Velocity Receives Positive Metallurgical Results at Rozino Gold Project, Southeast Bulgaria Comprehensive Test Work Supports Low Cost Metrics for Input into Upcoming Preliminary Economic Assessment
1
NR18-15 August 29, 2018
Velocity Receives Positive Metallurgical Results
at Rozino Gold Project, Southeast Bulgaria
Comprehensive Test Work Supports Low Cost Metrics
for Input into Upcoming Preliminary Economic Assessment
Vancouver, British Columbia – Velocity Minerals Ltd . ( TSXV: VLC) (“ Velocity” or the “ Company”)
announces that it has received positive results from comminution, flotation & gravity recovery, and leach
test work on a bulk sample representative of the entire Rozino gold project (“ Rozino” or the “Project”),
located in southeast Bulgaria.
Results of this work will be incorporated into the Rozino NI 43 -101 Preliminary Economic Assessment
(“PEA”), which is in progress with results expected to be released in September 2018. Delivery of the PEA
is the mechanism by which Velocity will earn a 70% interest in the Rozino gold deposit.
“Comprehensive metallurgical test work has provided us with positive results for inclusion into the Rozino
PEA. The results included here provide Velocity with a mechanism to produce a 30 g/t gold concentrate,
which is amenable to processing at the nearby Gorubso carbon-in-leach plant,” stated Keith Henderson,
Velocity’s President & CEO. “The flotation test work has demonstrated that the process delivers a high -
quality concentrate for input to the existing CIL plant. With extremely low sulphide contents, low carbon
contents and negligible deleterious elements , this low -volume, high -grade concentrate should
complement the development options being considered in the PEA.”
Highlights of Results
• >98% of sulphide recoverable to produce a gold concentrate using standard flotation
• Low-volume, high-grade concentrate complements PEA project development options
• Concentrate produced typically averages 30 g/t gold
• Flotation gold recoveries of approximately 91%
• Extremely simple mineralogy with negligible deleterious elements
• Low sulphide content (<1%) and low mass pull (<5%)
• Low carbon content (1.2%) minimizes pregnant solution robbing during leaching
• Environmentally benign waste tailings product
• Results based on representative bulk sample comprised of 1,600 core samples
Simple Mineralogy at Rozino
The uncomplicated nature of mineralogy at Rozino is one of the attractive features of the gold deposit.
The mineralization is very simple with gold associated with pyrite, which is the only significant sulph ide
mineral in the deposit.
NR18-15 Continued August 29, 2018
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Flotation Test Work
The test work shows that more than 98% of the sul phide is recoverable to produce a basic g old
concentrate using standard flotation techniques, conventional flotation reagents and a grind size of 70%
passing 200 mesh. The test work c oncentrate typically averag es 30 g/t gold with recoveries of
approximately 91%. The economics of the grind sizing and the reagent scheme used in the test work have
not yet been optimized, but these results indicate that a simple metallurgical flowsheet is required, which
may be refined in the next phase of test work to further enhance the operating cost inputs.
One of the scenarios being considered in the PEA will be trucking of this concentrate to Gorubso’s CIL
facility in Kardzhali. The cost of trucking this concentrate to Velocity’s partner is not expected to be
material to the economics of the project.
Leach Test Work
Cyanidation tests were carried out on whole-rock mineralized material, at differing grind sizes, and on the
flotation concentrate described above , via 48-hour bottle roll test work. The whole rock tests were
conducted at 60% and 80% passing 200 mesh with recoveries of 70% and 83% respectively and moderate
cyanide consumptions of 2.14 and 2.23 kg/t respectively. Leach kinetics are good with leaching effectively
complete within 24 hours.
Best leach results were gained from leach tests on flotation concentrates returning optimum leach times
of 24 hours and recoveries of 87% extraction (Table 1). Finer grinding of the concentrate does not
appreciably increase the leach recovery.
Table 1 Leach results of gold concentrates from the Rozino deposit
Extraction 87.48%
Consumption of Na CN 3.1 kg/t
Added NaCN 7.3 kg/t
Consumption of NaOH 5.0 kg/t
Bulk Sample Composition
Head grade analyses of the bulk sample concurs with previous gold assay results:
Table 2 Feed analysis of the 130kg bulk sample used for metallurgical test work
Bulk
Sample
Average
Head
Grade
Gold Sulphur Carbon Silver Copper Arsenic Lead Antimony Zinc
(g/t) (%) (%) (g/t) (ppm) (ppm) (ppm) (ppm) (ppm)
1.28 0.42 1.20 2.0 48 125 28 <5 74
Mineralogical analysis of the bulk sample using X-Ray Diffraction (XRD) confirmed a very straightforward
Low Sul phidation Epithermal style of mineralization as outlined in Table 3 . Positive aspects include
extremely low sulphide contents, low carbon contents and negligible deleterious elements. The very low
carbon content will avoid any negative impact on gold recoveries through pregnant solution robbing
during cyanide leaching. The very low sulphide content together with very high recoveries of the sulphides
(>98%) results in a low mass pull concentrate (<5%) and leaves a waste tailings product that is
environmentally benign.
NR18-15 Continued August 29, 2018
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Table 3 Mineralogical composition determined by XRD
Mineralogy Weight %
Quartz 61
Mica 18
Potassium Feldspar 11
Carbonate 9
Pyrite <1
All of the gravity and flotation test work was carried out on a 130kg bulk sample assembled from all of the
significant drill intercepts from the 2107 and 2018 drill programs. The sample was carefully prepared with
material from more than 1,600 core samples.
Velocity has greatly improved on the results of historical metallurgical test work carried out by previous
operators at Rozino. In part this improvement can be attributed to the quality of the bulk sample
assembled by Velocity and the extent to which it is representative of the deposit.
Gravity Test Work
Gravity test work demonstrated that no significant free gold is being lost and the test work did not improve
upon the overall results, even when integrated with the flotation test work. As a result, the gravity option
will most likely not be considered in the upcoming PEA.
Ball Mill Work Index
Initial Bond Ball Mill Work Index (“BWI”) determination was carried out on whole drill core and returned
a calculated value of 14.52. This work is preliminary in nature and further work including SAG mill test
work is required, but the results are sufficient for the initial ball mill design to be incorporated in the PEA.
The BWI results are included in Table 4. Preliminary BWI test work was carried out on whole core taken
from representative intercepts.
Table 4 Initial Bond Work Index results for the Rozino mineralization
D80 particle
size of the
feed
d80 particle
size of the end
product
End product
specific mass WG* WI**
(mm) (mm) (g/rev) (kWh/g) (kWh/t)
1.80 0.095 1.87 5.72 x 10-3 14.52
* WG -– Energy consumption per g end product
** WI -– Bond Work Index
Details of Flotation Test Work Results
Fifteen variations of flotation test work were carried out, including two lock cycle tests using a variety of
differing grind sizes and reagents and the results are included in Table 5.
The locked cycle test work was carried out on a coarser grind fraction than most of the other tests and
returned an average recovery of 91% within a concentrate grading 30 g/t using standard flotation
methodology and relatively low-cost reagents. Finer secondary grinding of the concentrate did not result
in significant improvement in recoveries indicating that there is no cost benefit to producing higher grade
concentrates using finer grind processes.
NR18-15 Continued August 29, 2018
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Owing to the efficient recovery and low starting concentrations of pyrite the mas s pull is less than 5%
resulting in a low-volume concentrate with high gold recoveries.
Table 5 Summary of flotation test work on the Rozino bulk metallurgical sample
Test
Grind
% -75
micron
Reagents Recoveries
Na2CO3
(g/t)
KIBK
(g/t)
Aero
242
(g/t)
BM
(g/t)
Au
(g/t)
Au
(%)
1 80 850 25 25 100 23.35 89.17
2 50/80 850 50 * 10 27.71 85.10
3 90 850 25 25 50 17.0 88.19
4 50 850 25 25 25 19.80 60.65
5 Ex grav
2 850 25 25 25 37.50 53.75
6 80 850 25 25 50 16.37 87.67
7 70 850 25 25 50 21.93 87.81
8 80 850 75 0 50 35.49 86.24
9 80 850 25 25 50 22.20 85.98
10 80 850 KXK
100 0 25 21.96 80.37
11
LCT# 70 850 25 25 25 36.40 90.66
12
LCT# 70 850 75 0 50 24.10 91.45
13 60 850 50 50 50 24.15 82.84
14 70 250 50 50 75 18.96 88.03
15 70 0 0 50 75 24.49 86.14
*NaHS and CuSO4 to mill.
# LCT Locked Cycle Tests
Quality Assurance / Quality Control
The metallurgical work program at Rozino was designed and is supervised by Len Holland B.Sc., C.Eng.,
FIMMM., FMES , an independent consulting metallur gist who is responsible for all aspects of the
metallurgical test work, including the quality control/quality assurance program.
The flotation, gravity and leach test work, together with gold deportment, mineralogical and laser sizing
studies were carried out by Eurotest Control EAD, Bulgaria on a homogenized bulk sample that was
assembled through splitting of 1,632 coarse reject s amples. The sample splitting was carried out by
Velocity’s staff using Jones splitters in accordance with best international practice. The bulk sample was
subsequently homogenized by Eurotest according to the Australian Standard – AS 3988 -91 - Sample
Preparation for the Determination of Gold, before being divided into 1kg aliquots using a rotary splitter.
Eurotest conducted homogenization tests including Fischer dispersion analysis and 50 chemical analyses
NR18-15 Continued August 29, 2018
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in order to ensure that each metallurgical sample was representative of the combined mineralized
intervals from Rozino.
The Eurotest Control laboratory is certified by LRQA to ISO 9001. The company also holds a certificate of
accreditation as a testing laboratory pursuant to BDS EN ISO 17025. Analyses of materials less than 5g/t
gold were carried out by ICP-OES on Aqua Regia digest. Samples containing more than 5 g/t were analyzed
by 30g Fire Assay using an AAS finish. Specialist determinations were carried out in accordance with best
international practice, e.g. Sulphur was determined by the LECO technique. Comminution studies were
carried out by Eurote st and the University of Mining and Geology in Sofia. The preliminary BWI
determination was carried out on a 22.5kg sample of whole drill core selected to be representative of
typical mineralization from the Rozino deposit.
Qualified Person
The technical content of this release has been approved for disclosure by Len Holland, a Qualified Person
as defined by National Instrument 43-101. Mr. Holland is independent of the Company.
About the Rozino Gold Project
Velocity has been exploring and drilling at Rozino since August 2017, publishing a maiden Inferred Mineral
Resource Estimate in Q1 2018; 17Mt @ 1.15g/t gold for 629,000 ounces at 0.5g/t cut-off grade with 8.2Mt
@ 1.68g/t gold for 443,000 ounces at 0.8g/t cut-off grade. Approximately 90% of estimated resources at
depths of less than 110m from surface and less than 1% below 150m from surface. Mineralization remains
open for expansion. The Company has completed the 2018 drill program with a view to publishing an
updated mineral resource e stimate and PEA before year end. On completion of the PEA, the Company
will exercise its option for a 70% interest in the project and will move forward in joint venture with its
Bulgarian partner.
About Velocity Minerals Ltd.
Velocity is a gold explorati on and development company focused on eastern Europe. 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 m ining 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:
NR18-15 Continued August 29, 2018
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Keith Henderson
Phone: +1-604-484-1233
E-mail: [email protected]
Web: www.velocityminerals.com
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“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 Tintyava
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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
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