VANCOUVER, British Columbia, Sept. 28, 2017 (GLOBE NEWSWIRE) -- Velocity Minerals Ltd. (TSXV:VLC) (“Velocity” or the “Company”) announces that it has received laboratory results from a soil sampling program at the Ekuzya Project (“Ekuzya” or the “Project”), southeast Bulgaria. A total of 401 soil samples were collected on a 50m by 50m grid covering the eastern portion of the Property (Figure 1). Results range from below detection up to 3.16g/t gold and confirm Velocity’s interpretation that Ekuzya contains widespread gold mineralization and that the Property is part of the Chala mine mineralizing system.
Figure 1. Gridded soil geochemistry with anomalies highlighted
Figure 2. Ekuzya targets showing historical drill holes
Soil Gold Anomalies
The Company has now established eight targets (Figure 1) that are prospective for gold mineralization. These include Ekuzyata, Zone 5 and Zone 5a, which were established as targets using historical drilling and historical base metal mining records where available. Five additional and previously unknown anomalies have also been detected. The eight targets together comprise over 30 hectares.
Trench sampling at the Ekuzyata target, extending into soil anomaly Zone 5 has been completed and results are pending. On receipt of trench results, the Company will continue trenching the untested soil anomalies with a view to drilling targets in early 2018.
Historical Drilling
Historical drill holes are shown on Figure 2. Only 3% of historical drill core samples at Ekuzya were assayed for gold and drill holes containing gold analysis are highlighted. Ekuzyata and Zone 5 include several holes with gold analysis, although it is notable that the best part of the larger Ekuzyata anomaly has not been drill tested and analyzed for gold. Zone 5a has no historical holes with gold analysis.
Anomaly 1 is located between Zone 5a and Zone 5 and was historically drilled for base metal mineralization but has not been analyzed for gold. Anomalies 2 to 5 are undrilled and have had little if any previous exploration.
Ekuzya Project Background
Ekuzya is contiguous with the Chala gold mine, operated by Gorubso Kardzhali A.D. (“Gorubso”) and the Project is located within the Chala mining concession. The Ekuzya project was first to be explored in the early 1980’s as a base-metal (lead and zinc) play including 122 drill holes for 38,000m, only 3% of historical drill core samples were analyzed for gold. Where such analysis exists, gold mineralization has generally been recorded. Historical exploration after the collapse of the Soviet Union focused on gold exploration in the north resulting in the discovery of the Chala Gold Mine and little if any gold exploration was conducted within the Ekuzya property.
Velocity’s interpretation is that Ekuzya is part of an intermediate-sulphidation gold and base-metal mineralizing system and that the Project is prospective for gold mineralization similar to that currently mined at Chala. Underground development at Chala comes within 100m of the Ekuzya property boundary.
Quality Assurance / Quality Control
The work program at Ekuzya 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 Eurotest Control EAD in Sofia. Soil samples were collected as bulk samples and sieved in the Eurotest laboratory to 80% passing 200µ. The samples were analyzed by fire assay using a 30-gram charge in compliance with industry standards. Field duplicate samples and blanks are added to every batch.
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.
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 a corporate tax rate of only 10% and the country’s education system has yielded a 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. ("Gorubso"), 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.
