Velocity Minerals discovers Bulgarian high-grade gold

Velocity Minerals Ltd. [VLC-TSXV] has discovered new outcropping gold mineralization at the Kazak target area and received additional positive drill results from the Rozino South Zone, both of which are priority exploration targets close to the Rozino Project, Bulgaria. The company is prioritizing exploration in these areas as any discovery arising from the current exploration could potentially make use of common infrastructure at Rozino.

Highlights:

Kazak Target – continuous rock chip sampling has returned two consecutive 1.0-metre samples grading 17.8 g/t gold and 17.3 g/t gold. The high-grade gold occurs in the same permissive sedimentary host rocks as the Rozino deposit. The Kazak target area is located approximately 2 km south of Rozino. These are the highest-grade results that have been encountered from surface outcrop sampling since the inception of exploration at the Rozino project in 2017.

Rozino South – drill results returned a significant, near-surface intercept of 4.0 metres grading 0.92 g/t gold. The Rozino South target is located 800 metres south of the Rozino deposit.

Velocity is continuing its drill-focused exploration and developing new target areas to the south of the currently defined, open-pittable Rozino gold deposit.

Kazak Target

Following positive results from soil sampling and initial rock sampling, Velocity received results of continuous rock chip sampling at Kazak located approximately 2 km south of Rozino. The work has identified new outcrops of silicified sediments similar to the Rozino deposit host rocks and continuous rock chip sampling of sparse outcrops within an area that is mostly under surficial cover returned two significant intervals of 2.0 metres grading 17.6 g/t gold and 2.0 metres grading 0.53 g/t gold. Systematic mapping and trenching of the Kazak target are in progress and drilling of the high-grade zone will begin as soon as possible.

Rozino South Drilling

The Rozino South target is situated 800 metres south of the Rozino deposit and exploration drilling is ongoing with results reported here from drill hole RDD-178, which returned 4.0 metres grading 0.92 g/t gold from 21 metres below surface. Drill hole RDD-178 is located approximately 150 metres west of the discovery hole (RDD-177), which intersected 6.15 metres grading 1.18 g/t gold, including 1.15 metres grading 5.23 g/t gold from 203 metres.

The drill intersections disclosed here have not yet been included in a resource model and true thickness of mineralization has not yet been determined.

Velocity is focused on southeastern Bulgaria. The company’s strategy is to develop a low cost centralized “Hub and Spoke” operation whereby multiple projects within this emerging gold district produce gold concentrates for trucking to a central processing plant for production of doré. The company envisions staged open pit mining of satellite deposits and processing in a currently operating carbon-in-leach (CIL) plant. Velocity has a 70% joint venture interest in the Tintyava prospecting licence, which includes the Rozino gold project, and has entered into option agreements to earn a 70% interest in the Obichnik, Makedontsi and Sedefche gold projects, with Gorubso, an established and respected mining company in Bulgaria.

Bulgaria is a member of NATO (2004) and a member of the European Union (2007). The country is served by modern European infrastructure including an extensive network of paved roads. Bulgaria boasts an exceptionally low corporate tax rate of only 10%. Foreign mining companies are successfully operating in Bulgaria. 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.