VLMZF - Volcanic reports high grade gold-silver results in initial holes at Holly Project Guatemala

(TheNewswire)

Vancouver, British Columbia – TheNewswire - July 7,2021 – Volcanic Gold MinesInc. (TSXV:VG) is pleased to report results from the initialthree drill holes on La Peña target at the Holly project and providean update on the ongoing drill program.

Highlights:

- 16 holes completed to date testing three distinct vein sets cuttingthe Jocotan fault zone.

- Drilling confirms the re-interpretation of vein orientation.

- Veins appear to be increasing in size with depth.

Simon Ridgway, Volcanic’s President and CEO commented: “Historicdrilling at the Holly property in 2002-2003 identified several veinswith very high grade gold-silver mineralization.  Shallow and limitedfollow up drilling during the same period returned inconclusiveresults.  In our 2021 exploration campaign, Volcanic Gold’s strongtreasury allowed for a systematic approach with detailed mapping andclosely spaced drilling, leading to new discoveries and a greaterunderstanding of controls on mineralization with predictable veinintercepts on a number of the targets.  Initial results from thefirst three holes at La Peña confirm high grade gold-silver continuesto depth and we have commenced step out drilling along strike northand south and extending to depth.”

Table 1. Diamond drill significantresults from Holly Project HDD-21-001 to 003 (Drilled intervals areshown with true widths estimated to be 88% of drilledinterval.)

*One assay of 10 samples forHDD-21-003, 10.65m interval had silver over 1000 g/t and at the timeof press the overlimit had not been received. The grade for theinterval may improve once the +1000 g/t Ag over limit assay isreceived.

The drill results shown in Table 1 include the significant highergrade intercepts but all three drill holes HDD-21-001 to 003 cut widezones of silicification, stockwork veining, brecciation, and anomalousand lower grade gold silver mineralization.

HDD-21-004 was drilled to cut the La Peña zone 50m below 003 andintersected a broad zone of vein breccia and stockwork. Results shouldbe returned soon. After the first four drill holes at La Peña the rigmoved 200m east and 100m higher elevation to test the parallel El Pinostructure.  Four holes were drilled at El Pino, with results pending.Subsequently the rig moved to test the historic trail zone, now calledAlpha vein. Four holes have been drilled at the Alpha vein over astrike length of 450m. Each hole has cut vein and vein breccia, withresults pending.

Figure 1. La Peña Zone; Crosssection.

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Figure 2. La Peña Zone; Longsection.

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Figure 3. Holly Project; Plan viewwith drill collars and traces.

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Technical Information

Bruce Smith, M.Sc. (Geology), a member of theAustralian Institute of Geoscientists, is Volcanics’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 sawwith one-half of the core then taken as a sample for analysis. Sample intervals are generally 1m intervals, producing samples ofbetween 2 to 9 kg. Half-core samples are delivered to theinternationally certified Bureau Veritas Mineral laboratory facilitiesin Nicaragua where the samples are prepared.  Assays are completed byBureua Veritas in Canada.  The samples are fire assayed for Au andare analysed for Ag and multi-elements using method code ICP followinga four-acid digestion.  Overlimits are analysed using an appropriatemethod.  Multi-element geochemical standards and blanks are routenelyentered 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.  An initial US$1M must bespent on exploration within the 12 months of receiving the requireddrill permits, which expenditure will include a minimum 3,000m ofdrilling 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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