August 21, 2017 / JMN Wire / - Velocity Minerals Ltd. (TSXV: VLC) (“Velocity” or the “Company”) announces it has received laboratory results for the first two drill holes (Table 1) at the Company’s advanced Rozino gold project (“Rozino” or the “Project”), located within the Tintyava prospecting and exploration licence area in southeastern Bulgaria.
“These results are among the best grades ever returned from the project and the drill holes clearly demonstrate the potential for thick, high-grade gold mineralization between the historical drill fences.” stated Keith Henderson, Velocity’s President & CEO. “The Company’s exploration model at Rozino is that gold mineralization is controlled by northwest-trending, steeply dipping structures. Most historical holes were drilled vertically or angled parallel to what is believed to be controlling structures; neither of these previous approaches adequately tested mineralization.”
Mr. Henderson continued, “The initial phase one program will consist of nine holes in total and approximately 2,000m. Four 50m step-outs will investigate the continuity of the newly discovered high-grade mineralization. An additional three holes will be focused on high-grade trench samples located peripheral to Rozino where previous drill testing has been absent or ineffective.”
Table 1: Drill Results from Velocity Drill Holes at Rozino.
| DRILLHOLE | FROM (M) | TO (M) | THICKNESS (M)^ | GOLD (G/T) UNCUT | GOLD (G/T) TOP CUT* |
|---|---|---|---|---|---|
| RDD-001 | 62.85 | 106.9 | 45.05 | 2.04 | 2.04 |
| and | 120.9 | 145.9 | 25.00 | 2.04 | 2.04 |
| RDD-002 | 41.8 | 99.8 | 58.00 | 1.04 | 1.04 |
| and | 109.8 | 183.8 | 74.00 | 3.81 | 2.35* |
| including | 117.8 | 156.8 | 39.00 | 6.88 | 4.11* |
^ The current exploration model has not had sufficient drill testing to be able to determine true thickness of mineralization.
* The histogram of drill results from the current program does not contain sufficient information to define a suitable top-cut grade. The Company’s Qualified Person has exercised judgement and experience in applying a top-cut of 40g/t to this intersection.
Figure 1: Section showing historical drill holes and Velocity’s drill hole number RDD-002. Intersections greater than 0.5 g/t gold are shown on historical drill holes. Intersections of gold mineralization are labelled.
Figure 2: Section showing historical drill holes and Velocity’s drill hole number RDD-001. Intersections greater than 0.5 g/t gold are shown on historical drill holes. Intersections of gold mineralization are labelled.
Figure 3: Map showing the location of historical drill holes and Velocity drill holes discussed in this news release. Historical drill holes are dominantly drilled vertically or angled toward the northwest. Velocity drill holes are angled toward the northeast. The locations of sections (Figure 1 and Figure 2) are also shown.
Quality Assurance / Quality Control
The work program at Rozino was designed and is supervised by Stuart A. Mills, CGeol, the Company’s Vice-President Exploration, who is responsible for all aspects of the work, including the quality control/quality assurance program. On-site personnel at the project rigorously collect and track samples which are then security sealed and shipped to ALS Global laboratory in Romania. Samples used for the results described herein are prepared and analyzed by fire assay using a 30-gram charge in compliance with industry standards. Field duplicate samples, blanks and independent controlled reference material (standards) are added to every batch. Drill intersections in this news release are reported using a 40g/t top-cut and maximum 2 meters dilution.
Qualified Person
The technical content of this release has been approved for disclosure by Stuart A. Mills, BSc, MSc, CGeol, a Qualified Person as defined by National Instrument 43-101 and the Company’s Vice President Exploration. Mr. Mills is not independent of the Company.
About Velocity Minerals Ltd.
Velocity is a gold exploration and development company focussed on eastern Europe. The Company’s management and board includes mining industry professionals with over 100 years of combined experience spanning Europe, Asia, and the Americas as employees of major mining companies as well as founders and senior executives of junior to mid-tier public companies. The team’s experience includes all aspects of mineral exploration, resource definition, feasibility, finance, mine construction and mine operation as well as a track record in managing publicly listed companies and bringing real value to shareholders.
The Company’s portfolio of advanced gold exploration assets is currently in Bulgaria, which is a member of the European Union (2007) and an attractive destination for mining investment. The country’s mining law was established in 1999 and updated in 2011. Mining royalties are low and compare favourably with more established mining countries like Canada, Peru and Chile. Bulgaria also boasts an exceptionally low corporate tax rate of only 10% and the country’s education system is excellent with good availability of experienced mining professionals in a favourable cost environment. Foreign mining companies are successfully operating in Bulgaria.
Local knowledge and experience are essential components of mining investment in a foreign jurisdiction. Velocity Minerals has entered into a number of option agreements with Gorubso Kardzhali A.D., an established and respected mining company in Bulgaria. Gorubso operates the underground Chala Gold Mine (2006) and the Kardzhali Carbon In Leach (CIL) processing plant (2011), which produces gold dore. Gorubso is the first and only company in Bulgaria to have secured a permit for cyanide-related processing of gold ores. Velocity’s management has a long-standing relationship with Gorubso as well as significant previous experience in Bulgaria and elsewhere in the region.
