VG:CC - Volcanic Announces Initial Resource Estimate of 406316 oz at 9.57 g/t Gold Equivalent at Holly

(TheNewswire)

Vancouver, British Columbia – TheNewswire - Volcanic Gold Mines Inc. (TSXV-VG) (“Volcanic” or “theCompany”) is pleased to announce a maiden Inferred Mineral ResourceEstimate for the Holly property, Guatemala. The mineralresource estimate is reported in accordance with the CanadianInstitute of Mining, Metallurgy and Petroleum Definition ?Standards(2014) incorporated by reference in National Instrument 43-101 -Standards of Disclosure for Mineral Projects. Full resultstables and additional maps and geological sections are available onthe Volcanic website.

Highlights

• A maiden Inferred Mineral Resource has been estimated for the firsttarget, La Peña vein at the Holly project,Guatemala.

• The high grade La Peña vein remains open to expansionalong strike and importantly at depth,

where exceptionally high grade results have beenreturned.

• Multiple other drill targets remain un-tested at Hollywith potential for new discoveries.

Table 1: Holly, Pe ñ aVein Resource Estimate

(Effective date 7 th June, 2022)

Notes:

1. Resources estimated using a 3.0 g/t Gold equivalentcut-off grade and a top cap grade of 100 g/t Gold and 2,000 g/t Silverand presented on a 100%-basis

2. Gold Equivalent Au(eq) values based on Au US$1800 andAg US$22 using formula (Au g/t + (Ag g/t*0.01222))

1. Mineral Resources which are not Mineral Reserves havenot demonstrated economic viability. The estimate of Mineral Resourcesmay be materially affected by environmental, permitting, legal,marketing, or other relevant issues. The mineral resources in thisreport were estimated using the Canadian Institute of Mining,Metallurgy and Petroleum standards on mineral resources and reserves,definitions, and guidelines prepared by the CIM standing committee onreserve definitions and adopted by the CIM council. Notwithstanding,to meet the requirement that the reported Mineral Resources show“reasonable prospects for eventual economic extraction”.

2. The quantity and grade of reported Inferred resourcesin this estimation are uncertain in nature and there has beeninsufficient exploration to define these Inferred Resources as anIndicated or Measured Mineral Resource. It is uncertain if furtherexploration will result in upgrading them to an Indicated or MeasuredMineral Resource category.

3. Contained metal and tonnes figures in totals may differdue to rounding.

4. A technical report regarding the mineral resourceestimation for the project will be filed by Volcanic on SEDAR within45 days.

The Mineral Resource Estimate isunderpinned by data from 21 diamond drillholes totalling  3707m ofdrilling. Drill spacing ranges between 20 and 100m. All sample datawas composited to a 2D dataset (linear grade and true thicknessvalues) prior to analysis and estimation. The sample database and thetopographic survey were reviewed and validated by Bruce Smith, LudvingMonroy and Shawn Rastad prior to being supplied to John Arthur, anindependent UK based Resource Consultant. Such review and validationhelp to support the reliability of the estimate. Geological domainmodelling was completed by Bruce Smith and Dr John Arthur. MineralResource domain modelling, grade interpolation, Mineral Resourceclassification and reporting of the Mineral Resource statement, wasperformed by Dr John Arthur.  Dr Arthur, Mr Smith, Mr Monroy and MrRastad are “qualified persons” within the meaning of NationalInstrument 43-101 Standards of Disclosure for Mineral Projects (“NI43-101”). Block modelling was carried out using cell dimensions of32mE by 32mN by 8 mRL and was coded to reflect the surface topographyand mineralised zones. Density values were globally assigned  intotwo zones, an upper zone between 50 to 100m from surface had anaverage density of 2.33t/m³ and below this an average density of2.52t/m³ was applied. The Mineral Resource Estimate has beenclassified based on data density, data quality, confidence in thegeological interpretation and confidence in the robustness of thegrade interpolation.

The effective date of the Mineral Resource Estimate is June 7, 2022and a Technical Report on the Holly property will be filed on theCompany’s website and SEDAR within 45 days of this news release.

Volcanic Founder, Director and CEO,Simon Ridgway, commented:

“The maiden Mineral Resource Estimate at the La Peñavein on the Holly property is an excellent start.  I alwaysbelieved from the exceptionally high grades found in outcrop at thisproperty when Radius first made the discovery that it could host asignificant gold deposit.  With just thirty holes completed on theproperty since Volcanic signed the option deal with Radius, we havedemonstrated that potential.  The high grades, continuity andorientation indicate the deposit is appropriate for undergroundmining, and with the possibility of two mills operating withintrucking distance of the deposit in the near future, the economicbenefit for the communities in the area would be transformative.

Although it is at an early phase of exploration, we felt it importantto show all stakeholders the value in the ground and what it can meanto the local communities.  Their understanding, support andparticipation in advancing this project for the benefit of theircommunities and the shareholders is very important to Volcanic.”

Radius Director, CEO and project QP,Bruce Smith, commented:

"The high grade of the initial resource estimateand size with just a small number of drill holes demonstrates thepotential of the La Peña vein system to grow quickly. This initial mineral resourceestimate advanced our understanding of the project geology and we lookforward to expanding La Peña at depth and along strike.  Further, at Holly project thereremain multiple targets for drill testing and resource expansion, inparticular the Alpha vein system and the intersection of Alpha and La Peña systems at depth. The data collected to date will guide the explorationstrategy as well as the design for underground development atHolly.”

Agenda in Guatemala

The Company will follow this resource calculation withthe preparation of a preliminary economic analysis aimed to show thatthe high-grade La Peña vein deposit could be mined from underground,causing minimal surface disruption.  It is anticipated that truckingof high-grade ore to a nearby mill could minimize on-site processingand other associated costs and impacts.  The Company’s strategy isto calculate an approximate value of the deposit and potential incomeand be able to offer concrete benefits and much needed long termemployment opportunities to the local communities.  The Companyexpects the Holly project can grow significantly through exploration,but at this time it is important to clearly define the opportunity andpotential value of the project to all stakeholders.

Te chnical Information

Bruce Smith, M.Sc. (Geology), a member of theAustralian Institute of Geoscientists, is Volcanic’s QualifiedPerson as defined by National Instrument 43-101 - Standards ofDisclosure for Mineral Projects.  Mr. Smith has 28 years of mineralexploration experience and has prepared and approved the technicalinformation contained in this news release.

Quality Assurance and QualityControl

Volcanic follows industry standard procedures fordiamond core drilling and analysis.  Drilling is carried out using NQand HQ size tooling.  Drill core is cut in half using a rock saw withone-half of the core then taken as a sample for analysis.  Sampleintervals are generally 1m intervals, producing samples of between 2to 9 kg.  Half-core samples were initially processed at a VolcanicGold preparation facility. The half core samples underwent primarycrushing and split to produce a 250g sample under the supervision of acompany geologist and qualified person.  The split sample was thenair shipped to certified ALS laboratories in Vancouver for furtherpreparation and assay. All samples are fire assayed for Au and areanalyzed for Ag and multi-elements using method code ICP following afour-acid digestion.  Overlimits are analyzed using an appropriatemethod.  Multi-element geochemical standards and blanks are routinelyentered into the drill core sample stream to monitor laboratoryperformance.  Quality control samples submitted were returned withinacceptable limits.

Terms of Guatemala Radius Gold andVolcanic Gold Mines option

Pursuant to an option agreement signedin May 2020 with Radius Gold Inc. (TSXV: RDU), Volcanic can earn a 60%interest in the Holly and Banderas projects by spending the cumulativeamount of US$7.0 million on exploration of the properties within 48months from the date of the agreement.  In accordance with the Optionterms, Volcanic spent an initial US$1M  on exploration within the 12months of receiving the required drill permits, which expendituresincluded a minimum 3,000m of drilling on the properties.

Following the exercise of the Option, Volcanic will enter into astandard 60/40 Joint Venture in order to further develop theProperties.  Volcanic has also been granted an exclusive right toevaluate all other property interests of Radius in Guatemala with aright to acquire an interest in any or all other such properties onreasonable terms.

PDAC

Volcanic will be attending the Prospectors and Developers Association of Canada conference (PDAC) from June 13 through 15 in Toronto,Ontario.

Senior management will be available at the booth forany questions. If you would like to arrangeone-on-one meetings with Volcanic Gold’s President and CEO,Simon Ridgway, please email your request to info@volcanicgold.com

For more information and/or to register for theconvention, please visit: https://www.pdac.ca/convention .

About Volcanic

Volcanic brings together an experienced and successful mining,exploration and capital markets team focused on buildingmulti-million -ounce gold and silver resources inunderexplored countries.  Through the strategic acquisition ofmineral properties with demonstrated potential for hosting gold andsilver resources, and by undertaking effective exploration and drillprograms, Volcanic intends to become a leading gold-silver company.

For further information, visit our website at www.volgold.com .

Volcanic Gold Mines Inc.

Simon Ridgway, President and CEO

Neither the TSX Venture Exchange nor the Investment IndustryRegulatory Organization of Canada accepts responsibility for theadequacy or accuracy of this release.

Forward-looking statements

Certain statements contained in this news release constituteforward-looking statements within the meaning of Canadian securitieslegislation. All statements included herein, other than statements ofhistorical fact, are forward- looking statements and include, withoutlimitation, statements about the Company’s plans for furtherexploration work and the preparation of a preliminary economicanalysis for its property interests in Guatemala. Often, but notalways, these forward looking statements can be identified by the useof words such as “estimate”, “estimates”, “estimated”,“potential”, “open”, “future”, “assumed”,“projected”, “used”, “detailed”, “has been”,“gain”, “upgraded”, “offset”, “limited”,“contained”, “reflecting”, “containing”, “remaining”,“to be”, “periodically”, or statements that events,“could” or “should” occur or be achieved and similarexpressions, including negative variations.

Forward-looking statements involve known and unknown risks,uncertainties and other factors which may cause the actual results,performance or achievements of the Company to be materially differentfrom any results, performance or achievements expressed or implied byforward-looking statements. Such uncertainties and factors include,among others, the uncertainties inherent in the mineralresource estimates; whether the Company’s planned explorationwork and preparation of a preliminary economic analysis will be proceed as intended; changes in general economicconditions and financial markets; the Company or any joint venturepartner not having the financial ability to meet its exploration anddevelopment goals; risks associated with the results of explorationand development activities, estimation of mineral resources and thegeology, grade and continuity of mineral deposits; unanticipated costsand expenses; and such other risks detailed from time to time in theCompany’s quarterly and annual filings with securities regulatorsand available under the Company’s profile on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors thatcould cause actual actions, events or results to differ materiallyfrom those described in forward-looking statements, there may be otherfactors that cause actions, events or results to differ from thoseanticipated, estimated or intended.

Forward-looking statements contained herein are based on theassumptions, beliefs, expectations and opinions of management,including but not limited to: that the Company’s stated goals andplanned exploration and development activities, including the preparation of a preliminary economic analysis, willbe achieved; that there will be no material adverse change affectingthe Company or its properties; and such other assumptions as set outherein. Forward-looking statements are made as of the date hereof andthe Company disclaims any obligation to update any forward-lookingstatements, whether as a result of new information, future events orresults or otherwise, except as required by law. There can be noassurance that forward-looking statements will prove to be accurate,as actual results and future events could differ materially from thoseanticipated in such statements. Accordingly, investors should notplace undue reliance on forward-looking statements.

Copyright (c) 2022 TheNewswire - All rights reserved.