VLMZF - Volcanic Gold provides exploration update

(TheNewswire)

January 13, 2022 - TheNewswire - Vancouver, British Columbia - Volcanic Gold Mines Inc.(TSXV:VG) (OTC:VLMZF) ispleased to provide a review of 2021 and an update on the Company’splans for 2022.

2021 Summary

"Our 2021 exploration program in Guatemala was highlysuccessful,” stated Simon Ridgway, President & CEO of VolcanicGold Mines Inc.  “An important bonanza gold grade discovery wasmade at the Holly Property in Guatemala. Drilling at this property isdefining a gold resource that has significant dollar per ounce value.The project is located just 50 km along a paved road from BluestonesResources’ Cerro Blanco Gold Deposit, where mine construction isexpected to commence this year.  Additionally, assay results receivedfrom surface sampling at the Motagua Norte property have beenoutstanding indicating this property has tremendous potential. Theteams on the ground in Guatemala have performed admirably in 2021. Ibelieve their discoveries will generate significant employmentopportunities in the country for many years to come” continued Mr.Ridgway.

Holly Property

Volcanic Gold’s initial 2021 drill program consistedof 4,785 metres of drilling in 29 holes conducted at the Hollyproperty. Most of the holes targeted the La Peña vein , intersecting high grade gold-silver mineralization over a300m strike length and to a vertical depth of200m. The drilling confirmed continuity of the high grade gold-silvermineralization and helped obtain a better geologic understanding ofthe structural complexity of the area.

This recent drill program showed that the La Peña veinand similar parallel veins recently discovered at Holly Ridge, displaygood continuity to the south into the Volcanic package where some ofthe highest grade intervals were encountered (HDD-21-023: 4.58m @79.84 g/t Au, 5053 g/t Ag). The primary La Peñavein is low sulphation epithermal in nature andcan be traced for 750 metres across the property. Typically, the veinzone has a true width of 3-5 metres, however where it intersects theJocotan Breccia at the Volcanic/Schist contact themineralization expands with results up to 15.5m of 7.67 g/t Au and 615g/t Ag.

La Peña Drill Intercepts Aggregate Table

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Exploration work in 2021 discovered additionalextensions (Amber, Alfa, El Pino) at the Holly property that haveparallel orientations to the La Peñavein and present opportunities to expand on theresource of the area. Ongoing mapping and sampling have opened thepotential for stacked vein corridors with several zones of increasedveining within the targeted corridors.

Due to issues getting samples to and results from thelaboratory in Nicaragua, the drill program was halted in November. Assays are pending on drill holes HDD-21-024 to029 and the detailed rock chip sampling of the Jocotan splay targetsand other prospects are also pending. We aretaking measures to resolve these issues and resume drilling.

The 2022 drill program for the Holly property willfocus on infill drilling on the La Peña veinto expand the resource along strike and todepth. We will also be conducting systematicdrill testing of these new targets including the Jocotan splay faultsand the new vein zones.  Drilling at the Holly property willrecommence in February 2022.

Banderas Project

The Company is working on access agreements with anadjoining community prior to commencing any drilling at Banderas.Access agreements are in place with the community covering the drillproject. Further consultation work is required with an adjoiningcommunity to ensure the benefits of the project are spread out and allaffected communities in the area consent.  Further news ondevelopments at Banderas will be released as progress is made.

Regional exploration

The Volcanic Gold exploration tenement package covers approximately2,400 square kilometres of the Eastern Guatemala epithermal belt whichhosts the Escobal, Cerro Blanco and Holly deposits.

At Motagua Norte, the first regional prospecting area discovery,multi-element rock chip and soil geochemistry has defined a continuous2-3 kilometre long elevated gold trend. Gold mineralization at MotaguaNorte is interpreted to be orogenic style, indicated by multi-elementgeochemistry, mineralogy, and the structural and lithologic setting ofthe prospect. The entire area is densely covered byboulders ranging in size up to 3m in diameter. Samples includeanomalous gold up to 320 g/t.  Mineralization is hosted in massivequartz veining and stockwork veining within sericite altered schistand is interpreted to be mesothermal shear hosted gold and silver.

The project has low population density with the maintarget areas having large farms with a few private owners. Formallandowner access agreements are in place.  Volcanic has prepared andsubmitted environmental permits and is working with Radius Gold Inc.to prioritize the granting of these concessions.

2022 Outlook

Volcanic Gold Mines is looking to build upon a veryproductive 2021 and continue to establish itself as a leadinggold-silver company in Guatemala. In 2022, Volcanic will continue thedrill defining of a high grade gold-silver deposit at La Peña andexploration of newly-discovered regional prospects such as MotaguaNorte. The timing for Volcanic to grow in Guatemala is good aspositive news continues to come out of the country. Earlier this monththe Minister of Energy and Mines granted Minera Fenix the right toresume mining at its nickel operation. Furthermore, 50 km south of theHolly Property, Bluestone Resources is preparing for the constructionof its Cerro Blanco mine and expects to have the Feasibility Studycompleted this year. In 2022 Volcanic will continue working closelywith the local communities providing employment opportunities andeducational outreach.

Technical 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 27 years of mineralexploration experience and has prepared and approved the technicalinformation contained in this news release.

Quality Assurance and QualityControl

Volcanic Gold 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 2 to 9 kg.  Half-core samples aredelivered to the internationally certified Bureau Veritas Minerallaboratory facilities in Nicaragua where the samples are prepared. Assays are completed by Bureau Veritas certified laboratories.  Thesamples are fire assayed for Au and are analyzed for Ag andmulti-elements using method code ICP following a four-acid digestion. Overlimits are analyzed using an appropriate method.  Multi-elementgeochemical standards and blanks are routinely entered into the drillcore sample stream to monitor laboratory performance.  Qualitycontrol samples submitted were returned within acceptablelimits.

About Volcanic

Volcanic brings together an experienced and successfulmining, exploration and capital markets team focused on buildingmulti-million-ounce gold and silver resources in underexploredcountries.  Through the strategic acquisition of mineral propertieswith demonstrated potential for hosting gold and silver resources, andby undertaking effective exploration and drill programs, Volcanicintends to become a leading gold-silver company. Volcanic is a member of the Gold Group of companies, led bySimon Ridgway.

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 InvestmentIndustry Regulatory Organization of Canada accepts responsibility forthe adequacy or accuracy of this release.

Forward-looking statements

Certain statements contained in this news releaseconstitute forward-looking statements within the meaning of Canadiansecurities legislation. All statements included herein, other thanstatements of historical fact, are forward- looking statements andinclude, without limitation, statements about the Company’s plansfor exploration work in Guatemala. Often, but not always, theseforward looking statements can be identified by the use of words suchas “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 negativevariations.

Forward-looking statements involve known and unknownrisks, uncertainties and other factors which may cause the actualresults, performance or achievements of the Company to be materiallydifferent from any results, performance or achievements expressed orimplied by forward-looking statements. Such uncertainties and factorsinclude, among others, 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 importantfactors that could cause actual actions, events or results to differmaterially from those described in forward-looking statements, theremay be other factors that cause actions, events or results to differfrom those anticipated, estimated or intended.

Forward-looking statements contained herein are basedon the assumptions, 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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