Velocity Announces Multiple Positive Drill Results from the Sedefche Gold Project, Southeast Bulgaria

Velocity Minerals Ltd. (TSX.V: VLC) (“Velocity” or the “Company”) announces that it has received results from 33 additional drill holes for the Sedefche gold project (“Sedefche”), Bulgaria.  This large batch of drill results continues to broadly confirm the grade and tenor of historical results.

The near-surface Sedefche gold project has previously been advanced through a successful permitting process and is permitted for near-term production.  As part of project due diligence, Velocity has drilled 5,756m to date, including 3,897m in 2020.  Drilling has paused pending receipt of results from an additional 23 drill holes.  All drill core samples have been dispatched for analysis.  An additional 3,000m of drilling is budgeted in 2020, contingent on results of the current drilling and other due diligence work.  The Company has been completing a range of due diligence activities including detailed metallurgical testing and review of the mine plan. 

Velocity’s results have returned better grade and tenor than historical results and continue to define a number of higher-grade zones within the existing resource envelope, which were not identified by historical exploration (Figures 1 and 2). 

Highlights include:

• SDD-046 returned 24.3m @ 5.55 g/t gold (3.72 g/t gold using a 20 g/t top cut) and 51.8 g/t silver including 7.7m grading 15.74 g/t gold (9.97 g/t gold using a 20 g/t top cut) and 89.1 g/t silver (Figure 1).  Top cutting is done when samples return analysis in excess of 20 g/t gold; in this hole two samples were top cut from a grade of 48.10 g/t and 37.40 g/t gold.
   
• SDD-044 returned 11.0m @ 5.79 g/t gold (5.60 g/t gold using a 20 g/t top cut) and 79.9 g/t silver, with one 1.0m sample top cut from 22.00 g/t gold (Figure 2).

 

Quality Assurance / Quality Control

Velocity have not assessed the Quality Assurance / Quality Control (QAQC) of historical results and as such historical results are not consistent with the standards of disclosure defined by NI 43-101 and may not necessarily be consistent with CIM best practice with respect to reporting. 

The work program at Sedefche 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 at ALS’ Romanian laboratory. A sample split of the milled material is shipped to ALS’ Irish laboratory for multi-element analysis using an inductively coupled Mass Spectrometer.  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 0.3 g/t gold trigger, a minimum 0.7 g/t gold composite, and a maximum of 1.5 metres 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 NI 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 southeastern Bulgaria.  Velocity’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. Velocity’s management and board includes mining industry professionals with 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.

About Bulgaria

Bulgaria is a member of NATO (2004) and a member of the European Union (2007).  The local currency (BGN) has been tied to the Euro since 1999 (1.956 BGN/EUR).  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%.  The country’s education system is excellent with good availability of experienced mining professionals in a favourable cost environment.  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. 

On Behalf of the Board of Directors

“Keith Henderson”

President & CEO

For further information, please contact:

Keith Henderson
Phone: +1-604-484-1233
E-mail: info@velocityminerals.com
Web: www.velocityminerals.com