Velocity Announces 2021 Gold Exploration Program Plans up to 50,000 metres of drilling
Velocity Announces 2021 Gold Exploration
Program
Plans up to 50,000 metres of drilling
Vancouver, British Columbia--(Newsfile Corp. - February 3, 2021) - Velocity Minerals Ltd. (TSXV: VLC)
("Velocity" or the "Company") announces an expanded 2021 exploration drill program of up to 50,000m
at its projects in Bulgaria following up on positive 2020 results and extensive targeting in preparation for
2021.
Highlights of 2020 include:
Positive Rozino prefeasibility study completed returning an after-tax IRR of 27.4%.
22,500m of drilling completed in 2020
Total of $14.7 million raised, including a $8.9 million premium financing in Q4
Dundee Precious Metals invested to become a 9.99% shareholder with a right to nominate one
Board member on future increase to 15% ownership
Artemis Gold maintains 22% issued and outstanding shareholding and Steven Dean, Artemis'
founder, founder, Chairman and CEO, joined Velocity Board of Directors
Entered into option agreement to acquire 100% of 105 km
2
Iglika gold project
"2020 was our most productive year since the Company began its first exploration program at the
Rozino gold project in 2017," stated Keith Henderson, President and CEO.
"In addition to completing a
prefeasibility study at Rozino, drilling more than 22,500m and discovering new zones of gold
mineralization, the Company attracted almost $15 million of investment.
Artemis Gold maintained its
22% issued and outstanding position while Dundee Precious Metals became a new corporate investor
holding 9.99%."
The Company is actively drilling at Rozino, Obichnik and Makedontsi.
From early February, 5 rigs will be
operating across various projects.
Rozino Project
In 2020, approximately 9,400m of exploration drilling was completed within 4km of Rozino resulting in the
discovery of two promising zones of mineralization at Rozino South and Kazak (see news releases July
21, 2020 and September 17, 2020, respectively).
Additional exploration drilling of these targets, and
additional targets in the area, is in progress.
Any resource additions near Rozino have the potential to
utilize common infrastructure planned to be built at Rozino.
Obichinik Project
Near surface potential was tested in 2020 by completing approximately 8,800m of exploration drilling
with notable exploration success at the Durusu gold target and discovery of new mineralized zones at
Sivri Tepe and Premka targets (see news releases June 2, 2020 and November 3, 2020, respectively).
Additional exploration drilling is currently in progress.
Makedontsi Project
During 2020, a program of integrated exploration including geochemical sampling and geophysics was
undertaken to assess potential for 'blind' mineralization amenable to open pit mining under a thin post
mineralization limestone cover sequence.
Exploration drilling for 2021 has begun.
Iglika Project
During 2020 the Company entered into an option to acquire a 100% interest in the 105 km
2
Iglika gold-
copper property. The project is located in the westernmost portion of the prolific Tethyan belt that
transects Bulgaria and hosts a number of epithermal gold and porphyry copper-gold mineral deposits
and operating mines.
Velocity is focused on targets with potential for discovery of gold mineralization.
In 2020, the company completed extensive rock and soil sampling as well as ground magnetic and
induced polarization (IP) geophysical surveys with results and interpretation pending. Additional surface
exploration is planned with exploration drilling expected to begin in Q2.
Appointment of Corporate Secretary
The Company announces that it has appointed Arie Page as Corporate Secretary.
Ms. Page obtained
her law degree in 2004 and was called to the Bar of British Columbia in 2005. She has been working
with public resource companies in the minerals sector for over 14 years and currently also serves as
corporate secretary to several issuers.
Marla Ritchie has resigned as corporate Secretary and the
Company wishes to thank Ms. Ritchie for her work over the past three years.
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.
A
bout 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 & 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 plant.
Velocity has a 70% interest in the Tintyava prospecting
licence, which includes the Rozino gold project, option agreements to earn a 70% interest in the
Obichnik and Makedontsi gold projects, and an option agreement to earn a 100% interest in the Iglika
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
"Keith Henderson"
President & CEO
For further information, please contact:
Keith Henderson
Phone: +1-604-484-1233
E-mail:
Web:
www.velocityminerals.com
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 information" within the meaning of Canadian
securities legislation and "forward-looking statements" within the meaning of the United States
Private
Securities Litigation Reform Act of 1995
(collectively "forward looking statements").
Forward-looking
statements include predictions, projections and forecasts and are often, but not always, identified by the
use of words such as "seek", "anticipate", "believe", "plan", "estimate", "forecast", "expect", "potential",
"project", "target", "schedule", "budget" and "intend" and statements that an event or result "may", "will",
"should", "could" or "might" occur or be achieved and other similar expressions and includes the
negatives thereof.
All statements other than statements of historical fact included in this release,
including, without limitation, statements regarding the Financing and the expected use of proceeds
therefrom, the Company's anticipated exploration plans and the timing of future activities of the Company
are forward-looking statements that involve various risks and uncertainties.
There can be no assurance
that such statements will prove to be accurate and actual results and future events could differ materially
from those anticipated in such statements.
Forward-looking statements are based on a number of
material factors and assumptions including, without limitation, that market fundamentals will result in
sustained precious metals demand and prices, the receipt of any necessary permits, licenses and
regulatory approvals in connection with the Financing and the future exploration and development of the
Company's projects, the availability of financing on suitable terms for the exploration and development of
the Company's projects and the Company's ability to comply with environmental, health and safety laws.
Forward-looking statements involve 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 statements.
Such risks and other factors include, among others, actual exploration results, changes in project
parameters as plans continue to be refined, results of future resource estimates, future metal prices,
changes in the financial markets, availability of capital and financing on acceptable terms, 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, general economic, market or business
conditions, uninsured risks, changes of regulations or laws, defects in title, availability of personnel,
materials and equipment on a timely basis, accidents or equipment breakdowns, delays in obtaining
governmental and regulatory approvals (including the final approval of the Financing by the TSX Venture
Exchange), unanticipated environmental impacts on operations and costs to remedy same, risks related
to mining activities and joint venture operations, the integration of acquisitions and the mining industry
generally, 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
.
Although the Company has attempted to identify important factors that could cause
actual actions, events or results to differ from those described in forward-looking statements, there may
be other factors that cause such actions, events or results to differ materially from those anticipated.
There can be no assurance that forward-looking statements will prove to be accurate and accordingly
readers are cautioned not to place undue reliance on forward-looking statements.
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.
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