Volcanic Gold Mines secures First Right of Refusal on Guatemalan Antimony Mine and advances mine owner's drilling
Volcanic pivots to antimony as its Guatemalan gold project stalls, shifting focus to the new antimony resource.
Volcanic Gold Mines Inc. has secured a Right of First Offer and Right of First Refusal to acquire an interest in the fully permitted Los Angeles antimony mine in Palencia, Guatemala, from private operator MINEGUA. The property covers a 12 km² exploitation licence with a pending 9.5 km² extension, located approximately 40 km east of Guatemala City.
The company provided geological and sampling support for a 1,000 m exploratory drill program, completing 11 diamond drill holes totaling 1,041 m. Five drill holes intercepted antimony mineralization, identifying a new deeper zone extending 300 m along strike. Drill assay results are currently pending.
Channel sampling from 13 vertical channels at 10–15 m spacing along a 200 m open-pit face revealed high-grade antimony mineralization:
- Oxide zone averaged 1.6 m at 6.1% Sb and 17.5 g/t Ag.
- Sulphide zone averaged 1.6 m at 4.1% Sb and 16.8 g/t Ag.
- Overall weighted average: 1.6 m at 5.0% Sb and 17.1 g/t Ag.
Volcanic Gold Mines Inc. (VG) announced a new antimony-focused opportunity that complements its primary gold-silver operations. While channel sampling has revealed promising grades, the absence of drill assay results means the resource potential remains unverified and speculative.
The company’s flagship Holly project has been stalled since September 2025 due to community resistance, despite holding valid permits. Although a construction license for the nearby Era Dorado project was issued in January 2026, viewed as a positive regional catalyst, it has not yet led to resumed activity at Holly.
This antimony update represents a logical diversification step but does not resolve the immediate operational or social license hurdles at Holly. Given the company's limited cash position and the exploratory nature of the Los Angeles property, the market impact is expected to be incremental rather than transformative. The news aligns with management's stated strategy of evaluating additional opportunities in Central America, but it does not alter the near-term cash burn or financing requirements.
Volcanic Gold Mines Inc. is a junior exploration company focused on gold and silver properties in Eastern Guatemala. Its flagship Holly Project is located approximately 60 km north of Cerro Blanco and holds an inferred resource of 1.32 million tonnes at 6.46 grams per tonne of gold and 256 grams per tonne of silver, representing approximately 270,000 ounces of gold and 11 million ounces of silver.
The project is fully permitted but has been on hold since late 2025 due to community resistance. Management emphasizes community engagement and responsible mining to rebuild local support. The company is also advancing the Los Angeles antimony property, which offers a potential near-term cash flow avenue given antimony's growing demand in battery and alloy applications.