VG:CC - Volcanic Gold intersects 11.4 g/t Au and 1150 g/t Ag over 1.52 m within a broader interval of 10.68 m grading 2.07 g/t Au and 389 g/t Ag in the La Pena vein at Holly

(TheNewswire)

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Vancouver, British Columbia – TheNewswire – May 3, 2022 - Volcanic Gold Mines Inc. (TSXV:VG)(“Volcanic” or “the Company”) is pleased to report additionaldrill results from the Holly Property, Guatemala.  Complete assayshave been received for all previously pending drill holes. Fullresults tables and additional maps and geological sections areavailable on the Volcanic website.

Highlights from recent drill results include:

La Peña vein Hole HDD-22-030intersected 11 .4 g/t Au and 1,150 g/t Ag over 1.52m within a broaderinterval of 10.68 m grading 2.07 g/t Au and 389 g/t Ag.

La Peña vein additional sampling ofHole HDD-22-022 reported 11.2 g/t Au and 522 g/t Ag over 1.53m

“The gold and silver discovery we have made at Holly is significant.The new high-grade intercepts demonstrate continuity within the LaPe ñ a vein system. With final results in handthe Company is working to complete a maiden resource calculation withthe aim of showing the high value and minimal impact of developingthese resources and the concrete benefits and sustainable employmentfor our local communities,” stated Simon Ridgway, President and CEOof Volcanic.

Drilling at Holly focused on extending the La Pe ñ a high-grade system at depth and along strike with agoal of establishing a significant high-grade resource and improvingunderstanding of the controls on high-grade mineralization.  The LaPe ñ a vein remains open in all directions.Several holes also cut high grade gold in the Amber vein and Pinotarget at a shallow depth.  The Amber vein, Pino veins, Alpha veinand Jocotan splay targets all have significant potential and will betested in future drill programs.

Figure 1: La Pe ñ a Long Section with AuEq x Estimated True Width

Click Image To View Full Size

Table 1 : HollyProject: Recent drill hole assay results (HDD21-022* new results fromadditional sampling)

Future work

The Company is working on a maiden resource calculationand will follow that with a preliminary economic analysis aimed toshow that the high-grade La Peña vein deposit could be mined fromunderground, causing minimal surface disruption.  It is envisagedthat trucking of high-grade ore to a nearby mill could minimiseon-site processing and associated costs and impacts.  The Company’sstrategy is to calculate an approximate value of the deposit andpotential income and be able to offer concrete benefits and muchneeded long term employment opportunities to the local communities. The Company expects the Holly project can grow significantly throughexploration, but at this time it is important to define clearly theopportunity and potential impact of the project to all stakeholders. We plan to establish significant value at Holly for all thestakeholders.

Elsewhere in Guatemala the Company is evaluating theland position optioned from Radius Gold Inc. in May 2020.  Severalareas of significant promise have been identified and the Company isin the process of getting those concessions granted and drillpermitted.

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 then airshipped 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.

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 explorationwork 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, whether the Company’s planned exploration work will beproceed as intended; changes in general economic conditions andfinancial markets; the Company or any joint venture partner not havingthe financial ability to meet its exploration and development goals;risks associated with the results of exploration and developmentactivities, estimation of mineral resources and the geology, grade andcontinuity of mineral deposits; unanticipated costs and expenses; andsuch other risks detailed from time to time in the Company’squarterly and annual filings with securities regulators and availableunder 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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