AMN - GUINEA: Mandiana drilling expands targets

Initial results of an exploration drilling campaign at Volcanic Gold Mines' Mandiana Gold Project in Guinea have significantly expanded the mineralised target area. Broad intersections were returned, including 68 metres from 89 metres @ 2.01 g/t gold.

To date, a total of almost 3000 metres of reverse-circulation (RC) and diamond drilling, and over 15,000 metres of air-core drilling, have been completed at Mandiana and at lands recently optioned from West African Mining Associates SARL (WAMA).

To date the program has resulted in expansion of the strike potential of the Yagbelen resource at Mandiana by approximately 1000 metres, and its lateral potential by up to 500 metres. It has also demonstrated the efficacy of air-core drilling as an exploration and target definition technique.

RC and diamond drilling were completed within and in the immediate surroundings of the inferred mineral resource at Yagbelen, as previously defined by Sovereign Mines of Africa.

Other initial RC results of this infill program are: 5 metres from 76 metres @ 2.68 g/t, including 2 metres @ 4.61 g/t; 1 metre from 1 metre @ 50 g/t; 4 metres from 51 metres @ 2.40 g/t, 3 metres from 66 metres @ 7.16 g/t, including 1 metre @ 16.9 g/t, and 23 metres from 101 metres @ 2.21 g/t, including 5 metres @  6.11 g/t; and 14 metres from 61 metres @ 2.73 g/t.

As well as serving to infill the resource, the drilling has also allowed Volcanic to gather valuable information on the geological controls on mineralisation. Based on work completed to date, mineralisation is seen to occur preferentially in a series of bedded sandstone units. These units are repeated in all holes, and their characteristics will serve as a key targeting tool in Volcanic's forthcoming resource drilling program.

Air-core drilling has been successfully deployed in the identification of extensions to the north, east and south of the Yagbelen resource, in which regard it has defined a further 1000 metres of strike potential.

Initial air-core results clearly illustrate the strike continuation of a strongly anomalous gold mineralisation extending approximately 500 metres to both the north and south of the resource, as well as laterally, 500 metres to its east.

Results of air-core drilling from a southward 1250 metre strike extension to the reported grid, as well as an infill block covering approximately 500 metres of strike remain outstanding.

Air-core drilling has been performed in grid-like fashion on a series of 'fences' established at 100-200 metre intervals, along which inclined holes have been drilled at 40-50 metre spacings. This rapid, low-cost approach to exploration has been designed to provide detailed and accurate information on near-term resource targets. The air-core drilling is ongoing.

Reverse-circulation and air-core drilling of the Farabakoura deposit at the WAMA project has also been completed and results are anticipated shortly.

In January 2017, Volcanic acquired an indirect 75% interest in Guinean entity, Guiord SA, which owns the Mandiana project. The remaining 25% interest is held by SOGUIPAMI, a Guinean government-owned business entity formed to conduct mineral exploration projects.

In April 2017, Volcanic entered into a binding letter agreement to acquire 80% of WAMA, a private Guinean company, the landholdings of which together adjoin the entire length of the southern boundary of, and lie within the same mineralised trends as Mandiana.

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