News out this morning
Volcanic Gold's Holly equipment damaged in attack
2022-02-24 08:11 ET - News Release
See News Release (C-VG) Volcanic Gold Mines Inc (2)
Mr. Simon Ridgway of Volcanic Gold reports
VOLCANIC REPORTS ON INCIDENT AT DRILL RIG IN GUATEMALA
A violent attack occurred yesterday at the Holly property in eastern Guatemala where Volcanic Gold Mines Inc. has been drilling for the past several months. No one was injured, however equipment was damaged.
A group of individuals, mostly young adults, gathered close to where the rig was working. Suddenly and without warning, a small group of these youngsters attacked the rig with fire bombs, setting light to the rig, pumps and equipment, and the surrounding forest.
No one was hurt, however significant damage was done to the drill rig and equipment.
Background
In the latter part of 2021 and the first months of this year, a small group of individuals from the area have been aggressively spreading mis-information about our activities and the effects they say mining can have in the region. The main communities covering the Holly project area have expressed their support of the project and the Company has access agreements with community development councils and private land owners. Despite significant effort, the anti-mining group has been unable to gain wide community support or legally halt the project. During the last 6 months approximately 70% of local residents (approximately 1000 people) have attended Company informative tours of the project site and core shed, keeping people educated about mining and informed of our activities which employ many people, gaining general support for the project and the Company. Unfortunately a small group has resorted to violent means to further their cause.
Our team has also been making good progress working with Central and Local governments and has set a date in March when the Presidential Commission for Peace and Human Rights will hold a number of technical sessions where all the parties can present the facts. The dialogue will be attended by Chiquimula's Governor and Mayors, and will be under the direction of the Commission. Representatives of the Ministry of Energy and Mines, Ministry of the Environment, Ministry of Health, as well as the local authorities of the villages in the area of influence are expected to attend and address issues of concern.
Simon Ridgway, Volcanic's President and CEO, commented: "This is a very unfortunate incident, and it certainly has implications in the near term for the Company and for future drilling of the Holly property. We have been organizing technical sessions to start in March where the Presidential Commission will hold round tables in the area of Holly and Banderas to discuss the benefits of advancing mineral exploration in the region and provide opportunities for the small minority to present their concerns. We are looking forward to those sessions and hope they will result in greater support for the Company's exploration work in the area."
Terms of Guatemala Radius Gold and Volcanic Gold Mines option
Pursuant to an option agreement signed in May 2020 with Radius Gold Inc. (TSXV:RDU), Volcanic can earn a 60% interest in the Holly and Banderas projects 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 in order to further develop the Properties. Volcanic has also been granted 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 reasonable terms.
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.
We seek Safe Harbor.
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