Velocity entered into an option agreement with Bulgarian partner, Gorubso Kardzhali A.D. in June 2019, to earn a 70% interest in the Momchil property, which includes the Obichnik gold project with a historical estimate registered on the Bulgarian State balance. Velocity can earn the interest by delivering a mineral resource estimate prepared under National Instrument 43-101. The Obichnik deposit is located in southeast Bulgaria, approximately 25 km by road from Gorubso's modern CIL processing plant.
The deposit is open for expansion and requires systematic exploration to investigate its full potential and to deliver a mineral resource estimate prepared under NI 43-101. A program of modern integrated exploration is planned at Obichnik in order to assess mineralization potentially amenable to open pit mining. The deposit has potential to host two styles of mineralization: 1) near surface epithermal gold deposits and 2) intrusive related bulk tonnage potential.
The estimate which is registered with the Ministry of Energy in Bulgaria is based on historical exploration, including approximately 32 drill holes (4,800m) and 137 trenches completed by Geoengineering Ltd. and Gorubso.
The initial work program will focus on surface soil geochemistry and a ground magnetic survey. In tandem with the geochemistry and geophysics, the Company will assess the reliability of historical drill results with angled heel-to-toe drilling across mineralized zones as well as complete exploration drilling. The aim of the drill campaign is to verify mineralization as well as increase understanding of geometry, continuity of mineralization, and geotechnical and hydrogeological aspects of the deposit.
Discovery History at Obichnik
The State company completed initial geological mapping and soil geochemistry between 1970 and 1971. Subsequently, Geoengineering Ltd. (1977 – 1994) completed the bulk of the historical work, including geological mapping, soil geochemistry, 133 trenches (13.3 km), and 24 diamond drill holes for 3,791m. Most recently, between 2003 and 2010, Gorubso completed geological mapping, 3 trenches (294 m), 8 diamond drill holes for 1,017m, and a Historical Resource estimation which was registered with the Bulgarian State.
Selection of rocks outcropping at Obichnik. A. Ledge of sub-vertical surface oxidized quartz-sericite-pyrite (QSP) alteration. B. QSP structurally controlled replacement body with oxidized, steep, sheeted, quartz-pyrite veinlets. C. QSP altered volcanic fragmental. D. Siliceous hydrothermal breccia developed within volcanic fragmental.