Velocity Provides Corporate and Exploration Update and Extends Advisory Engagement
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Lms
NR-24-06 June 13, 2024
Velocity Provides Corporate and Exploration Update
and Extends Advisory Engagement
Vancouver, British Columbia – Velocity Minerals Ltd. (TSX.V: VLC) (“Velocity” or the “Company”) provides
a corporate and exploration update and extends its advisory engagement with Leede Jones Gable Inc. (the
“Advisor”) who will continue to work with Velocity’s management and Board to evaluate a range of
strategic alternatives that may be available to the Company to maximize value for all shareholders.
Strategy and Potential Asset Sale
The Company is considering various strategic alternatives including but not limited to the sale of the
Rozino gold deposit (“ Rozino”). Rozino is a prefeasibility-stage (“PFS”) gold deposit, which is currently
advancing through the permitting process. The PFS was completed assuming a long -term gold price of
US$1,500 per ounce and the Rozino gold deposit is highly sensitive to gold pricing, as illustrated by Figure 1
below, which considers sensitivity of the 2021 PFS discounted cash flow model at gold prices 25% above
and below the $1,500 base price.
Gold Price (US$) After Tax IRR After Tax NPV5%
(US$ million)
$1,125 (-25%) 10.2% $35.4
$1,500 (PFS Base Case) 27.4% $122.5
$1,875 (+25%) 41.4% $218.0
Figure 1: Rozino Gold Price Sensitivity Analysis (source: Revised NI 43-101 Technical Report
“Prefeasibility Study for the Rozino Gold Project, Bulgaria. Report Date December 15, 2021)
Velocity owns 70% of Rozino in joint venture with a partner holding a 30% stake. Velocity and its partner
have signed an agreement that allows the Rozino asset to be offered for sale on a 100% basis, subject to
certain qualifications.
There can be no assurance that ongoing assessment of strategic alternatives will result in any specific
strategic plan or financial transaction and no timetable has been set for its completion. The Company does
not plan to provide updates unless there are material developments to report.
Iglika Project Update
Pursuant to a letter agreement dated June 8, 2023 (the “Option Agreement”), Velocity has received notice
from Dundee Precious Metals (“DPM”) that DPM intends to terminate the Iglika property (“Iglika”) Option
Agreement effective July 30, 2024 . During the term of the Option Agreement to date, DPM has spent
approximately $3.5 million on surface exploration, drilling and associated costs, completing a total of
10,428m of diamond drilling, with drillholes averaging 613m in depth.
Following completion of DPM’s drill program, the best drill intersection is 71m at 0.15% copper, including
4.7m at 0.26% copper, 6.0m at 0.37% copper, and 24.5m at 0.21% copper (see previous news release
NR-24-06 Continued June 13, 2024
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January 23, 2024). Recently, drilling at the project intersected 24.5m at 0.21% copper, 7.0m at 0.23%
copper, and 3.3m at 1.61 g/t gold (see Tables 1 and 2 for complete drill highlights). Best results are from
the Chai Dere propylitic alteration zone (“Chai Dere”), where mineralization has been intersected in a
total of 3 drill holes, along approximately 750m of strike length (Figures 2 and 3). Drill spacing leav es
ample space for discovery of additional copper mineralized zones.
A total of 15 follow -up drill holes have been planned and are currently being permitted. The Iglika
prospecting license is currently awaiting approval of an application for a two-year extension and once drill
permitting is also completed, drilling of targets can begin. The Company is seeking to secure a new drill
partner to complete target testing at Chai Dere and throughout the Iglika property.
Figure 2: Map showing selected drill holes at the Chai Dere target, located north of Iglika Copper Skarn deposit.
NR-24-06 Continued June 13, 2024
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Figure 3: Selection of core photographs showing alteration and mineralization at
Chai Dere. Photos A-D from drill hole IDD -006: A) at 466.8m; disseminated and
veinlet of chalcopyrite -pyrite ( cpy-pyy) in chlorite -sericite±epidote altered
crowded feldspar porphyry. B) at 476.9m; intrusive breccia. C) at 546.5m; cpy-pyy
veinlets in chlorite-sericite-epidote altered crowded feldspar porphyry dyke. D) at
660.9m; chlorite-sericite altered andesite with anhydrite and quartz-pyy-cpy
veinlets. Photos E -H from drill hole IDD -014: E) at 68.8m ; cpy-pyy veinlets in
sericite-pyrite altered coarse volcaniclastics. F) at 112.9m; cpy-pyy vein in sericite-
chlorite altered tuff. G) at 226.4m, cpy -pyy veinlets in quartz -sericite-pyrite+/-
chlorite altered crowded feldspar porphyry dyke. H) at 915.0m; quartz-chalcopyrite
vein cutting chlorite altered andesite dyke.
NR-24-06 Continued June 13, 2024
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Table 1: Significant drill intercepts from Chai Dere, Iglika Propylitic Zone, Boyalashka River and Sitovo North targets,
with main intercepts calculated using a 0. 05 % copper trigger, a minimum 0. 1 % copper composite grade, and a
maximum of 6 metres consecutive waste. Including intercepts calculated using higher parameters to minimize
number of intervals generated (0.1% copper trigger, a minimum 0.2% copper composite grade, and a maximum 3m
of consecutive waste).
Table 2: Significant drill intercepts from Boyalashka River, Monzodiorite and 4G targets, calculated using a 0.2 g/t
gold trigger, a minimum 0.5 g/t gold composite grade, and a maximum of 3 metres consecutive waste.
IDD-006 76.60 80.90 4.30 0.11 IDD-014 63.90 72.00 8.10 0.11
IDD-006 97.50 112.50 15.00 0.16 including 70.00 72.00 2.00 0.27
including 99.50 103.50 4.00 0.47 IDD-014 110.90 115.00 4.10 0.36
IDD-006 214.10 217.30 3.20 0.17 IDD-014 222.30 229.80 7.50 0.14
IDD-006 222.60 227.00 4.40 0.13 including 222.30 226.50 4.20 0.21
IDD-006 311.30 314.30 3.00 0.11 IDD-014 259.50 265.00 5.50 0.12
IDD-006 430.00 500.90 70.90 0.15 including 262.80 265.00 2.20 0.22
including 447.40 452.10 4.70 0.26 IDD-014 389.10 404.10 15.00 0.14
including 458.70 460.70 2.00 0.21 including 400.10 404.10 4.00 0.21
including 464.70 470.70 6.00 0.37 IDD-014 414.70 421.10 6.40 0.10
including 476.40 500.90 24.50 0.21 IDD-014 626.30 632.30 6.00 0.11
IDD-006 551.40 554.50 3.10 0.17 IDD-014 689.30 692.60 3.30 0.12
IDD-006 552.40 554.50 2.10 0.21 IDD-014 755.70 802.50 46.80 0.11
IDD-006 576.00 579.00 3.00 0.11 including 767.60 774.60 7.00 0.23
IDD-006 650.30 661.00 10.70 0.10 including 789.60 791.60 2.00 0.25
IDD-006 707.60 715.10 7.50 0.10 IDD-014 909.00 950.50 41.50 0.12
IDD-006 730.50 734.60 4.10 0.12 including 921.40 923.40 2.00 0.22
IDD-006 772.70 784.30 11.60 0.16 including 931.50 933.50 2.00 0.23
including 781.30 784.30 3.00 0.38
IDD-006 833.60 838.60 5.00 0.11 IDD-016 92.30 96.00 3.70 0.11
IDD-016 810.60 814.60 4.00 0.11
IDD-007 709.60 711.00 1.40 0.35
IDD-017 114.70 117.70 3.00 0.11
IDD-008 406.60 409.60 3.00 0.12 IDD-017 145.70 149.50 3.80 0.14
IDD-008 427.60 433.20 5.60 0.11 IDD-017 608.20 611.20 3.00 0.11
IDD-008 446.40 455.60 9.20 0.12
IDD-009 353.10 356.10 3.00 0.12
IDD-010 43.70 46.70 3.00 0.11
IDD-010 80.80 95.90 15.10 0.13
IDD-010 89.00 91.00 2.00 0.22
IDD-010 103.20 110.40 7.20 0.12
IDD-010 130.90 132.50 1.60 0.34
Hole ID From (m) To (m) Interval
(m)
Copper
(%)Hole ID From (m) To (m) Interval
(m)
Copper
(%)
IDD-008 363.30 368.00 4.70 0.65
IDD-009 472.10 476.40 4.30 0.59
IDD-011 84.40 85.50 1.10 0.58
IDD-011 96.80 97.80 1.00 0.56
IDD-012 22.10 23.10 1.00 1.35
IDD-012 71.50 72.50 1.00 2.03
IDD-013 19.20 22.50 3.30 1.61
Hole ID From (m) To (m) Interval
(m) Gold (g/t)
NR-24-06 Continued June 13, 2024
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About Iglika
The 81km2 property has potential for multiple mineral deposit types including copper porphyry, copper
skarn, and epithermal gold. Surface exploration completed at the Property to date includes approximately
717 rock samples, 2,750 soil samples, 2,300 multi-horizon soil samples, 600-line km of magnetic data, 110-
line km of induced polarization, 15,000 radiometric measurements, and a total of 11,943m of diamond
drilling completed by Velocity and DPM.
Quality Assurance / Quality Control
The work programs in Bulgaria are designed and supervised by Daniel Marinov, MAIG RPGeo, the
Company’s Vice President Operations 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 SGS Mineral Services laboratory in Burgas, Bulgaria and
Bor, Serbia (drill core), for sample preparation and subsequent analysis. Drill core samples are prepared
and analyzed by fire assay using a 30 -gram charge and multi -element analysis with four acid digestion
using an Inductively Coupled Mass Spectrometer in compliance with industry standards at SGS Mineral
Services laboratory. Field dup licate samples, blanks and independent controlled reference material
(standards) are added to every batch.
Qualified Person
The technical content of this release has been approved for disclosure by Daniel Marinov, RPGeo, a
Qualified Person as defined by NI 43 -101 and the Company’s Vice President Operations. Mr. Marinov is
not independent of the Company as he is a director, off icer, shareholder, and holds incentive stock
options.
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 STATEMENTS: This news release includes certain
forward-looking information (collectively, “forward-looking statements”) within the meaning of applicable Canadian
and U.S. securities legislation, including the United States Private Securities Litigation Reform Act of 1995 . All
statements, other than statements of historical fact, included herein including, without limitation, statements
regarding the amount of the Financing (and any potential upsizing thereof), the intended use of the proceeds from
the Financing, the payment of finder's fees, and the anticipated business plans and timing of future activities of the
Company, are forward-looking statements. Although the Company believes that such statements are reasonable, it
can give no assurance that such expectations will prove to be correct . Often, but not always, forward looking
statements can be identified by words such as “ will”, “plans”, “expects”, “may”, “should”, “budget”, “scheduled”,
“estimates”, “forecasts”, “intends”, “anticipates”, “believes”, “potential” or variations of such words including
NR-24-06 Continued June 13, 2024
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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 regulatory approvals in
connection with the future development of the Company’s Bulgarian gold projects in a timely manner, the
availability of financing on suitable terms for the development, construction and continued operation of the
Company’s Bulgarian gold 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 development activities for the Company’s Bulgarian copper and gold projects, 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,
the inability to or delay in obtaining governmental and regulatory approvals (including of the TSXV for the Financing),
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 acquisitions, as well as those factors
discussed under the heading. “Risk Factors” in the Company’ s annual manag ement’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.sedarplus.ca.
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.