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Volcanic Gold – Exploration Update On The Holly Project

Cory댊
October 6, 2021

Simon Ridgeway, President and CEO of Volcanic Gold (TSX.V:VG – OTC:VLMZF) joins us to recap the exploration news from October 5th highlighting high-grade gold & silver drill intercepts from the La Peña vein on the Holly Project, in Guatemala. Some of the results include hole HDD-21-019 with 1.53m @ 191.8 g/t Au and 539 g/t Ag, and hole HDD-21-017 with 8.83m @ 8.81 g/t Au and 355 g/t Ag.

We have Simon discuss the other holes at Holly that are being drilled at depth or pending release from the assay lab, and what the ongoing exploration strategy will be moving forward. We wrap up discussing the drill rig moving over to the Banderas Project, to target 7-8 holes to test the M28 and Pyramid Hill targets.

Please email us with any follow up questions for Simon on Volcanic Gold at either fleck@kereport.com or shad@kereport.com.

Click here to read over the drill results news release we discussed.

Discussion
4 Comments
    Oct 06, 2021 06:05 PM

    Thanks for the update. Just bought back in yesterday and so far so good.

    Reply
      Oct 06, 2021 06:42 PM

      Yes, it is nice to see the progress the Volcanic Gold team is making at the Holly Project, and now that they are 21 holes into it, they have verified they’ve made a new discovery. They’re still waiting on assays and/or to finish drilling on holes 22-28, so it will be interesting to see how those go as they step down further in depth.

      Also, after that the drill moves over to Banderas so that will keep the newsflow going on that 2nd project, before a 2nd drill rig shows up to get back to drilling on Holly again. With a treasury filled up, I like that they don’t have to raise money going into next year, and can just keep drilling. Other companies are not in that same fortunate situation.

      Reply
        Oct 06, 2021 06:26 PM

        I think it was Rick Rule or someone who said that during times when miners are not recognized appropriately by the markets, pay attention to how much cash they have on hand to make it through to the other side. Or something like that.

        Reply
          Oct 06, 2021 06:01 PM

          Absolutely. For pre-production companies like explorers and developers, they only burn money, and need to periodically raise. The goal of the companies is to take the capital raised and create more value for the company than the money spent by expanding resources, making discoveries, and derisking the project further.

          If a solid management and operational team can deliver growth, then the company valuation expands many times more than the money spent, and is a good return on the capital deployed. In that scenario, the board can announce a raise into a strong and upward trending share price, which is less dilutive than needing to raise when things are monkey hammered downwards (like most of the sector is at present).

          As Dave Lotan pointed out in a recent interview:

          “Good exploration stories are a race between the shares outstanding and the drill bit”

          Reply

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