Velocity Receives Highly Anomalous Geophysical and Geochemical Results at the Obichnik Gold Project, Southeast Bulgaria
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NR-19-13 26 June 2019
Velocity Receives Highly Anomalous Geophysical and Geochemical
Results at the Obichnik Gold Project, Southeast Bulgaria
Vancouver, British Columbia – Velocity Minerals Ltd. (TSXV: VLC) (“ Velocity” or the “ Company”)
announces that it has received positive results for recently completed geochemical soil sampling and
ground magnetic surveys at the Obichnik gold project (“ Obichnik” or the “ Project”). Obichnik is one of
the Company’s three near surface gold projects located in southeastern Bulgaria. The surveys have
defined four priority drill targets, highlighting the prospective nature of the large permissive gold bearing
system. Verification drill testing has commenced at Target 1 (Durusu Tepe) and drill holes will be utilized
for geotechnical and hydrological studies.
Gold Mineralization Model
The Obichnik project is interpreted to be an intrusion-related gold and base metal mineralizing system
containing structurally controlled epithermal gold prospect s which sits within a large 2.5km x 1.5km
alteration zone.
Targets defined to date include two styles of mineralization.
• high-grade, near -surface epithermal gold mineralization related to structurally controlled
silicification, hosted predominantly within volcanics.
• large-tonnage or bulk mineralization hosted within / adjacent to the intrusives that are the source
of the epithermal gold mineralization.
Historical drilling, geological mapping and surface rock sampling have identified steep, high-grade gold
zones within the near surface epithermal environment which have not been explored at depth. No
modern systematic exploration has been carried out at Obichnik consequently the targets are considered
under-explored. The style of epithermal mineralization at Target 1 (Durusu Tepe) supports the potential
for significant mineralization at depth.
Positive Survey Results
Ground magnetic and surface geochemical surveys highlight a large area of structural ly controlled
alteration with anomalous gold mineralization (Figure 1).
Results from over 29 line km of ground magnetic survey conducted on 100m spaced lin es delineates a
number of structurally controlled corridors of relatively low magnetic intensity that are interpreted to
result from the destruction of volcanic magnetite by intense gold bearing hydrothermal fluids. These
magnetic lows correspond with four discrete gold in soil geochemical anomalies at Targets 1 to 4.
NR-19-13 Continued 26 June 2019
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Figure 1: Gridded Total Magnetic Anomaly Map “TMA” (Reduced to Pole “RTP”)
with gold-in-soil anomaly contours.
Figure 2: Gridded ME Gold in Soil Map with molybdenum-in-soil anomaly contours.
NR-19-13 Continued 26 June 2019
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Multi-element soil samples were taken on the same 100m spaced lines at a sample spacing of 50m . The
gold in soil anomalies are supported by a broad sweep of base metal and pathfinder element associated
anomalism that is supportive of mineralization within an intrusive centered model.
Figure 2 shows the association of gold in soils with molybdenum. The association is of particular note in
that molybdenum is often associated with a focal magmatic event and due to its relative immobility in the
weathering environment is an accurate locator of magmatic centers.
The large gold anomaly at Target 1 (Durusu Tepe) is situated over previously drilled gold mineralization
and will be drill tested as part of an initial drill program. The correlation of gold, molybdenum and
magnetic low anomalies at Targets 2 & 3 warrants near-term drilling and these will be tested after the
first pass drilling at Durusu Tepe.
The gold anomaly at Target 4 represents a priority target due the extent and tenor of the coherent multi-
point anomaly (with peak gold in soil results above 500ppb ) and known gold at surface of up to 7.73g/t
from Velocity’s grab rock chip sampling program. The gold anomaly remains open to the west and further
soil sampling will be required for efficient drill targeting.
About the 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 (Figure 3)
Figure 3: Location of Velocity’s Rozino JV and the Obichnik and Makedontsi projects.
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 existing 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 undergoing Pre -
Feasibility Study (PFS).
NR-19-13 Continued 26 June 2019
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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 in order to earn a 70% interest in the property. 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, 2010 "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 Environment 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.
Discovery History at Obichnik
The State company completed initial geological mapping and soil geochemistry between 1970 and 1971.
Subsequently, Geoengineering Ltd. (1977 – 1994) completed the bulk of the historical work, including
geological mapping, soil geochemistry, 133 trenches (13.3 km), and 24 d iamond drill holes for 3,791m.
Most recently, between 2003 and 2010, Gorubso completed geological mapping, 3 trenches (294 m), 8
vertical diamond drill holes for 1,017m, and a Historical Resource estimation which was registered with
the Bulgarian State.
Quality Assurance and 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. A total of 595 sieved
samples (>1kg -1mm) were collected for shipment together with 10% b lank samples and 10% field
duplicates for low temperature drying and sieving to 180µ, before taking a 25g split that was sent to ALS
laboratories in Ireland for Aqua Regia digest and ICP-MS finish to determine gold plus 39 multi-elements.
The Ground Magne tic survey was carried out by geophysical consultants using high resolution Proton
Magnetometers, with the results checked by a third -party independent geophysicist for quality control.
Raw data was processed and corrected for diurnal variations and the results interpreted by 2 independent
groups of geophysicists under the direction of Velocity staff.
NR-19-13 Continued 26 June 2019
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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 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 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]
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 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”, “sched uled”, “estimates”, “forecasts”, “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 o r 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
NR-19-13 Continued 26 June 2019
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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 certai n, 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 o f 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 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 Au thorities, 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 incorporated by reference
herein, except as otherwise required by law.
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