Volcanic Gold Mines Inc. outlined plans for its Cerro Blanco feasibility stage gold and silver project in Guatemala in a news release entitled "Bluestone Announces Strategic Review Process". The Cerro Blanco's initial 2019 feasibility study, that proposed mining the deposit as an underground mine, provided impressive economics that included an after-tax IRR of 34% and AISC of USD579/oz using a base case of USD 1250/oz gold and USD 18/oz silver. Volcanic Gold's Holly discovery is located on private land about 60 km north of Cerro Blanco along a paved highway.

It has a maiden inferred mineral resource on La Pena vein, (one of many veins) of 1.3 Mt at 6.5 g/t for 270,000 oz contained gold and 11 Moz at 260 g/t contained silver, which equates to 9.6 g/t at 410,000 oz gold equivalent. As has been stated in a previous news release6, Volcanic Gold is committed to engaging with local stakeholders and actively working with communities to further develop and deliver impactful community programs. In a mining scenario, the Holly project would be mined as an underground operation with processing of the ore remote from the location of the project. More drilling is required to determine the full extent of the underground mineral resource: the deepest hole drilled yet on the La Pena Vein cut 4.58m of 79.84 g/t Au and 5,053 g/t Ag7.

However, the Company has stated it would not drill at Holly again until Cerro Blanco had a clear way to production, and that remains the Company's position. Volcanic holds the property at Holly under a joint venture agreement with Radius Gold Inc. The Company also holds other properties in Guatemala under that same J/V agreement, and other important discoveries have been made on that J/V property that are pending the granting of a mineral concession.