VANCOUVER, British Columbia, Sept. 05, 2017 (GLOBE NEWSWIRE) -- Velocity Minerals Ltd. (TSXV:VLC) (“Velocity” or the “Company”) announces that it has received laboratory results for two additional drill holes (Figure 1, 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. Velocity’s exploration target is near-surface, potentially open pittable epithermal gold mineralization. Drilling at Rozino is ongoing with nine drill holes completed to date (Figure 2) and mineralization remains open.
Figure 1. Drill Intersects from Velocity Drill Holes 1, 3 & 4 at Rozino. Results for Hole 1 were released previously
Figure 2. Location of Velocity’s drill holes. Holes completed are shown in black. Planned holes (subject to change) are shown in blue. Gold intercepts shown on cross sections are replicated here. Results have been returned for holes 1 through 4. A total of nine holes have been completed and drilling is ongoing.
“The cross section shows three drill holes, each with 70 to 95 meters of near-surface, near-continuous downhole mineralization at greater than 0.5g/t gold,” stated Keith Henderson, Velocity’s President & CEO. “This is the first time in Velocity’s drill program that we can look at multiple drill holes on a single cross section and the result is impressive.”
Table 1: Drill Results from Velocity Drill Holes 1,2, 3 & 4 at Rozino.
Intersects are calculated using a 0.2 g/t gold trigger, a minimum 0.5 g/t gold composite, and a maximum of 2 meters consecutive waste.
Results from Holes 1 and 2 are discussed in detail in previous news release (August 21, 2017).
| 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* |
| RDD-003 | 43.8 | 108.8 | 61.00 | 1.47 | 1.47 |
| including | 48.8 | 88.8 | 40.00 | 1.99 | 1.99 |
| and | 107.8 | 117.8 | 10 | 0.83 | 0.83 |
| RDD-004 | 55.5 | 139.5 | 84.00 | 0.99 | 0.99 |
| including | 63.5 | 83.5 | 20.00 | 1.38 | 1.38 |
| including | 119.5 | 127.5 | 8.0 | 3.28 | 3.28 |
| and | 142.5 | 151.5 | 9.00 | 4.95 | 4.95 |
^ The current exploration model has not had sufficient drill testing to be able to determine true thickness of mineralization.
* A top-cut of 40g/t was applied to an intersection in RDD-002.
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 calculated using a 0.2 g/t gold trigger, a minimum 0.5 g/t gold composite, and a maximum of 2 meters consecutive waste.
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.
