Velocity Announces Positive Drill Results from the Obichnik Gold Project, Bulgaria
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NR-19-14 July 15, 2019
Velocity Announces Positive Drill Results from the
Obichnik Gold Project, Bulgaria
Drill hole ODD-001; 43.4m @ 3.89g/t gold,
including 19.9m @ 7.87g/t gold
Discovers Outcropping Intrusion-Hosted Mineralization
Vancouver, British Columbia – Velocity Minerals Ltd. (TSXV: VLC) (“ Velocity” or the “ Company”)
announces that it has received initial drill results for Target 1 (Durusu Tepe) at the Obichnik gold project
(“Obichnik”), Bulgaria (Table 1, Figure s 1). In addition, outcrop associated with intrusion -related gold
mineralization was discovered at Target 3 (Adren).
The Obichnik project is interpreted to be an intrusion -related gold and base metal mineralizing system
containing numerous structurally controlled epithermal gold prospects, hosted within a large 2.5km x
1.5km alteration zone.
Results confirm the presence of both high -grade epithermal gold AND potential bulk tonnage intrusion
related gold mineralization. Highlights include:
• Drilling at Durusu Tepe returns m ultiple gold rich drill intercepts: 43.4m grading 3.89g/t gold
(including 19.9m grading 7.87g/t gold), and 27.5m grading 1.24g/t gold (including 12.5m grading
2.40g/t gold) in drill hole ODD-001.
• Mapping at m ultiple priority targets identifie s magmatic “A -type” veins and associated
hydrothermal breccias hosted within a mafic intrusion at Target 3 (Adren). This intrusion hosted
mineralization underlies the central portion of a large gold rich alteration system.
Positive Drill Results
Two significant, high-grade intersects were returned from drill hole ODD-001 (Table 1). The upper, near-
surface drill intersection returned 43.4m grading 3.89g/t gold, including 19.9m grading 7.87g/t gold
(Figure 1). The lower drill intersection returned 2 7.5m grading 1.24g/t gold, including 12.5m grading
2.40g/t gold. True widths for the upper and lower intersections are estimated at 35.6m and 22.5m
respectively.
The gold mineralization is associated with intensely silicified volcanics within a package o f strong phyllic
alteration with the entire rock mass oxidized except for small pockets of remnant sulphide mineralization.
Mineralization appears to be best developed within coarser grained volcanics; however, there is a strong
structural control striking broadly east – west and dipping steeply to the north.
NR-19-14 Continued July 15, 2019
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Figure 1: Cross-Section 1 showing results for drill holes ODD-001 to -004. Results are pending for drill hole ODD-
007. Historical drilling and reported intersections are included for reference.
Historical drill holes are shown with reported gold intersections on Figure 1. The best historical drill
intersection at Obichnik is 90.0m grading 3.09g/t gold. Based on detailed geological mapping Velocity
geologists believe that this drill hole was drill ed oblique to the dip of the structurally controlled gold
mineralization and a verification drill hole perpendicular to strike w as required to determine true
thickness. Results of verification drilling are very positive, demonstrating that grade has historically been
slightly under-estimated and indicating an impressive 35.6m estimated true width for the upper zone.
ODD-001 22.1 65.5 43.4 3.89
including 39.6 59.5 19.9 7.87
ODD-001 77.1 104.6 27.5 1.24
including 87.1 99.6 12.5 2.40
ODD-001 110.6 112.6 2.0 1.12
ODD-001 121.6 123.6 2.0 1.12
ODD-002 0.8 15.5 14.7 0.52
ODD-002 89.5 92.5 3.0 2.03
ODD-002 128.8 130.8 2.0 0.60
ODD-002 162.8 167.7 4.9 1.49
ODD-002 172.7 186.7 14.0 0.54
including 183.7 186.7 3.0 1.78
ODD-002 193.7 197.7 4.0 0.74
ODD-003 102.0 104.0 2.0 4.74
ODD-004 59.0 61.0 2.0 0.63
ODD-004 87.0 94.2 7.2 0.71
Drill hole
ID From (m) To (m) Interval
(m) Gold (g/t)
Table 1: Drill Highlights, Durusu Tepe, Obichnik 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. Based on geological interpretation, true width in drill hole
ODD-001 is estimated to be approximately 80% of drilled intersection. Drill holes are designed to intersect
mineralization perpendicular or close to perpendicular.
NR-19-14 Continued July 15, 2019
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Target Generation
Ground truthing of coincident gold and molybdenum soil anomal ism has identified magmatic “A -type”
veins and associated hydrothermal breccias hosted within a mafic intrusion at Target 3 ( Adren). This
intrusion hosted mineralization underlies the central portion of a large gold rich alteration system (Figure
2). The mineralization is overprinted by a strong texture destructive p hyllic (quartz-sericite-pyrite)
alteration, with only the “A -type” veinlets and micro breccias of an earlier mineralization preserved
(Plate 1).
At Target 2 the gold -molybdenum soil geochemical anomaly is larger and stronger than that at Target 3
(Adren). Mapping will seek to discover outcropping magmatic breccias similar to those at Adren.
Plate 1: 1a, Phyllic overprint of magmatic hydrothermal micro breccias and
“A-Type” veinlets within mafic intrusive. Plate 1b, Phyllic overprint of
“A-Type” magmatic veinlets within mafic intrusive
Figure 2: Gridded Total Magnetic Anomaly Map “TMA” (Reduced to Pole “RTP”)
with gold-in-soil anomaly contours, drill holes and section line locations
NR-19-14 Continued July 15, 2019
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About Obichnik Gold Project
Velocity has an option to earn a 70% interest in Obichnik from its Bulgarian partner, Gorubso Kardzhali
A.D. (“ Gorubso”). Obichnik ; one of the Velocity’s three near surface gold projects, is located
approximately 29 km by road from partner Gorubso’s CIL processing plant.
Velocity’s strategy is to develop a low cost centralized “Hub ‘n’ Spoke” operation whereby multiple
individual business units within this emerging gold district, such as the advanced Rozino project, produce
gold concentrates for trucking to the CIL plant for on-site production of saleable dore.
The g enerative exploration at Obichnik fits well into this strategy and is part of a strong ‘pipeline’ of
opportunities that include Velocity’s more advanced Rozino Project that is currently undergo ing Pre -
Feasibility Study (PFS).
Obichnik has a geological resource registered on the Bulgarian State balance, which is open for expansion
and requires systematic exploration to investigate its full potential and Velocity plan to deliver a mineral
resource estimate prepared under NI 43 -101 as part of it’s 70% earn -in rights. The resource which is
registered with the Ministry of Energy in Bulgaria (Table 1) is based on historical exploration, including
approximately 32 drill holes (4,800m) and 137 trenches completed by Geoengineering Ltd. and Gorubso.
Table 1: Historical Resources for Obichnik1, calculated by Gorubso using the Bulgarian classification
system. Please review cautionary language below with respect to Historical Resources.
Cut-off Grade
(g/t gold)
Tonnes
(Mt)
Gold Grade
(g/t gold)
Contained
Gold
(ounces gold)
Bulgarian
Resource
Category
0.5 552,559 1.88 36,712 C1 + C2
0.5 1,693,553 1.17 69,925 C3
Note 1. Historical resources at Obichnik were calculated by Gorubso using the Bulgarian classification
scheme, based on manual polygonal methods of resource classification. Resources were submitted to
and accepted by the Bulgarian government, Dragiev H, 20 10 "Momchilgrad Prospecting License,
Geological Report at the Momchil deposit, Obichnik, Rudarka and Plovka sites, with Resource and Reserve
Recalculations of ‘Au -Ag Ores’ as of 01.10.2009” and geological resources are registered with
Certificated#4 from 28.01.2010 issued by the Ministry of Env ironment and Waters. Additional work will
be required in order to verify historical resources and any potential additional resources and to complete
a mineral resource estimate consistent with NI-43-101 standards of disclosure.
The Company cautions that it is not treating the historical resources as current mineral resources and/or
mineral reserves. Historical resources 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 mineral
resources and reserves. The historical resources are included because they are considered relevant by
the Company as they confirm the presence of significant gold mineralization on the property which has
not been fully delineated. The inclusion of historical resource estimations provides information as to the
potential size and nature of the immediate exploration targets within the Obichnik Property.
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.
NR-19-14 Continued July 15, 2019
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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 used for the
results described herein are 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 added to every batch. Drill intersections in this news release are calculated using a 0.2 g/t
gold trigger, a minimum 0.5 g/t gold composite, and a maximum of 3 meters consecutive waste.
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 Bulgaria. The Company envisions
staged open pit mining of satellite deposits and processing in a central, currently operating carbon-in-
leach (“CIL”) plant. The Company’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 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
NR-19-14 Continued July 15, 2019
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testing carried out on the Momchil property; use of funds; and the future business and operations 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”, “f orecasts”, “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 expres sed
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 Momchil property, including the geological mapping, prospecting and sampling programs for the projects, the
fact that the Company’s interests in the Momchil property is only an option and there is no guarantee that the
interest, if earned, will be certain, actual results of exploration activities, including the program, 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, 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 relat ed 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 w hich 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.
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