VANCOUVER, British Columbia, Oct. 02, 2017 (GLOBE NEWSWIRE) -- Velocity Minerals Ltd. (TSXV:VLC) (“Velocity” or the “Company”) announces that it has received laboratory results for three additional diamond drill holes at the Company’s advanced Rozino gold project (“Rozino” or the “Project”), located within the Tintyava prospecting and exploration licence area in southeastern Bulgaria (Table 1).
All three boreholes intersected broad zones of gold mineralization which demonstrate excellent continuity and further support the potential for a near-surface, bulk tonnage, open pit development project. Drilling at Rozino is ongoing with eleven drill holes completed to date and mineralization remains open for expansion.
Figure 1. Drill Intersect from Velocity Hole RDD-006 at Rozino. Results for RDD-002 were released previously
Figure 2. Drill Intersect from Velocity Hole RDD-007 at Rozino
Figure 3. Location of Velocity’s drill holes. Holes completed are shown in black. Results have been returned for holes 1 through 7. A total of eleven holes have been completed and drilling is ongoing
Holes RDD-005 and RDD-006 are 50m steps outs from holes previously released (see NR17-05 and -06 for details). RDD-005 (Figure 3) returned 3 intersects above 0.5 g/t gold for over 50m of cumulative mineralization, including 13.9m @ 2.32 g/t gold. Hole 6 returned 3 intersects above 0.5 g/t gold for over 80m of cumulative mineralization, including 41.0m @ 1.19 g/t gold (Figures 1 & 3).
RDD-007 collared approximately 200m to the northeast of the main Rozino target and was designed to test the potential depth extents of historic trench results. The hole intersected mineralized sediments grading 0.80 g/t gold over 22.4, before passing into faulted granites returning 2 additional intersects. These results are very encouraging and a program of trenching to better define the nature of the mineralization is underway prior to further drill testing of this target later this year.
| Table 1: Drill Results from Velocity Drill Holes RDD-005, -006 & -007 at Rozino. | ||||||||
| Drillhole | From (m) | To (m) | Thickness (m)^ | Gold (g/t) | ||||
| RDD-005 | 28.8 | 39.3 | 10.5 | 0.52 | ||||
| and | 55.1 | 81.9 | 26.8 | 0.68 | ||||
| and | 118.9 | 132.8 | 13.9 | 2.32 | ||||
| RDD-006 | 62.0 | 94.0 | 32.0 | 0.69 | ||||
| and | 109.0 | 117.0 | 8.0 | 0.93 | ||||
| and | 124.0 | 165.0 | 41.0 | 1.19 | ||||
| including | 122.0 | 136.0 | 14.0 | 2.58 | ||||
| RDD-007 | 25.3 | 47.7 | 22.4 | 0.80 | ||||
| and | 67.7 | 75.7 | 8.0 | 0.62 | ||||
| and | 80.7 | 89.7 | 9.0 | 0.57 | ||||
^ The current exploration model has not had sufficient drill testing to be able to determine true thickness of mineralization.
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.
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.
