Volcanic Gold Mines Inc. reported results received from two holes drilled in October 2021 at the Holly property, Guatemala. Drillholes HDD-21-024 and 025 were drilled on the potential northern extension of the La Peña vein system, hosted in Paleozoic schistose rocks on the north side of the Jocotan fault zone. A trail of quartz vein boulders, thought to be a combination of float and sub-crop, extended north downslope for over 500m.

These two holes were drilled scissor under this boulder trail to confirm the northern extension of the La Peña vein system. While apparent structural zones hosting weak mineralization were intersected in both holes, with results up to 1.53m of 207 g/t Ag in hole 024, no significant gold mineralization was returned from these holes. With the continued drilling of the La Peña vein, Volcanic geologists have better defined the structure.

The vein's strike and dip in relation to the topography would indicate the vein passes east of the quartz float trail and drill holes HDD-21-024 and 025, and therefore, remains open and untested to the north in the Paleozoic schistose rocks. However, apart from hole HDD-21-015 that cut 15.55m @ 7.67 g/t Au and 615 g/t Ag in the schistose rocks, no other holes have returned strong mineralization in this rock unit. Results from holes HDD-21-026 to -029 are still pending.

Like many companies in the sector, the company are suffering from significant laboratory turn-around times. To mitigate this, the company have shipped equipment into Guatemala in order to crush own drill core and surface rock samples. This allows to ship directly to the assay laboratory eliminating the long waits at the preparatory lab.

Drilling will commence within the first week of February. The focus will be extending the La Peña vein system to the south in the younger volcanics and sediments where hole HDD-21-023 cut 4.58m @ 79.84 g/t Au and 5,053 g/t Ag, 200m south of Hole HDD-21-015 reported above. The company will also target mineralization down dip along the 200m strike so far established.

Drill holes are also planned at the El Pino vein where previous drilling intersected significant results up to 4.23m @ 4.0 g/t Au, 136 g/t Ag from veins and veinlets at much higher elevations. Drilling is also planned at the undertested large Ipala structure where anomalous gold/silver has been defined in soil and rock samples over several hundred meters. Regional work continues to identify new target areas, especially along the Motagua Norte structural zone where prospects continue to demonstrate visible coarse gold in stream sediments and in rock crushed in the field and panned.

The delays in laboratory turn around time have allowed to return to this basic method that generated the gold rushes of old. Results of this work are indicating that this is an important target area that the company have mapped over several kilometers. The contact of serpentinite bodies with metamorphosed volcanic rocks appears to localize the quartz bearing fluids that are associated with free gold yielding values up to 320 g/t Au.

The Company is working with environmental consultants to complete the studies needed to have these concessions granted with First Quarter 2022.