Velocity Exercises Option to Acquire 70% Interest at the Obichnik Gold Project, Bulgaria
VANCOUVER, British Columbia, June 23, 2021 (GLOBE NEWSWIRE) — Velocity Minerals Ltd. (TSXV: VLC) (“Velocity” or the “Company”) announces that it has delivered notice of option exercise (the “Exercise Notice”) to Gorubso-Kardzhali AD (“Gorubso”) for the Momchil property (the “Property”), which includes the Obichnik gold project (“Obichnik” or the “Project”). To fulfill the terms of the option agreement with Gorubso, Velocity was required to deliver a Mineral Resource estimate prepared in accordance with National Instrument 43-101 (“NI 43-101”) and an Environment Impact Assessment prepared in accordance with Chapter Six of the Bulgarian Environmental Protection Act.
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.
Obichnik Gold Deposit
Gold mineralization at Obichnik was the subject of an initial mineral resource estimate of 4.4 Mt grading 1.1 g/t gold for 156,000 ounces, at 0.3 g/t gold cut-off grade (see previous news release NR-21-04, March 16, 2021). Mineralization is near surface, with 80% of estimated resources located within 120m. The mineralized system remains open for expansion.
A NI 43-101 Technical Report was filed on SEDAR entitled “NI 43-101 Technical Report Exploration and Mineral Resource Estimation for the Obichnik Property, Republic of Bulgaria,” dated March 20, 2021 (effective date February 11, 2021). The Technical Report was written by Jonathon Abbott an independent Qualified Person as defined by National Instrument 43-101 Standards of Disclosure. The Report is available on SEDAR under the Company’s profile and on the Company’s web site.
All resolutions set out in the Company’s notice of meeting and information circular were passed by shareholders at the annual general meeting held on June 22, 2021. The following incumbent directors were re-elected: Keith Henderson, Daniel Marinov, Mark Cruise, Michael Hoffman and Steven Dean. The shareholders re-appointed Davidson & Company LLP, Chartered Professional Accountants as auditors of the Company for the ensuing year and approved the Company’s 10% rolling stock option plan. The stock option plan is subject to annual TSX Venture Exchange acceptance.
Subsequent to the annual general meeting, the board of directors appointed the following officers: Keith Henderson as President & Chief Executive Officer, Darren Morgans as Chief Financial Officer, Daniel Marinov as Vice President, Operations, Stuart Mills as Vice President, Exploration, Joyce Musial as Vice President, Corporate Communications, and Arie Page as Corporate Secretary.
Quality Assurance / Quality Control
The work program at Obichnik 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 were 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 included in every batch. An additional sample taken from each pulverized sample is shipped to ALS Global laboratory in Ireland for aqua regia digest and silver plus multi-element analysis by Inductively Coupled Mass Spectrometry (ICPMS).
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 processing plant. Velocity has a 70% interest in the Tintyava property, which includes the Rozino gold project, a 70% interest in the Momchil property, which includes the Obichnik gold project, and a 100% interest in the Iglika property. The Company has entered into an option agreement to earn a 70% interest in the Makedontsi gold project. 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.
On Behalf of the Board of Directors
President & CEO
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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:
This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to: future exploration and testing carried out on the Project; use of funds; and the future business and operations of the Company. Often, but not always, forward looking statements can be identified by words such as “pro forma”, “plans”, “expects”, “may”, “should”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes”, “potential” or variations of such words including negative variations thereof, and phrases that refer to certain actions, events or results that may, could, would, might or will occur or be taken or achieved. Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information. Such risks and other factors include, among others, operating and technical difficulties in connection with mineral exploration and development and mine development activities for the Project, including the geological mapping, prospecting and sampling programs for the Project, actual results of exploration activities, estimation or realization of mineral reserves and mineral resources, the timing and amount of estimated future production, costs of production, capital expenditures, the costs and timing of the development of new deposits, the availability of a sufficient supply of water and other materials, requirements for additional capital to fund the Company’s business plan, future prices of precious metals, changes in general economic conditions, changes in the financial markets and in the demand and market price for commodities, possible variations in ore grade or recovery rates, possible failures of plants, equipment or processes to operate as anticipated, accidents, labour disputes and other risks of the mining industry, delays in obtaining governmental and regulatory approvals (including of the TSX Venture Exchange), permits or financing or in the completion of development or construction activities, risks relating to epidemics or pandemics such as COVID–19, including the impact of COVID–19 on the Company’s business, financial condition and results of operations, changes in laws, regulations and policies affecting mining operations, hedging practices, currency fluctuations, title disputes or claims limitations on insurance coverage and the timing and possible outcome of pending litigation, environmental issues and liabilities, risks related to joint venture operations, and risks related to the integration of acquisitions, as well as those factors discussed under the heading. “Risk Factors” in the Company’s annual management’s discussion and analysis and other filings of the Company with the Canadian Securities Authorities, copies of which can be found under the Company’s profile on the SEDAR website at www.sedar.com.
Readers are cautioned not to place undue reliance on forward looking information. The Company undertakes no obligation to update any of the forward-looking information in this news release or incorporated by reference herein, except as otherwise required by law.