Velocity Announces Initial Drill Results from the Sedefche Gold Project, Southeast Bulgaria Highlights include: Drill hole SDD-002; 12.9m grading 3.80 g/t gold Drill hole SDD-005; 18.1m grading 2.75 g/t gold Drill hole SDD-008; 11.5m grading 4.25 g/t gold
1
Lms
NR-20-01 January 09, 2020
Velocity Announces Initial Drill Results from the
Sedefche Gold Project, Southeast Bulgaria
Highlights include:
Drill hole SDD-002; 12.9m grading 3.80 g/t gold
Drill hole SDD-005; 18.1m grading 2.75 g/t gold
Drill hole SDD-008; 11.5m grading 4.25 g/t gold
Vancouver, British Columbia – Velocity Minerals Ltd. (TSX .V: VLC) (“ Velocity” or the “ Company”)
announces that it has received initial drill results for the Sedefche Gold Project (“Sedefche”), Bulgaria
(Table 1, Figures 1 to 4).
The Company’s initial verification drilling at Sedefche has broadly confirmed historical drilling results and
identified higher-grade zones associated with areas of silica-gold replacement mineralization.
The results support the potential to fast-track development of the Sedefche deposit along the lines of an
existing, permitted Mine Design Plan completed by Bulgarian partner Gorubso -Kardzhali A.D.
(“Gorubso”).
“The Sedefche project is permitted for development and Velocity is moving quickly to complete
exploration drilling and resource verification, as well as engineering due diligence and met allurgical test
work,” stated Keith Henderson, Velocity’s CEO, “These initial drill results provide the Company with a very
positive start to the year.”
Velocity’s results to date have broadly confirmed the grade and tenor of previous results and identified a
number of higher-grade zones within the existing resource envelope not previously identified by historical
exploration. In addition, mineralization has been extended along a parallel trend west of the previously
defined Bulgarian State Resource in drill hole SDD -012 which returned 11.0m grading 0.98 g/t gold and
87.80 g/t silver from 62.4m (Figures 1 and 3).
Drill hole SDD-002 (Figures 1 and 2) returned a high-grade intersection of 12.9m grading 3.80 g/t gold and
38.68 g/t silver. On the same section, drill hole SDD-004, returned 23.7m grading 1.17 g/t gold and 49.64
g/t silver, while drill hole SDD-005 returned 18.1m grading 2.75 g/t gold and 55.71 g/t silver.
Drill hole SDD-008 (Figures 1 and 4) returned 11.5m grading 4.25 g/t gold and 87.80 g/t silver from surface.
Additional drilling and engineering due diligence is planned with the aim of reaching a decision point on
the project in H1, 2020.
NR-20-01 Continued January 09, 2020
2
Figure 1: Map of the Sedefche Gold Project, showing the drill traces of completed and planned drilling. The drill
hole locations are displayed on a geological map of the deposit including positions of previous drill collars
Section locations are included for Figures 2, 3 and 4.
NR-20-01 Continued January 09, 2020
3
Figure 2: Cross Section at Sedefche Gold Project showing results for drill holes ODD-01, -002, -003, -004 and -005.
Figure 3: Cross Section at Sedefche Gold Project showing results for drill holes ODD-06, -007, -012 and -013.
Figure 4: Cross Section at Sedefche Gold Project showing results for drill holes ODD-08, -009 and -010.
NR-20-01 Continued January 09, 2020
4
Table 1: Significant Drill Results at Sedefche Gold Project
The drill intersections disclosed here have not yet been included in a resource model and true thickness of
mineralization has not yet been determined. Drill holes are designed to intersect mineralization perpendicular or
close to perpendicular. Drill intersections are calculated using a top-cut of 20 g/t gold, a 0.3 g/t gold trigger, a
minimum 0.7 g/t gold composite, and a maximum of 1.5 metres consecutive waste.
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.
SDD-001
SDD-002 58.0 70.9 12.9 3.80 38.68
SDD-002 92.1 95.6 3.5 1.69 7.17
SDD-003 22.0 45.7 23.7 0.76 42.84
SDD-003 49.9 58.6 8.7 1.17 37.90
SDD-004 3.9 12.7 8.8 0.71 28.10
SDD-004 15.8 17.8 2.0 0.71 21.95
SDD-004 26.2 49.9 23.7 1.17 49.64
SDD-005 0.8 14.0 13.2 1.07 39.22
SDD-005 20.1 38.2 18.1 2.75 55.71
SDD-006 0.0 5.7 5.7 1.74 31.73
SDD-007 13.1 25.8 12.7 1.60 28.89
SDD-008 0.0 11.5 11.5 4.25 87.80
SDD-009
SDD-010
SDD-011
SDD-012 45.5 49.9 4.4 0.78 8.76
SDD-012 62.4 73.4 11.0 0.98 10.22
SDD-013
SDD-014 78.4 82.2 3.8 1.62 16.97
SDD-014 84.2 86.2 2.0 1.01 6.30
No Significant Intercept
Results Pending
Silver
(g/t)
No Significant Intercept
No Significant Intercept
No Significant Intercept
Drill hole
ID From (m) To (m) Interval
(m) Gold (g/t)
NR-20-01 Continued January 09, 2020
5
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 envisi ons 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 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 u pdated 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: [email protected]
Web: www.velocityminerals.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defi ned 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 , testing
and Initial Drilling and, if applicable, the Additional Drilling carried out at the Project, the exercise of the Option, the
entry into of the Joint Venture and any payments in connection with same and the future business and operations
NR-20-01 Continued January 09, 2020
6
of Velocity. 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”, “an ticipates”,
“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. In making the
forward-looking statements in this news release, the Company has applied several material assumptions, including
without limitation, that market fundamentals will result in sustained gold demand and prices, the receipt of any
necessary permits, licenses and regula tory approvals in connection with the future development of the Company’ s
Bulgarian projects, the availability of financing on suitable terms for the development, construction and continued
operation of the Company’s projects, and the Company’s ability to comply with environmental, health and safety
laws. 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 de velopment activities for Sedefche and the Company’s projects generally, including the geological
mapping, prospecting and sampling programs for the projects, the fact that the Company’s interest in Sedefche is
only an option and there is no guarantee that such interest, if earned, will be certain, actual results of exploration
activities, including the Initial Drilling and, if applicable, the Additional Drilling, 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 ability of the Company to obtain access
to the CIL Plant and to have ore from the Project (and the Company’s other projects) processed at the CIL Plant on
profitable terms, 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 V), permits or financing or in the completion of development or
construction activities, 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 acqu isitions, 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 C ompany'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 incorpo rated by reference
herein, except as otherwise required by law.
- 30 -