gpt they bracketed that zone with lower grade mineralization at each end that might be 1 gpt or so with a cutoff at any intercepts below 1 gpt (I am assuming 1 gpt but it could be .5 or so).  Grade averaging over realistic mining widths is normal and routine.  The mineralized zone was accurately reported as being 24.7 meters which is what would be considerable mineable mineralization.  However,when reserves are calculated the highs are cut to a maximum limit to build in conservatism is the reserve estimates.  In other words, when this hole is averaged for the reserve calculations, the 366 gpt  over .4m will be weighted and cut to a more typical high grade intercept of possibly no more than 32 to 50 gpt and the overall grade for the entire intercept will be more weighted and averaged accordingly.  The result may be 2 or 4 gpt over 24 m which is still quite good. 
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