Excerpt from Stockwatch Gold-Today Simon Ridgway's Volcanic Gold Mines Inc. (VG) slid six cents to 36.5 cents on 420,000 shares on word that one of two new holes drilled at its Holly property in Guatemala returned 207 grams of silver per tonne over 1.53 metres. The other test produced nothing worth mentioning and the company acknowledged that "no significant gold mineralization" was encountered in either hole, which had been drilled on the potential northern extension of the La Pena vein system.
Mr. Ridgway, president and chief executive officer, was "pleased to see results ... which provide positive information for our team" -- the information seemingly being that "this area is a bust." Undaunted, the easy-to-please Mr. Ridgway says he and that team "look forward to expanding the system further" through pending assays from four other holes, and through a new round of drilling slated to start this month.
That new drilling, the company says, will seek to expand La Pena southward, in an area where a mid-October hole returned 79.84 grams of gold and 5,053 grams of silver per tonne over 4.58 metres. Mr. Ridgway says that the drilling will also target an area where earlier work intersected a 4.23-metre interval averaging four grams of gold and 136 grams of silver per tonne.
Volcanic's stock has been here before. It traded at about 35 cents in early fall, before erupting as high as 67 cents in an October surge that came on the heels of that one rich hit. Since then, Volcanic has zigzagged relentlessly lower, as investors impatiently expected the great news to keep flowing.