Volcanic Gold drills 54.24 g/t gold, 3,925 g/t silver over 4.57 metres at Holly, Guatemala

Volcanic Gold Mines Inc. [VG-TSXV; VLMZF-OTC] reported another exceptional intercept at depth on the Holly property, Guatemala. Hole HDD-21-027 intersected 4.57 metrEs (or approx. 4.1 metres true width) returning over 54 g/t gold and over 3.9 Kg/t silver, or 3,925 g/t silver.

This hole cut the vein at the same depth in the system as hole HDD-21-23 that intercepted 4.58 metres of 79.84 g/t gold and 5,053 g/t silver 150 metres to the south. Drilling is ongoing again at Holly, focused on extending this high-grade system at depth and along strike to the south with a goal of establishing a meaningful high-grade resource and improving confidence in the trend of the vein structure. Several other veins in the area with similar orientation will be tested during this present program.

“Management is very pleased the La Pena vein system continues to produce these exceptional grades,” stated Simon Ridgway, CEO. “As the sections below indicate, we are defining ounces quickly with high grade intercepts.”

Hole HDD-21-028 failed to intersect the La Pena structure but management believes it was not drilled to sufficient depth. The hole will be re-entered within the present program to test this theory. Results are still pending for hole HDD-21-026 as the shipment of core and rock samples that contained this hole was caught up in delays discussed in previous news releases. Management is optimistic future turn around on drill core will be within 45 days. A preparation lab is being set up in the region for surface rock and soil samples.

Under an option agreement signed in May, 2020, 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 of the properties over four years. An initial US$1-million must be spent on exploration within the 12 months of receiving the required drill permits, which expenditure will include a minimum 3,000 metres 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.