Velocity Minerals Ltd. (TSXV:VLC) announces that it has retained CSA Global Canada Geoscience Ltd. (“CSA Global”) to complete a Preliminary Economic Assessment (“PEA”) and NI 43-101 Technical Report (the “Report”) for the Rozino gold project (“Rozino” or the “Project”).
Hitting Milestones at Rozino
“We remain on target to meet our aggressive timeline for delivery of a PEA at Rozino in September 2018, a little over a year since acquiring the project and initiating drilling. The delivery of the PEA is the mechanism by which we will earn our 70% interest in the Rozino deposit,” stated Keith Henderson, Velocity’s President & CEO. “We have selected CSA Global to complete the PEA because of their strong track record in Bulgaria, including Mineral Resource estimates and an updated Definitive Feasibility Study for Dundee Precious Metal’s Krumovgrad project, which is under construction approximately 20km west of Rozino and slated for production before year end.”
Mr. Henderson continued, “In the nine months since we initiated exploration drilling in Bulgaria, the Company has moved forward considerably. In addition to meeting planned milestones at Rozino, we have negotiated several pivotal deals, including an exploration alliance with our local operating partner Gorubso Mining and exclusive access to Gorubso’s CIL processing plant, which is available for the processing of material from all projects within the alliance area, including Rozino.”
Preliminary Economic Assessment
The PEA for the Rozino gold deposit will be completed by CSA Global, a leading geological and mining consulting company with over 30 years international experience. CSA Global has extensive experience in the Balkan region in general and Bulgaria in particular.
The PEA will include an updated NI 43-101 mineral resource estimate and results of ongoing metallurgical testing as well as high-level mine and process design and an economic assessment of the project. Drill holes RDD-045 to RDD-056 were not included in the initial NI 43-101 mineral resource estimate published in March 2018 but will be included in the updated resource estimate.
Drilling Continues to Expand East Zone
The East Zone at Rozino has a gold-in-soil anomaly and drill hole RDD-040 intersected 144.7m grading 1.52g/t gold from surface. In general, soil anomalies at Rozino are related to zones where mineralization comes to surface and the presence of soil anomalies has been a useful tool in defining drill targets. Where mineralization is present but does not come to surface, soil anomalies are either absent or low in magnitude and a large number of smaller / lower tenor soil anomalies require drill testing. A program of trenching in the vicinity of these soil anomalies is underway.
Results have been received for drill holes RDD-050 to RDD-056 (Figure 2, Table 1). Highlights include RDD-055, which intersected 20.7m grading 0.76g/t gold, having stepped 50m to the southwest from previous drill hole RDD-041 (13.8m grading 1.05g/t gold). East Zone remains open and will require further systematic drill testing after the completion of the PEA to define the extent of mineralization and to potentially discover additional new zones of mineralization.
| Table 1: Highlights from drill holes RDD-050 to RDD-056 | ||||
| Drillhole | From (m) | To (m) | Thickness (m)^ |
Gold (g/t) Uncut |
| RDD-050 | 4.0 | 11.0 | 7.0 | 0.63 |
| and | 31.0 | 80.0 | 49.0 | 0.57 |
| RDD-051 | 59.4 | 71.4 | 12.0 | 0.54 |
| and | 80.4 | 92.4 | 12.0 | 0.75 |
| and | 117.4 | 131.4 | 14.0 | 0.54 |
| RDD-052 | 7.2 | 28.9 | 26.8 | 0.67 |
| and | 97.1 | 105.1 | 8.0 | 0.58 |
| RDD-053 | No Significant Intercept | |||
| RDD-054 | 21.0 | 26.0 | 5.0 | 0.73 |
| RDD-055 | 2.1 | 22.8 | 20.7 | 0.76 |
| including | 12.1 | 21.8 | 9.7 | 1.16 |
| RDD-056 | 2.8 | 5.5 | 2.7 | 0.64 |
| ^ The current exploration model has not had sufficient drill testing to be able to determine true thickness of mineralization. |
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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 the Rozino Gold Project
Velocity has been exploring and drilling at Rozino since August 2017, publishing a maiden Inferred Mineral Resource Estimate(1) in Q1 2018; 17Mt @ 1.15g/t gold for 629,000 ounces at 0.5g/t cut-off grade with 8.2Mt @ 1.68g/t gold for 443,000 ounces at 0.8g/t cut-off grade. Approximately 90% of estimated resources at depths of less than 110m from surface and less than 1% below 150m from surface. Mineralization remains open for expansion.
The Company has completed the 2018 drill program with a view to publishing an updated mineral resource estimate and PEA before year end. On completion of the PEA, the Company will exercise its option for a 70% interest in the project and will move forward in joint venture with its Bulgarian partner.
About the Balkan Gold Project
Velocity formed an Exploration and Mining Alliance (“Alliance”) with Bulgarian operating partner Gorubso Kardzhali A.D. (“Gorubso”) in February 2018. The Alliance is the cornerstone of the Balkan Gold Project.
Within the Balkan Gold Project, the Company’s portfolio of assets in Bulgaria includes exclusive access to a modern, centrally located CIL plant for processing of material from gold projects in the surrounding area. The Company has negotiated an option to earn a 70% interest in any or all of seven advanced gold projects, including the Rozino Project where drilling is ongoing. In addition, the Company has negotiated an option to earn a 50% interest in the operating Chala Gold Mine.
The Alliance area covers all existing and future Gorubso and Velocity projects within an area of 10,400km2 covering the prospective Eastern Rhodope Gold Mining District …read more
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