Volcanic Gold Mines Inc. [VG-TSXV; VLMZF-OTC] reported results from drilling in the south extension of the La Pena vein at the Holly property have returned bonanza high grades including 4.58 metres at 79.84 g/T gold and 5,053 g/t silver.
Volcanic has received results from Holly drill holes HDD-21-021 and HDD-21-023 which targeted the La Pena vein along strike to the south and HDD-21-022, which targeted the vein to the north. The drill has moved over to Volcanic’s Banderas property after the termination of hole HDD-21-029 to allow the results of the Holly drilling to be received and the next program of holes to be planned with full results in hand.
Drill hole HDD-21-022 from 21.35 to 22.87 metres returned 1.52 metres at 7.0 g/t gold and 48 g/t silver; and from 27.45 to 32.02 metres returned 4.57 metres at 1.05 g/t gold and 14 g/t silver; and from 50.32 to 51.85 metres returned 1.53 metres at 5.34 g/t gold.
HDD-21-023 from 196.72 to 198.25 metres returned 1.53 metres at 1.93 g/t gold and 171 g/t silver; and 202.82 to 207.40 metres returned 4.58 metres at 79.84 g/t gold and 5,053 g/t silver, including 204.45 to 205.70 metres returned 1.25 metres at 289.50 g/t gold and 18,329 g/t silver.
The initial focus at the Pena vein system was to define the vein within the broad zone of the Jocotan fault breccia, extending the mineralization down dip to the zone with consistent high grades that were intersected in holes HDD-21-017 and 019. HDD-21-021 and HDD-21-023 were drilled to cut the Pena vein to the south of the Jocotan fault zone.
HDD-21-021 cut minor upper-level veining with weaker mineralization including 1.18 metres of 0.19 g/t gold and 40 g/t silver from 53.37 to 54.55 metres within felsic tuffs. Roughly 80 metres down dip, HDD-21-023 cut the structure hosted in laminated mudstones where the vein returned 4.58 metres at 79.84 g/t gold and 5,053 g/t silver. This hole confirms the strike extent of the Pena vein to the south and demonstrates that the interbedded volcanics and sediments are potentially good hosts for high-grade gold and silver mineralization at Holly.
The drill rig will be moving over to the nearby Banderas property in the next few days and drilling will commence promptly. Volcanic will be targeting the deeper extensions of the major gold-silver-rich veins where the source and potential convergence zones have never been tested.
Under a May 2020 option agreement with Radius Gold Inc. [RDU-TSXV; RDUFF-OTC], Volcanic can earn a 60% interest in the Holly and Banderas projects by spending US$7-million on exploration over four years. An initial US$1-million must be spent on exploration within a year of receiving drill permits, which expenditure will include a minimum 3,000 metres of drilling.
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.
In early trading on October 19, Volcanic Gold shares gained $0.185 to $0.53, or 53.6%, on a volume of 1,385,200 shares traded.