7 June, 2018

Velocity Initiates Preliminary Economic Assessment for Rozino gold project in Bulgaria

Velocity Minerals Ltd. announce it has retained CSA Global Canada Geoscience Ltd. to complete a Preliminary Economic Assessment and NI 43-101 Technical Report for the Rozino gold 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 . 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.

Source: globenewswire