VG:CC - Volcanic files NI 43-101 technical report for Initial Resource Estimate at Holly Project Guatemala

(TheNewswire)

July 27, 2022 – TheNewswire - Vancouver, BritishColumbia – Volcanic Gold Mines Inc. (TSXV:VG) (OTC: VLMZF ) (“Volcanic” or“the Company”) is pleased to advise that it has filed on SEDAR aNI 43-101 technical report in support of the recently announced maidenInferred Mineral Resource Estimate for the Holly property, Guatemala(see news release June 9, 2022 ). The mineral resource estimate is effective June 7, 2022 andis reported in accordance with the Canadian Institute of Mining,Metallurgy and Petroleum Definition ?Standards (2014) incorporatedby reference in National Instrument 43-101 - Standards of Disclosurefor Mineral Projects.

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))

3. 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”.

4. 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.

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

6. 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.

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.

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.

Shares issued 45,551,210
VG close - C$0.23
W/C +$6.5 million cash

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 its propertyinterests in Guatemala. Often, but not always, these forward lookingstatements can be identified by the use of 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”, orstatements that events, “could” or “should” occur or beachieved and similar expressions, 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 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 will be achieved; thatthere will be no material adverse change affecting the Company or itsproperties; and such other assumptions as set out herein.Forward-looking statements are made as of the date hereof and theCompany 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.

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