VANCOUVER, Oct. 19, 2017 (GLOBE NEWSWIRE) -- Velocity Minerals Ltd. (TSXV:VLC) (“Velocity” or the “Company”) announces that it has received laboratory results for four additional diamond drill holes at the Company’s advanced Rozino gold project (“Rozino” or the “Project”) (Table 1). Drill holes RDD-008 and RDD-009 were collared outside of the main mineralized zone (“Main Zone”) and were targeted upon historical trench results. Positive results include 27.0m @ 2.64 g/t gold (6.03 g/t gold uncut) and demonstrate the excellent opportunities to discover new and additional mineralized zones at Rozino that are near surface and amenable to potential bulk tonnage, open pit development.
Drill holes RDD-010 and RDD-011 are 50m step-outs from previously announced intersections and both holes intersected mineralization, which remains open in all directions. Drilling at Rozino is ongoing with 16 drill holes completed to date. A second drill rig is expected to arrive on site in the coming week.
Drillhole RDD-008 is located 300m east of Main Zone (Figure 1) and returned two broad intersects including 41.7m @ 0.85g/t gold (from surface) and 33.95m @ 0.79 g/t gold. The drill intersections provide confirmation that historical trenching and soil anomalies are indicative of sub-surface mineralization. The soil anomaly tested by RDD-008 measures 250m x 250m and will require additional drill testing.
Drillhole RDD-009 targeted historical trench anomalies located 150m southwest of the central main zone (Figures 1 and 2), intersecting 27m @ 2.64g/t gold (6.03 g/t uncut). This new gold zone trends northwest, is subparallel to the main mineralization and remains open.
Table 1: Drill Results from Velocity Drill Holes RDD-008, -009, -010 and -011 at Rozino.
| Drillhole | From (m) | To (m) | Thickness (m)^ | Gold (g/t) Uncut |
Gold (g/t) Top cut* |
| RDD-008 | 2.3 | 44.0 | 41.7 | 0.86 | 0.86 |
| and | 112.8 | 146.75 | 33.95 | 0.79 | 0.79 |
| RDD-009 | 3.0 | 30.0 | 27.0 | 6.03 | 2.64* |
| including | 6.0 | 22.0 | 16.0 | 9.90 | 4.17* |
| RDD-010 | 1.1 | 12.7 | 11.6 | 0.88 | 0.88 |
| 81.8 | 83.8 | 2.0 | 2.99 | 2.99 | |
| RDD-011 | 56.9 | 81.2 | 24.3 | 1.20 | 1.20 |
^ 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 the drill intersection in RDD-009.
Drill hole RDD-010 (Figure 1) intersected 11.6m @ 0.88g/t gold from surface. Drill hole RDD-011 (Figure 1 and 3) is a 50m step out from previously disclosed intersections in hole RDD-002. The hole intersected 24.3m @ 1.20g/t gold in sediments above basement and the mineralization remains open.
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 3 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.
