Velocity Receives Positive Near-Surface Drill Results and Expands Mineralized Envelope at Rozino, Bulgaria Highlights include 29.7m from surface grading 1.17g/t gold
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NR-19-01 January 8, 2019
Velocity Receives Positive Near-Surface Drill Results
and Expands Mineralized Envelope at Rozino, Bulgaria
Highlights include 29.7m from surface grading 1.17g/t gold
Vancouver, British Columbia – Velocity Minerals Ltd . ( TSXV: VLC) (“ Velocity” or the “ Company”)
announces that it has received positive drill results from the Rozino gold project (“ Rozino”), located in
Bulgaria. Highlights include 29.7m from surface grading 1.17g/t gold. Mineralization remains open.
Detailed Results
Drill holes RDD-057 to RDD-061, collared outside of the Preliminary Economic Assessment (“PEA”)
(September 2018) base case open pit design, and all returned gold intersections . The addition of near-
surface gold intersections in several drill holes potentially expands the mineralized envelope at Rozino
and is of additional importance as the mineralized drill intersection s correspond closely with
mineralization intersected in recent surface trenching at Rozino. Results have been received for 6 drill
holes (Table 1).
Trench RTR-003 (previous news release November 20, 2018) intersected mineralization over much of its
93m length, including 35m grading 0.63g/t gold. Drill holes RDD -058 to RDD -061 (Figures 1 and 2)
followed up on this trench and results are positive with drill holes gen erally intersecting mineralization
from surface to top of basement. The correlation between surface trench results and mineralization at
depth can be clearly seen on the cross section (Figure 1). This mineralization remains open to the south
and will require further drill testing in the future.
Figure 1: Cross-section showing drill intersections testing Trench RTR-003 at depth.
NR-19-01 Continued January 8, 2019
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“A key objective of the drill program is potential expansion of the resource base at Rozino and the drill
holes located peripheral to the PEA open pit outline have delivered gold intersections,” stated Keith
Henderson, Velocity’s President & CEO. “Drill results presented here are the first received since publishing
our positive PEA in October. We believe that the project has strong growth potential and drill targets aim
to expand mineralization beyond the existing resources.”
Table 1: Highlights from drill holes RDD-057 to RDD-062
Drill hole From (m) To (m) Thickness
(m)^
Gold (g/t)
RDD-057 1.4 4.4 3.0 1.03
and 131.0 146.0 15.0 1.16
RDD-058 1.8 41.0 39.2 0.61
including 1.8 17.0 16.2 1.0
RDD-059 1.0 30.7 29.7 1.17
RDD-060 13.0 20.4 7.4 0.55
RDD-061 0.8 16.2 15.4 0.56
including 9.6 14.2 4.6 1.01
RDD-062 1.0 32.0 31.0 0.51
105.0 114.0 9.0 0.56
^ The drill intersections disclosed here have not yet been included in a resource model and true thickness of
mineralization has not yet been determined. Drill holes are designed to intersect mineralization perpendicular or
close to perpendicular.
Figure 2: Map showing results for all Velocity drill holes and locations of drill holes for which
results are pending. Gridded background shows gold-in-soil anomalies.
NR-19-01 Continued January 8, 2019
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Quality Assurance / Quality Control
The work program at Rozino 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 used for the results described
herein are 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
added to every batch. Drill intersections in this news release are calculated using a 0.2 g/t gold trigger, a
minimum 0.5 g/t gold composite, and a maximum of 3 meters consecutive waste.
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 National Instrument 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 eastern Europe. The Company
envisions staged open pit mining of satellite deposits and processing in a central, currently operating CIL
plant. The Company’s management and board includes mi ning 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 Rozino
The Rozino project is one of seven exploration projects located within an Exploration and Mining Alliance
with Bulgarian operating partner Gorubso -Kardzhali AD. Velocity began exploring and drilling at Rozino
in August 2017 and completed a Preliminary Economic Assessment in September 2018. The PEA provides
a base case assessment of developing Rozino by open pit mining and on-site crushing, milling and simple
flotation to produce a 30 g/t gold concentrate. The concentrate would then be trucked 85km on existing
roads to the currently operating CIL plant where saleable g old doré would be produced. Mineralization
remains open for expansion. Having delivered the PEA, the Company has exercised its option for a 70%
interest in the project and will move forward in joint venture with Gorubso-Kardzhali AD.
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 o f 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
NR-19-01 Continued January 8, 2019
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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 limite d to, statements with respect to: future exploration and
testing carried out on the Tintyava 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”, “scheduled”, “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 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 mineral exploration and development and mine development activities for
the Tintyava property, including the geological mapping, prospecting and sampling programs for the projects, the
fact that the Company’s interests in the Tintyava 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 mineral resources, the timing and amount of estimated future productio n, 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, 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, enviro nmental 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 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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