Velocity Enters into Option Agreement for the Makedontsi Gold Project, Southeast Bulgaria
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NR‐19‐10 28 May 2019
Velocity Enters into Option Agreement
for the Makedontsi Gold Project, Southeast Bulgaria
Vancouver, British Columbia – Velocity Minerals Ltd. (TSXV: VLC) (“ Velocity” o r t h e “Company”)
announces that it has entered into an option agreement (the “Agreement”) with Bulgarian partner,
Gorubso Kardzhali A.D., (“Gorubso”) to acquire a 70% interest in the 194‐hectare Nadezhda property (the
“Property”), which includes the Makedontsi gold project (“ Makedontsi” or the “ Project”); a geological
resource registered on the Bulgarian State balance. Under the terms of the option agreement, Velocity
can earn a 70% interest by delivering a mineral resource estima te prepared under National Instrument
43‐101 (“NI 43‐101”).
Makedontsi Gold Project
The Makedontsi deposit is located in southeast Bulgaria, approx imately 10km by road from Gorubso’s
modern CIL processing plant (Figure 1).
The deposit is open for expansion and requires systematic exploration to investigate its full potential and
to deliver a mineral resource estimate prepared under NI 43‐101. Concurrent with and building upon the
Company’s Rozino prefeasibility activities, a program of modern integrated exploration is planned in order
to assess ‘blind’ mineralization amenable to open pit mining un der a thin post mineralization limestone
cover sequence.
The resource which is registered with the Ministry of Energy in Bulgaria (Table 1) is based on historical
exploration, including approximately 250 drill holes (11,500m) and 5,000m of trenching completed by
Gorubso.
Table 1: Historical Resources for Makedontsi1, 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 5,954,349 1.0 210,745 C1 + C2
0.5 2,653,814 0.9 84,814 C3
Note 1. Historical resources at Makedontsi were calculated by G orubso using the Bulgarian classification
scheme, based on manual polygonal methods of resource classific ation. Resources were submitted to
and accepted by the Bulgarian go vernment, Dragiev H, 2013 "Mlec hino Prospecting License, Geological
Report at the Nadezhda Prospect, with Resource and Reserve Reca lculations of ‘Au Ores’ at the
Makedontsi, Dangovo and Kalina deposits”. Additional work will be required in order to verify historical
NR‐19‐10 Continued 28 May 2019
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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 res ources 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 prac tice 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 mi neralization 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 Makedontsi Property.
Figure 1: Location of Makedontsi relative to the operating CIL processing plant, the Rozino deposit
and other assets in southeast Bulgaria.
Planned Work
Mineralization is outcropping locally, but elsewhere the prospective sediments are covered by a thin
veneer of post‐mineral limestone estimated to range from 10 to 30m thickness. Consequently, the initial
work program will focus on surface geochemistry and gradient ar ray induced polarization (“IP”) surveys.
The mineralization appears to be closely associated with silicification and it is expected that the planned
IP geophysical survey will help locate prospective silicified z ones if they exist below the limestone cover.
Limited historical drilling indicates that locally mineralizati on does exist below the cover sequence
(Figure 2).
In tandem with the above work the Company plans to assess the r eliability of historical drill results with
angled heel‐to‐toe drilling (approximately 22 drill holes for an expected total of 1,000m). This initial phase
will be completed on one drill section through the existing Bul garian‐registered historical resource area.
The aim of the drill campaign is to verify mineralization intersected by historical drill holes, infill untested
portions of the mineralized body, as well as increased understa nding of geometry, continuity of
mineralization, and geotechnical and hydrogeological aspects of the deposit.
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Figure 2: Historical drilling and planned heel‐to‐toe drilling at the Makedontsi project. Highlighted
drill intersections are subject to verification by planned drilling and are not true thickness.
Figure 3: Selection of rocks outcropping at Makedontsi. A. Low sulfidation epithermal (LSE) stockwork
and silicification. B. Epithermal quartz banded vein. C. Composite LSE vein and silicification with
abundant iron oxides after pyrite. D. Silicified polymictic breccia‐conglomerate.
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Discovery History at Makedontsi
The Makedontsi gold project was initially discovered in 1998 by V e l o c i t y ’ s V P E x p l o r a t i o n a s p a r t o f a
regional surface geochemical survey (“BLEG”) undertaken by a subsidiary of Anglo Amercian plc, Minorco
SA (“Minorco”). The discovery was interpreted by Minorco as “ potentially epithermal gold occurrence
hosted by terrigenous sediments in a favorable geologic‐structu ral position similar to the epithermal Au
mineralization at Perama Hill Deposit in Northern Greece ”. As well as regional BLEG sampling, Minorco
completed geological mapping, soil geochemistry, rock chip sampling and trenching.
A Bulgarian explorer (Gramex OOD) completed additional detailed mapping and drilled a single drill hole
in 2001 intersecting [email protected] /tAu(incl. [email protected]/tAu). Gorubso acquired the project in 2005
and between 2007‐2008 and 2012‐2014 completed significant exploration including 5,115m of trenching
and 252 drill holes for a total of 11,530m, and established a mineral resource estimate within the Bulgarian
classification system.
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 plant. The Company’s management and board includes minin g 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 Europea n 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 updated 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]
NR‐19‐10 Continued 28 May 2019
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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
testing carried out on the Nadezhda property; use of funds; and the future business and operations of Velocity.
O f t e n , b u t n o t a l w a y s , f o r w a r d l o o k i n g s t a t e m e n t s c a n b e i d e n t if i e d b y w o r d s s u c h a s “ p r o f o r m a ” , “ p l a n s ” ,
“expects”, “may”, “should”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes”,
“potential” or variations of such words including negative variations thereof, and phrases t h a t r e f e r t o c e r t a i n
a c t i o n s , e v e n t s o r r e s u l t s t h a t m a y , c o u l d , w o u l d , m i g h t o r w i ll 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 m i n e r a l e x p l o r a t i o n a n d d e v e l o p m e n t a n d m i n e
development activities for the Nadezhda property, including the geological mapping, prospecting and sampling
programs for the projects, the fact that the Company’s interest s in the Nadezhda 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 mine ral 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 p rice for commodities, po ssible 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 o r in the completion of development or construction
activities, changes in laws, reg ulations 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 lo oking 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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