Canadian gold exploration company Velocity Minerals said that it has delivered a notice of option exercise to Bulgarian metal ore mining company Gorubso-Kardzhali for the Nadezhda property which includes the Makedontsi gold project.
“Following delivery of the exercise notice, Velocity is deemed to have earned a 70% interest in the property and to be in joint venture with Gorubso for the further development of the property,” the gold exploration company said in a statement on Tuesday.
To fulfill the terms of the option agreement with Gorubso, Velocity was required to deliver an environment impact assessment prepared in accordance with the Bulgarian Environmental Protection Act. Velocity will sole-fund 2,000 m of future drilling and deliver a mineral resource estimate, the company added.
Mineralisation at Makedontsi is outcropping locally but elsewhere the prospective sediments are covered by a thin veneer of post-mineral limestone estimated to range from 10 to 30 m thickness, Velocity said.
“Exploration at Makedontsi to date, including eight diamond holes and 14 reverse circulation holes, was completed to test the grade and extents of historical drilling. Drilling intersected mineralisation, starting from surface, and the mineralisation remains open for expansion,” the company also said.
Future drilling will continue to test for extensions of mineralisation, Velocity added.