• Rozino Project

    Prefeasibility study supports economic, conventional operations

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Location

Trucking distance to gold processing plant

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Technical Report

After-tax IRR of 27.4% (PFS, Aug 2020)

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Operations

Conventional open pit mining and processing proposed

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Existing Processing Plant

Reduced capital cost and permitting timelines

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Infrastructure

Compact mine footprint



Rozino Prefeasibility – A Core Economic Gold Asset

Velocity published an independent Prefeasibility Study (PFS) on the Rozino gold project located in southeast Bulgaria in August 2020.  The PFS establishes the Rozino deposit as supporting an economic open pit mine operation with gold recovery by a combination of on-site concentration in a flotation plant and further off-site processing in an existing, operating processing plant.

The Rozino project includes on-site crushing, milling and simple flotation to produce a gold concentrate with a grade averaging 30 g/t.  The concentrate will be trucked 85 km on existing roads to the currently operating processing plant located in Kardzhali where gold doré will be produced.


Prefeasibility Study1 Highlights

AFTER-TAX FINANCIALS

After-tax NPV5% of US$123 million and after-tax IRR of 27.4% using a base case gold price of $1,500 per ounce.

LIFE OF MINE EARNINGS

US$293 million before interest, taxes, and depreciation.

CASH COST

All-in sustaining cost2 of US$755 per ounce of gold and cash cost3 of US$699 per ounce of gold.

CAPITAL COSTS

Total estimated capital costs of US$94.8 million and pre-production capital costs of US$87.1 million (including an 11% contingency).

MINERAL RESOURCE

Indicated Mineral Resource at a 0.3 g/t gold cut-off grade of 20.5 Mt at 0.87 g/t gold, for contained gold of 573,000 ounces and an Inferred Mineral Resource at a 0.3 g/t cut-off of 0.38 Mt at 0.8 g/t gold for 10,000 ounces4.

INITIAL MINERAL RESERVE

Probable Mineral Reserve at a 0.5 g/t gold cut-off grade of 11.8 Mt at 1.22 g/t gold for 465,000 ounces.

MINING

Open pit with 0.5 g/t gold cut-off grade, low strip ratio of 2.2 and 1.22 g/t life of mine gold grade.

CONVENTIONAL PROCESS FLOW SHEET

Returns 79.3% gold recovery to doré at the operating processing plant.

PROCESSING

On-site flotation producing gold-bearing pyrite concentrate assaying from 15 to 40 g/t and transportation to the processing plant (located 85 km from the Project) for processing to produce doré.

LOW ENVIRONMENTAL RISK

Small project footprint with benign, non-acid generating and non-hazardous waste and tailings material.

  • Click to expand Notes
    • Base case parameters assume a gold price of US$1,500/ounce. Financial results on 100% equity basis.
    • All-In Sustaining Cost (AISC) is defined as all cash costs related to production costs such as mining, processing, refining, site administration, and NSR royalty to final product (direct and indirect), and mine closure and rehabilitation. Sustaining capital costs related to continuing the business including development and equipment required to sustain production are included. Taxes, working capital, M&A, disposals, and acquisitions as well as new mine development capital costs are excluded.  See “Use of Non-IFRS Financial Performance Measures” below.
    • Cash Costs include production costs such as mining, processing, refining, site administration, and NSR royalty, divided by gold ounces sold to arrive at a cash cost per gold ounce sold. See “Use of Non-IFRS Financial Performance Measures” below.
    • Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.  Inferred Mineral Resources are considered too speculative geologically in nature to enable them to be categorized as Mineral Reserves and there can be no certainty that all or any part of an inferred mineral resources will ever be upgraded to Indicated Mineral Resources or Measured Mineral Resources.  

    The PFS was prepared by CSA Global, an international mining consultancy with experience in Bulgaria, in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects. 

Prefeasibility Technical Report

Prefeasibility Technical Report

Rozino’s Interactive Video

Rozino’s Interactive Video

Velocity and the Rozino Gold Project

Velocity and the Rozino Gold Project

Mineral Resource Estimate

(effective date April 15, 2020)

Within $1,500/oz pit shell
Indicated Mineral Resource Estimate
Cut-off Grade
(g/t)
Tonnes
(Mt)
Gold Grade
(g/t)
Contained Gold
(koz)
0.2 27.2 0.72 630
0.3 20.5 0.87 573
0.4 15.5 1.04 518
0.5 12.0 1.22 471
0.6 9.42 1.40 424
Inferred Mineral Resource Estimate
Cut-off Grade
(g/t)
Tonnes
(Mt)
Gold Grade
(g/t)
Contained Gold
(koz)
0.2 0.49 0.7 11
0.3 0.38 0.8 10
0.4 0.29 0.9 8
0.5 0.23 1.0 7
0.6 0.17 1.2 7
  • Click to expand Notes
    • The selected base case Mineral Resources are reported at a cut-off grade of 0.3 g/t gold.
    • Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
    • The Mineral Resources have been classified and reported in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum “CIM Definition Standards - For Mineral Resources and Mineral Reserves” ("CIM Definition Standards").
    • Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.  Inferred Mineral Resources are considered too speculative geologically in nature to enable them to be categorized as Mineral Reserves and there can be no certainty that all or any part of an inferred mineral resources will ever be upgraded to Indicated Mineral Resources or Measured Mineral Resources.

Mineral Reserves

(effective date August 20, 2020)

Probable Mineral Reserves
Ore Type Reserve Category Tonnes
(Mt)
Gold Grade
(g/t)
Contained Metal
(KOZ Gold)
Metallurgical Recovery
(%)
Recoverable Metal
(KOZ Gold)
Oxide Probable 1.9 1.07 64 67.4 43
Transitional Probable 1.8 1.15 68 70.7 48
Sulphide Probable 8.1 1.27 332 83.3 277
Total Probable 11.8 1.22 465 79.3 368
  • Click to expand Notes
    • The Mineral Reserve disclosed herein has been estimated in accordance with CIM Definition Standards.
    • Mineral Reserves discard cut-off grade was 0.5 g/t gold.
    • Mineral Reserves are based on a $1,500/oz gold price.
    • Mineral Reserves account for mining dilution and ore loss.
    • Probable Mineral Reserves were based on Indicated Mineral Resources.
    • Sum of individual amounts may not equal due to rounding.

Exploration

Exploration programs will focus on defining additional resources within trucking distance of planned infrastructure at Rozino. Any such additional ounces will have the potential to be low capital additions to the Rozino project and to be incorporated into feasibility-level studies.  

Photo Gallery

  • Drilling - Rozino drill site
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  • Drilling - Drill collar after drilling
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  • Drilling - Drill rig at Rozino
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  • Drilling - Rozino, drilling
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  • Core Store - Velocity core storage facility
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  • Core Store - Rozino, core store
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  • Core Store - Rozino, core store
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  • Core Store - Rozino, core store
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  • Core Store - Rozino, core store
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  • Core Store - Rozino, RDD005 Vein @115.60 VBG02067 2
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  • Community - Rozino, community
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  • Landscape - Rozino, landscape
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  • Landscape - Rozino, landscape
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  • Landscape - Rozino, landscape
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  • Landscape - Rozino, landscape
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  • Landscape - Rozino, landscape
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  • Landscape - Rozino, landscape
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  • Landscape - Rozino, landscape
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  • Landscape - Rozino, landscape
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  • Landscape - Rozino, landscape
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  • Landscape - Rozino, landscape
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  • Landscape - Rozino, landscape
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  • Visitors - Rozino, April 2019
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  • Visitors - Rozino, December 2018 AGB
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  • Visitors - Rozino, February 2018
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  • Visitors - Rozino, January 2020
    26 of 29
  • Visitors - Rozino, October 2017
    27 of 29
  • Visitors - Rozino, October 2019
    28 of 29
  • Visitors - Rozino, September 2016
    29 of 29
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