News out this morningFrom our JV partner and of course Simon!
Volcanic Gold begins drilling Holly project
2021-04-28 08:08 ET - News Release
Mr. Simon Ridgway reports
VOLCANIC GOLD MINES COMMENCE DRILLING AT HOLLY PROJECT, GUATEMALA
Diamond drilling has commenced at Volcanic Gold Mines Inc.'s 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."
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