Velocity Announces Expansion of East Zone Discovery at Rozino Gold Project, Southeast Bulgaria
Drill Hole RDD-040; 144.7m @ 1.52g/t gold including 24.0m @ 4.05 g/t gold
Mineralization Remains Open for Expansion
Vancouver, British Columbia - Velocity Minerals Ltd. (TSXV: VLC) (“Velocity” or the “Company”) announces that it has received assay results for diamond drill hole RDD-040, which returned 144.7m grading 1.52g/t gold including 24.0m grading 4.05 g/t gold, at the new East Zone, Rozino gold project. Mineralization in drill hole RDD-040 is intersected from surface and is the thickest continuous drill intersection averaging greater than 1.0g/t gold ever returned from the property. The East Zone remains open for expansion with results pending from three additional step-outs. Assays from 17 drill holes were returned over the past month and results have expanded the extent of near-surface mineralization at both East Zone and North Zone (Figure 1).
“The most recently completed drilling at Rozino has stepped beyond Main Zone, seeking to define additional zones of near-surface mineralization at North Zone and East Zone,” stated Keith Henderson, Velocity’s President & CEO. “Exploration at East Zone has been particularly successful with hole RDD-040 intersecting continuous high-grade gold mineralization from surface over a 144-meter drill intersection.”
Mr. Henderson continued, “Since closing the acquisition of Bulgarian assets in late July 2017, Velocity has rapidly advanced the project and based on positive results added a second rig in October to complete more than 7,000m in total. Our stated aim has been to define potentially open-pittable epithermal gold mineralization and the program has clearly met that objective.”
Drill hole RDD-040 is the first follow-up to the East Zone discovery, collaring approximately 50m to the southeast of discovery hole RDD-008, and intersected 144.7m grading 1.52g/t gold from surface (Figure 2). As with all mineralization at Rozino, thick mineralized intersections are defined by relatively consistent mineralization rather than by narrow zones of very high-grade material. This trend is apparent in RDD-040 where mineralization is continuous, with only 9 samples exceeding 5g/t and the peak assay is 14.05g/t gold (Figure 4).
RDD-008 was Velocity’s first drill hole within East Zone (Figure 1), which intersected 41.7m from surface grading 0.86g/t gold and an additional 33.9m from 112.8m grading 0.79g/t gold. The original target was defined by a strong soil geochemical anomaly which extends over a 150m x 150m area. The zone remains open for expansion with results pending from three additional step-outs.
At North Zone, drill hole RDD-035 intersected 14.5m grading 1.54g/t gold from surface and from 22.3m an additional 10.0m grading 0.87g/t gold (Figure 3). Drill hole RDD-039 located 150m southeast of Velocity’s first drill hole at North Zone (RDD-007, 22.4m grading 0.8g/t gold) returned a 10.2m intersect from 3.3m grading 1.20g/t gold, including 3.1m grading 2.89g/t gold and the zone remains open for expansion.
Figure 4: Assay bar chart showing continuity of mineralization in drill hole RDD-040. The current exploration model has not had sufficient drill testing to be able to determine true thickness of mineralization.
Drill Results Update on Web Site
Updated drill plans and cross sections have been uploaded to the Velocity web site together with a full table of gold intersections.
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.
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 focused 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.
On Behalf of the Board of Directors
President & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to: future exploration and testing carried out on the Tintyava property; use of funds; and the future business and operations of Velocity. Often, but not always, forward looking statements can be identified by words such as “pro forma”, “plans”, “expects”, “may”, “should”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes”, “potential” or variations of such words including negative variations thereof, and phrases that refer to certain actions, events or results that may, could, would, might or will occur or be taken or achieved. Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information. Such risks and other factors include, among others, operating and technical difficulties in connection with mineral exploration and development and mine development activities for the Tintyava property, including the geological mapping, prospecting and sampling programs for the projects, the fact that the Company’s interests in the Tintyava property is only an option and there is no guarantee that the interest, if earned, will be certain, actual results of exploration activities, including the program, estimation or realization of mineral reserves and mineral resources, the timing and amount of estimated future production, costs of production, capital expenditures, the costs and timing of the development of new deposits, the availability of a sufficient supply of water and other materials, requirements for additional capital to fund the Company's business plan, future prices of precious metals, changes in general economic conditions, changes in the financial markets and in the demand and market price for commodities, possible variations in ore grade or recovery rates, possible failures of plants, equipment or processes to operate as anticipated, accidents, labour disputes and other risks of the mining industry, delays in obtaining governmental and regulatory approvals (including of the TSX Venture Exchange), permits or financing or in the completion of development or construction activities, changes in laws, regulations and policies affecting mining operations, hedging practices, currency fluctuations, title disputes or claims limitations on insurance coverage and the timing and possible outcome of pending litigation, environmental issues and liabilities, risks related to joint venture operations, and risks related to the integration of acquisitions, as well as those factors discussed under the heading. "Risk Factors" in the Company's annual management's discussion and analysis and other filings of the Company with the Canadian Securities Authorities, copies of which can be found under the Company's profile on the SEDAR website at www.sedar.com.
Readers are cautioned not to place undue reliance on forward looking information. The Company undertakes no obligation to update any of the forward-looking information in this news release or incorporated by reference herein, except as otherwise required by law.
- 30 -