Velocity Files NI 43-101 Technical Report on SEDAR for Initial Mineral Resource Estimate at Obichnik Gold Project, Southeast Bulgaria Inferred Resource at 0.3g/t gold cut-off grade
1
NR-21-08 April 28, 2021
Velocity Files NI 43-101 Technical Report on SEDAR for Initial Mineral
Resource Estimate at Obichnik Gold Project, Southeast Bulgaria
Inferred Resource at 0.3g/t gold cut-off grade
4.4Mt @ 1.1 g/t gold for 156,000 ounces
Vancouver, British Columbia – Velocity Minerals Ltd . ( TSXV: VLC) (“ Velocity” or the “ Company”)
announces that it has filed a NI 43 -101 Technical Report on SEDAR (the “ Report”) 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.
The Mineral Resource Estimates were previously disclosed in the Company’s news release dated March
16 2021. The initial Inferred Mineral Resource estimates for the Obichnik gold Project (“Obichnik” or the
“Project”) were reported for a range of cut-off grades (Table 1). Highlights include:
• Initial Resource; 4.4 Mt @ 1.1 g/t gold for 156,000 ounces, at 0.3 g/t gold cut-off grade
• Near-surface; 80% of estimated resources are located within 120m of surface
• Open; The mineralized system at Obichnik remains open for expansion
Table 1: Obichnik Inferred Mineral Resource Estimate, effective date February 11th, 2021(1)
Cut-Off Grade
(gold g/t)
Tonnage
(million tonnes)
Grade
(gold g/t)
Ounces
(gold x 1,000)
0.2 5.9 0.9 171
0.3 4.4 1.1 156
0.4 3.5 1.3 146
0.5 2.8 1.5 135
0.6 2.3 1.6 118
0.7 2.0 1.8 116
0.8 1.7 2.0 109
(1) Mineral resources were estimated by Jonathon Abbott, a member of the Australian Institute of
Geoscientists and employee of MPR Geological Consultants Pty Ltd of Perth, Australia. Mr . Abbott is a
Qualified Person, as defined by National Instrument 43-101.
Resource Estimate Methodology and Assumptions
Recoverable resources were estimated for the Durusu Zone at Obichnik using Multiple Indicator Kriging
(“MIK”) with block support adjustment, a method that has been demonstrated to provide reliable
estimates of recoverable open pit resources in gold deposits of diverse geological styles. The resource
estimates include a variance adjustment to give estimates of recoverable resources above gold cut off
NR21-08 Continued April 28, 2021
2
grades for selective mining unit (“SMU”) dimensions of 5 m east by 2m north by 2m in elevation. The
variance adjustments were applied using the direct log-normal method.
The estimates are based on data from diamond drilling undertaken by Velocity and includes drilling
information available on the 10 th of February 2021 comprising 37 holes for 6,820m. Velocity’s diamond
holes are inclined to the southwest at gener ally 50o at generally around 25m spacing along generally 50
m spaced traverses with rare closer spaced holes.
Resource modelling incorporated two steeply northwest dipping mineralized domains interpreted from
2m down-hole composited gold grades and capturing intervals of greater than 0.1 g/t. The main, northern
domain extends over approximately 380m of strike with an average width of around 80m. The subsidiary
southern domain averages around 40m wide over 320m of strike. Minerali zation is character ized as
structurally controlled steep epithermal replacement of the volcanic host with a large envelope of
alteration that forms part of a 2.5km by 1km wide intrusive related hydrothermal mineralizing system.
Mineral Resources are truncated at a maximum ve rtical depth 180m around 30m above the base of
mineralized drilling, with around 80% of estimates from depths of less than 120m and less than 5% from
below 160m.
Model blocks are categorized by oxidation zone from triangulated surfaces representing the bas e of
complete oxidation and top of fresh rock interpreted from geological logging of Velocity’s diamond holes.
Within the resource area the depth to the base of complete oxidation averages around 55m, with fresh
rock occurring at an average depth of around 68m.
Bulk densities of 2. 30, 2.50 and 2. 55 tonnes per cubic metre were assigned to completely oxidized,
transitional and fresh material respectively on the basis of 30 immersion density measurements
performed by Velocity on diamond drill core samples.
All class grades were for MIK modelling determined from bin mean grades with the exception of the upper
bins, which were reviewed on a case by case basis for each mineralized domain/oxidation zone subset
and bin grades selected on the basis of bin mean, or median with or without exclusion of high grade
composites. This approach was adopted to reduce the impact of a small number of outlier composites.
Obichnik Project Drilling
Following release of the initial Mineral Resource estimate for the Obichnik gold project (see news release
NR-21-04, March 16, 2021), drilling has continued to the south. Recent results have returned a best
intercept from drill hole ODD-082; 15.8m grading 1.06 g/t gold from 42.6m (Figure 1).
Makedontsi Project Drilling
Recent drilling at the Makedontsi gold project included 6 exploration diamond drill holes at the Kalina
target together with diamond and reverse circulation (RC) drilling at the Makedontsi deposit. Drilling at
the Makedontsi deposit aims to test the grade and extents of historical drilling, as testing for blind targets
under the post-mineral limestone cover to the east. A total of 8 diamond drill holes for 273m, plus 14 RC
drill holes for 528m have been completed. Highlights include MRC -012; 34m grading 0.94g/t gold and
MRC-009; 16m grading 0.99g/t gold.
NR21-08 Continued April 28, 2021
3
Figure 1: Map showing Durusu drilling, Obichnik gold project, southeast Bulgaria with gold in soil geochemical
anomaly and locations of Velocity’s drilling to date.
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 Co upled Mass Spectrometry
(ICPMS).
General Notes with Respect to Technical Information
The mineral resource disclosed herein has been estimated in accordance with the Canadian Institute of
Mining, Metallurgy and Petroleum “CIM Definition Standards for Mineral Resources and Mineral
Reserves” (CIM, 2014).
Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Any known legal, political, environmental, or other risks that could materially affect the potential
development of the Mineral Reserves are detailed below in the section entitled “Cautionary Statement
Regarding Forward-Looking Information”.
Qualified Persons
The technical content of this news release that relates to Mineral Resource Estimates has been approved
for disclosure by Jonathon Abbott, a member of the Australian Institute of Geoscientists and employee of
NR21-08 Continued April 28, 2021
4
MPR Geological Consultants Pty Ltd. Mr. Abbott is a Qualified Person, as defined by National Instrument
43-101. Mr. Abbott is independent of the Company.
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 concentra tes 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 (CIL) plant. Velocity has a 70% interest in the Tintyava prospecting
licence, which includes the Rozino gold project, and has entered into option agreements to earn a 70%
interest in the Obichnik and Makedontsi gold projects and holds a 100% interest in the Iglika project.
Velocity’s management and board includes m ining 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
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 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”, “forecas ts”, “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. For ward 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 geo logical 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, ca pital 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, ch anges in general economic conditions,
NR21-08 Continued April 28, 2021
5
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, ac cidents,
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 r elating 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, currenc y 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 a cquisitions, 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 inco rporated by reference
herein, except as otherwise required by law.
- 30 –