Volcanic Gold Mines has commenced drilling works at its newly-acquired Mandiana Project, Guinea.

A program comprising approximately 2000m of reverse-circulation and diamond core drilling has been laid out, the purpose of which will be to gain important information regarding the geological structures that control the mineralization within the current Inferred Mineral Resource. Such information will contribute towards the definition of subsequent drilling activities within the 2017 exploration season. The program will also serve to infill areas of the Inferred Mineral Resource.

Previous work by Sovereign Mines of Africa plc led to the definition of an Inferred Mineral Resource at Mandiana of 16.1 Mt @ 1.18 g/t for 612,000 oz Au (SRK, 2016). Sensitivity analysis by SRK suggests an increase in deposit grade with cut-off, for example 5.7 Mt @ 2.27 g/t for 417,000 oz Au at a higher cut-off grade of 1.0 g/t Au. Drilling and surface geochemical data suggest that the Mineral Resource at Mandiana is open to the north, east, south and at depth.

In addition to drilling, Volcanic will perform property-wide prospecting of artisanal workings (or orpaillages), as well as systematic geochemical sampling of the Mandiana South landholding – which has not previously been explored in this fashion. Very importantly, a strong north-south lineation is discernible in the orpaillages throughout the property, and these extend clearly in both directions along strike from the current Inferred Mineral Resource on two trends, as well as on a third parallel trend to the west.

Most notably the present Inferred Mineral Resource was discovered using artisanal working as a targeting guide, and only a relatively small portion of these lineaments has been tested by drilling. The north-south orientation of the orpaillages is of particular significance, as it is concordant with the dominant structural element that gives rise to mineralization both in the Siguiri Basin, and at the Siguiri Mine, approximately 80 km to the north of the Project. It is anticipated that the Company's prospecting and sampling program will serve to define a number of other features for near-term drill-testing.